- Stock for Darden restaurants, Olive Garden and Longhorn’s steak resume, approached the 52-week height on Thursday. Investors were able to look at the past of an unusual quarter because the company said that there were no decline in consumers’ trust.
A restaurant who rely on customers’ arbitrarily gives a small stock rally during the decline in consumer confidence? Although consumers can be concerned, they are still hungry by showing Wall Street.
Popular restaurants, the main company of popular chains such as Olive Garden and Longhorn Steakhouse, the presenters have set the fear of consumer so far during the third quarter earnings. Any concern about the approaching economic crisis did not stop the customers without going to eat.
“Although people say they feel less optimistic, we did not see a great connection between this and food,” he said. “Thus, changes in consumer change were not transcribed to the material changes in consumer expenses.”
In fact, Cardenas said he expects to be sustainable than any economic concern.
“The food is a category that people treat themselves and the collapse,” he said.
Investors were very pleased with the forecast of the Darden because they were in a quarter in restaurants where consumers spend their restaurants Could not see Wall Street’s growth expectations. Among all the brands, Darden’s same store sales increased by 0.7%, when investors expect 1.7% increase by 0.7%. The revenue for Darden’s quarter was 6.2% for $ 3.2 billion. The majority of this growth was behind the purchase of Chuy, Austin-based text chain.
However, Darden, who strengthened shares on Thursday, was a bright forecast, which was only 15 kopecks throughout the day. The company said he expected the sale of the same store to increase by 3% in the next quarter. Darden CFO Raj Veenam did not expect the company’s operating margin to increase the same store sales.
Darden refused to comment on additional Luck.
Darden leaders said they prefer to focus on the level of inflation than consumer confidence. According to Darden, according to Cardenas, the income was the priority of revenues to continue inflation. If the inflation rate is low and the necessary goods are low and necessary goods, such as the cost of grocery, gas and housing, then people will receive more money for things like endless pasta and t-bone steaks.
“It gives people a little more used income and they are able to choose to spend a good purchase and sale,” Cardenas said.
This story was first displayed on Fortune.com
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