- Stock for Dardin Restaurantsand Who owns Olive Garden and Longhorn’s Steakhouse, approached the highest level in 52 weeks on Thursday. Investors were able to consider a quarter of a fading because the company said it was not affected by declines in consumer confidence.
How do you gain a group of restaurants that depend on the estimated income of customers with a simple gathering of shares during a period of low confidence in consumer? By showing Wall Street that although consumers may be concerned, they are still hungry.
Darden restaurantsThe parent company of popular chains such as Olive Garden and Longhorn Steakouse witnessed that its shares are 7 % on Thursday after executive officials said during its profits in the third quarter, which has so far been immune to consumer concerns. Any concerns about the imminent economic shrinkage did not prevent customers from going out to eat.
“Even if people say they feel less optimistic, we have not seen a great relationship between that and eating,” said Rick Cardinas, CEO of Darden during the profit call. “So the changes in consumer morale have not necessarily translated into material changes in the consumer.”
In fact, Cardinas said he expected eating to be relatively resistant to any economic concern.
“Eating is the first category that people treat themselves and boasts,” he said.
Investors were so happy that Darden predicted that consumers would continue to spend in their restaurants to the point that they neglected a quarter of that. Failure Wall Street growth forecast. In all its brands, Darden has grown the same store’s sales by 0.7 %, when investors expected to grow by 1.7 %. Darden’s revenue for a quarter increased by 6.2 % to the total 3.2 billion dollars. Most of this growth came against the background of his acquisition of Chuy’s, which is the TEX-MEX series that is based in Austin.
However, it was the bright Darden expectations that paid the arrow on Thursday, which was at some point throughout the day only 15 cents of a height of 52 weeks. The company said next quarter that it expects the store sales to grow by 3 %. Darden Cfo Raj Veenam said the company does not expect its operating margin to grow “financially” along with the sales of the stores itself.
Darden refused to provide further comment on luck.
Darden’s executives said they prefer to monitor inflation levels instead of consumer confidence. For Cardin, the priority was that the income continued to inflation, according to Cardinas. If the rate of inflation and basic commodities such as grocery stores, gas and housing decreases, people will have more money for things like endless pasta and meat slices.
“It gives people a little more income, and they may choose to spend on eating abroad for good,” Cardinas said.
This story was originally shown on Fortune.com
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