27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Restaurant operator Darden Restaurants, Inc. (NYSE:DRI) continues to benefit from "significant" economies of scale and buying power, but a projection of softer customer traffic, weaker comps and cost pressures has led Argus to drop its bullish stance.
The Darden Restaurants Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
John Staszak downgraded Darden Restaurants stock rating from Buy to Hold with no price target.
The Darden Restaurants Thesis
Darden reported a 5-cent EPS beat in its fiscal second quarter at $1.12, while revenue growth of 4.2% to $2.06 billion matched estimates, Staszak said in a Friday downgrade note. (See his track record here.)
Yet blended same-store sales across all brands slowed from 2.9% last year to 2%, although this did mark the 21st consecutive quarter of positive growth, the analyst said.
While there is reason to be concerned with softer customer traffic, a return to a bullish rating is possible if trends improve more than expected, he said.
A bullish stance would also be justified if the company's cost pressures moderate, Staszak said.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
In addition, Darden will likely face higher labor and health care-related costs for the full fiscal year 2020, the analyst said.
Argus is reducing its 2020 EPS estimate from $6.50 to $6.40 and moving the 2021 estimate lower from $7.30 to $7.10 per share.
Darden remains among the best-managed casual dining companies, Staszak said.
Over the long-term, a combination of share buybacks, unit expansion and other factors will yield EPS growth, the analyst said.
Darden Restaurants Price Action
The stock was trading down 0.49% at $108.35 at the time of publication.
Related Links:
Goldman Digests Casual Dining Restaurant Stocks, Serves Up 2 Buys And 2 Sells
Which Restaurant Stocks Is RBC Hungry For?
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.