Evercore ISI's David Palmer Thinks Darden Restaurants Is Well-Positioned For The Reopening

Labor is a bigger issue than masks, but Darden Restaurants Inc DRI is fully staffed and ready for the reopening, Evercore ISI senior managing director David Palmer said Tuesday on CNBC's "Squawk On The Street."

Darden Restaurants is a very good option for a reopening play as the company operates "top preference" chains, he said. 

If Palmer had to choose one stock to buy right now, it would be Darden Restaurants, he told CNBC.

The company has the most earnings upside as a result of the reopening, Palmer said.

Inflation will be an issue down the road, but short-term, the reopening benefit on the top line will help the bottom line, leading to the upside for investors, he said.

The Darden family of restaurants includes recognizable brands such as Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House and Eddie V's. The company operates more than 1,800 restaurant locations across North America. 

DRI Price Action: Darden Restaurants traded as high as $149.73 and as low as $65.35 over a 52-week period.

At last check Tuesday, the stock was up 0.38% at $139.64.

(Photo courtesy of Darden Restaurants.)

 

 

Posted In: CNBCDavid PalmerEvercore ISISquawk on the StreetLong IdeasRestaurantsMediaTrading IdeasGeneral