Cramer’s Restaurant Stock - Darden
Jim Cramer told viewers that it’s time to look at restaurant stocks now that oil prices have pulled back significantly. Specifically, Cramer thinks investors should buy Darden Restaurants (DRI). He feels that the restaurant stocks like Darden are set to report earnings surprises due to lower commodity prices. Cramer said he likes Darden because of falling raw costs, cheaper gas prices and for their price increases. He explained that Darden has done a great job of managing its food costs, which are set to rise by only 2% this year - despite the fact that the cost of tomatoes are up 19%, wheat is up 37%, cheese is up 23% and potatoes are up 240%. Cramer also likes the stock for its 2.6% dividend yield and their big buyback program. Chat and share ideas with the best small cap traders LIVE each day free at Stocknetworkonline.com



September 11th, 2008 at 9:36 am
Darden does have a great record in financials, as well as staying relevant in the market place. They have a business model that is positioned well for the trying times we’ve experienced so far and the ones yet to come.
September 11th, 2008 at 4:44 pm
Retail is a buy, but it will take some nerve. We have some more pain to digest. How only retail holding right now is Sears and it is even popping.
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