Darden Up on JPMorgan Upgrade, Strong Cash Position

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Darden Up on JPMorgan Upgrade, Strong Cash Position
Credit: © Reuters.

By Christiana Sciaudone

Investing.com --  Looks like unlimited breadsticks do the trick. Darden Restaurants (NYSE: DRI ) rose 4.4% on Monday after JPMorgan (NYSE: JPM ) upgraded it to overweight from neutral. 

Darden’s operating income on 95% of its previous average unit volume (AUV) is rare in the restaurant industry, Seeking Alpha said, citing JPMorgan. Darden, which operates Olive Garden and other restaurants, has also taken advantage of the pandemic to restructure its menus and operations, while the “worst of the crisis” is behind the company. Darden also has a strong cash position.

Shares have doubled since hitting a 2020 low in March, and are down 31% from the start of the year.

Darden has 17 buy ratings, eight holds and no sells, according to data compiled by Investing.com, with an average price target of $85.63. JPMorgan set its price target at $82.  

 

 

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