Darden's acquisition of Ruth Hospitality boosts exposure - Bernstein

Ruth's Hospitality

16/05/2023 19:07

** Shares of Darden Restaurants Inc  DRI.N  up ~1% at
$153.35
    ** Brokerage Bernstein lifts price target on DRI to $180
from $165 after co's deal to buy out Chris Steakhouse parent
Ruth's Hospitality Group for about $715 mln
    ** The acquisition enables Darden to further balance its
portfolio of complementary brands which comprises of fine-dine
and casual dining, especially within the full service restaurant
space like steakhouses, says Bernstein
    ** Brokerage expects DRI's increased exposure to fine dining
offers an opportunity to gain when the economy is strong, while
its value brands like Cheddars and Olive Garden should continue
to protect Darden's earnings during down cycles
    ** Bernstein adds, primary reasons behind Darden's strong
attraction for long-term investor resides in its brand
management and diverse portfolio of brands
    ** 20 of 29 brokerages rate the stock "buy" or higher and
nine "hold"; their median PT is $165
    ** Stock has risen 10.7% in 2023

 (Reporting by Anne Florentyna Gnanaraja Sekar in Bengaluru)
 ((AnneFlorentyna.GnanarajaSekar@thomsonreuters.com;))