Darden faces risks from rising costs (commodities, labor, healthcare, utilities), economic downturns, staffing challenges, increased labor and insurance costs, food safety issues, technology failures, regulatory changes, intense competition, changing consumer preferences, and the successful integration of acquisitions (like Chuy's). Climate change, lease issues, vendor disruptions, and potential impairment of assets are also noted. Market volatility in derivatives, equity markets, and tax laws are additional concerns.
Financial Upside
Darden anticipates sales growth of 1-2% in fiscal 2025, driven by new restaurant openings (45-50). The company plans to acquire Chuy's, and has a new delivery partnership with Uber. Increased sales and a decrease in costs are also mentioned as potential positive factors. The company's liquidity is expected to be sufficient to cover capital expenditures and debt maturities.
