Mar 22, 2019|
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
We wanna hear from you. Thanks Steward diaries 263566. And let us know what you think about the stories we discussed. You're due to the financial exchange radio network. Paula Monica from CNN business joins us now on the line here talk about. Dorgan restaurants Paul thanks for joining us. Also like most stocks darden's been on a nice run to start the year ago for about a hundred bucks a share up 2117. What's interesting is that the the five year track on this company if for company that people once thought you had some questions about looks pretty good as well the stocks more than doubled in the last five years. What's what are they hitting on. Yeah doctors are even today with that between now currently more than three if it yeah. Darden as we saw in there yesterday. You know it's been beating term success story. Particularly at olive garden a cheap app one we use the you know heeded for awhile particularly by you know chip Smith the starboard. I feature men who went. You on a blistering attack against the company your predicted that. Almost legendary Wall Street circles. Yes like children yup and with all these you know culinary in that they paid to so off. Brad. In all of the pot of water. Yeah it's static and okay at the time that investors took it seriously in. Starboard wanna when he proxy fight. Yeah yeah I just meant become the chairman. Clarence noticed that down you know in the you know which he was proud of you let takeover. He has really done the job of right back out there over the past couple years. So do you think I know that one of the other things that you've seen Darden doing is they've been also BO expanding a lot of their other brands as well. You know making big push is another yard house is gone through a bunch of expansion recently. Cal or take out longhorn steak just execs are out there or our what's what's the big deal Agassi you know longhorns kind of interesting from that perspective because DOT it fills a niche where there there's some competition there but it doesn't seem like there's a ton that news directly focused on that exact price point seems like the kind of the only player in that exact space. Yeah I think that that the company has done that we both Baumgarten long we're use more. Are not ever gonna confuse these guys with fine dining but that's OK it's more upscale. Then what you would get your typical that casual chain or what you don't get from. You know estimate the you know the restaurants like that you know TGI Friday's or not. You know at chili's or something that you know it worked on that actual. I think he's our game differently restaurant that happened to workable price point but not so cheap. That they're going to look like they are having inferior food and also that they're gonna kill a proper part that really picked bigamy. Yet by embracing the price point on and those that. You never ending pop the deal as he is being me on there now profitable for the company and that's really been. Something that I think Nordstrom. Emulate what it all their other shape now the big question is going to be. Can fix that chatter scratch kitchen which is that you know and other brand that they bought a couple of years ago from the audience to billion dollars that the deal struck. Here's another question that I have for you when when I look at their portfolio the one name that really tennis sticks out and doesn't fit is capital grille which I think they bought back in either 07 or await somewhere in that ballpark. And they don't seed and expanding it as aggressively and B obviously it's a completely different price point that any of their other. Any of their other real brands that they have is that something they might consider either spinning off for selling to someone. I think he probably the week too small for it to be. On off I would imagine right my guess is that. As long as the company is doing well. There's not gonna be how. Heck of a lot of pressure on them to you'll make a change and also do not just the overall Darden company that capital grille is. Doing extremely well also mean bear teamster sales were it was four point 3% late squeeze the even olive garden so. You know if if anything it you know on the re taught at our house. Chatters Scott kitchen that they you know the one that they acquired I was the one they need to fix. I don't think there's going to be a heck of a lot of pressure. From our shareholders itself capital grille all for all companies are struggling and that's probably not happening to the point where do you start without. Jeff Smith is no longer maturities focusing on pop a job in. Some author you know companies that are activist investment in doubt. You know this is one company that you know there are happy to just like gene we one it as it and he's done a great job over five years so. I don't think there's going to be any shareholder pressure to do anything drastic. Very good Paul what you go have a great weekend we'll talk to you soon. Right now. I'm sorry. I interrupted poll Monica per CNN business talk about Darden Restaurants. I look at the names that lists all garden longhorn steakhouse kind of makes jokes about them but on the other hand I really do enjoy the art house I would just don't send them house is phenomenal C really there are two very good restaurant in my opinion and I just like the bureau yard are simply to massive selection Yemen then but I had a the sandwich from there but it was a pork belly sandwich was phenomenal as a while I was shocked that they've done a good job kind of identifying. Mainly that middle market area and and I think differentiating themselves from the very much lower and types of brands that are out there. And look all of guard I know that you know I personally like to give them a lot of crap because they say look they're not real Italian food which I think people do not understand that though but they they they fill a niche in and I think that again they. For the price that you are paying. If they put a good product on the table for that price it's not somewhere I would like to go look at my family is Italian and I'm. I just don't I can't do that yeah but I get what they're trying to do there. And obviously it's been paying off it it it makes a ton of sense and they've been making a boatload of money do when it. Mine's pretty cheap got a Callaspo. There you go about markets continuing to falter today the Dow now off 375. Points S&P and NASDAQ down as well. We're done for the day enjoy the weekend and we are back at it on Monday.