Is Darden Restaurants a Solid Long Term Investment Plan?

Darden Restaurants

It is never too late to invest, and one of the promising fields to make a fortune in this age is the financial trading sector. The trading sector is punctuated by several companies that have their securities on sale, and you can buy several to start you off. You can later sell them at a profit should the respective company’s value appreciate. Among the companies you can set your eyes on is Darden Restaurants, an American multi-brand restaurant with its headquarters in Orlando as from its Wikipedia page. As a potential investor, you need to ask whether this company presents you with a solid long term investment plan. To get to the root of the question and get a proper answer, we will first take a look at its history.

Darden Restaurants History

The history of this restaurant brand goes way back to 1938, when William Darden opened his first restaurant when he was only 19. The name of the dining hub was the Green Fog, which he set up in his hometown of Waycross in Georgia. As the entity grew tremendously, he also established the Red Lobster Inn to experiment with seafood in non-coastal areas. The place was in Lakeland Florida. The experiment bore results and had a good reception from both diners and food critics. By the 1970s, the Red Lobster brand was very successful and had spread to three more locations in Florida, with two more coming up. Financial constraints came in the way of expansion, and it compelled him to make an acquisition deal with General Mills.

The acquisition by General Mills made the franchise approach a less- technical and family-oriented path towards dining. The good thing is that it led to massive expansion with other acquisitions in the way, leading to diversification. In 1995, the company made a spinoff in its products chain and introduced Darden Restaurants, to focus more on food products for the growing consumer base. At the moment, the company is one of the largest food franchises in the world when looking at the number of outlets and employee-base. The figure stands at 1500 locations and over 180000 employees as from Fortune.

Long Term Investment With The Company

So should you bank on Darden Restaurants for a long term investment plan, and is it reliable? Let us look at some guiding factors that will give you a definite bearing on how to go with your funds with this company’s instruments being the point of focus.

• Current Standing In The Stock Market

One of the essential aspects to look at when venturing into the financial trading markets is the current standing of the company. Here, you look at its current stock prices and get a proper hint of how it will fare when looking at the distant future as it is a long term investment plan. At the moment, the company’s stocks have been falling from a trading value of 118 units down to 78, as you can see from Darden’s official website.

The massive deep came at the end of February, and fundamental analytics point to the recent economic slump that is affecting a lot of sectors. The oil price drop and also the Corona Virus outbreak might be key pointers to this unfavorable market condition. However, after careful analysis, you will discover that Darden has a history of stability, and even in the dipped stock prices; the element of stability is distinguishable. For a long term investment stint, it is an excellent company to set your eyes on as you are sure that the prices will rise in the future and usher it into a bull run.

• The Company’s Reputation

The company’s reputation in financial circles is another factor to look at if you have an interest in trading on its stock. At the moment, it has a solid reputation as one of the biggest restaurant chains in the world, and it continues growing in the number of locations it is present in. With such a good reputation, several investors get interested, and they provide a much-needed market base. The vibrant market-base offers a ready channel for you if you want to sell or purchase more stocks. It also gives an opportunity of players such as brokers to get into its market. Still looking at its name, it has been a standard feature in Fortune 500 rankings for an impressive 23 years.

• The Competitor Factor

The competitor factor needs to be a vital aspect of your fundamental analysis when it comes to a company’s stocks. The dining sector in the United States of America is very vibrant, with a lot of players claiming their share in it. While this restaurant franchise has many competitors, it has specialized in its unique niche and edges out its competition with a substantial trailing factor.

• Projected Growth

Also, factor in the projected growth of the company in the years that you have in mind for your long term investment stint. One thing to keep in mind with Darden Restaurants is that for years it has registered tremendous growth, and it won’t stop the process anytime soon. There are plans to venture into other markets outside of the Americas. This gives you a proper idea of how expanded it will be in the years you put into the long term investment’s time factor.

Final Remark

Investment is one of the sure ways to amplify your funds in hand. A suitable front for investments is in the financial market, where you explore several companies to buy securities from. Among the companies to look at when a long term investment stint is your target is Darden Restaurants. It is a large dining franchise based in Orlando and takes pride in being one of the largest restaurant brands worldwide. Above are some of the factors to look at if you want to trade on the company’s securities. Despite the dwindling stock prices experienced lately, the company shows a feat of stability, which is a key factor in a long term investment plan.


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