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Olive Garden Owner Darden Still Lacks Bullish Ingredients

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During Tuesday’s Mad Money program host Jim Cramer told viewers that among the restaurants, he recommended Darden Restaurants Inc. (DRI) and Chipotle Mexican Grill (CMG) as big winners.

When we looked at the charts of DRI on Sept. 22 ahead of earnings, we wrote that “I find it a challenge to arrive at a clear strategy when the price action is pointed up (higher targets from the Point and Figure charts), but the On-Balance-Volume line has rolled over… with the indicators mixed I would take a neutral stand for now.”

Let’s check out DRI again.

In this daily Japanese candlestick chart of DRI, below, we can see some recent upper shadows above $105. Trading volume has declined recently and the On-Balance-Volume (OBV) line has turned a little lower suggesting a shift toward more aggressive selling.

The Moving Average Convergence Divergence (MACD) oscillator is close to a bearish crossover. 

  

 

In the

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Olive Garden’s parent Darden accused of discrimination over tipping policies

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Olive Garden’s parent company, Darden Restaurants, Inc., has been accused of violating the Civil Rights Act of 1964 with its tipping policies, according to recent reports.

On Tuesday, nonprofit group One Fair Wage filed a federal complaint against Darden, saying that since its tipped workers are paid less than minimum wage, they are subject to sexual harassment, bias and ultimately pay discrimination, The Washington Post reported.

Darden — one of the largest restaurant companies in the country — told FOX Business in a statement that the “allegations are baseless.”

“Darden is a values-based company built on a culture of integrity and fairness, respect and caring, and a longstanding commitment to diversity and inclusion,” the statement said.

DOORDASH ACCUSED OF MISLABELING NON-PARTNER RESTAURANTS AS TOO FAR, CLOSED: LAWSUIT

Though One Fair Wage filed an Equal Employment Opportunity Commission

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Darden stock jumps as Olive Garden parent cuts executive pay, to-go sales skyrocket

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A customer arrives at a Darden Restaurants Inc. Olive Garden location in San Antonio, Texas, U.S., on Thursday, June 14, 2018.

Callaghan O’Hare | Bloomberg | Getty Images

Darden Restaurants said Tuesday that it is furloughing some restaurant support center employees and slashing executive pay as same-store sales plummet 39% so far in the fiscal fourth quarter.

Shares of the restaurant company rose 13% in trading. The stock, which has a market value of $7.1 billion, has dropped 45% so far in 2020.

In the week ended Sunday, Darden’s same-store sales fell 71% across all of its chains, which include Olive Garden, LongHorn Steakhouse and Cheddar’s Scratch Kitchen.

Olive Garden’s same-store sales have declined 34.5% so far in the fourth quarter, as of Sunday. Same-store sales at LongHorn steakhouse have fallen 36.4% in the same time period. But both chains are seeing significant spikes in to-go sales per restaurant. Olive

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Cracker Barrel, Olive Garden Parent Darden Stop Dividends

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Photograph by Luke Sharrett/Bloomberg

Restaurants have been hit hard by the coronavirus pandemic as sit-down business falls off sharply, and dividend suspensions are starting to occur.

Texas Roadhouse
(Ticker: TXRH) said Wednesday that it was suspending quarterly dividends “to better manage its cash position” due to the uncertainty created by the pandemic.

The company primarily operates casual, moderately priced restaurants whose menus feature steak, chicken, seafood and other offerings.

In February, the company’s board declared a quarterly dividend of 36 cents a share that’s payable Friday, after which the dividend is suspended.

The stock was recently down about 20% this month, trailing the S&P’s performance of minus 16%.

Another restaurant operator,
Cracker Barrel Old Country Store
(CBRL), said Wednesday that it was deferring a previously declared dividend and suspending its regular dividend program. It cited uncertainties as to the duration and economic impact of the pandemic.

The stock

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