Restaurant Chain Buys Back Shares Before Announcing Exclusive Delivery Deal with Uber
- Darden Restaurants increased its stock repurchases near the end of August as shares were on the rise.
- The company reached an exclusive multiyear partnership with Uber for food delivery from Olive Garden starting later this year.
- Darden paid lower prices for its stock before announcing the Uber deal, making those purchases look like bargains now.
- In the fiscal first quarter, Darden repurchased 1.2 million shares for $172 million.
- The average price of stock repurchases in the quarter was $146.38 per share.
- Darden had $743 million remaining under its current stock-repurchase authorization.
Darden Restaurants increased its stock repurchases near the end of August as shares were on the rise. The company later announced an exclusive multiyear partnership with Uber for food delivery from Olive Garden, starting later this year. Darden paid lower prices for its stock before the deal was unveiled, making those purchases look like bargains now. In the fiscal first quarter, Darden repurchased 1.2 million shares for $172 million. The average price of stock repurchases in the quarter was $146.38 per share. With the Uber partnership, Darden’s stock has seen an 8.3% gain since the announcement. Despite missing estimates for its fiscal first-quarter results, investors are optimistic about the potential growth from the delivery service.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Darden Restaurants’ stock repurchases and its partnership with Uber Technologies. It includes relevant details about the company’s financial performance and quotes from executives regarding their decisions and strategies. The information is based on SEC filings and an earnings call, indicating a well-researched and factual report.
Noise Level: 6
Noise Justification: The article provides relevant information about Darden Restaurants’ stock repurchases and its partnership with Uber Technologies, but it lacks in-depth analysis and fails to explore the long-term implications of this deal. It also does not hold powerful people accountable or provide actionable insights for readers.
Public Companies: Darden Restaurants (DRI), Uber Technologies (UBER)
Key People: Rick Cardenas (President and CEO), Raj Vennam (Chief Financial Officer)
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses Darden Restaurants’ stock repurchases, its financial performance, and the impact of a partnership with Uber Technologies on its shares. This information is relevant to financial topics and has an effect on the company’s market value.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
Move Size: The market move size mentioned in this article is an 8.3% gain in Darden’s stock price after the announcement of the exclusive multiyear partnership for Uber to deliver food from Darden brands, ending the day at $172.27.
Sector: All
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks
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