Group 1 - Darling Ingredients is a volatile company that combines three separate businesses into one, presenting unique investment opportunities [1] - The management emphasizes the company's focus on cash flow and growth prospects, particularly in the oil and natural gas sector [1] - Crude Value Insights provides an investing service that includes a stock model account and in-depth cash flow analyses of exploration and production firms [2]

Summary of Darling Ingredients Inc. Conference Call Company and Industry - **Company**: Darling Ingredients Inc. - **Industry**: Collagen and Gelatin Production, Health and Wellness Sector Key Points and Arguments 1. **Joint Venture Announcement**: Darling Ingredients announced a nonbinding term sheet with the Centrelo Group to form a new joint venture called NexTita, with Darling holding an 85% stake and Centrelo holding 15% [4][5][21] 2. **Revenue Expectations**: The new company is projected to generate annual revenue of approximately $1.5 billion, with significant growth potential and attractive margins [5][21] 3. **Production Capacity**: NexTita will have gelatin and collagen production capacity of around 200,000 metric tons annually across 23 facilities in nine countries [5][6] 4. **Market Position**: The joint venture aims to create a leading company in the collagen-based health, wellness, and nutrition market, which is still in its early stages of development [6][7] 5. **Focus on Innovation**: Darling Ingredients has nearly a dozen product concepts in development, emphasizing science and innovation in the health and wellness sector [7][8] 6. **Financial Strategy**: The merger is designed to optimize shareholder value without leveraging debt, potentially leading to deleveraging [9][21] 7. **Market Dynamics**: The food segment's contribution to margins and growth potential has not been fully recognized, and the merger aims to highlight this value [8][9] 8. **Supply Chain Management**: The combined entity will enhance supply chain management capabilities, which is crucial for maintaining consistent margins [13][14] 9. **Future Growth**: The joint venture is expected to diversify the portfolio and enhance growth in hydrolyzed collagen, which has seen significant demand [39][41] 10. **Regulatory Considerations**: The joint venture will undergo regulatory approvals, and the companies believe they will not dominate the market share significantly [58][59] Additional Important Content 1. **Market Size**: The global collagen market is estimated to be between $60 billion, with the joint venture representing a minor player in this space [59][60] 2. **Capital Allocation**: There are no expected significant changes in capital allocation for the joint venture, as both companies have maintained their assets well [41][61] 3. **Potential IPO**: There is a possibility of taking the joint venture public in the future, depending on market conditions and growth [24][62] 4. **Raw Material Sourcing**: The joint venture will benefit from diversified sourcing of raw materials, reducing risks associated with supply chain bottlenecks [68][71] 5. **Strategic Relationships**: The merger will leverage existing relationships and technologies from both companies to enhance market reach and product development [66][67] This summary encapsulates the key discussions and insights from the Darling Ingredients Inc. conference call, focusing on the formation of the joint venture and its implications for the company and the industry.

Financial Data and Key Metrics Changes - In Q1 2025, combined adjusted EBITDA was $195.8 million, down from $280.1 million in Q1 2024. Adjusted EBITDA, excluding DGD, was $190 million compared to approximately $165 million in Q1 2024 [13][22] - Total net sales for Q1 2025 were $1.38 billion, a decrease from $1.42 billion in Q1 2024. Raw material volume remained stable at approximately 3.79 million metric tons [13][22] - Gross margins improved to 22.6% in Q1 2025 from 21.4% in Q1 2024 [13] Business Line Data and Key Metrics Changes Feed Ingredients Segment - Total net sales increased to $896.3 million in Q1 2025 from $889.8 million in Q1 2024. EBITDA rose to $110.6 million from $106.8 million [14] - Gross margins for the feed segment decreased slightly to 20.3% from 20.7% due to one-time items [14] Food Segment - Total sales decreased to $349.2 million in Q1 2025 from $391.3 million in Q1 2024, but EBITDA increased to $70.9 million from $61.7 million [15] - Raw material volume increased to 329,400 metric tons from 299,800 metric tons [15] Fuel Segment - Sales for the fuel segment were $135.1 million in Q1 2025, down from $139.2 million in Q1 2024. EBITDA dropped significantly to $24.2 million from $133.1 million [16][18] Market Data and Key Metrics Changes - The renewable diesel and sustainable aviation fuel markets are expected to improve due to a reduction in imported biofuels and adjustments in domestic production [11][19] - The transition from the blenders tax credit to the producers tax credit has created challenges but is anticipated to optimize tax credits in the upcoming quarters [10][17] Company Strategy and Development Direction - The company aims to continue generating cash flow, deleveraging the balance sheet, and opportunistically repurchasing shares throughout the year [4][24] - Management is optimistic about the core business's performance, expecting to achieve between $950 million and $1 billion in EBITDA for the year [24][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the worst challenges related to DGD's performance are behind them, with expectations for improved margins and operational adjustments [24][26] - The company is optimistic about the sustainable aviation fuel market and anticipates a positive impact from the 45Z tax credit [10][19] Other Important Information - The company paid down $146.2 million in debt, reducing the financial leverage ratio to 3.33 times [5][20] - The effective tax rate for Q1 2025 was 4.6%, primarily due to the producer's tax credit [21] Q&A Session Summary Question: What is the value of an optimized feedstock slate for DGD? - Management indicated that DGD processes a mix of feedstocks driven by margins, including animal fat and various oils, and they are optimistic about maximizing the value of feedstocks eligible for the producer's tax credit [30][34] Question: What were the drivers for lower margins in Q1? - Management acknowledged that there were one-time items affecting margins and noted that the market dynamics have improved since March [40][41] Question: What is the expected RVO for 2026? - Management expects a common RVO of 5.25 billion gallons, which would significantly increase demand for feedstocks [59][88] Question: How does the current tariff regime impact the business? - The company views the tariff regime as a slight net positive, as it limits the availability of waste fats, supporting North American prices [103][105] Question: What are the capital allocation priorities moving forward? - The company plans to continue paying down debt and aims to reach a leverage ratio of 2.5% by the end of the year or early 2026 [112][113]

Group 1 - The conference call is focused on discussing Darling Ingredients Inc.'s Q1 2025 financial results [2][3] - Key participants in the call include the Chairman and CEO, CFO, and COO of North America [3] - The earnings news release and slide presentation are available on the company's investor relations page [3] Group 2 - The call will include forward-looking statements regarding future events, based on current expectations and assumptions [4]

Financial Data and Key Metrics Changes - In Q1 2025, combined adjusted EBITDA was $195.8 million, down from $280.1 million in Q1 2024. Adjusted EBITDA, excluding DGD, was $190 million compared to approximately $165 million in Q1 2024 [13][22] - Total net sales for Q1 2025 were $1.38 billion, a decrease from $1.42 billion in Q1 2024. Raw material volume remained stable at approximately 3.79 million metric tons [13][22] - Gross margins improved to 22.6% in Q1 2025 from 21.4% in Q1 2024 [13] Business Line Data and Key Metrics Changes Feed Ingredients Segment - Total net sales increased to $896.3 million in Q1 2025 from $889.8 million in Q1 2024, with EBITDA rising to $110.6 million from $106.8 million [14] - Gross margins for the feed segment decreased slightly to 20.3% from 20.7% due to one-time items [14] Food Segment - Total sales for Q1 2025 were $349.2 million, down from $391.3 million in Q1 2024, but EBITDA increased to $70.9 million from $61.7 million [15] - Raw material volume increased to 329,400 metric tons from 299,800 metric tons [15] Fuel Segment - Sales for Q1 2025 were $135.1 million, down from $139.2 million in Q1 2024, with EBITDA significantly impacted by DGD's results, falling to $24.2 million from $133.1 million [16][18] Market Data and Key Metrics Changes - DGD's EBITDA contribution was approximately $6 million in Q1 2025, a significant drop from approximately $115 million in Q1 2024, primarily due to the transition from the blenders tax credit to the producers tax credit and other operational challenges [18] - The renewable diesel and sustainable aviation fuel markets are expected to improve in Q2 2025, driven by a reduction in imported biofuels and adjustments in domestic production [11][19] Company Strategy and Development Direction - The company aims to continue deleveraging its balance sheet and opportunistically repurchase shares throughout the year, with a target of achieving a leverage ratio of 2.5% by the end of 2025 [20][112] - Management is optimistic about the core business's performance, expecting to generate between $950 million and $1 billion in EBITDA for the year [24][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the first quarter started slowly but gained momentum in March, with rising fat prices contributing positively to the business outlook [24] - The company expects to recognize 100% of the producer's tax credit for eligible feedstocks in Q2 2025, which should enhance profitability [10][38] Other Important Information - The company paid down $146.2 million in debt during Q1 2025, reducing its financial leverage ratio to 3.33 times [5][20] - The effective tax rate for Q1 2025 was 4.6%, primarily due to the producer's tax credit [21] Q&A Session Summary Question: DGD's feedstock optimization for 45Z policy - Management explained that DGD processes a mix of feedstocks driven by margin, with a focus on low carbon intensity feedstocks to maximize value [30][34] Question: Drivers for lower margins in Q1 - Management acknowledged one-time items and inventory adjustments as factors affecting margins, but noted improvements in March [40][41] Question: RVO expectations for 2026 - Management expressed optimism about a potential RVO of 5.25 billion gallons, which could positively impact feedstock demand and margins [59][88] Question: Current tariff regime impacts - Management indicated that tariffs have had a slight net positive effect on the core business by supporting North American waste fat prices [103] Question: Capital allocation priorities - The company remains focused on deleveraging and expects to approach a leverage ratio of 2.5% by the end of 2025 or early 2026 [112][113]

Core Insights - Darling Ingredients reported $1.38 billion in revenue for Q1 2025, a year-over-year decline of 2.8% and an EPS of -$0.16 compared to $0.50 a year ago, indicating significant underperformance against expectations [1] - The revenue fell short of the Zacks Consensus Estimate by 8.36%, while the EPS surprise was -180.00% against the consensus estimate of $0.20 [1] Revenue Breakdown - Net Sales for Feed Ingredients were $896.28 million, below the average estimate of $976.29 million, reflecting a year-over-year increase of 0.7% [4] - Net Sales for Fuel Ingredients were $135.07 million, slightly below the average estimate of $137.58 million, showing a year-over-year decline of 2.9% [4] - Net Sales for Food Ingredients were $349.24 million, significantly below the average estimate of $376.23 million, representing a year-over-year decrease of 10.7% [4] EBITDA Performance - Segment Adjusted EBITDA for Food Ingredients was $70.93 million, exceeding the average estimate of $66.29 million [4] - Segment Adjusted EBITDA for Feed Ingredients was $110.58 million, falling short of the average estimate of $151.08 million [4] - Segment Adjusted EBITDA for Fuel Ingredients was $18.19 million, slightly below the average estimate of $19.87 million [4] - Combined Adjusted EBITDA for Fuel Ingredients was $24.23 million, significantly below the average estimate of $65.38 million [4] Stock Performance - Darling's shares returned -0.4% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance in the near term [3]

Financial Performance Overview - Total net sales for Q1 2025 were $1,380.6 million, a decrease of 2.8% compared to $1,420.3 million in Q1 2024[5] - The company reported a net loss of $(26.2) million in Q1 2025, a significant decrease compared to a net income of $81.2 million in Q1 2024[4, 5] - EPS Diluted was $(0.16) in Q1 2025, compared to $0.50 in Q1 2024, representing a decrease of 132.0%[4, 5] - Combined Adjusted EBITDA was $195.8 million in Q1 2025, a decrease of 30.1% compared to $280.1 million in Q1 2024[4, 5] Segment Performance - Feed Ingredients Segment reported income of $23.6 million and Adjusted EBITDA of $110.6 million in Q1 2025[4] - Food Ingredients Segment reported income of $41.4 million and Adjusted EBITDA of $70.9 million in Q1 2025[4] - Fuel Ingredients Segment reported a loss of $(20.9) million and Adjusted EBITDA of $24.2 million in Q1 2025[4] Diamond Green Diesel (DGD) - Darling Ingredients received $129.5 million in dividends from Diamond Green Diesel (DGD)[4] - DGD Adjusted EBITDA (Darling's Share) was $6.0 million in Q1 2025, significantly lower than $115.1 million in Q1 2024[18, 22] - Total gallons produced by DGD were 216.1 million in Q1 2025, compared to 335.4 million in Q1 2024[22] - EBITDA per gallon sold/shipped by DGD was $0.06 in Q1 2025, compared to $0.69 in Q1 2024[22] Balance Sheet - Total debt was $3,921 million as of March 29, 2025, compared to $4,042 million as of December 28, 2024[6]

Company Performance - Darling Ingredients reported a quarterly loss of $0.16 per share, missing the Zacks Consensus Estimate of $0.20, compared to earnings of $0.50 per share a year ago [1] - The earnings surprise for this quarter was -180%, while the previous quarter saw an earnings surprise of 80% with actual earnings of $0.63 per share against an expectation of $0.35 [2] - Revenues for the quarter ended March 2025 were $1.38 billion, missing the Zacks Consensus Estimate by 8.36%, and down from $1.42 billion year-over-year [3] Stock Performance - Darling shares have declined approximately 9.9% since the beginning of the year, compared to a decline of -8.6% for the S&P 500 [4] - The current Zacks Rank for Darling is 5 (Strong Sell), indicating expectations of underperformance in the near future [7] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $1.53 billion, and for the current fiscal year, it is $1.98 on revenues of $6.1 billion [8] - The trend for estimate revisions ahead of the earnings release was unfavorable, which may impact future stock performance [7] Industry Context - The Food - Miscellaneous industry, to which Darling belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges for stock performance [9]

[First Quarter 2025 Financial Highlights and Outlook](index=1&type=section&id=First%20Quarter%202025%20Results) This section summarizes Darling Ingredients' Q1 2025 financial results and reaffirms the fiscal year 2025 outlook [First Quarter 2025 Performance Summary](index=1&type=section&id=First%20Quarter%202025%20Performance%20Summary) Darling Ingredients reported a net loss in Q1 2025, primarily due to lower Diamond Green Diesel (DGD) earnings and reduced product pricing, despite core business stability and capital returns Q1 2025 vs. Q1 2024 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $1.38 billion | $1.42 billion | -2.8% | | Net Income/(Loss) | $(26.2) million | $81.2 million | -132.3% | | Diluted EPS | $(0.16) | $0.50 | -132.0% | | Combined Adjusted EBITDA | $195.8 million | $280.1 million | -30.1% | - The **net loss** was primarily driven by lower earnings at the Diamond Green Diesel (DGD) joint venture[3](index=3&type=chunk) - DGD sold **219.1 million gallons** of renewable fuels, generating an average EBITDA of **$0.06 per gallon**. Darling Ingredients received **$129.5 million** in cash dividends from DGD during the quarter[4](index=4&type=chunk) - The company executed on its capital allocation strategy by repurchasing approximately **1 million shares** for **$35 million** and paying down **$146.2 million** in debt[5](index=5&type=chunk)[8](index=8&type=chunk) [Fiscal Year 2025 Outlook](index=1&type=section&id=Fiscal%20Year%2025%20Outlook) The company reaffirms its full-year 2025 guidance, anticipating strong core business performance, improved DGD margins, and continued cash generation for debt reduction and share repurchases - The company anticipates its core business will generate approximately **$950 million to $1 billion** in EBITDA for fiscal year 2025, driven by increasing demand and prices for waste fats[7](index=7&type=chunk) - Full-year 2025 guidance for Combined Adjusted EBITDA is reaffirmed at **$1.25 billion to $1.30 billion**[7](index=7&type=chunk) - Management expects margins for DGD to improve from current reduced levels, with operations adjusting accordingly[7](index=7&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) This section presents Darling Ingredients' consolidated statements of operations and balance sheet disclosures for the reported period [Consolidated Statements of Operations](index=2&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statement of operations for Q1 2025 shows a net loss of **$(26.2) million**, primarily due to a significant swing in equity from the Diamond Green Diesel (DGD) joint venture Q1 2025 vs. Q1 2024 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 (ended Mar 29) | Q1 2024 (ended Mar 30) | Change (Unfavorable) | | :--- | :--- | :--- | :--- | | Total net sales | $1,380,594 | $1,420,299 | $(39,705) | | Equity in net income/(loss) of DGD | $(30,523) | $78,419 | $(108,942) | | Operating income | $28,400 | $137,169 | $(108,769) | | Net income/(loss) attributable to Darling | $(26,160) | $81,157 | $(107,317) | | Diluted income/(loss) per share | $(0.16) | $0.50 | $(0.66) | [Balance Sheet Disclosures](index=5&type=section&id=Balance%20Sheet%20Disclosures) As of March 29, 2025, Darling Ingredients reported **$81.5 million** in cash, **$3.9 billion** in total debt, **$1.27 billion** in revolver availability, and a preliminary leverage ratio of **3.33x** Key Financial Position Data (as of March 29, 2025) | Metric | Amount (in thousands) | | :--- | :--- | | Cash and cash equivalents | $81,471 | | Total Debt (Current + Long-term) | $3,921,502 | | Revolver availability | $1,271,711 | | Capital expenditures - YTD | $62,979 | - The company's preliminary leverage ratio as measured by its bank covenant was **3.33x** as of March 29, 2025[6](index=6&type=chunk)[13](index=13&type=chunk) [Segment Financial Information](index=3&type=section&id=Segment%20Financial%20Tables) This section details the financial performance of Darling Ingredients' Feed, Food, and Fuel Ingredients segments [Segment Performance Q1 2025 vs Q1 2024](index=3&type=section&id=Segment%20Performance%20Q1%202025%20vs%20Q1%202024) In Q1 2025, Feed Ingredients showed growth, Food Ingredients' Adjusted EBITDA increased despite lower sales, while Fuel Ingredients' performance significantly declined due to the DGD joint venture Total Net Sales by Segment (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Feed Ingredients | $896,283 | $889,848 | | Food Ingredients | $349,240 | $391,282 | | Fuel Ingredients | $135,071 | $139,169 | Combined Adjusted EBITDA by Segment (in thousands) | Segment | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Feed Ingredients | $110,582 | $106,809 | | Food Ingredients | $70,932 | $61,687 | | Fuel Ingredients | $24,226 | $133,145 | [Diamond Green Diesel (DGD) Joint Venture](index=6&type=section&id=Diamond%20Green%20Diesel%20Joint%20Venture) This section provides a detailed financial overview of the Diamond Green Diesel (DGD) joint venture's performance and balance sheet [DGD Consolidated Statements of Operations](index=6&type=section&id=DGD%20Consolidated%20Statements%20of%20Operations) The Diamond Green Diesel (DGD) joint venture reported a significant net loss of **$(59.3) million** in Q1 2025, driven by a **36%** decrease in operating revenues and a sharp decline in Adjusted EBITDA DGD Q1 2025 vs. Q1 2024 Performance (in thousands) | Metric | Q1 2025 (ended Mar 31) | Q1 2024 (ended Mar 31) | Change | | :--- | :--- | :--- | :--- | | Operating revenues | $899,909 | $1,411,115 | $(511,206) | | Operating income/(loss) | $(53,665) | $164,831 | $(218,496) | | Net income/(loss) | $(59,308) | $156,838 | $(216,146) | | DGD Adjusted EBITDA | $13,807 | $230,121 | $(216,314) | [DGD Consolidated Balance Sheets](index=7&type=section&id=DGD%20Consolidated%20Balance%20Sheets) DGD's balance sheet as of March 31, 2025, shows total assets of **$5.15 billion**, a decrease primarily due to reduced cash and cash equivalents, alongside a decline in total members' equity DGD Key Balance Sheet Items (in thousands) | Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash | $152,440 | $353,446 | | Total assets | $5,154,349 | $5,460,517 | | Total members' equity | $4,071,209 | $4,386,667 | [Non-GAAP Reconciliations and Disclosures](index=8&type=section&id=Non-GAAP%20Reconciliations%20and%20Disclosures) This section provides reconciliations for non-GAAP financial measures and outlines cautionary statements regarding forward-looking information [Reconciliation of Net Income to Combined Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Combined%20Adjusted%20EBITDA) This section reconciles GAAP Net Income/(Loss) to Combined Adjusted EBITDA, showing a Q1 2025 Net Loss of **$(26.2) million** adjusted to a Combined Adjusted EBITDA of **$195.8 million** Reconciliation to Combined Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income/(loss) attributable to Darling | $(26,160) | $81,157 | | Adjustments (D&A, Interest, Tax, etc.) | $215,893 | $83,907 | | Adjusted EBITDA (Non-GAAP) | $189,733 | $165,064 | | DGD Joint Venture Adjusted EBITDA (Darling's share) | $6,035 | $115,061 | | **Combined Adjusted EBITDA (Non-GAAP)** | **$195,768** | **$280,125** | [Use of Non-GAAP Financial Measures](index=9&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) The company defines and justifies its use of non-GAAP financial measures like Adjusted EBITDA and Combined Adjusted EBITDA for evaluating operating performance, peer comparison, and internal covenant compliance - Management believes non-GAAP measures like **Adjusted EBITDA** and **Combined Adjusted EBITDA** are useful for evaluating operating performance by eliminating effects of financing, income taxes, and other non-cash items[22](index=22&type=chunk)[23](index=23&type=chunk)[26](index=26&type=chunk) - The company states that providing a reconciliation for forward-looking Combined Adjusted EBITDA to net income is not possible without unreasonable effort due to the unpredictability of key variables like commodity prices and foreign exchange rates[27](index=27&type=chunk)[28](index=28&type=chunk) [Cautionary Statements Regarding Forward-Looking Information](index=10&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Information) This section provides cautionary statements regarding forward-looking information, highlighting that such statements are subject to significant risks and uncertainties, including commodity price volatility and regulatory changes - Forward-looking statements are based on current expectations and are not guarantees of future performance[31](index=31&type=chunk) - Key risk factors include, but are not limited to: reduced demand or prices for biofuels, changes in government policies (e.g., LCFS, tax credits), raw material volume fluctuations, risks associated with the DGD Joint Venture, and international trade barriers[32](index=32&type=chunk)[33](index=33&type=chunk)

Core Viewpoint - Analysts project that Darling Ingredients (DAR) will report quarterly earnings of $0.36 per share, reflecting a 28% decline year over year, while revenues are expected to reach $1.51 billion, marking a 6.1% increase from the same quarter last year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 4.6%, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue and Sales Projections - The consensus estimate for 'Net Sales- Feed Ingredients' is $976.29 million, representing a 9.7% increase from the prior-year quarter [5]. - 'Net Sales- Fuel Ingredients' is projected to reach $137.58 million, indicating a 1.1% decline from the prior-year quarter [5]. - 'Net Sales- Food Ingredients' is expected to be $376.23 million, reflecting a 3.9% decrease from the year-ago quarter [5]. EBITDA Estimates - 'Segment Adjusted EBITDA- Food Ingredients' is anticipated to be $66.29 million, up from $61.69 million in the same quarter last year [6]. - 'Segment Adjusted EBITDA- Feed Ingredients' is projected at $151.08 million, compared to $106.81 million in the previous year [6]. - 'Segment Adjusted EBITDA- Fuel Ingredients' is expected to be $19.87 million, an increase from $18.08 million reported in the same quarter last year [7]. Stock Performance - Darling shares have increased by 3.3% over the past month, contrasting with the Zacks S&P 500 composite's decline of 5.6% [7]. - With a Zacks Rank 5 (Strong Sell), DAR is expected to underperform the overall market in the near term [7].