Jim Cramer Says Darden Restaurants, Inc. (DRI)’s Olive Garden Can Come Back

Core Insights - Darden Restaurants, Inc. (NYSE:DRI) experienced a significant share price decline of 11.5% following its fiscal first-quarter earnings report, which missed analyst expectations for both earnings-per-share and revenue [2][3] - The company's earnings-per-share was reported at $1.97, while revenue was $3 billion, falling short of analyst estimates of $2 and $3.04 billion respectively [2] - Prior to the earnings report, Darden's shares had increased by over 12%, contrasting with the performance of other restaurant stocks [2] Company Performance - Jim Cramer highlighted the potential for Darden's flagship brand, Olive Garden, to recover, citing its strong margins despite recent challenges [3] - Cramer noted that the decline in share price was not due to a lack of customer demand, but rather rising food prices impacting consumer choices, particularly regarding steak [3] - The company is viewed as having potential for recovery, contingent on a decrease in food prices [3] Market Context - The discussion around Darden Restaurants also included a comparison to AI stocks, suggesting that while DRI has potential, some AI stocks may offer better returns with lower risk [3]