Why Darden Restaurants Stock Rallied 16% in September
Shares of Darden Restaurants (NYSE: DRI) rose an impressive 15% in September according to data from S&P Global Market Intelligence. That continues the Olive Garden and LongHorn Steakhouse owner's steady march back from its bear market lows in March. At one point the stock was off by roughly 70% for the year. By the end of September that loss had been pared to just 8% or so.
The story for Darden should be pretty familiar to investors at this point. The economic shutdowns used to slow the spread of COVID-19 effectively closed all of the restaurant owner's locations. It had to swiftly shift gears and focus on takeout, but there's not enough business opportunity there to support the company's collection of physical assets. The stock started to pick up when non-essential businesses were allowed to begin the reopening process.
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Source Fool.com
