Thursday, June 24, 2010

Darden Irresponsible Dividend

Darden Restaurants (DRI) announced Q4 results and disappointed investors. Management seems oblivious to declining metrics i.e. declining revenues and has gambled with a 28% increase in the dividend. The current portion of long term debt is almost equal to the current cash position. Car crash waiting to happen.

When the blame starts to be allocated remember this moment of incredibly poor judgement.

Disclosure: No position in any stocks mentioned in this post.