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Motley Fool Hidden Gems Investing

Time to Buy Zoom Video?

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 23 June 2022

⏱️ 25 minutes

🧾️ Download transcript

Summary

Most restaurant businesses operate in a single category, but not Darden Restaurants. (0:25) Jason Moser discusses: - Olive Garden driving the bulk of revenue - A comeback by Darden's fine dining segment - Capital decisions that we like (dividend increase!) and don't like (share buyback plan) - Rite Aid's stock pop and raised guidance still not being enough to get us interested in buying shares (14:41) With shares down nearly 70% over the past year, is Zoom Video a screaming buy or past its prime? Jason Hall and Ryan Henderson debate bull vs. bear! Stocks discussed: DRI, RAD, CVS, WBA, ZM, MSFT Host: Chris Hill Guests: Jason Moser, Jason Hall, Ryan Henderson Producer: Ricky Mulvey Engineers: Dan Boyd, Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

We've got restaurant, consumer health, and a bull versus bear debate about the ultimate

0:09.6

stay-at-home stock.

0:11.2

Motley Fool Money starts now.

0:12.4

I'm Chris Hill, joined by Motley Fool, senior analyst Jason Moser.

0:24.9

Thanks for being here.

0:25.9

Hey, thanks for having me.

0:27.6

Darden restaurants wrapping up the fiscal year with some nice numbers.

0:31.6

Fourth quarter profits in revenue both came in higher than expected for the parent company

0:36.0

of Olive Garden.

0:38.0

I hasten to point out these were not particularly high expectations, but it does seem Jason

0:43.7

like they are in pretty good shape heading into this new fiscal year.

0:48.3

I say that in part because they're also raising their quarterly dividend, 10%.

0:52.3

They did.

0:53.3

Yeah, I noticed that.

0:54.3

I mean, 10% boost to the dividend from just a core rugo is.

0:57.5

That's encouraging, particularly for a restaurant company in this market.

1:03.8

I mean, inflation was one of the themes of the call, and it's certainly, Darden, is

1:10.2

not immune to the effects, but they've managed their way around it very, very well.

1:15.2

I mean, the stock is holding its own here in a bear market.

1:18.6

I mean, it's down with the market this year, but not much more, which I got a chocolate

1:22.3

up as a win.

1:23.3

But when you look at the numbers, I mean, total sales were up 14.2% to $2.6 billion.

...

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