DoorDash
DASH has partnered with convenience store retailer EG America to offer on-demand delivery of convenience essentials. The partnership enables customers to order items from EG convenience brands, including Cumberland Farms, Certified Oil, Fastrac, Kwik Shop, Loaf N' Jug, Minit Mart, Quik Stop, Sprint, Turkey Hill, and Tom Thumb, through DoorDash's (DASH) app and website. On-demand delivery from DoorDash (DASH) is available from over 800 participating Cumberland Farms, Fastrac, Sprint, and Minit Mart stores, with plans to expand to 1,300+ EG convenience brands locations by the end of October.
Darden Earnings
DRI) reports earnings tomorrow, with analysts largely positive on the restaurant stock. June and July were challenging for the casual dining industry, but August recovered nicely.
Industry sales trends suggest coming into the quarter, investor sentiment is skewed negative, with concerns around The Olive Garden sales and the resulting margin pressure. Darden provided initial F23 guidance of $10.2-$10.4B in sales; same-store sales of 4- 6%, and EPS of $7.40-$8.00 (consensus: $7.74), flat to +8% y/y. Guidance as given before sales slowed; how conservative was management on its inflation assumptions? in 1Q23, operating profit will be down 10-15%, and EBIT margins down 230 bps.
MCD
McDonald’s Corp. has been ordered by a U.S. judge to defend against media entrepreneur Byron Allen’s $10 billion lawsuit accusing the fast-food chain of “racial stereotyping” by not advertising with Black-owned media. In a decision on Friday, U.S. District Judge Fernando Olguin in Los Angeles said Allen could try to prove that McDonald’s violated federal and California civil rights laws by deeming his networks ineligible for the “vast majority” of its advertising dollars. Insurance Journal
