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Unlimited appetites

Darden, parent of Olive Garden, climbs as CEO says consumers aren’t really pulling back

Turns out we aren’t ready to give up pasta and breadsticks just yet.

3/20/25 2:01PM

Darden Restaurants stock jumped more than 5% Thursday after the Olive Garden parent served up sharp revenue growth and steadied its profit forecast, even as consumers are broadly more wary of unnecessary spending.

The restaurant giant — home to names like Olive Garden, Longhorn Steakhouse, and Capital Grille — posted $3.16 billion in revenue, up 9% from last year but shy of the $3.21 billion analysts had expected, per FactSet. Adjusted earnings per share were $2.80, in line with Wall Street’s expectations, excluding $0.06 in costs related to Darden’s recent Chuy’s acquisition.

“People, even if they say they’re feeling less optimistic, we haven’t seen a huge correlation between that and dining out,” Darden CEO Rick Cardenas said. “Across all income groups, adjusting for weather, the only income group that was negative across our casual brands was below $50,000.”

Meanwhile, same-store sales grew 0.7%, less than half the 1.7% analysts forecast. The results come as consumer spending has been cooling: food services and drinking places in particular posted their third consecutive month without growth in February.

The company narrowed its earnings guidance to between $9.45 and $9.52 per share, compared with previous guidance of $9.40 to $9.60 and analysts’ $9.48 estimate. The company expects $12.1 billion in revenue, also in line with Wall Street’s projections.

Executives blamed snowstorms and cold temperatures for the chilly sales quarter, but when adjusted for weather, said same-store sales grew across all segments. Darden also eased tariff fears, noting that 80% of the company’s supply chain is sourced domestically and much of the remaining 20% could be shifted if needed. Darden shares are up nearly 14% over the past year.

Intel slumps after Q1 guidance disappoints

The bad outlook offset strong Q4 results.

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Plug Power jumps amid surge in call activity as CEO Andy Marsh hosts AMA

Plug Power surged on Thursday, jumping nearly 17% amid elevated call activity as outgoing CEO Andy Marsh hosted an “ask me anything” on the r/PlugPowerStock subreddit.

As many as 192,581 call options changed hands, more than 4x the 20-day average — call options with a strike price of $4 that expire in mid-June were the most active contract.

Marsh’s appearance was aimed at building support for the board’s recommendations that its investors vote in favor of three proposals at a special meeting of shareholders slated for next week. These proposals include: allowing votes to be decided by a majority of voters rather than a majority of shareholders, enabling an increase in the company’s share count, and a third measure to delay this special meeting in the event that there aren’t enough votes for either of those two proposals to pass.

During the session, Marsh made the following points:

Management really doesn’t want to have to do a reverse stock split, but would feel forced to do so if the second proposal fails to pass. Per a recent filing from Plug, “Without additional authorized shares, the Company will not be able to: meet its contractual obligations to increase authorized shares of common stock by February 28, 2026; raise capital necessary for operations and growth; and execute on its business plans and strategy.”
Plug plans to lean even more into opportunities to offer power to AI data center customers, with Marsh writing that incoming CEO Jose Luis Crespo will offer more details on this in a follow-up AMA scheduled for March.

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Stocks continue to recover from Greenland threats

Megacap tech helped drive gains.

Chicago Bulls Dennis Rodman (91) and Michael Jordan (23) in action, rebounding vs Charlotte Hornets

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Meta shares rally as Jefferies says it’s a bargain relative to Mag 7 peers

Shares of Meta rallied over 5% on Thursday, as Jefferies analyst Brent Thill doubled down on his “buy” rating for the company, calling the stock a relative bargain compared to its Magnificent 7 peers. The analyst set a price target of $910, well above the $645 where the stock is trading today.

News out of the World Economic Forum this week that Meta’s first models from its revamped AI teams are “very good” aligns with Thill’s argument that the company is well positioned to get back in the AI race with the “all-star model,” which is expected to be released in the first half of the year.

Recent cuts to Meta’s Reality Labs also signal that the company is focusing its spending where it matters. The Jefferies note added that the recent monetization of Threads via ads will help boost revenue.

Next week, Meta reports its fourth-quarter earnings, and Thill expects that even if the company raises its 2026 capital expenditure outlook, investors won’t be spooked, as the company has been clear that spending may continue to be high.

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Arista Networks rips higher amid jump in call buying

Arista Networks, a maker of switches and other networking equipment used in AI data centers, was on track for its best day of the new year on Thursday as options traders went bullish on the stock.

As of around 11 a.m. ET, there was nearly twice as much call buying in Arista than its 10-day moving average for a full day of activity. Buying call options to make leveraged bets on price increases has been a favorite trading tactic of retail traders in recent years.

Otherwise, there weren’t clear headlines tied to today’s outsized move, but the stock has been getting attention lately: in a note published earlier this month, Goldman Sachs analysts spotlighted Arista as a top tactical trade for earnings season, saying the shares — which they rate a “buy” — could rise 20% over the next year.

“ANET is well positioned amidst ongoing data center spending growth, where its position as a best of breed provider of networking equipment should advantage the company, particularly as data center networks become increasingly complex,” Goldman analysts wrote in the January 8 report.

And recent reports also say Microsoft — which accounted for 20% of Arista’s revenue in 2024, according to Goldman Sachs — is planning a massive expansion of its Wisconsin data center project.

Arista stock did get a lift following the release of solid US economic numbers at 8:30 a.m. that seemed fairly specific to Arista itself. (There was no similar bounce from competitors like Cisco or Hewlett-Packard.)

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