Darden Restaurants Inc (NYSE:DRI)

CAPS Rating: 2 out of 5

A publicly held casual dining restaurant company that operates Red Lobster, Olive Garden, Bahamas Breeze, and Seasons restaurants. The company owns and operates all of the restaurants in the United States and Canada.

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Player Avatar OptionXpert (51.39) Submitted: 6/22/2010 5:40:37 PM : Underperform Start Price: $36.58 DRI Score: +37.48

Because of the BP oil spill, fish in the gulf are toxic for years to come. Today ( 6/22/10 ) CNN said that Red Lobster has already starting to cut back toxic menu items like Shrimp, Flounder and Swordfish. Also Tourism in the Gulf states has dropped like a rock since DRI's last earnings release, because of the oil spill. So any of DRI's restaurants in the Gulf have seen a drop off in travelers.

DRI's last quarter earnings were good, but their 8/31/10 earnings will be a nightmare. These earnings will show a dramatic drop that will stun the analysts. DRI is a great company, but a disaster is upon them and they'll be force to shut down numerous restaurants in the gulf states by year end.

Plus people will be afraid to eat any seafood and will keep with beef and chicken, which will serious hurt DRI's seafood franchises.

Here's some links of the fish effected in the gulf and there's quite a variety

http://www.orangebeach.ws/Reference/Pictorial_Guide_to_Fish.html

(Click the below link) On May 24, 2010, U.S. Commerce Secretary Gary Locke determined there has been a fishery disaster in the Gulf of Mexico due to the economic impact on commercial and recreational fisheries from the ongoing Deepwater Horizon oil spill. The affected area includes the states of Louisiana, Mississippi and Alabama. (today's 06/22/10 an the US seafood restuarants and industry are a disaster along the gulf coast)

http://www.squidoo.com/gulf-coast-saltwater-fishing

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