Darden Stock ($DRI) Climbs Despite Banning Smelly Diners from Posh Restaurants

Shares in Darden Restaurants DRI -2.46% ▼ were still looking tasty today despite a report stating that one of its outlets has imposed ‘smell’ bans on some of its customers.

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Stern Warning over Dress Codes

According to a report in the U.S. Sun, The Capital Grille chain has issued a ‘stern warning’ to its diners over their dress codes and personal fragrance. The article states that diners wearing clothing with an “offensive odor” are not allowed at its sites.

Diners are encouraged to wear, it appears, “business casual or resort evening wear” when visiting The Capital Grille. This is due to the site’s elegant atmosphere, according to its website.

For anyone who has never been to one of its outlets, its “African mahogany paneling and Art Deco chandeliers provide a warm, stately setting for our nationally renowned dry-aged steaks, fresh seafood, and acclaimed world-class wines.”

Its main staple is hand-carved steaks and it has around 70 locations including Washington D.C., Las Vegas, Seattle and Wall Street.

The full list of clothing items not allowed as per the article include:

• Athletic shorts

• Uncovered sports bras

• Excessively revealing clothing

• Exposed undergarments

• Clothing with offensive language or imagery

• Clothing emitting offensive odors

Customer Risk Analysis

Given its upmarket image, it is probably understandable that such a dress and smell code exists, but in a fragile time for the economy it could be argued that it is a risk for any eatery to impose such wide restrictions.

It is why its Ability to Sell is such a key risk for the company and its investors, according to our TipRanks Risk Analysis tool.

Despite the economic volatility, Darden stock has largely held up over the last 12 months, rising nearly 10%. In its Q2 results each segment delivered positive same restaurant sales, with Olive Garden at 4.7%, and LongHorn Steakhouse at 5.9%. It also achieved record or near-record guest satisfaction scores across all brands.

Darden did not comment on the U.S. Sun article.

Is DRI a Good Stock to Buy Now?

On TipRanks, DRI has a Moderate Buy consensus based on 13 Buy and 7 Hold ratings. Its highest price target is $261. DRI stock’s consensus price target is $224.44, implying a 13.11% upside.

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