Earnings June 2019

Darden Restaurants, Inc. Reporting earnings June 20th before market open.




There were some insiders selling their stock recently. President/CEO, Eugene Lee, exercised an option to sell $8.68 million worth of stock on 3/27. That same day SVP/Corporate controller, John Madonna, also sold $40 thousand worth of his stock. (http://openinsider.com/search?q=DRI)


After the acquisition of Cheddar’s, there is expected to be an increase in revenues and sales boosting initiatives that are going to benefit Darden’s Q4 earnings. There have been improvements such as simplifying kitchen systems, improving operational excellence to enhance the guest experience, as well as improving technology and menu enhancements. Darden also has a strong cost-saving management plan, where in fiscal 2018 it saved them $10 million which they plan to reinvest into the company for long term growth. (https://finance.yahoo.com/news/cost-savings-sales-growth-aid-123412394.html)


Generally when the economy is doing well, people tend to go out to eat more. When comparing Darden to other companies like Boomin’ Brands and Yum China Holdings, these companies had great last quarter earnings. 


CarMax, Inc. Reporting earnings June 21st. 



Over the past few months there has been some insider selling from CarMax management. On 5/8/19, SVP Joseph Wilson sold $452 thousand worth of stock. On 4/18, EVP/Gen. Counsel/Secretary Eric Margolin exercised an option to sell worth $1.55 million of stock. Another large transaction was made by Director Thomas Foliand on 4/4 who exercised an option to sell $25.62 million worth of stock. (http://openinsider.com/screener?s=KMX


CarMax has recently opened 5 new locations bringing the total to 203 and plans to open another 13 locations this coming fiscal year. Last quarter, CarMax increased stock buybacks by bringing back 4.4 million shares by taking advantage of the markets cheap prices and plans to continue repurchases in the future.  (https://www.fool.com/investing/2019/03/29/carmax-hits-the-gas.aspx


CarMax was planning on creating “customer experience centers” (CEC’s) to improve customer’s over the phone and online shopping experiences. Last year CarMax implements omnichannel sales to its Atlanta market which allowed customers to buy cars entirely from home, in a store, or a combination of both. CarMax has also increased delivery options along with starting the buying process online to then finish at the store and drive your car home in less than 30 minutes. CarMax have shown they are adapting to customers convenient needs, but are making it clear that buying a car is much different than buying homegoods and implementing these CEC’s will make sure to create the best possible experience. (https://www.digitalcommerce360.com/2019/04/01/carmax-plans-to-rollout-an-omnichannel-model-to-most-of-its-customers-next-february/



Kroger Co.




There has been some insider selling by one of Kroger’s directors. Robert Beyer has sold $1.96 million worth of shares on 3/20 and $1.37 million worth of shares on 1/02. COO Joseph Donnelly also exercised his options and sold $282 thousand. This insider selling can show that their management isn’t confident in KR stock increasing. (http://openinsider.com/search?q=kr)


Kroger over the years has not had a big online presence and is generally not big on their e-commerce. However, there have been reports that Kroger is increasing e-commerce as well as adding the option for delivery to keep up with their competitors like Walmart, Target, Amazon etc. (https://finance.yahoo.com/news/buy-kroger-kr-stock-q1-220010211.html)


Kroger is also expanding their products into the CBD market which will attract a new crowd of customers. Kroger will be adding CBD products at 945 of their stores across 17 states by the end of June. (https://www.supermarketnews.com/organic-natural/kroger-carry-cbd-products-945-stores)


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