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Darden Restaurants owns some of the top mid-priced restaurants in the country. Its Olive Garden chain is the market leading Italian restaurant while Red Lobster is the leader in seafood restaurants.
That may not completely protect the company from the economic slump. Like its competitors, Darden may find it difficult to draw customers as they tighten their belts. But Darden is less exposed to increases in commodity costs than many of its competitors.
"Darden has one of the best supply chains in the business," said Stephen Anderson, analyst with MKM Partners.
Over the past 40 years, the company has built up an efficient network of food suppliers to help keep costs low and stay flexible. Its army of vendor partners let it pick and choose the best food prices from markets around the world.
Despite rising commodity costs, Darden's sales are expected to increase 11% this fiscal year, which ends next May.
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