Part 8/14:
- International operations are benefiting from capacity adjustments, especially in Asia, creating efficiencies that support profitability.
Kramer remains cautiously optimistic, citing FedEx’s low valuation—less than 13 times next year’s earnings—and a sustainable dividend yield of 2.5%. He believes their strategic adjustments position FedEx to continue surpassing expectations, potentially even reaching new highs.
Darden Restaurants: Navigating Inflation and Consumer Trends
The restaurant sector tells a nuanced story. Darden, the parent of Olive Garden and Longhorn Steakhouse, saw its stock plunge nearly 8% after reporting a mixed quarter. While same-store sales rose, margins were squeezed by inflation, particularly in beef and seafood, amid supply chain disruptions and tariffs.