This morning, Darden Restaurants posted a beat on earnings and stronger guidance sending its shares soaring to yet another all-time high.  I remember ten years ago; most investors wrote off the stock as they were writing off causal dining (my Italian food purist were never fans of the company).  The stock peaked at $40.75 in May 2007, then it plummeted to $16.00 in November 2008. 

DRI

The company got new management and sold some assets, but not its flagship restaurant.  This morning’s earnings results speak to management and to the notion of a tapped-out consumer.  The fact is, consumer spending is picking up at restaurants in general, even though it’s still much cheaper to nosh at home.

It’s not just restaurants, but all those consumer confidence reports are materializing into intent and action as seen by the Gallop poll on Christmas Spending.