Sep 24, 2026 · 5 min
Darden profits slide as MGM takeover bid collapses
Darden Slips; MGM and Stitch Fix Lower
The episode shows how rising sales, cost pressure, disappointing forecasts, and deal uncertainty can quickly reshape investor sentiment.
- 1Darden’s sales beat expectations, but falling profits and faster-growing operating expenses pressured its shares.
- 2MGM Resorts declined after Barry Diller abandoned a proposed $12.4 billion takeover of the company.
- 3Stitch Fix fell after reporting a quarterly loss and issuing a disappointing full-year EBITDA outlook.
Don't miss
MGM shares fall after Barry Diller abandons his proposed $12.4 billion takeover, saying the deal’s components were not coming together.
The brief
Darden Restaurants posted stronger sales, but profits declined as operating costs grew faster, putting pressure on shares across a restaurant group that includes Olive Garden, LongHorn Steakhouse, and Ruth’s Chris.
The episode briefly detours to Rent the Runway before returning to the central market question: when revenue rises but expenses rise faster, investors may still mark a company down.
MGM Resorts shares fell after Barry Diller withdrew his proposed $12.4 billion takeover, saying the deal’s components were not coming together.
Stitch Fix added a second warning sign for investors, combining a quarterly loss with a disappointing full-year EBITDA outlook.
Together, the movers show three distinct sources of stock pressure: weaker profitability, a failed transaction, and guidance that falls short of expectations.
What was said on this episode
4 statements · 1 positive · 3 negative
Darden’s first-quarter sales exceeded $3.2 billion after rising more than 5%.
“First quarter sales climbed more than 5%, topping $3.2 billion.”
Listen at 0:52
Darden’s profits declined as operating costs grew faster.
“Profits slipped, operating costs growing at a faster rate.”
Listen at 0:57
Online clothing purchases are difficult to drive in the current environment.
“I think it's tough to get people to spend not only on clothing, but clothing that's sort of online.”
Listen at 2:06
MGM is unlikely to go private following the failed bid.
“Doesn't seem like that's going to happen.”
Listen at 3:13
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Darden Restaurants
Barry Diller
LongHorn Steakhouse
Olive GardenListen to the full episode and explore every guest, topic, and moment on PodLume.