Sep 20, 2013

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Investors Pick: Darden Restaurants Inc.’s (NYSE:DRI) and Goodyear Tire & Rubber Co. (NYSE:GT)

Investors Pick: Darden Restaurants Inc.’s (NYSE:DRI) and Goodyear Tire & Rubber Co. (NYSE:GT)

Staying most of the time with record low stock prices, closing facilities, lowering jobs, selling off business units and challenging with protesting laborers, Goodyear Tire & Rubber Co. (NYSE:GT) logged its return to financial good graces by declaring initiatives to reinstate its dividend.

The biggest US-located tire producer will pay a 5-cent per share stock dividend effective Dec. 1, the firm reported in a statement Friday. The last time Goodyear paid a dividend came in December 2002.

Along with the dividend, Goodyear will also buy back almost $100 million of its common stock. The buyback program is planned to compensate new shares issued under equity compensation programs.

Darden Restaurants Inc.’s (NYSE:DRI) fiscal first-quarter earnings declined a lower than predicted 37%, as food, beverage and labor costs persisted to increase and the firm’s largest chain reported a significant decline in comparable store restaurant sales.

Shares declined 4.7% premarket to $47. Till Thursday’s ending, the stock was higher 9.4% so far this year.

After a comprehensive assessment, Darden reported that it intends to lower its annual operating support spending by almost $50 million, through labor force lowering and program spending declines.

For the present fiscal year, these actions are predicted to lower spending by almost $25 million, which will be compensated by almost $10 million in upfront costs to execute the plan.

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