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โ Due DiligenceRisks
1. Market Competition: Darden Restaurants faces competition in the casual dining market from an array of successful brands, such as Olive Garden and Longhorn Steakhouse.
2. Commodity Prices: The cost of commodities used by Darden Restaurants, particularly meat and produce, can cause significant fluctuations in the company's operating costs.
3. Food Safety: The company must abide by stringent food safety regulations to ensure that its customers remain safe from food-borne illnesses or other health hazards.
4. Changing Consumer Preferences: Consumer preferences are constantly changing, making it difficult for Darden Restaurants to keep up with the latest trends and maintain customer loyalty.
5. Government Regulations: Darden Restaurants must adhere to a variety of government regulations in order to remain in compliance with area and federal laws.