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Aug 30, 2020

Darden Q1 2021 Earnings Report

Darden's first quarter performance significantly improved and exceeded expectations due to actions taken in response to COVID-19.

Key Takeaways

Darden Restaurants reported a decrease in total sales by 28.4% to $1.53 billion, driven by a 29.0% decrease in blended same-restaurant sales, though partially offset by the addition of 14 net new restaurants. The company's reported diluted net earnings per share were $0.28, with adjusted diluted net earnings per share at $0.56. The company fully repaid its $270 million term loan and reinstated a quarterly dividend of $0.30 per share.

Total sales decreased by 28.4% to $1.53 billion.

Blended same-restaurant sales decreased by 29.0%.

Reported diluted net earnings per share were $0.28; adjusted diluted net earnings per share were $0.56.

The company fully repaid its $270 million term loan and reinstated a quarterly dividend of $0.30 per share.

Total Revenue
$1.53B
Previous year: $2.13B
-28.4%
EPS
$0.56
Previous year: $1.38
-59.4%
Olive Garden same-store sales
-28.2%
LongHorn same-store sales
-18.1%
Fine Dining same-store sales
-39.1%
Gross Profit
$301M
Previous year: $454M
-33.7%
Cash and Equivalents
$655M
Previous year: $351M
+86.6%
Total Assets
$9.79B
Previous year: $9.72B
+0.7%

Darden

Darden

Darden Revenue by Segment

Forward Guidance

The Company provided the financial outlook for the second quarter of fiscal 2021 as follows: Total sales of approximately 82% of prior year, EBITDA of $200 to $215 million, Diluted net earnings per share from continuing operations of $0.65 to $0.75, Approximately 131 million weighted average diluted shares outstanding. The Company reiterated its full year outlook for 35-40 net new restaurants and total capital spending of $250 to $300 million.

Positive Outlook

  • Total sales of approximately 82% of prior year
  • EBITDA of $200 to $215 million
  • Diluted net earnings per share from continuing operations of $0.65 to $0.75
  • Approximately 131 million weighted average diluted shares outstanding.
  • Full year outlook for 35-40 net new restaurants and total capital spending of $250 to $300 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income