Loading...
•
Feb 23, 2020
Darden Q3 2020 Earnings Report
Darden Restaurants reported Q3 2020 financial results, with total sales increasing and same-restaurant sales showing growth across most brands.
Key Takeaways
Darden Restaurants reported a 4.5% increase in total sales, reaching $2.35 billion, driven by new restaurant additions and a 2.3% blended same-restaurant sales increase. Diluted net earnings per share from continuing operations increased by 5.6% to $1.90. The company has suspended its quarterly dividend and withdrew its full-year financial outlook due to COVID-19 uncertainties.
Total sales increased by 4.5% to $2.35 billion, driven by 40 net new restaurants and a 2.3% increase in blended same-restaurant sales.
Same-restaurant sales increased for Olive Garden, LongHorn Steakhouse, Yard House, The Capital Grille, Seasons 52 and Eddie V's, but decreased for Cheddar's Scratch Kitchen and Bahama Breeze.
Reported diluted net earnings per share from continuing operations increased by 5.6% to $1.90.
The Board of Directors has suspended the quarterly cash dividend and withdrew the full year financial outlook for fiscal year 2020 due to COVID-19 impacts.
Darden
Darden
Darden Revenue by Segment
Revenue by Segment
Olive Garden Revenue
CapyFin.comLongHorn Steakhouse Revenue
CapyFin.comFine Dining Revenue
CapyFin.comOther Business Revenue
CapyFin.com Forward Guidance
Darden Restaurants withdrew its full year financial outlook for fiscal 2020 due to uncertainty driven by the significant reduction in effective restaurant seating capacity and other restrictions mandated by state and local governments in response to COVID-19.
Positive Outlook
- The Company is committed to supporting our team members during this unprecedented time and are pleased to have an emergency pay program to supplement our permanent paid sick leave policy for all of our hourly team members.
- With the drawdown of our revolver, and cash on the balance sheet, we will have approximately $1 billion in cash on hand.
- Company believes this positions us well to deal with potential near term volatility under the current market conditions.
Challenges Ahead
- Same-restaurant sales declined -5.9% for the fourth quarter to date through Sunday, March 15.
- The Board of Directors has suspended the quarterly cash dividend.
- The Board made this determination due to uncertainty driven by the significant reduction in effective restaurant seating capacity and other restrictions mandated by state and local governments in response to COVID-19.
- The Company is withdrawing its full year financial outlook for fiscal 2020.
Revenue & Expenses
Visualization of income flow from segment revenue to net income