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Feb 28, 2021

Darden Q3 2021 Earnings Report

Darden's Q3 2021 financial performance reflected resilience and strategic investments amidst the pandemic.

Key Takeaways

Darden Restaurants reported a decrease in total sales by 26.1% to $1.73 billion due to negative blended same-restaurant sales of 26.7%, though partially offset by new restaurant additions. The company's reported diluted net earnings per share were $0.98, with net earnings from continuing operations at $129 million. Despite the challenges, Darden focused on team member investments and strategic initiatives.

Total sales decreased by 26.1% to $1.73 billion due to a 26.7% decline in blended same-restaurant sales.

Diluted net earnings per share were reported at $0.98, with net earnings from continuing operations totaling $129 million.

The company invested approximately $200 million in team member benefits since March 2020, including paid sick leave and COVID-19 vaccine time off.

A new share repurchase program was authorized for up to $500 million of outstanding common stock.

Total Revenue
$1.73B
Previous year: $2.35B
-26.2%
EPS
$0.98
Previous year: $1.9
-48.4%
Olive Garden same-store sales
-25.8%
Previous year: 2.1%
-1328.6%
LongHorn same-store sales
-12.6%
Previous year: 3.9%
-423.1%
Fine Dining same-store sales
-45.2%
Previous year: 4%
-1230.0%
Gross Profit
$337M
Previous year: $538M
-37.3%
Cash and Equivalents
$994M
Previous year: $322M
+209.0%
Total Assets
$10.1B
Previous year: $9.97B
+1.2%

Darden

Darden

Darden Revenue by Segment

Forward Guidance

Darden provided its financial outlook for the fourth quarter of fiscal year 2021, including total sales of approximately $2.1 billion and diluted net earnings per share from continuing operations of $1.60 to $1.70.

Positive Outlook

  • Total sales of approximately $2.1 billion
  • EBITDA between $345 to $360 million
  • Diluted net earnings per share from continuing operations of $1.60 to $1.70
  • Approximately 132 million weighted average diluted shares outstanding
  • The Company anticipates opening 33 net new restaurants

Revenue & Expenses

Visualization of income flow from segment revenue to net income