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May 31, 2020

Darden Q4 2020 Earnings Report

Darden's Q4 2020 financial performance was impacted by the COVID-19 pandemic, resulting in a significant decrease in total sales and a net loss per share.

Key Takeaways

Darden Restaurants reported a 43.0% decrease in total sales to $1.27 billion for the fourth quarter of fiscal year 2020, driven by a 47.7% decline in blended same-restaurant sales. The company reported a diluted net loss per share of $3.85 and an adjusted diluted net loss per share of $1.24.

Total sales decreased by 43.0% to $1.27 billion due to negative blended same-restaurant sales of 47.7%.

Reported diluted net loss per share was $3.85, compared to earnings per share of $1.67 in the previous year.

Adjusted diluted net loss per share was $1.24, excluding $2.61 primarily related to non-cash impairments.

As of June 22, 91% of dining rooms were open with at least limited capacity.

Total Revenue
$1.27B
Previous year: $2.23B
-43.0%
EPS
-$1.24
Previous year: $1.76
-170.5%
Olive Garden same-store sales
-39.2%
LongHorn same-store sales
-45.3%
Fine Dining same-store sales
-63.1%
Gross Profit
$10.5M
Previous year: $504M
-97.9%
Cash and Equivalents
$763M
Previous year: $457M
+66.9%
Total Assets
$9.95B
Previous year: $5.89B
+68.8%

Darden

Darden

Darden Revenue by Segment

Forward Guidance

Due to uncertainty surrounding future business performance stemming from COVID-19, the Company is providing a financial outlook for the first quarter instead of its usual practice of providing an annual outlook. The financial outlook for the first quarter of fiscal 2021 is as follows:

Positive Outlook

  • Total sales of approximately 70% of prior year sales
  • EBITDA of at least $75 million
  • Diluted net earnings per share from continuing operations greater than or equal to $0.00
  • Approximately 131 million weighted average diluted shares outstanding

Revenue & Expenses

Visualization of income flow from segment revenue to net income