Darden Restaurants (DRI) Q4 2020 earnings hurt by coronavirus closures


An Olive Garden restaurant in Times Square in New York.

Richard Levine | Corbis | Getty Images

Darden Restaurants on Thursday reported that same-store sales were nearly cut in half during the fiscal fourth quarter as dining room closures from the coronavirus pandemic weighed on its revenue.

But the Olive Garden parent expects its business to pick up in the next three months. The company’s outlook for next quarter expects total sales to be about 70% of the prior year’s.  

Shares of the company were up 3% in premarket trading.

Here’s what the company reported for the quarter ended May 31:

  • Loss per share: $1.24, adjusted
  • Revenue: $1.27 billion 

The company reported fiscal fourth-quarter net loss from continuing operations of $479.7 million, or $3.85 per share, compared with earnings of $208.7 million, or $1.67 per share, a year earlier.

Excluding items, Darden earned $1.24 per share.

Net sales dropped 43% to $1.27 billion. Across all of its brands, same-store sales fell 47.7%.

Analysts were expecting the company to lose $1.65 per share on revenue of $1.27 billion, according to Refinitiv estimates. However, the impact from the Covid-19 crisis makes these estimates difficult to compare with actual earnings. 

Darden said that it is generating positive operating cash flow, as of the week ended June 21. It had over $750 million in cash on hand as of June 22 and has access to a $750 million credit facility.

For the fiscal first quarter of 2021, the restaurant company expects net earnings per share from continuing operations to turn positive. It is also forecasting earnings before interest, taxes, depreciation and amortization of at least $75 million.

Source link

Products You May Like

Articles You May Like

Headed to Europe? Here are 5 smaller destinations with fewer crowds
Top private jet companies got $200 million from the government
Wealth management firms have taken PPP loans amid coronavirus pandemic
Walgreens (WBA) earnings Q3 2020 swing to a loss
How Jeff Bezos’ experience working on farm as a kid shaped Amazon

Leave a Reply

Your email address will not be published. Required fields are marked *