Darden Restaurants (DRI) Q3 2020 earnings beat estimates


A just take-out purchase from a Darden Eating places Inc. Olive Back garden.

Daniel Acker | Bloomberg | Getty Photographs

Darden Restaurants on Thursday reported quarterly earnings and profits that topped analysts’ expectations.

Shares of the firm rose 5% in premarket investing.

Darden also withdrew its fiscal 2020 outlook and suspended its quarterly dividend, citing the uncertainty it faces as states mandate the closure of eating rooms thanks the coronavirus epidemic.

Here’s what the firm documented when compared with what Wall Street was anticipating, dependent on a survey of analysts by Refinitiv:

  • Earnings per share: $1.89 vs. $1.88 anticipated
  • Profits: $2.35 billion vs. $2.32 billion anticipated

Olive Garden’s guardian reported fiscal 3rd-quarter net income of $232.3 million, or $1.89 for every share, up from $223.6 million, or $1.79 for each share, a year earlier. Analysts surveyed by Refinitiv have been anticipating earnings for every share of $1.88.

Web product sales rose 4.5% to $2.35 billion, topping expectations of $2.32 billion. Across its eight brands, which include The Capital Grille and LongHorn Steakhouse, same-keep revenue grew by 2.3%.

The company’s same-shop sales have declined 5.9% in the fourth quarter, as of March 15. 

Darden has thoroughly drawn down its $750 million credit history facility “out of an abundance of caution.”

“With the drawdown of our revolver, and cash on the equilibrium sheet, we will have roughly $1 billion in dollars on hand,” CFO Rick Cardenas explained in a assertion. “We consider this positions us very well to deal with prospective close to phrase volatility under the present market place ailments.”

Study Darden’s full earnings release listed here.


Resource link