Darden Restaurants’ sales take a hit in the fiscal first quarter

Darden Restaurants’ sales take a hit in the fiscal first quarter
Written by:
Wajeeh Khan
24th September, 20:16
  • Darden Restaurants’ sales take a hit in the fiscal first quarter.
  • The company said that its net income printed at £28.31 million.
  • Darden declares 23.53 pence a share of cash dividend.

Darden Restaurants Inc. (NYSE: DRI) published its earnings report on Thursday that highlighted the company to have generated lower than expected sales in the fiscal first quarter. The Orlando-based restaurants took a massive hit in recent months due to the Coronavirus pandemic.

Shares of the company closed just under 5% up in the regular session on Thursday. On a year to date basis, Darden Restaurants is still roughly 13% down in the stock market. Confused about choosing a reliable stockbroker to trade online? Here’s a list of the top few to make selection easier for you.

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Darden’s Q1 financial results versus analysts’ estimates

Darden said that its net income printed at £28.31 million in the first quarter as compared to a higher £133.80 million in the same quarter last year. On an adjusted basis, the Olive Garden owner earned 43.92 pence per share in Q1 that blew past analysts’ estimate of 3.92 pence per share.

In terms of sales, the American restaurant operator recorded £1.20 billion in the recent quarter versus the year-ago figure of £1.67 billion. According to FactSet, experts had forecast the company to post a higher £1.22 billion of sales in Q1.

Darden Restaurants said that its Olive Garden sales were about 27.7% down in the fiscal first quarter to £618.18 million. Longhorn Steakhouse, it added, generated 16.3% lower sales at £295.92 million while sales from fine dining also tumbled to £65.17 million in Q1 that represents a 38.9% annualised decline.

Other prominent figures in Darden’s financial report on Thursday include a 21.9% decline in same-restaurant sales versus a broader 25.5% decline expected. In individual segments, the Orlando-based company noted a 21.1% decline in same-restaurant sales at Olive garden and an 11.3% decline at Longhorn Steakhouse.

Darden declares 23.53 pence a share of cash dividend

Darden’s board declared a cash dividend of 23.53 pence per share on Thursday. In the prior quarter (Q4), the company had registered a 50% decline in same-store sales, as per the report published in June.

For the fiscal second quarter, the company forecasts £1.33 billion of sales on 51 pence to 59 pence of earnings per share. FactSet consensus for Q2 currently stands at 27.45 pence of earnings per share on £1.39 billion of sales.

Darden posted an over 10% growth in the stock market last year. At the time of writing, it is valued at £9.93 billion.

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