Darden Restaurants Says Sales Continued Slumping Into Mid-June
On Thursday, Darden Restaurants (NYSE: DRI) reported financial results for its fiscal fourth quarter, which includes the challenging sales months of March, April, and May. The period was heavily impacted by COVID-19 store closures that sent sales down by nearly 50%. But the owner of the Olive Garden and LongHorn Steakhouse franchises has only seen a modest recovery in the first three weeks of June.
Comparable-store sales fell 39% at Olive Garden and dove 45% at LongHorn Steakhouse in Q4, as nearly all its dining rooms were closed. The company reported a net loss of $3.85 per share compared to earnings per share of $1.67 a year ago.
Operating profits fell at a faster rate than sales, reflecting the high fixed costs built into the full-service dining niche. Olive Garden posted a 71% drop in operating earnings, and LongHorn's comparable figure plunged 88%.
Source Fool.com
