Olive Garden parent’s revenue falls 19% as new dining restrictions hit same-store sales

Customers arrive at an Olive Garden location in San Antonio, Texas.

Callaghan O’Hare | Bloomberg | Getty Images

Darden Restaurants on Friday reported quarterly revenue that fell in need of analysts’ expectations as one other wave of pandemic-related dining restrictions weighed on its same-store sales.

Next quarter, the Olive Garden mother or father expects sales to worsen, plunging 30% to 35%.

Shares of the corporate fell 1.7% in premarket buying and selling.

Here’s what the corporate reported for the quarter ended Nov. 29 in contrast with what Wall Street was anticipating, primarily based on a survey of analysts by Refinitiv:

  • Earnings per share: 73 cents vs. 71 cents anticipated
  • Revenue: $1.66 billion vs. $1.69 billion anticipated

The firm reported fiscal second-quarter web earnings of $96 million, or 73 cents per share, up from $24.7 million, or 20 cents per share, a yr earlier. Analysts surveyed by Refinitiv have been anticipating earnings of 71 cents per share.

Net sales dropped 19.4% to $1.66 billion, lacking expectations of $1.69 billion. Same-store sales throughout all of its manufacturers fell 20.6% throughout the quarter.

Olive Garden, the gem of Darden’s portfolio, noticed its same-store sales fall 19.9%. LongHorn Steakhouse, which has seen sturdy demand for its takeout, reported same-store sales declines of simply 11.1%.

Darden’s tremendous dining enterprise, which incorporates The Capital Grille, was hardest hit. The phase’s same-store sales plunged 31% within the quarter.

During the earlier quarter’s earnings name, CEO Gene Lee mentioned that Darden wanted states to loosen their dining restrictions with the intention to enhance same-store sales. Instead, as new Covid-19 circumstances surged, governors did the other.

In November and December, Darden’s mixed same-store sales fell sequentially as extra states introduced again restrictions on in-person dining and temperatures grew colder. After falling simply 23.4% within the week ended Nov. 8, same-store sales had declined 36.9% by the week ended Dec. 13.

For its fiscal third quarter, Darden is anticipating web earnings per share from persevering with operations of 50 cents to 75 cents. The firm reiterated its full-year outlook of 35 to 40 web new eating places and whole capital spending of $250 million to $300 million.

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