Sales at Darden Restaurants rose sharply in the first quarter of the business year.
The company stated that its net profit was £28.31 million.
Darden declared 23.53 pence as its share of the cash dividend.
Darden Restaurants Inc. (NYSE: DRI) released its earnings report on Thursday showing that the company had lower than expected first quarter sales. Restaurants in Orlando have been severely affected in recent months by the coronavirus pandemic.
The company’s shares closed just under 5% higher at Thursday’s regular meeting. In the year to date, Darden Restaurants is still around 13% down on the stock market. Confused about choosing a reliable stockbroker for online trading? Here is a list of the few providers to help you make your choice.
Darden Q1 financial results compared to analysts’ estimates
Darden said its net profit for the first quarter was £28.31 million, compared to a higher net profit of £133.80 million in the same quarter last year. On an adjusted basis, the Olive Garden owner earned 43.92 pence per share in the first quarter, exceeding previous analysts’ estimate of 3.92 pence per share.
In terms of revenue, the U.S. restaurant operator recorded £1.20 billion in the final quarter, up from £1.67 billion a year earlier. According to FactSet, experts had predicted higher revenues of £1.22 billion for the company in the first quarter.
Darden Restaurants reported that Olive Garden’s sales in the first quarter of the financial year fell by approximately 27.7% to £618.18 million. Longhorn Steakhouse, it added, had sales down 16.3% to £295.92 million, while Fine Dining’s sales also fell to £65.17 million in the first quarter, an annualized decline of 38.9%.
Other prominent figures in Darden’s financial report on Thursday include a 21.9% decline in sales at the same restaurant, while a wider decline of 25.5% is expected. On a segmental basis, the Orlando-based company reported a 21.1% decline in sales at the same restaurant at the Olive Garden and 11.3% at the Longhorn Steakhouse.
Darden declares 23.53 pence as share of cash dividend
Darden’s board of directors declared a cash dividend of 23.53 pence per share on Thursday. In the previous quarter (Q4), the company had seen a 50% decline in sales in the same businesses, according to the report released in June.
For the second fiscal quarter, the company is forecasting revenues of £1.33 billion with earnings per share of 51 pence to 59 pence. The FactSet consensus for the second quarter is currently 27.45 pence earnings per share on £1.39 billion in revenue.
Darden has seen over 10% growth in the equity market over the past year. At the time of writing this article, it is estimated at £9.93 billion.