03-19-2020, 08:16 AM
Darden Restaurants (DRI) suspends dividend:
Darden Restaurants (NYSE
RI) reports Q4 results just ahead of what will be a dark period for the company.
The restaurant operator reports comparable sales were up 2.1% for Olive Garden, 3.9% for LongHorn Steakhouse and 4.2% for Capital Grille in Q4 off positive traffic and pricing contribution.
The board says it has suspended the company's quarterly dividend due to uncertainty driven by the significant reduction in effective restaurant seating capacity and other restrictions mandated by state and local governments in response to COVID-19. Out of an abundance of caution, the company is also fully drawing on its $750M credit facility.
Darden is also withdrawing its FY20 outlook due to the outbreak.
"With the drawdown of our revolver, and cash on the balance sheet, we will have approximately $1 billion in cash on hand," says CFO Rick Cardenas. "We believe this positions us well to deal with potential near term volatility under the current market conditions," he adds.
Source: Press Release
Darden Restaurants (NYSE
RI) reports Q4 results just ahead of what will be a dark period for the company.The restaurant operator reports comparable sales were up 2.1% for Olive Garden, 3.9% for LongHorn Steakhouse and 4.2% for Capital Grille in Q4 off positive traffic and pricing contribution.
The board says it has suspended the company's quarterly dividend due to uncertainty driven by the significant reduction in effective restaurant seating capacity and other restrictions mandated by state and local governments in response to COVID-19. Out of an abundance of caution, the company is also fully drawing on its $750M credit facility.
Darden is also withdrawing its FY20 outlook due to the outbreak.
"With the drawdown of our revolver, and cash on the balance sheet, we will have approximately $1 billion in cash on hand," says CFO Rick Cardenas. "We believe this positions us well to deal with potential near term volatility under the current market conditions," he adds.
Source: Press Release