Darden Restaurants reported a strong quarter on Thursday. In short- Sales and earnings came in better than expected but cost saves didn’t show up as strong as management was projecting. They also paid down a loan. Balance sheet looks great.
Darden Q1 EPS $0.28 Beats $0.05 ,Estimated Sales $1.53B Miss $1.56B Estimated; Sees Q2 EPS $0.65-$0.75 Vs. $0.35 Est
As Sales Remain Down Darden Restaurants Inc. (DRI) brought back its dividend even though demand remained weaker in its latest quarter across its portfolio of restaurants due to the challenges of the pandemic.
“The actions we continued to take in response to COVID-19, which include being laser-focused on execution and strengthening our business model, resulted in significantly improved first quarter performance that exceeded expectations,” said CEO Gene Lee. “I’m incredibly proud of how our restaurant teams have adapted to our new operating environment and their ongoing dedication to safety and delivering exceptional guest experiences.”
But I do not see a huge improvement in DRI stcok price at this moment in time, thanks to the overall market selloff and still uncertain COVID-19 situation.