Darden Restaurants (NYSE:DRI) on Thursday reported same-store sales were nearly cut in half during the fiscal fourth quarter as dining room closures from the coronavirus pandemic weighed on its revenue.
But the Olive Garden parent expects its business to pick up in the next three months. The company’s outlook for next quarter projects total sales to be about 70% from a year earlier.
“As our industry continues to rebuild, there is significant opportunity to increase market share,” CEO Gene Lee said. “Those executing at the highest level are going to win, and Darden is well positioned to take advantage of the opportunity.”
The company reported fiscal fourth-quarter net loss from continuing operations of $479.7 million, or $3.85 per share, compared with earnings of $208.7 million, or $1.67 per share, a year earlier. Darden reported a goodwill impairment charge of $160 million and a trademark impairment charge of $108.8 million.
Excluding those charges and other items, Darden reported losses of $1.24 per share.
Net sales dropped 43% to $1.27 billion. Across all its brands, same-store sales fell 47.7%.
Analysts were expecting the company to lose $1.65 per share on revenue of $1.27 billion, according to estimates. However, the impact from the COVID-19 crisis makes these estimates difficult to compare with actual earnings.
Shares popped $3.20, or 4.5%, to $74.01