• | Total sales decreased 43.0% to $1.27 billion driven by negative blended same-restaurant sales of 47.7%, which was partially offset by an extra week of operations and the addition of 19 net new restaurants |
• | Same-restaurant sales by segment and brand: |
(39.2)% for Olive Garden | (63.1)% for the Fine Dining | (65.4)% for the Other Business |
(45.3)% for LongHorn Steakhouse | (62.5)% for The Capital Grille | (58.5)% for Cheddar's Scratch Kitchen |
(65.2)% for Eddie V’s | (70.7)% for Yard House | |
(69.9)% for Seasons 52 | ||
(66.1)% for Bahama Breeze |
• | Reported diluted net loss per share was $3.85 as compared to reported diluted net earnings per share of $1.67 last year |
• | Adjusted diluted net loss per share was $1.24, after excluding approximately $2.61 primarily related to non-cash impairments on goodwill and trademark balances, restaurant-level and other assets, as compared to adjusted diluted net earnings per share of $1.76 last year* |
• | Total sales decreased 8.3% to $7.81 billion driven by negative blended same-restaurant sales of 11.0%, which was partially offset by the addition of 19 net new restaurants |
• | Same-restaurant sales by segment and brand: |
(8.6)% for Olive Garden | (13.9)% for the Fine Dining | (17.9)% for the Other Business |
(8.8)% for LongHorn Steakhouse | (13.6)% for The Capital Grille | (17.1)% for Cheddar's Scratch Kitchen |
(15.2)% for Eddie V’s | (17.3)% for Yard House | |
(18.7)% for Seasons 52 | ||
(20.1)% for Bahama Breeze |
• | Reported diluted net loss per share was $0.40 as compared to reported diluted net earnings per share of $5.73 last year |
• | Adjusted diluted net earnings per share was $3.13, after excluding approximately $3.53 primarily related to non-cash impairments on goodwill and trademark balances, restaurant-level and other assets as well as non-cash pension settlement charges, as compared to adjusted diluted net earnings per share of $5.82 last year* |
Q4 Sales | Q4 Segment Profit | |||||||||||
($ in millions) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||
Consolidated Darden | $1,270.1 | $2,229.1 | (43.0)% | |||||||||
Olive Garden | $730.8 | $1,107.0 | (34.0)% | $66.8 | $232.9 | (71.3)% | ||||||
LongHorn Steakhouse | $292.9 | $484.4 | (39.5)% | $10.9 | $92.9 | (88.3)% | ||||||
Fine Dining | $61.7 | $154.6 | (60.1)% | $(9.2) | $32.1 | (128.7)% | ||||||
Other Business | $184.7 | $483.1 | (61.8)% | $(44.3) | $77.7 | (157.0)% |
Annual Sales | Annual Segment Profit | |||||||||||
($ in millions) | 2020 | 2019 | % Change | 2020 | 2019 | % Change | ||||||
Consolidated Darden | $7,806.9 | $8,510.4 | (8.3)% | |||||||||
Olive Garden | $4,013.8 | $4,287.3 | (6.4)% | $732.8 | $879.0 | (16.6)% | ||||||
LongHorn Steakhouse | $1,701.1 | $1,810.6 | (6.0)% | $261.9 | $328.8 | (20.3)% | ||||||
Fine Dining | $541.1 | $605.9 | (10.7)% | $88.3 | $124.6 | (29.1)% | ||||||
Other Business | $1,550.9 | $1,806.6 | (14.2)% | $137.3 | $265.9 | (48.4)% |
WE 6/7 | WE 6/14 | WE 6/21* | QTD 6/21 | |
Darden | (38.7)% | (31.8)% | (29.6)% | (33.2)% |
Olive Garden | (35.6)% | (30.9)% | (27.6)% | (31.3)% |
LongHorn Steakhouse | (29.9)% | (22.0)% | (21.7)% | (24.3)% |
Fine Dining | (56.2)% | (48.2)% | (42.3)% | (48.1)% |
Other Business | (50.2)% | (38.6)% | (38.6)% | (42.3)% |
Olive Garden | WE 6/7 | WE 6/14 | WE 6/21* |
Total Sales per Restaurant | $72,739 | $75,512 | 80,779 |
To Go Sales as % of Total | 41% | 38% | 40% |
Same-Restaurant Sales % | (26.2)% | (24.0)% | (21.4)% |
# of Restaurants | 598 | 680 | 729 |
LongHorn Steakhouse | |||
Total Sales per Restaurant | $54,434 | $60,460 | $70,226 |
To Go Sales as % of Total | 26% | 24% | 28% |
Same-Restaurant Sales % | (17.9)% | (10.8)% | (13.8)% |
# of Restaurants | 369 | 394 | 426 |
• | Total sales of approximately 70% of prior year sales |
• | EBITDA of at least $75 million* |
• | Diluted net earnings per share from continuing operations greater than or equal to $0.00 |
• | Approximately 131 million weighted average diluted shares outstanding |
Fiscal Q4 Reported to Adjusted Earnings (Loss) Reconciliation | |||||||||||||||||
Q4 2020 | Q4 2019 | ||||||||||||||||
$ in millions, except per share amounts | Earnings (Loss) Before Income Tax | Income Tax Expense (Benefit) | Net Earnings (Loss) | Diluted Net Earnings (Loss) Per Share | Earnings Before Income Tax | Income Tax Expense | Net Earnings | Diluted Net Earnings Per Share | |||||||||
Reported Earnings (Loss) from Continuing Operations | $(610.3) | $(130.6) | $(479.7) | $(3.85) | $217.9 | $9.2 | $208.7 | $1.67 | |||||||||
% Change vs Prior Year | (330.5 | )% | |||||||||||||||
Adjustments: | |||||||||||||||||
Goodwill impairment1 | 169.2 | 9.2 | 160.0 | 1.29 | — | — | — | — | |||||||||
Trademark impairment1 | 145.0 | 36.2 | 108.8 | 0.87 | — | — | — | — | |||||||||
Restaurant-level impairments2 | 47.0 | 11.7 | 35.3 | 0.28 | 14.6 | 3.6 | 11.0 | 0.09 | |||||||||
Other asset impairments3 | 28.8 | 7.2 | 21.6 | 0.17 | — | — | — | — | |||||||||
Pension settlement adjustment4 | (1.6 | ) | (0.4 | ) | (1.2 | ) | (0.01 | ) | — | — | — | — | |||||
International entity liquidation | — | (0.6 | ) | 0.6 | 0.01 | — | — | — | — | ||||||||
Adjusted Earnings (Loss) from Continuing Operations | $(221.9) | $(67.3) | $(154.6) | $(1.24) | $232.5 | $12.8 | $219.7 | $1.76 | |||||||||
% Change vs Prior Year | (170.5 | )% |
Annual Reported to Adjusted Earnings Reconciliation | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
$ in millions, except per share amounts | Earnings (Loss) Before Income Tax | Income Tax Expense (Benefit) | Net Earnings (Loss) | Diluted Net Earnings (Loss) Per Share | Earnings Before Income Tax | Income Tax Expense | Net Earnings | Diluted Net Earnings Per Share | |||||||||
Reported Earnings (Loss) from Continuing Operations | $(161.0) | $(111.8) | $(49.2) | $(0.40) | $782.3 | $63.7 | $718.6 | $5.73 | |||||||||
% Change vs Prior Year | (107.0 | )% | |||||||||||||||
Adjustments: | |||||||||||||||||
Goodwill impairment1 | 169.2 | 9.2 | 160.0 | 1.30 | — | — | — | — | |||||||||
Trademark impairment1 | 145.0 | 36.2 | 108.8 | 0.89 | — | — | — | — | |||||||||
Restaurant-level impairments2 | 47.0 | 11.7 | 35.3 | 0.29 | 14.6 | 3.6 | 11.0 | 0.09 | |||||||||
Other asset impairments3 | 28.8 | 7.2 | 21.6 | 0.18 | — | — | — | — | |||||||||
Pension settlement charge4 | 145.5 | 35.8 | 109.7 | 0.89 | — | — | — | — | |||||||||
International entity liquidation | 6.2 | 3.5 | 2.7 | 0.02 | — | — | — | — | |||||||||
Adjusted Earnings from Continuing Operations | $380.7 | $(8.2) | $388.9 | $3.17 | $796.9 | $67.3 | $729.6 | $5.82 | |||||||||
Impact of diluted shares5 | — | — | — | (0.04 | ) | — | — | — | — | ||||||||
Adjusted Diluted Earnings from Continuing Operations | $380.7 | $(8.2) | $388.9 | $3.13 | $796.9 | $67.3 | $729.6 | $5.82 | |||||||||
% Change vs Prior Year | (45.5 | )% |
Fiscal 2021 First Quarter EBITDA Outlook Reconciliation | ||
$ in millions | ||
Net Earnings | $0 | |
Income tax expense (benefit) | (25 | ) |
Interest, net | 15 | |
Depreciation and amortization | 85 | |
EBITDA | $75 |
5/31/20 | 5/26/19 | |||
Olive Garden | 868 | 866 | ||
LongHorn Steakhouse | 522 | 514 | ||
Cheddar's Scratch Kitchen | 165 | 161 | ||
Yard House | 81 | 79 | ||
The Capital Grille1 | 60 | 58 | ||
Seasons 52 | 44 | 44 | ||
Bahama Breeze | 41 | 42 | ||
Eddie V's | 23 | 21 | ||
Darden Continuing Operations | 1,804 | 1,785 | ||
1Includes two The Capital Burger restaurants in fiscal 2020 and one in fiscal 2019. |
Three Months Ended | Twelve Months Ended | ||||||||||||||
5/31/2020 | 5/26/2019 | 5/31/2020 | 5/26/2019 | ||||||||||||
Sales | $ | 1,270.1 | $ | 2,229.1 | $ | 7,806.9 | $ | 8,510.4 | |||||||
Costs and expenses: | |||||||||||||||
Food and beverage | 396.5 | 627.9 | 2,240.8 | 2,412.5 | |||||||||||
Restaurant labor | 532.7 | 718.0 | 2,682.6 | 2,771.1 | |||||||||||
Restaurant expenses | 330.4 | 379.4 | 1,475.1 | 1,477.8 | |||||||||||
Marketing expenses | 31.4 | 68.4 | 238.0 | 255.3 | |||||||||||
General and administrative expenses | 86.8 | 103.1 | 376.4 | 405.5 | |||||||||||
Depreciation and amortization | 94.4 | 87.9 | 355.9 | 336.7 | |||||||||||
Impairments and disposal of assets, net | 390.0 | 14.6 | 390.2 | 19.0 | |||||||||||
Total operating costs and expenses | $ | 1,862.2 | $ | 1,999.3 | $ | 7,759.0 | $ | 7,677.9 | |||||||
Operating income | (592.1 | ) | 229.8 | 47.9 | 832.5 | ||||||||||
Interest, net | 19.9 | 11.9 | 57.3 | 50.2 | |||||||||||
Other (income) expense, net | (1.7 | ) | — | 151.6 | — | ||||||||||
Earnings (loss) before income taxes | (610.3 | ) | 217.9 | (161.0 | ) | 782.3 | |||||||||
Income tax expense (benefit) | (130.6 | ) | 9.2 | (111.8 | ) | 63.7 | |||||||||
Earnings (loss) from continuing operations | $ | (479.7 | ) | $ | 208.7 | $ | (49.2 | ) | $ | 718.6 | |||||
Losses from discontinued operations, net of tax expense (benefit) of $0.7, $(0.5), $(0.9) and $(1.8), respectively | (0.3 | ) | (0.7 | ) | (3.2 | ) | (5.2 | ) | |||||||
Net earnings (loss) | $ | (480.0 | ) | $ | 208.0 | $ | (52.4 | ) | $ | 713.4 | |||||
Basic net earnings per share: | |||||||||||||||
Earnings (loss) from continuing operations | $ | (3.85 | ) | $ | 1.70 | $ | (0.40 | ) | $ | 5.82 | |||||
Losses from discontinued operations | (0.01 | ) | (0.01 | ) | (0.03 | ) | (0.04 | ) | |||||||
Net earnings (loss) | $ | (3.86 | ) | $ | 1.69 | $ | (0.43 | ) | $ | 5.78 | |||||
Diluted net earnings per share: | |||||||||||||||
Earnings (loss) from continuing operations | $ | (3.85 | ) | $ | 1.67 | $ | (0.40 | ) | $ | 5.73 | |||||
Losses from discontinued operations | (0.01 | ) | — | (0.03 | ) | (0.04 | ) | ||||||||
Net earnings (loss) | $ | (3.86 | ) | $ | 1.67 | $ | (0.43 | ) | $ | 5.69 | |||||
Average number of common shares outstanding: | |||||||||||||||
Basic | 124.5 | 123.1 | 122.7 | 123.5 | |||||||||||
Diluted | 124.5 | 124.9 | 122.7 | 125.4 | |||||||||||
5/31/2020 | 5/26/2019 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 763.3 | $ | 457.3 | |||
Receivables, net | 49.8 | 88.3 | |||||
Inventories | 206.9 | 207.3 | |||||
Prepaid income taxes | 18.4 | 41.6 | |||||
Prepaid expenses and other current assets | 63.0 | 98.1 | |||||
Total current assets | $ | 1,101.4 | $ | 892.6 | |||
Land, buildings and equipment, net | 2,756.9 | 2,552.6 | |||||
Operating lease right-of-use assets | 3,969.2 | — | |||||
Goodwill | 1,037.4 | 1,183.7 | |||||
Trademarks | 805.9 | 950.8 | |||||
Other assets | 275.3 | 313.1 | |||||
Total assets | $ | 9,946.1 | $ | 5,892.8 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 249.4 | $ | 332.6 | |||
Short-term debt | 270.0 | — | |||||
Accrued payroll | 150.0 | 175.3 | |||||
Accrued income taxes | 6.2 | 11.6 | |||||
Other accrued taxes | 43.4 | 54.2 | |||||
Unearned revenues | 467.9 | 428.5 | |||||
Other current liabilities | 605.9 | 471.9 | |||||
Total current liabilities | $ | 1,792.8 | $ | 1,474.1 | |||
Long-term debt, less current portion | 928.8 | 927.7 | |||||
Deferred income taxes | 56.1 | 156.9 | |||||
Operating lease liabilities - non-current | 4,276.3 | — | |||||
Deferred rent | — | 354.4 | |||||
Other liabilities | 560.9 | 587.1 | |||||
Total liabilities | $ | 7,614.9 | $ | 3,500.2 | |||
Stockholders’ equity: | |||||||
Common stock and surplus | $ | 2,205.3 | $ | 1,685.0 | |||
Retained earnings | 143.5 | 806.6 | |||||
Accumulated other comprehensive income (loss) | (17.6 | ) | (98.2 | ) | |||
Unearned compensation | — | (0.8 | ) | ||||
Total stockholders’ equity | $ | 2,331.2 | $ | 2,392.6 | |||
Total liabilities and stockholders’ equity | $ | 9,946.1 | $ | 5,892.8 |
Twelve Months Ended | |||||||
5/31/2020 | 5/26/2019 | ||||||
Cash flows—operating activities | |||||||
Net earnings (loss) | $ | (52.4 | ) | $ | 713.4 | ||
Losses from discontinued operations, net of tax | 3.2 | 5.2 | |||||
Adjustments to reconcile net earnings from continuing operations to cash flows: | |||||||
Depreciation and amortization | 355.9 | 336.7 | |||||
Impairments and disposal of assets, net | 390.2 | 19.0 | |||||
Stock-based compensation expense | 53.0 | 59.8 | |||||
Pension settlement charge | 145.5 | — | |||||
Change in current assets and liabilities and other, net | (178.0 | ) | 133.5 | ||||
Net cash provided by operating activities of continuing operations | $ | 717.4 | $ | 1,267.6 | |||
Cash flows—investing activities | |||||||
Purchases of land, buildings and equipment | (459.9 | ) | (452.0 | ) | |||
Proceeds from disposal of land, buildings and equipment | 5.8 | 13.2 | |||||
Cash used in business acquisitions, net of cash acquired | (55.8 | ) | — | ||||
Purchases of capitalized software and changes in other assets, net | (34.1 | ) | (23.8 | ) | |||
Net cash used in investing activities of continuing operations | $ | (544.0 | ) | $ | (462.6 | ) | |
Cash flows—financing activities | |||||||
Net proceeds from issuance of common stock | 525.9 | 59.3 | |||||
Dividends paid | (322.3 | ) | (370.8 | ) | |||
Repurchases of common stock | (330.3 | ) | (207.5 | ) | |||
Proceeds from short-term debt, net | 270.0 | — | |||||
Other, net | (4.6 | ) | 34.8 | ||||
Net cash provided by (used in) financing activities of continuing operations | $ | 138.7 | $ | (484.2 | ) | ||
Cash flows—discontinued operations | |||||||
Net cash used in operating activities of discontinued operations | (6.1 | ) | (10.4 | ) | |||
Net cash used in discontinued operations | $ | (6.1 | ) | $ | (10.4 | ) | |
Increase in cash and cash equivalents | 306.0 | 310.4 | |||||
Cash and cash equivalents - beginning of period | 457.3 | 146.9 | |||||
Cash and cash equivalents - end of period | $ | 763.3 | $ | 457.3 |