Darden Restaurants burning $20 million in cash a day


Darden Restaurants, Inc. (NYSE: DRI) an American multi-brand restaurant operator headquartered in Orlando today disclosed that its same-restaurant sales declined 44.7%.

On the other side , to-go sales improved and are growing stronger as the coronavirus pandemic is not slowing down. Unfortunately to-go sales are not strong enough to offset.

“Our brand teams continue to work extremely hard to deliver exceptional To Go experiences to our guests,” said DRI CEO Gene Lee. Based on the last two weeks’ performance, Darden Restaurants ongoing weekly cash burn rate has improved to approximately $20million.

Same-restaurant sales performance for Darden and its segments are shown in the table below:

WE 4/12WE 4/19QTD 4/19
Olive Garden(53.6)%(44.8)%(38.0)%
LongHorn Steakhouse(66.3)%(59.2)%(42.6)%
Fine Dining(76.3)%(86.3)%(55.9)%
Other Business(88.0)%(87.9)%(59.2)%

Darden Restaurants (NYSE:DRI) had its price target hoisted by Raymond James from $65.00 to $75.00 in a report issued on Monday, The Fly reports. The brokerage presently has a “strong-buy” rating on the restaurant operator’s stock. Raymond James’ target price suggests a potential upside of 21.01% from the stock’s previous close. Which is far from truth as DRI stock dropped another 4.5% in after-hours on Monday.