Darden Reports 19.4 Pct Drop In Same-Store Sales, Launches ‘Curbside I’m Here’ Amid Pandemic

Darden Restaurants, Inc. reported Friday (Dec. 18) as part of its fiscal Q2 2021 earnings that total sales dropped 19.4 percent — fueled by a 20.6 percent drop in blended same-restaurant sales and offset in part by the addition of 19 net new eateries despite the pandemic.

Darden CEO Gene Lee said that the company, which owns the Olive Garden, LongHorn Steakhouse, the Capital Grille and other sit-down chains hit hard by the pandemic, focused on four priorities during the quarter. Those include worker and customer health and safety, in-restaurant execution in an intricate operating environment, putting technology into place to bolster the customer experience and reshaping its business model.

For instance, the quick-service restaurant company (QSR) launched a “Curbside I’m Here” program during the quarter. The program lets customers easily tell the eatery that they’ve arrived to retrieve their curbside to-go orders by tapping on a link included in a text message.

“As a result, our operators are spending less time on the phone and more time focused on ensuring orders are accurate and on time,” Lee said.

The company also debuted “waitlist visibility,” which lets customers view their place on the waiting list by utilizing their phones, whether they checked in through the web or in person.

As for its overall results, Darden reported diluted net earnings per share from ongoing operations of 73 cents on total sales of $1.66 billion. The company fell short of analyst estimates of $1.68 billion in revenue, but topped expectations of 71 cents per share in earnings.

Darden’s board declared a 37 cents per share quarterly cash dividend on the firm’s outstanding common stock, which is payable on Feb. 1, 2021 to shareholders of record at the end of the business day on Jan. 8, 2021.

Darden’s fiscal 2021 Q3 financial outlook predicts total sales ranging from 65 to 70 percent of the prior year and diluted net earnings per share from ongoing operations ranging between 50 cents and 75 cents.

Darden also announced that it’s named CEO Lee as chairman of the board, succeeding Charles Sonsteby, who will become the board’s lead independent director. The company also named Chief Financial Officer Ricardo Cardenas as president and chief operating officer. Rajesh Vennam will become Darden’s new chief financial officer.