Darden Monday provided that latest update into its COVID-19-impacted business. For the fourth quarter through April 19, the company’s same-store sales declined 44.7 percent.
Based on the last two weeks’ performance, Darden’s ongoing weekly cash burn rate has improved to about $20 million, including capital expenditures and not including any additional changes to net working capital.
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When Darden last shed light into its operations, measured to the week ending April 5, the casual-dining giant was running through roughly $25 million per week.
The company also announced Monday that it commenced an underwritten public offering of $400 million of shares of common stock, without par value. Additionally, it expects to grant the underwriters an option to purchase up to an additional $60 million of share. Darden said it plans to use the net proceeds for “general corporate purposes.” Goldman Sachs & Co. LLC and BofA Securities are acting as joint book-running managers in connection with the offering.
Darden shared later in the day that it priced its public offering of 7,826,087 shares at a public offering number of $58.50 per share. It also granted the underwriters an option to purchase up to an additional 1,173,913 shares of Darden’s common stock at the public offering price. The offering is expected to close on April 23.
Here’s a breakdown by brand tracking Darden through COVID-19 so far:
Same-store sales
Olive Garden
- Week ending March 1: 3.1 percent
- Week ending March 8: Flat
- Week ending March 15: –18.7 percent
- Week ending March 22: –71.1 percent
- Week ending March 29: –64.7 percent
- Week ending April 5: –59.7 percent
- Week ending April 12: –53.6 percent
- Week ending April 19: –44.8 percent
- Quarter to date (April 19): –38 percent
LongHorn Steakhouse
- Week ending March 1: 4.6 percent
- Week ending March 8: 3.1
- Week ending March 15: –15.9 percent
- Week ending March 22: –69.2 percent
- Week ending March 29: –75.3 percent
- Week ending April 5: –71.9 percent
- Week ending April 12: –66.3 percent
- Week ending April 19: –59.2 percent
- Quarter to date (April 19): –42.6 percent
Fine dining (Capital Grille and Eddie V’s)
- Week ending March 1: 2.1 percent
- Week ending March 8: –4 percent
- Week ending March 15: –27.7 percent
- Week ending March 22: –85.4 percent
- Week ending March 29: –87.9 percent
- Week ending April 5: –89.1 percent
- Week ending April 12: –76.3 percent
- Week ending April 19: –86.3 percent
- Quarter to date (April 19): –55.9 percent
Other business (Cheddar’s, Seasons 52, Yard House, and Bahama Breeze)
- Week ending March 1: 1.2 percent
- Week ending March 8: –2.8 percent
- Week ending March 15: –27.5 percent
- Week ending March 22: –87.5 percent
- Week ending March 29: –94 percent
- Week ending April 5: –92.1 percent
- Week ending April 12: –88 percent
- Week ending April 19: –87.9 percent
- Quarter to date (April 19): –59.2 percent
And here’s a look at how to-go sales for Olive Garden and LongHorn have progressed.
To go sales per restaurant
Olive Garden
- Week ending March 1: $16,191
- Week ending March 8: $15,500
- Week ending March 15: $14,942
- Week ending March 22: $20,549
- Week ending March 29: $34,524
- Week ending April 5: $39,133
- Week ending April 12: $44,000
- Week ending April 19: $52,936
LongHorn
- Week ending March 1: $6,517
- Week ending March 8: $6,406
- Week ending March 15: $6,210
- Week ending March 22: $9,153
- Week ending March 29: $17,361
- Week ending April 5: $19,858
- Week ending April 12: $23,117
- Week ending April 19: $28,653
Darden previously said it furloughed roughly 150,000 hourly employees so far. They’re eligible for the aforementioned Emergency Pay Program, which offers up to three weeks of pay based on their previous 13-week average.
The company had also entered into a $270 million term loan credit agreement to maximize financial flexibility and further bolster liquidity as a precautionary measure. The term loan was fully drawn April 7 and matures April 5, 2021. It carries a current interest rate of LIBOR plus 300 basis points. It also includes a provision that allows Darden to request an increase of up to $100 million in borrowings at the election of existing or new lenders.
Darden said earlier in the month, based on its performance through April 5, it has not used any of the cash proceeds from the previously drawn $750 million revolving credit agreement. With the additional funds from the term loan, Darden now has more than $1 billion in investible cash on hand.
