The company posted earnings of $1.89 per share on sales of $2.35 billion for the third quarter of 2020. The market had projected Darden to report earnings of $1.88 per share on revenue of $2.32 billion.
Sales increased 4.5% in the three months ended February 23, 2020, helped by the same-restaurant sales growth of 2.3% and the addition of 40 new restaurants.
Darden pulled out its full-year financial outlook for fiscal 2020 and is fully drawing on its $750 million credit facility. The Board of Directors also suspended the quarterly cash dividend.
These actions were taken by the company as there was a significant reduction in effective restaurant seating capacity and other restrictions mandated by state and local governments in response to COVID-19 outbreak.
When Darden reported the second-quarter results, it guided fiscal 2020 adjusted EPS from continuing operations in the range of $6.30-6.45. The company had projected sales to grow between 5.3% and 6.3% and same-restaurant sales growth of 1-2% for the fiscal year 2020.
Related: How much of a hit could Darden (DRI) take from the coronavirus outbreak?
For the fourth quarter to date through March 15, Darden same-restaurant sales declined 5.9%. Same-restaurant sales were +3.0%, -0.2%, and -20.6% for the first three weeks of the quarter, respectively.
DRI stock, which hit a new 52-week low ($26.15) yesterday, has slumped 69% so far this year.