Darden Restaurants (DRI) swung to a net loss for the quarter ended Nov. 23, 2014. The company has made a net loss of $32.80 million, or $ 0.26 a share in the quarter, against a net profit of $19.80 million, or $0.15 a share in the last year period. Revenue during the quarter grew 4.94 percent to $1,559 million from $1,485.60 million in the previous year period. Gross margin for the quarter contracted 63 basis points over the previous year period to 18.56 percent. Operating margin for the quarter stood at negative 1.34 percent as compared to a positive 2.34 percent for the previous year period.
Operating loss for the quarter was $20.90 million, compared with an operating income of $34.70 million in the previous year period.
“Our brands performed well during the second quarter,” said Interim CEO Gene Lee. “We have been working diligently to execute our strategy, including getting back to basics while delivering the best possible guest experience. It is starting to show in both improved revenue and profitability. While it’s still early, we believe our renewed focus on operating fundamentals, coupled with our more streamlined support structure, will help us continue to grow and capture market share.”
Cash conversion cycle (CCC) has increased to 10 days for the quarter from 7 days for the last year period. Days sales outstanding were almost stable at 4 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 7 days for the quarter compared with 30 days for the previous year period. At the same time, days payable outstanding went down to 21 days for the quarter from 28 for the same period last year.
Debt comes down significantly Darden Restaurants has recorded a decline in total debt over the last one year. It stood at $1,554.20 million as on Nov. 23, 2014, down 45.89 percent or $1,318.30 million from $2,872.50 million on Nov. 24, 2013. Total debt was 26.85 percent of total assets as on Nov. 23, 2014, compared with 40.13 percent on Nov. 24, 2013. Debt to equity ratio was at 0.74 as on Nov. 23, 2014, down from 1.39 as on Nov. 24, 2013. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
