Research Update: Darden Restaurants Inc. Outlook Revised To Positive On Expectations For Faster Recovery; Ratings Affirmed - S&P Global Ratings’ Credit Research

Research Update: Darden Restaurants Inc. Outlook Revised To Positive On Expectations For Faster Recovery; Ratings Affirmed

Research Update: Darden Restaurants Inc. Outlook Revised To Positive On Expectations For Faster Recovery; Ratings Affirmed - S&P Global Ratings’ Credit Research
Research Update: Darden Restaurants Inc. Outlook Revised To Positive On Expectations For Faster Recovery; Ratings Affirmed
Published Apr 20, 2021
7 pages (3138 words) — Published Apr 20, 2021
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Encouraging signs of an accelerating economic recovery are emerging and we believe operating conditions for the restaurant industry's casual dining segment are improving. We believe this will support a faster recovery than previously anticipated for Darden Restaurants Inc.'s operating results and credit metrics. Therefore, we revised our outlook to positive from negative and affirmed our ratings on the company, including the 'BBB-' issuer credit rating. The positive outlook reflects that we could raise our rating on Darden if it demonstrates consistent performance gains across its restaurant portfolio, resulting in adjusted leverage of around 3.5x or less and free operating cash flow approaching $800 million. Darden operates across eight concepts but is concentrated in its Olive Garden banner, which contributed approximately

  
Brief Excerpt:

...- Encouraging signs of an accelerating economic recovery are emerging and we believe operating conditions for the restaurant industry's casual dining segment are improving. - We believe this will support a faster recovery than previously anticipated for Darden Restaurants Inc.'s operating results and credit metrics. - Therefore, we revised our outlook to positive from negative and affirmed our ratings on the company, including the '###-' issuer credit rating. - The positive outlook reflects that we could raise our rating on Darden if it demonstrates consistent performance gains across its restaurant portfolio, resulting in adjusted leverage of around 3.5x or less and free operating cash flow approaching $800 million....

  
Report Type:

Research Update

Ticker
Issuer
GICS
Restaurants (25301040)
Sector
Global Issuers
Country
Region
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Darden Restaurants Inc. Outlook Revised To Positive On Expectations For Faster Recovery; Ratings Affirmed" Apr 20, 2021. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Darden-Restaurants-Inc-Outlook-Revised-To-Positive-On-Expectations-For-Faster-Recovery-Ratings-Affirmed-2631525>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Darden Restaurants Inc. Outlook Revised To Positive On Expectations For Faster Recovery; Ratings Affirmed Apr 20, 2021. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Darden-Restaurants-Inc-Outlook-Revised-To-Positive-On-Expectations-For-Faster-Recovery-Ratings-Affirmed-2631525>
  
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