Darden Restaurants Cost Cutting Initiatives Lead to 52-Week High
ORLANDO, FL – Darden Restaurants is gaining momentum after the announcement of a number of strategic actions to save approximately $20 million per year through the reduction of general and administrative expenses.
Nasdaq.com is reporting that Darden's shares hit a new 52-week high of $57.95 in the first half of the trading session on December 1, citing the company's recent cost saving initiatives.
As we previously reported, the actions include a corporate restructuring that will affect nearly 60 employees and cut 25 open positions, the elimination of a layer of field operations management at Olive Garden and Longhorn Steakhouse and the removal of the company’s aviation department.
“While these changes will significantly improve how we operate, it is always difficult to take actions that have an impact on the dedicated individuals who have made significant contributions to our company,” said Gene Lee, Darden’s Interim CEO. “Departing employees will receive severance and other benefits appropriate to their position and tenure that are consistent with our values. We thank them for their contributions to Darden.”
The company expects these moves to result in savings of approximately $20 million per year. Darden also adds that these moves will help to increase the focus on restaurant operations and improve the guest experience to help position the company to “win the battle for market share across all of its concepts.”
It will be interesting to see if this momentum will continue into Darden’s upcoming second quarter earnings call this month. Stay tuned to AndNowUKnow for the latest.
