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Cracker Barrel, Olive Garden Parent Darden Suspend Dividends as Business Falters
Not worth as much as it used to be but still better than WSJ.
Gist of article is resturants are toast and suspending dividend, although MacDonalds and Domino's are down only single digits this year and haven't cut dividend. Probably because drive through business holding up
I haven't been able to find a clear answer on that yet Anna. Here's what Dardens CEO had to say:
"CEO Gene Lee said the company has holding discussions with the White House and members of Congress about a plan to keep workers on its payroll and use government money to pay employees. Lee is forgoing his own salary.
Darden recently announced it would offer paid sick leave to all hourly employees in response to the coronavirus outbreak."
Also some of Dardens holdings (e.g. Cracker Barrel, and Texas Roadhouse) do offer meals-to go and they will also use their employees as delivery drivers.
@Anna - I can neither confirm or deny this snippet from Barrons:
"Pg 35: Many companies have cut or suspended dividends [MAR, F, JWN, BA] to conserve cash in anticipation of revenue and cash flow declines. But some financials, healthcare [CVS] and techs [INTC, TXN] may continue with their dividends – they may cut on buybacks and/or capex instead. [Companies that get bailout funds under CARES Act would have to suspend dividends and buybacks]."
@Mark - Thanks, I couldn't imagine that tax money would be laundered through the Care Act to stockholders but, who knows, what stock holders get, they give back in campaign contributions or favors. I read that Chevron was facing the decision to withhold dividends for the first time and were saying they would never do that. Their problem isn't a virus one, but I would imagine that wouldn't matter for purposes of government help. I am so conservatively invested (if it could be called invested) that my major loses are from CVX stock I inherited as Texaco 40 years ago and just let ride while reinvesting the dividends. Someone like me (and most of us) really don't need the free money we will get (and donate to a need). If I got dividends in addition from a subsidized industry, my head would spin. Thanks again. It's good to know that won't happen.
Comments
Gist of article is resturants are toast and suspending dividend, although MacDonalds and Domino's are down only single digits this year and haven't cut dividend. Probably because drive through business holding up
"CEO Gene Lee said the company has holding discussions with the White House and members of Congress about a plan to keep workers on its payroll and use government money to pay employees. Lee is forgoing his own salary.
Darden recently announced it would offer paid sick leave to all hourly employees in response to the coronavirus outbreak."
Also some of Dardens holdings (e.g. Cracker Barrel, and Texas Roadhouse) do offer meals-to go and they will also use their employees as delivery drivers.
"Pg 35: Many companies have cut or suspended dividends [MAR, F, JWN, BA] to conserve cash in anticipation of revenue and cash flow declines. But some financials, healthcare [CVS] and techs [INTC, TXN] may continue with their dividends – they may cut on buybacks and/or capex instead. [Companies that get bailout funds under CARES Act would have to suspend dividends and buybacks]."