Le billet of Monocle

Covid 19 Vs Restaurants

10 December 2020

Covid Vs Darden :
The vaccine will be here in a while, but for now the virus is progressing. In the US, the number of daily deaths just passed the April peak.

This is again holding back the economy. We can see below that restaurants, which had gradually reopened since the spring lockdown, are closing again:

What impact will this new closure have on a restaurant chain like Darden (180,000 employees)?

At the end of August, Darden announced a 35% drop in sales over the last six months, and the operating result went from a profit of $450M to an adjusted loss of $250M (without taking into account depreciation).

In 10 days, Darden will release its third quarter results (as of November 30).

In the meantime, here is what the market thinks about the impact of the pandemic on Darden:

Such optimism is worrying ...

Have a good week,
Charles

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This presentation is a promotional document. The content of this document is communicated by and is the property of Monocle Asset Management. Monocle Asset Management is a portfolio management company approved by the Autorité des Marchés Financiers under number GP-20000040 and registered with the ORIAS as an insurance broker under number 10058146. No information contained in this document should be construed as having any contractual value. This document is produced for information purposes only. The prospects mentioned are subject to change and do not constitute a commitment or a guarantee. Access to the products and services presented here may be subject to restrictions for certain persons or countries. Tax treatment depends on individual circumstances. The fund mentioned in this document (Monocle Fund SICAV) is authorized for marketing in France and possibly in other countries where the law permits. Before making any investment, it is advisable to check whether the investor is legally entitled to subscribe to the fund. The risks, costs and recommended investment period of the funds presented are described in the KIDD (key investor information documents) and the prospectus, available free of charge from Monocle Asset Management and on the website. The KIDD must be given to the subscribers before the subscription. Past performances are not a reliable indicator of future performances. Monocle Asset Management cannot be held responsible for any decision taken or not taken on the basis of information contained in this document, nor for the use that could be made by a third party. The investor may lose all or part of the amount of capital invested, as the funds are not capital guaranteed.

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