This is of particular concern given that Olive Garden will comprise the substantial majority of Darden's consolidated earnings and be the key credit support for the company, which will be less diversified and smaller in scale post the divestiture of Red Lobster.
Superior free cash flow generation has been a hallmark of Danaher for more than 20 years. For nearly as long, you have trusted us to reinvest that cash… to fortify our competitive positions and drive strong sales and earnings growth. We will never take that privilege for granted.
Pernod's half-year earnings announcement confirmed the strong growth potential and solid financial performance of the company. It also reflected a first small step in starting to address the company's shortcomings in operational efficiency.