Darden Restaurants (DRI) will suspend its quarterly dividend. Last year the company hiked its dividend by 17.3 percent. Darden had paid a dividend every year since 1995.

Darden is also withdrawing its full year financial outlook for fiscal 2020. Darden's stock price declined by almost 70% in 2020 prior to this press release.

In Darden's press release today the company's Board says it made this determination due to uncertainty driven by the significant reduction in effective restaurant seating capacity and other restrictions mandated by state and local governments in response to COVID-19. The Board of Directors intends to review the Company's quarterly cash dividend policy as developments warrant. Out of an abundance of caution, the Company is also fully drawing on its $750 million credit facility.

"The health and safety of our team members, their families and our guests remains our top priority," said CEO Gene Lee in today's press release by Darden, announcing the fiscal 2020 third quarter results and dividend cut.  "We are committed to supporting our team members during this unprecedented time and are pleased to have an emergency pay program to supplement our permanent paid sick leave policy for all of our hourly team members."

"With the drawdown of our revolver, and cash on the balance sheet, we will have approximately $1 billion in cash on hand," said CFO Rick Cardenas.  "We believe this positions us well to deal with potential near term volatility under the current market conditions."

Darden Restaurants, Inc. is a full-service restaurant company with operations in the United States and Canada. Its brands include Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V's.  Darden Restaurants is a Florida corporation incorporated in March 1995. The company initiated a dividend in 1995 and suspended its payment in 2020.