Darden CEO’s $1M annual salary restored on June 1

Orlando-based Darden Restaurants CEO Gene Lee is receiving his $1 million annual base salary again as the company recovers from the coronavirus pandemic.

Lee’s salary was restored June 1, more than two months after he gave it up in March, a Securities and Exchange Commission document shows.

The parent company of Olive Garden, LongHorn Steakhouse and other chain restaurants has opened 70% of its dining rooms after closing because of the pandemic, spokesman Rich Jeffers said. Darden had 1,812 restaurants as of February, meaning about 1,270 have reopened.

“Gene and his leadership team have taken many steps that balanced their obligation to support our team members with their duty to protect the long-term viability of our business,” Jeffers said in an email. “We have financially stabilized the business and with 70% of our dining rooms now open, we are building momentum.”

Jeffers said the company will provide an update on how many of its employees have gone back to work during its earnings call. Darden has 190,000 employees and furloughed 20% of about 1,000 people at its Orlando Restaurant Support Center in April.

Pay reductions for staffers at the Orlando headquarters ended May 31, Jeffers said.

Several top executives who had their pay cut in April also have had it restored, including senior vice president and CFO Rick Cardenas, executive vice president and chief operating officer David George, LongHorn Steakhouse president Todd Burrowes and Olive Garden president Daniel Kiernan, according to the SEC document.

Cardenas’ base salary is $725,000, George’s is $775,000, Burrowes’ is $640,000 and Kiernan’s is $650,000, according to the document.

The restored salaries are just the latest sign of the company’s recovery. For the week ending May 17, Darden’s same-restaurant sales were only down 49%, compared with more than 70% during some weeks earlier in the pandemic.

In addition to Olive Garden and LongHorn, Darden owns Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V’s.

Based on the week ending May 17, Darden’s ongoing weekly cash loss rate was less than $10 million, an improvement from an April 7 update when it was at about $25 million.

The Ceviche Tapas Bar and Restaurant on Church Street in downtown Orlando has permanently closed because of the coronavirus.

“It has been our honor to serve the people of Orlando for the past decade,” the restaurant posted on Facebook. “Sadly, the impact of COVID-19 has forced us to make a difficult decision. Ceviche will immediately cease operations permanently in Orlando.”

The restaurant was named a critic’s choice runner-up for best Spanish in the 2019 Orlando Sentinel Foodie Awards. It has another location in

St. Petersburg.