:max_bytes(150000):strip_icc()/GettyImages-1796944018-61af4acced054d2681585f097402778d.jpg "Guinness Owner Says Spirits ‘Growth Will Return’ as Consumer Environment Improves")
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Key Takeaways
- Diageo CEO Debra Crew signaled that alcohol sales growth will return as the consumer environment improved.
- The company posted underwhelming results last quarter due to a weak North American environment.
- Diageo’s U.S.-listed shares rose Thursday but remain down for the year so far.
The owner of liquor brands like Guinness, Crown Royal and Johnnie Walker saw its shares rise Thursday on optimism that a bleak consumer spending environment may be improving.
Diageo (DEO) CEO Debra Crew said in a statement Thursday that “when the consumer environment improves, growth will return and the actions we are taking will position us well to outperform the market.”
The UK company’s American depositary receipts (ADRs) plunged in July after disappointing quarterly results, which it said were hampered by a weak North American market.
Diageo ADRs rose about 5% Thursday but are down nearly 4% year-to-date.
In July, steakhouse chain Texas Roadhouse (TXRH) said its diners were buying fewer alcoholic beverages, with the company’s senior director of investor relations and financial analysis saying it “would not surprise me to see some alcohol negative mix remain” in future quarters.
“That seems to be not a Roadhouse-specific issue, but more in the industry and societal at this point,” they added.