Darden Restaurant's "Worst" 401(k) Gets Even Uglier - my dish olive garden darden restaurants

Darton Restaurant Limited
The owners of many casual restaurant chains such as Olive Garden, LongHorn Steakhouse and Red Lobster may be the largest restaurant company in the United States, but the food here is almost unknown and even the price is not cheap.
If you have to order 1,730 calories of Western chili cheese from Langhorn
Or make it a appetizing dish for chopped, bacon, and jalape ños, I would suggest a main course for celery and water before heading to the emergency room.
When the company recently announced a dismal return, its share price quickly fell by 10% and did not recover.
Darton estimates the United StatesS. same-
Restaurant sales in the second quarter are about-0. 8%, -2. 7% and -3.
The price of the Long Horn Steak House, Red Lobster and Olive Garden is 2%.
The collapse of sales seems inevitable. even long-overdue)
But it surprised many analysts for me.
Bank of America downgraded its rating from Buy to poor performance and lowered its price target from $62 to $45.
Bank of America said, "Our rating changes reflect disappointment with the 2Q results, but are also driven by deeper concerns that the company is out of sync with its customers, may continue to be weak overall, catering sales environment.
"The situation is so bad for Darton investors, and the main reason for the incompetence of Darton's management is its unfortunate staff. The 401(k)
The company has a retirement savings plan for its employees, with participants paying Wells Fargo more than $700,000 in management fees each year, and in terms of participation rates, BusinessWeek was rated as one of the three worst in the country in 2009.
Only 13% of the workers participated in the popular event.
To make matters worse, workers save a lot of investment (44%)
In Darton's flagging stock
In my opinion, the average retirement account balance is only $3,900, and employees in Darton should never be allowed to risk the amount of money they save for retirement by investing in employer shares.
The poor 13% participation rate and the amazing 44% company stock asset allocation are all facts.
The sponsor of the program knows that if it cares about the worker's readiness to retire, what the sponsor can do to address the issue.
But there is more to this cruel story.
According to the recent class action against the company, many of the nearly 168,000 restaurant workers are paid below the minimum wage --
The minimum wage is as low as $2.
An hour without interruption.
Wages are as low as $7. 25 an hour.
In addition, many workers are not compensated before coming off workthe-
Do not pay the appropriate overtime pay on time or on time.
The action requires the recovery of the wages owed to current and former servers for the time spent on the payment of their general maintenance or preparation duties performed at a lower than minimum wage.
After eating at a restaurant in Darton, heartburn is inevitable, and the vast majority of Darton's workers will retire without nearly 401 people (k)assets. (
In retrospect, 87% of the people in this nightmare retirement savings plan did not participate. )
When they do, it can be tempting to accuse them of not working harder, saving more money, or making better investment decisions --
Avoid the employer's inventory, for example.
However, it seems to me that Darton himself is most responsible for their employees.
When these thousands of workers join the ranks of the elderly poor, no one will be surprised.