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Darden Profits Fall 12 Percent in Fourth Quarter

By  +Follow June 21, 2013 10:21AM
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red lobsterDarden Restaurants, Inc. (DRI) on Friday reported earnings for the fourth quarter that came up short of Wall Street expectations as expenses rose, although revenues improved as same-store-sales upticked across all the restaurant operator's brands.

For the quarter ended May 26, the Orlando, Florida-based company reported revenue from continuing operations of $2.3 billion, up 11.3 percent from $2.07 billion in the fourth quarter last year. Net earnings from continuing operations totaled $133.3 million, or $1.01 per share, compared to $151.6 million, or $1.15 per share, in the year prior quarter. Darden's acquisition last year of Yard House USA impacted fourth-quarter earnings by $1.9 million, or 1 cent per share.

Analysts were expecting profits of $1.04 per share on revenue of $2.27 billion.

Darden chief executive and chairman Clarence Otis said that growing same-restaurant traffic is a top priority as this key metric had been lagging for Darden compared to the industry. So, the company started matching promotions and addressing affordability in its core menus while boosting its investment in guest experience. The efforts resulted in blended same-store-sales growth at its flagship brands, Red Lobster, Olive Garden and Longhorn Steakhouse, of 2.2 percent for the quarter. Same-store-sales for Darden's specialty restaurant group, which includes Bahama Breeze, Seasons 52, The Capital Grille, Eddie V's and Yard House, increased 2.3 percent.

100 new restaurants were added during the fourth quarter, including 44 Yard House locations (40 from acquisition and 4 news stores). Adding the Yard House restaurants helped revenue from the specialty group jump 64.7 percent to $295 million.

Total costs for the company rose by 14.7 percent to $2.14 billion for the quarter.

For the full fiscal 2013 year, sales increased to $8.55 billion from $8.0 billion in fiscal 2012. Net earnings decreased to $411.9 million, or $3.13 per share, from $475.5 million, or $3.57 per share.

"Looking ahead, we expect a macroeconomic environment that is similar in fiscal 2014 to what it was in fiscal 2013, with slow and uneven recovery in both the overall economy and our industry," commented Otis.

To that end, Darden sees fiscal 2014 net earnings per share to drop by a range of 3 percent to 5 percent compared to fiscal 2013 due to a net negative 33 cents associated with several factors, including costs associated with the Affordable Care Act. Excluding those factors, net earnings per share is anticipated to grow between 4 percent and 6 percent. Total sales are expected to rise between 6 percent and 8 percent, including an additional quarter of sales from Yard House.

Shares of DRI tumbled by 2.6 percent in Thursday trading, closing at $51.23. Shares are up about 16 percent so far in 2013 and are looking to open trading relatively flat on Friday.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for DRI
Analyst Actions
7 Jul 15 07:38:02
$DRI: Analyst action by Goldman Sachs on Darden Restaurants: http://t.co/esUkAMBdf3 http://t.co/NXlUl10Bo6
FinSentS SP500
7 Jul 15 07:07:48
$DRI:US Analysts' Weekly Ratings Updates for Darden Restaurants (DRI) #DARDEN RESTAURANTS INC http://t.co/Hf0im9vQdY #SP500
Bruce H Snyder
7 Jul 15 06:21:11
Several stocks going #ExDividend tomorrow. Contact your broker to discuss early assignment risk of short ITM Calls,esp $DRI $GIS $POT $T $VZ
Dakota Financial
7 Jul 15 02:39:54
Analysts’ Weekly Ratings Updates for Darden Restaurants $DRI http://t.co/Ln4iVNPfCg
Ticker Report
7 Jul 15 02:27:43
Analysts’ Weekly Ratings Updates for Darden Restaurants $DRI http://t.co/gRy6Vhctlm
Breaking News Now
6 Jul 15 23:39:28
$DRI: Zacks Rating on Darden Restaurants, Inc.: http://t.co/PC1V2ay71J
lookn4wins
6 Jul 15 22:35:06
DRI Darden Restaurants, Inc. Message Board Posts http://t.co/6kv1zQmgl7 $DRI $WJA.TO $MU $CELG #DRI #pennystocks #investing
jim50
6 Jul 15 22:32:15
ALA.TO AltaGas Income Ltd. 52Wk Low http://t.co/oSvuHt73Fo $ALA.TO $RIG $TZA $DRI #ALA.TO #share #nasdaq
dailystockplays.com
6 Jul 15 22:12:08
1234 Bullish http://t.co/RLNeUT93YA $ASNA $TRAK $NQ $QIHU $FITB $MTZ $GILD $MDXG $ZION $GTI $DRI $EMN $ADBE $LEN $HIMX $ATML $MXIM $FNFG
Stockmarketsvane
6 Jul 15 20:06:52
Swing Buy Picks: $BAM, $CVS, $DRI, $UNH http://t.co/wMeyJi2M3v
Capital Market Labs
6 Jul 15 17:36:19
Interactive Chart -> http://t.co/QSXQFE1PAL $DRI Revenue is Rising. http://t.co/3iIJd26eA6
Analyst Actions
6 Jul 15 15:51:02
$DRI: Analyst action by Goldman Sachs on Darden Restaurants: http://t.co/esUkAMBdf3 http://t.co/Y1ZWVnUAQM
$Stocknewsalerts
6 Jul 15 14:50:57
$DRI Darden - 8-K (Current report filing) SEC Filing From our Stock News Alerts App
 Pierce Crosby
6 Jul 15 14:24:54
Corporate defense lawyer battles inside big banks. Nerdy, but this stuff is hilarious to me. http://t.co/Qjdfel5jrP $GS $MS $BID $DRI $CLX
Wyatt Research
6 Jul 15 12:03:10
Taking #Stock of the #Restaurant #REIT Craze http://t.co/ozBnTMEnWq $DRI $BOBE $MCD
ProTradersNews
6 Jul 15 11:05:03
$DRI: New SEC Filing for DRI: Form 8-K (No. 0000940944-15-000032): http://t.co/bF6gXtWqIu
Sec Filings
6 Jul 15 11:04:52
$DRI: DARDEN RESTAURANTS INC filed a form 8-K. http://t.co/8PGN5gLXJa
SEC Filings
6 Jul 15 11:04:02
NEW SEC Filing for $DRI filed a moment ago: http://t.co/CTVa2jMA6x http://t.co/MjghYQMlDM
Christian Prenzler
6 Jul 15 10:32:10
RT @carlquintanilla: BuzzFeed wins. BuzzFeed ALWAYS wins. $DRI https://t.co/Lmqdd8xtof
Katie Little
6 Jul 15 10:18:27
RT @carlquintanilla: BuzzFeed wins. BuzzFeed ALWAYS wins. $DRI https://t.co/Lmqdd8xtof
RobertPiacente
6 Jul 15 10:17:15
RT @carlquintanilla: BuzzFeed wins. BuzzFeed ALWAYS wins. $DRI https://t.co/Lmqdd8xtof
Carl Quintanilla
6 Jul 15 10:10:17
BuzzFeed wins. BuzzFeed ALWAYS wins. $DRI https://t.co/Lmqdd8xtof
James DiPlata
6 Jul 15 09:09:26
RT @bnkinvest: Ex-Dividend Reminder: Darden Restaurants, $OGE Energy and $WGL Holdings $DRI #dividends http://t.co/M7sWorQAkd
John Turner
6 Jul 15 09:07:14
$DRI Large Inflow of Money Witnessed in Darden Restaurants, Inc. http://t.co/xac4iSdzDA
BNK Invest
6 Jul 15 08:14:30
Ex-Dividend Reminder: Darden Restaurants, $OGE Energy and $WGL Holdings $DRI #dividends http://t.co/M7sWorQAkd
AlphaStreet
6 Jul 15 08:06:36
$DRI General Update: Darden Restaurants announces the extension of its solicitation of consents relating to certain outstanding notes.
BreakingStocksNews
6 Jul 15 07:24:13
$DRI: Darden Restaurants Announces An Increase In The Consent Fees ...: http://t.co/OOT6Qznaco
Analyst Actions
6 Jul 15 07:17:02
$DRI: Analyst action by Goldman Sachs on Darden Restaurants: http://t.co/esUkAMBdf3 http://t.co/v2oiqH3o00
MyAllies Trading
6 Jul 15 07:04:48
$DRI Darden Restaurants Announces An Increase In The Consent Fees For Its Solicitation Of Consents Relating T... http://t.co/RjbsYmdFMn
$Stocknewsalerts
6 Jul 15 07:03:52
$DRI Darden - Darden Restaurants Announces An Increase In The Consent Fees For Its Solicitation Of Consents R From our Stock News Alerts App
wsnewspublishers
6 Jul 15 06:48:40
Active Stocks Investor’s Alert: http://t.co/w9ylfUaWC8 $DAL $HAS $DRI
Activist Stocks
6 Jul 15 06:17:24
The Darden $DRI REIT could become attractive for a larger RE acquirer such as $ARCP.
Livevol Community
6 Jul 15 05:00:05
HIGH PUT VOLU $XOOM 8412% $ZAYO 7863% $ACE 2046% $CNC 2037% $ARMH 1827% $DRI 1604% $WLB 1544% $GDDY 1465% http://t.co/gwzPxh5Y4R
Briefing.com
6 Jul 15 04:57:52
$DRI: Darden Restaurants extends the expiration date of the solicitation of consents from holders of 6.00% Senior... http://t.co/m94hfundr8
$Stocknewsalerts
6 Jul 15 03:06:01
$DRI Darden - 8-K (Current report filing) SEC Filing From our Stock News Alerts App
ProVesting
6 Jul 15 00:44:03
$DRI: Large Inflow of Money Witnessed in Darden Restaurants, Inc.: http://t.co/Fb8lzOCmlR
Penny Stock Secret
5 Jul 15 23:10:22
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/SVqoMkrw2z .. $DRE-L $DRH $DRI
KT
5 Jul 15 19:08:22
RT @WrigleyTom: Earnings & Economic Calendar $SONC $BBRY $CCL $DRI $MON $LEN $BBBY $ACN $BKS $MU $NKE $SNX $FINL http://t.co/1xqyD0rrKG
Capital Market Labs
5 Jul 15 16:39:43
$DRI Trade Card -> http://t.co/k8cVmX6yB5 http://t.co/4GzZ0gWDNF
InvestWithConf
5 Jul 15 03:46:02
$DRI is rated BUY, 5.6% upside by Wall Street analysts based on average ratings/targets http://t.co/599EG5HSQ6 http://t.co/K6erWmmGew
Analyst Actions
5 Jul 15 02:47:02
$DRI: Analyst action by Goldman Sachs on Darden Restaurants: http://t.co/esUkAMBdf3 http://t.co/V1HYm6kI5Y
Capital Market Labs
5 Jul 15 00:08:23
Interactive Chart -> http://t.co/QSXQFE1PAL $DRI Revenue is Rising. http://t.co/nY3ypMEbgu
lookn4wins
4 Jul 15 18:51:32
^CZ14 Corn - Dec 2014 (EOD) Message Board Posts http://t.co/XxYIpiV448 $^CZ14 $DRI $KO $AMAT #^CZ14 #stocks #nasdaq
lookn4wins
4 Jul 15 18:51:07
_SPY S&P 500 SPDRs % Change http://t.co/goEaKyV3aA $_SPY $DRI $DHR $XLK #_SPY #share #investing
IH News Desk
4 Jul 15 18:51:06
XLV Health Care Select Sector SPDR Day Low http://t.co/6WyeidU0PB $XLV $FXE $DRI $VLTC #XLV #invest #stock
DennyT
4 Jul 15 18:51:06
XSB.TO iShares CDN Scotia Capital Short Term Bond Index Fund Filings http://t.co/dUxWsNCMOV $XSB.TO $DRI $NWBO $FXI #XSB.TO…
DennyT
4 Jul 15 18:50:03
XLV Health Care Select Sector SPDR Ex-Div Date http://t.co/Y69mNaRrB0 $XLV $PIN $JNJ $DRI #XLV #investing #share
Rosner Stocks
4 Jul 15 18:50:03
XLV Health Care Select Sector SPDR Ex-Div Date http://t.co/aotIU4bqyo $XLV $PIN $JNJ $DRI #XLV #investing #share
PolgarStocks
4 Jul 15 18:49:36
XLK Technology Select Sector SPDR Prev Close http://t.co/Bxtf0OPEzY $XLK $DRI $VWO $OIH #XLK #stockmarket #invest
clayton
4 Jul 15 18:48:32
WOR Worthington Industries, Inc. E.P.S. http://t.co/Nxbl8JTELW $WOR $OVTI $FB $DRI #WOR #tradeideas #nasdaq
				
				
By  +Follow June 21, 2013 10:21AM
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