logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Darden Profits Fall 12 Percent in Fourth Quarter

By  +Follow June 21, 2013 10:21AM
Share:
Tickers Mentioned:

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.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for DRI
4-traders.com
22 Oct 14 20:25:02
Darden Restaurants : Board Appoints Additional Director http://t.co/TPpY6yZ3Bx $DRI $EAT
Vizimi Stocks
22 Oct 14 19:03:21
Wednesday 10/22 News: $DRI volume down for the 5th day in a row #NYSE #stocks
Vizimi Stocks
22 Oct 14 18:54:03
Wednesday 10/22 News: $DRI closed up for the 7th day in a row for the first time since July 2013 #NYSE #stocks
wininstocks2014
22 Oct 14 16:07:01
DRI 49.52 Stock Charts $DRI Darden Restaurants Inc. (NYSE) Last Updated: 10/22/2014 18:06:59 DRI Stock Chart - http://t.co/8YxnTohUHJ
AdvantageData
22 Oct 14 14:37:45
[Volume Leaders] $BEAV 5.25% 4/1/2022 $DRI 6.8% 10/15/2037 Reynolds Group 5.75% 10/15/2020 (1) $NIHDQ 7.625% 4/1/2021 http://t.co/BwNaUx5T4J
PC
22 Oct 14 13:35:39
@nachoswithsalsa This month, I sold out $DRI for a little gain. I bought $BTE @ $39.79!! $CVX bull put spread $105/$100 Dec 20, 2014.
WKRB News
22 Oct 14 11:10:48
Zacks Upgrades Darden Restaurants to Neutral $DRI http://t.co/FxnG93tytj
InterCooler
22 Oct 14 10:36:44
Darden Restaurants Upgraded to “Neutral” at Zacks $DRI http://t.co/4Oe4yJcoVA
Daily Contracts
22 Oct 14 10:30:02
Real-Time feed of company contracts, original agreements and executive updates from Darden $DRI http://t.co/L5y9RjG4KB
Morgan Brock
22 Oct 14 09:37:59
Food prices trek higher http://t.co/dACdNNGB4Q $CAKE, $CBRL, $CMG, $DNKN, $DPZ, $DRI, $EAT, $JACK, $MCD, $PNRA, $RRGB, $RT, $SBUX, $SONC,
Viral Vora
22 Oct 14 08:16:23
@MadMoneyOnCNBC Jim r u still recommending $KR & $DRI? Thank u.
Viral Vora
22 Oct 14 07:00:24
@jimcramer r u still recommending $KR & $DRI? Thank u.
Fish4Bucks
22 Oct 14 06:51:15
60m $DRI Upper Trendline Pressure 49.600 #futures #stocks 09:50:37 AM http://t.co/WZwETG8am0 Signals based ... http://t.co/WZwETG8am0
FonsieTrader
22 Oct 14 03:39:58
Parabolic Sar Buy Signals 3/4 $DD $DIS $DRI $DTV $ERIC $FDX $FREE $GIS $GNW $HD $INTC $INTU $IRM $KMB $LLTC $LCRX http://t.co/NnfN2olqkm
Seeking Alpha
22 Oct 14 02:16:25
Why We Aren't Investing In Darden Restaurants http://t.co/nPzJnGbWxu $BKI $BWLD $CAKE $EAT $DRI
Vizimi Stocks
21 Oct 14 20:36:16
Tuesday 10/21 News: $DRI closed up for the 6th consecutive day for the first time since October 2013 #NYSE #stocks
ValueWalk
21 Oct 14 14:27:25
Westport Select Cap Fund Q3 2014 Commentary http://t.co/N0oX038jwl $UHS $URI $DV $BRO $DRI $SNPS $FEIC $ROG
Evan Jenkins
21 Oct 14 12:07:47
@TheStalwart @bysamro How will this affect $DRI?
Paul R. La Monica
21 Oct 14 11:01:49
$YHOO up nearly 2% before earnings. But will #s satisfy Starboard? Fresh off $DRI victory, wonder if it will still push for an $AOL deal.
Seeking Alpha
21 Oct 14 06:37:20
Darden Restaurants: Not A Good Option At This Time http://t.co/p0DUtHlQjQ $DRI
Alan Farley
21 Oct 14 05:52:57
Crap numbers at $MCD and $DRI give me hope for the future of mankind.
Kyle Arnold
20 Oct 14 12:20:04
Gene Lee will get a $300k raise for taking over as interim CEO at Darden, according to SEC filings. $DRI
Daily Contracts
20 Oct 14 11:53:02
Real-Time feed of company contracts, original agreements and executive updates from Darden $DRI http://t.co/L5y9RjG4KB
Alan Neveu
20 Oct 14 11:50:51
RT @AnjaliFlukerOBJ: #Unlimited Breadsticks wins over biz travelers, @certify report shows http://t.co/fUnD3S0eaB @olivegarden $DRI http://…
Anjali Fluker
20 Oct 14 11:28:13
Cool look at the ladies of @Darden_News' new boardroom from sister pub @bizwomenTBJ http://t.co/Mq8CvnA2GD @hsb_bizwomen $DRI
$Stocknewsalerts
20 Oct 14 11:27:43
$DRI Darden - 2014 Annual Report From our Stock News Alerts App
Certify
20 Oct 14 10:11:00
RT @AnjaliFlukerOBJ: #Unlimited Breadsticks wins over biz travelers, @certify report shows http://t.co/fUnD3S0eaB @olivegarden $DRI http://…
Anjali Fluker
20 Oct 14 09:41:08
#Unlimited Breadsticks wins over biz travelers, @certify report shows http://t.co/fUnD3S0eaB @olivegarden $DRI http://t.co/BP8VZMAZdq
ValueWalk
20 Oct 14 06:15:10
Will We See More Wholesale Board Changes Like Darden? http://t.co/WxdM0VWF3U $DRI
PSUWomensClubSoccer
18 Oct 14 12:39:19
A big Club Soccer thank you to Red Lobster for the canning ground and the biscuits! 🍤@redlobster $DRI #GGC http://t.co/mhDYPzo8VX
Jahi Faucette
17 Oct 14 16:49:57
RT @YahooFinance: Early Movers: $JCP, $TMUS, $SHLD, $CSX, $GE, $DRI & more http://t.co/kDWerop6Eh
BNK Invest
17 Oct 14 13:43:35
Norwegian Cruise Line Holdings Larger Than S&P 500 Component Darden Restaurants $NCLH $DRI #stocks http://t.co/xWeScbJxBW
Patricia Lenkov
17 Oct 14 13:43:32
Darden's Board Appoints William S. Simon To Board Of Directors $DRI http://t.co/07MLt6a2LK via @benzinga
Briefing.com
17 Oct 14 11:56:43
$DRI: BMO Capital Markets starts at Market Perform
TickerChirp
17 Oct 14 10:24:04
The Top Tweets Concerning $DRI on 10/17/2014 http://t.co/smHsBC1Jo2
Alysia Sarkisian
17 Oct 14 08:18:04
RT @SeekingAlpha: This Upscale Steakhouse Chain Is Benefiting From Strong Demand http://t.co/E7AYWQzKyd $DRI $DFRG
Seeking Alpha
17 Oct 14 08:12:07
This Upscale Steakhouse Chain Is Benefiting From Strong Demand http://t.co/E7AYWQzKyd $DRI $DFRG
Seeking Alpha
17 Oct 14 07:35:00
It Is About Time To Prepare Your Portfolio For The Upcoming Bear Market http://t.co/yIsVTSUVR4 $AMZN $BKT $DRI $FDO $GIS $HD $IAU $IBM
matt_townsend
17 Oct 14 07:16:20
It' SERIOUSLY is national pasta day http://t.co/cMvmYwENqV and @olivegarden is going all in on its #NeverEndingPasta again... $DRI
Okapi Partners
17 Oct 14 07:14:10
Behind the scenes of the proxy fight at Darden $DRI - via @karleeweinmann http://t.co/VJrJRg9uwH
Fish4Bucks
17 Oct 14 07:05:25
60m $DRI Check Long Profit Area 48.800 Alert 10:05:05 AM #trading #stocks http://t.co/WZwETG8am0 Signals ba... http://t.co/WZwETG8am0
Fugazi Partners
17 Oct 14 06:01:49
RT @stockpucker Finally Some Starboard Value-Darden Resolution $DRI http://t.co/OvVXHBRTxo
Market Int Center
17 Oct 14 05:50:30
Darden Restaurants $DRI Trading Near $49.41 Resistance Level ( http://t.co/p8cC9oXHb2 )
4-traders.com
17 Oct 14 02:50:02
Darden Restaurants : Siteseeing http://t.co/HiSb7SYgxO $DRI
Media Sentiment
16 Oct 14 13:17:54
$DRI received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 525
OptionsProfits
16 Oct 14 13:17:05
#Housing in Solid Expansion & You Should see Stronger New Home Sales & Starts http://t.co/O7Y0nvPXon @TheStreet $LEN $DRI $XHB
4-traders.com
16 Oct 14 12:50:05
DARDEN RESTAURANTS : Change in Directors or Principal Officers, Submission of Matters to a Vote of Security... http://t.co/Zl9oGZEJsj $DRI
NASDAQ
16 Oct 14 12:49:17
$DRI - Current Report Filing (8-k) http://t.co/4QdwTosRwx
BV Services
16 Oct 14 12:49:04
$DRI Darden Restaurants Inc files Form 8-K (Events or Changes Between Quarterly Reports) SEC Filing.. http://t.co/mSeKa9F4xm
Instrumental Data
16 Oct 14 12:47:22
DARDEN RESTAURANTS INC $DRI 8-K now available
				
				
By  +Follow June 21, 2013 10:21AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.