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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.


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Results for DRI
ChristmannBeth6
19 Sep 14 14:44:31
null $dri
John Turner
19 Sep 14 14:00:43
$DRI Fast Money Picks For September 16 - Twitter Inc, Darden Restaurants, Inc. And ... http://t.co/awn7i15XpI
12Stocks.com
19 Sep 14 13:01:13
MidCap #Stocks Trend $CNQR $DRC $VRTX $COL $ARMK $ACT $SLXP $DRI $MDVN $ZTS $AWAY $NRG $DPS $INTU $ALKS $ARG @ http://t.co/tf79gD96D3
12Stocks.com
19 Sep 14 13:00:56
MidCap #Stocks Performance $CNQR $DRC $VRTX $N $COL $WTW $AGNC $ARMK $ACT $GLNG $SLXP $NI $DRI $MDVN more@ http://t.co/tf79gD96D3
12Stocks.com
19 Sep 14 13:00:39
S&P500 #Stocks Trend $VRTX $COL $ACT $DRI $CCL $ZTS $NRG $DPS $INTU $EXC $ARG $KO $WHR $MCD $AMGN $EW $HUM @ http://t.co/RPeaHBZz9y
12Stocks.com
19 Sep 14 13:00:23
S&P500 #Stocks Performance $VRTX $COL $ACT $AMZN $NI $DRI $CCL $NLSN $ZTS $NRG $AES $MPC $DPS $CCE $INTU more@ http://t.co/RPeaHBZz9y
Daily Contracts
19 Sep 14 12:41:02
Real-Time feed of company contracts, original agreements and executive updates from Darden $DRI http://t.co/L5y9RjG4KB
Alan Farley
19 Sep 14 11:08:34
Why greedy hedge funds suddenly care so much about breadsticks $DRI http://t.co/jXhXzWIbR7
Lauren Jacobs
19 Sep 14 10:24:39
RT @tnewmstweet: How @OliveGarden's Investors Upset its Employees http://t.co/EGed6Np77T by @KhushAndOJ via @Eater | PETITION: https://t.co…
Flavorful Excursions
19 Sep 14 10:18:43
RT @AnjaliFlukerOBJ: Now Starboard's nominees are 'excited' to run for @Darden_News board seats? This campaigning reminds me of middle scho…
Anjali Fluker
19 Sep 14 10:16:16
Now Starboard's nominees are 'excited' to run for @Darden_News board seats? This campaigning reminds me of middle school elections $DRI
Tim Newman
19 Sep 14 10:08:26
How @OliveGarden's Investors Upset its Employees http://t.co/EGed6Np77T by @KhushAndOJ via @Eater | PETITION: https://t.co/GexQaNioZ3 $DRI
Briefing.com
19 Sep 14 10:03:07
Co’s that have issued #earnings #guidance in the last 30 days http://t.co/pHPKQRSYln $GDOT $PIR $DNKN $IRBT $TEX $AEP $DRI $ULTA
NASDAQ
19 Sep 14 09:55:03
$DRI - Additional Proxy Soliciting Materials - Non-management (definitive) (dfan14a) http://t.co/5qcKpQOnQ2
$Stocknewsalerts
19 Sep 14 09:54:27
$DRI Darden - DFAN14A (Additional Proxy Soliciting Materials - Non-Management (definitive)) SEC Filing From our Stock News Alerts App
Tim Newman
19 Sep 14 09:38:42
RT @nypostbiz: Olive Garden workers have beef with Starboard $dri http://t.co/XZHxkSqYuy via @nypost via @jamescovert1
Coworker.org
19 Sep 14 09:37:37
.@OliveGarden workers have beef with Starboard http://t.co/dgt6PjHABm by @jamescovert1 at @nypost | Petition: https://t.co/bQLs2OvEwV $DRI
NY Post Business
19 Sep 14 09:31:49
Olive Garden workers have beef with Starboard $dri http://t.co/XZHxkSqYuy via @nypost via @jamescovert1
James Covert
19 Sep 14 09:31:48
Olive Garden workers have beef with Starboard $dri #nyp http://t.co/gNWa0OcOVG via @nypost
Marshall Hargrave
19 Sep 14 09:30:23
RT @HedgeyeHWP: Olive Garden employees want a "seat at the table" http://t.co/LSGPB0Iku1 … $DRI <-- rightfully so
Old Dog New Tricks
19 Sep 14 09:26:57
Expect to have 600 x $INTC and 200 x $DRI called. Picked up 300 x $GIS in anticipation assignment.
John Ablemann
19 Sep 14 09:00:41
$DRI Fast Money Picks For September 16 - Twitter Inc, Darden Restaurants, Inc. And ... http://t.co/4sKoKW2obO
12Stocks.com
19 Sep 14 08:53:13
MidCap #Stocks Trend $CNQR $DRC $COL $GLNG $AEO $ATI $WEN $AWAY $DSW $VRTX $MDVN $DRI $SNV $ZION $TFSL $SFM @ http://t.co/tf79gD96D3
12Stocks.com
19 Sep 14 08:52:38
S&P500 #Stocks Trend $COL $CCL $ATI $VRTX $DRI $ZION $APD $PRU $HCBK $MCD $SWK $WHR $NOC $LNC $CAG $HAS $ZTS @ http://t.co/RPeaHBZz9y
12Stocks.com
19 Sep 14 08:52:21
S&P500 #Stocks Performance $COL $CCL $NI $ATI $AMZN $CRM $VRTX $DRI $HD $ZION $APD $LYB $SPLS $PRU $HCBK more@ http://t.co/RPeaHBZz9y
Shit Management Says
19 Sep 14 08:13:09
Developed brands to have industry‐leading average unit volumes, margins and restaurant‐level returns -- $DRI
NASDAQ
19 Sep 14 07:22:09
$DRI - Additional Proxy Soliciting Materials (definitive) (defa14a) http://t.co/pAx4EnA7cz
$Stocknewsalerts
19 Sep 14 07:19:26
$DRI Darden - DEFA14A (Additional Proxy Soliciting Materials (definitive)) SEC Filing From our Stock News Alerts App
Stock Moo
19 Sep 14 06:41:54
$dri: Starboard's Director Nominees Issue Letter to Darden Shareholders http://t.co/w0RKlgbs8p
Fish4Bucks
19 Sep 14 06:26:04
60m $DRI Upper Trendline Pressure 50.710 #futures #stocks 09:25:46 AM http://t.co/WZwETG8am0 Signals based ... http://t.co/WZwETG8am0
NASDAQ
19 Sep 14 06:15:06
$DRI - Starboard's Director Nominees Issue Letter to Darden Shareholders http://t.co/ipc6UD2sqi
Media Sentiment
19 Sep 14 05:48:04
$DRI received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 100
Market Int Center
19 Sep 14 05:45:29
Darden Restaurants $DRI Showing Bullish Technicals With Resistance At $51.02 ( http://t.co/N7TeVkrnxD )
Stock Moo
19 Sep 14 05:41:55
$dri: "Grazie" Olive Garden Guests And Fans For Your Passionate And Ongoing Support http://t.co/cESnSNHCaa
Full Disclosure
19 Sep 14 05:35:47
Could Olive Garden labor conceivably unite with management against an invading hedge fund? http://t.co/Vl0nhA9OrV $DRI
Ritika Goyal
19 Sep 14 05:26:26
$DRI discovers the existence of #TeamBreadsticks, says "Grazie." Is that word authentic Italian or just Italian inspired?
4-traders.com
19 Sep 14 05:10:03
Darden Restaurants : "Grazie" Olive Garden Guests And Fans For Your Passionate And Ongoing Support http://t.co/ZwXbWpnsYy $DRI
NASDAQ
19 Sep 14 05:08:56
$DRI - "Grazie" Olive Garden Guests And Fans For Your Passionate And Ongoing Support http://t.co/oPpx9WcR4N
BV Services
19 Sep 14 05:05:42
$DRI "Grazie" Olive Garden Guests And Fans For Your Passionate And Ongoing Support.. http://t.co/UEsLe3EgHv
$Stocknewsalerts
19 Sep 14 05:05:39
$DRI Darden - "Grazie" Olive Garden Guests And Fans For Your Passionate And Ongoing Support From our Stock News Alerts App
Fish4Bucks
19 Sep 14 04:24:54
60m $DRI Upper Trendline Pressure 50.710 #futures #stocks 07:24:41 AM http://t.co/WZwETG8am0 Signals based ... http://t.co/WZwETG8am0
4-traders.com
19 Sep 14 03:05:05
Darden Restaurants : Mails Letter To Shareholders; Board Recommends Shareholders Vote 'FOR ALL' of 's Eight... http://t.co/y2FooQx5wH $DRI
12Stocks.com
19 Sep 14 03:02:59
Weekly S&P500 #Stocks Trend $X $DD $ICE $CME $ETFC $LRCX $KSU $NUE $SCHW $LUV $DFS $LEN $KSS $DRI $GMCR $SNDK @ http://t.co/RPeaHBZz9y
Stock Signaling
19 Sep 14 03:01:06
Earnings Surprises: $UNFI $FDX $GIS $LEN $PIR $MLHR $CLC $ADBE $DRI $OPTT $AAVL $SPWH $LULU $RSH $ULTA http://t.co/Vtx6dLy0Nw #swingtrading
FlowerPower
18 Sep 14 20:12:54
#MadMoneyEspresso (1 of 2) $BABA —> 👍, don't pay above $83 for IPO $RAD —> 👍 $SHLD—> 👎 $DRI —> 👍 $DBD —> 👍 $PAA —> 👍 $WFC —> 👍
Brandon
18 Sep 14 17:41:33
Wow did Darden $DRI sling some mud back at Starboard. Calls former exec "stale and neither recent nor relevant" http://t.co/9qn6Z7V3BT
Tim Newman
18 Sep 14 17:16:15
.@OliveGarden employees 'want a seat at the table' over how Darden runs the chain http://t.co/VRajqsdRZR by @vic_taylor at @nydailynews $DRI
Dignity At Darden
18 Sep 14 15:55:09
RT @LaurenLJacobs: http://t.co/pF50USanHw Darden workers threaten action against Starboard and Darden $DRI #teambreadsticks @DignityAtDa…
pennypicker
18 Sep 14 15:29:12
Cramer optimistic on $DRI #madmoney. I disagree. $DRI has run its course. Its restaurants are very passe imo.
Lauren Jacobs
18 Sep 14 15:22:54
http://t.co/pF50USanHw Darden workers threaten action against Starboard and Darden $DRI #teambreadsticks @DignityAtDarden
				
				
By  +Follow June 21, 2013 10:21AM
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