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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.

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Results for DRI
BreakingStocksNews
26 May 15 23:12:04
$DRI: Darden Restaurants, Inc. Analyst Rating Update: http://t.co/F4bnBDfUaB
DailyFinance
26 May 15 19:35:14
Fan of breadstick cuisine? Olive Garden has at least one more creation on the way? http://t.co/nAe4wQGWPe $DRI
Anjali Fluker
26 May 15 15:30:51
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Irma Doucet
26 May 15 13:32:48
$DRI Zacks Industry Outlook Highlights: Domino's Pizza, Darden Restaurants ... http://t.co/tN9Qa15rsI
Anjali Fluker
26 May 15 13:03:33
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Barbarian Capital
26 May 15 13:01:45
We tried Olive Garden's new breadstick sandwiches http://t.co/gjpDnHVU63 winship=Pension funds $ > VC funds > Business Insider > $DRI
SG_Analysts
26 May 15 12:50:02
@iam_mikeyoung enjoyed your article on $DRI a while back! Hope to see more. Thanks!
StockNewsWires
26 May 15 10:48:02
$DRI: More breadstick menu items on tap for Olive Garden: http://t.co/gLknZh3A8z
binaryoptionsocial
26 May 15 09:25:25
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Market Int Center
26 May 15 09:18:25
Darden Restaurants $DRI Showing Bullish Technicals With Support At $64.15 ( http://t.co/JCWFURvwKx )
Zero Filter
26 May 15 08:51:45
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DailyFinance
26 May 15 08:16:06
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26 May 15 07:30:12
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25 May 15 05:28:09
$DRI $CMG $BJRI: Restaurant Industry Stock Outlook: May 2015: http://t.co/rp8xJVcJT7
StockNewsWires
25 May 15 02:23:02
$DRI: Shares of Darden Restaurants, Inc. (NYSE:DRI) Sees Large Outflow ...: http://t.co/MbVhgHJghF
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25 May 15 01:45:36
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25 May 15 01:37:38
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Cloud Chipotle
24 May 15 10:58:15
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InvestWithConf
23 May 15 14:08:02
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Breaking News Now
23 May 15 08:31:02
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Capital Market Labs
22 May 15 22:14:41
$YUM vs. $DRI vs. $CMG vs. $QSR Compared Across 9 Critical Measures http://t.co/fUYhxSkUII http://t.co/5bdrOlRSVF
Duane Stanford
22 May 15 11:46:11
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22 May 15 10:39:17
$DRI Darden - 3/A (Amended Statement of Beneficial Ownership) SEC Filing From our Stock News Alerts App
Capital Market Labs
22 May 15 09:10:20
$QSR vs. $CMG vs. $DRI vs. $DNKN Compared Across 9 Critical Measures http://t.co/i46i8a9F06 http://t.co/Y9BLwsahJO
Thomas Collins
22 May 15 09:01:32
$DRI Stock Report on Darden Restaurants Inc (NYSE:DRI) http://t.co/0WWNtpct3O
Faryan Amir-Ghassemi
22 May 15 08:16:29
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22 May 15 06:25:05
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Kym L
21 May 15 16:52:53
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21 May 15 16:07:02
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Agenda
21 May 15 13:17:47
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Breaking News
21 May 15 11:08:06
$DRI: Stock Update - Darden Restaurants, Inc. (NYSE:DRI): http://t.co/ZNjEM0oLXC
Josh Friedman
21 May 15 11:01:00
Olive Garden to Debut Back-to-Basics Menu After Activist Fight $DRI http://t.co/UIr8QBn8FF via @business
Nick Turner
21 May 15 10:57:37
RT @PattonLes: Olive Garden is getting back to its roots $DRI http://t.co/Kcj6iP8NnX
Leslie Patton
21 May 15 09:52:34
Olive Garden is getting back to its roots $DRI http://t.co/Kcj6iP8NnX
Capital Market Labs
21 May 15 07:49:12
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21 May 15 07:40:48
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Brian Pierce
21 May 15 07:21:19
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Capital Market Labs
21 May 15 05:23:00
$YUM vs. $CMG vs. $DRI vs. $SBUX Compared Across 9 Critical Measures http://t.co/SITGQYd0nE http://t.co/ZTgkDOkcnJ
John Turner
21 May 15 05:02:12
$DRI Darden lays off 30 employees http://t.co/qK9jWE5fST
ProTradersNews
21 May 15 05:02:02
$DRI $CMG: Olive Garden to Debut Back-to-Basics Menu After Activist Fight: http://t.co/RafR6f2F3p
Lucky Jimmy
21 May 15 02:51:14
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ProVesting
20 May 15 23:13:03
$DRI: Darden Restaurants, Inc. Analyst Price Target Update: http://t.co/qz6OHxzuP7
Capital Market Labs
20 May 15 21:40:24
$CMG vs. $PNRA vs. $DRI vs. $DNKN Compared Across 9 Critical Measures http://t.co/cTp5g5bfn8 http://t.co/svO8CSryfa
				
				
By  +Follow June 21, 2013 10:21AM
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