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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
4-traders.com
2 Oct 14 03:25:04
Darden Restaurants : Governor Quinn Announces the Wait is Over for Chicago's First Olive Garden Restaurant ... http://t.co/EHjAldPciS $DRI
ROC United
1 Oct 14 18:44:11
RT @prwatch: Darden pays top execs $68 million to LEAVE, won't spare a dime for front-line employees to stay: http://t.co/4xvJwonnbM @Darde…
ROC United
1 Oct 14 18:44:06
RT @LaurenLJacobs: Can there can be value 4 investors if employee morale so low that customer experience deteriorates? $DRI #Starboard http…
ffransis ap ffransis
1 Oct 14 17:40:22
RT @prwatch: Darden pays top execs $68 million to LEAVE, won't spare a dime for front-line employees to stay: http://t.co/4xvJwonnbM @Darde…
CMD's PR Watch
1 Oct 14 17:30:15
Darden pays top execs $68 million to LEAVE, won't spare a dime for front-line employees to stay: http://t.co/4xvJwonnbM @Darden_News $DRI
NASDAQ
1 Oct 14 13:22:43
$DRI - Additional Proxy Soliciting Materials (definitive) (defa14a) http://t.co/obDpEUHAlY
$Stocknewsalerts
1 Oct 14 13:18:18
$DRI Darden - DEFA14A (Additional Proxy Soliciting Materials (definitive)) SEC Filing From our Stock News Alerts App
Restaurants Feed
1 Oct 14 12:49:54
Starboard Nominees For Darden's BOD 'Approved' By ISS $dri http://t.co/Wp5bKHwR3u http://t.co/7In83bMuM4
Consumer Services
1 Oct 14 12:49:53
Starboard Nominees For Darden's BOD 'Approved' By ISS $dri #consumerservices http://t.co/Nb0gkqcgNW http://t.co/hoa8j3ezyr
ValueWalk
1 Oct 14 12:49:26
Starboard Nominees For Darden's BOD 'Approved' By ISS http://t.co/uR06cZtfzf $DRI
Bob Seawright
1 Oct 14 12:14:15
RT @abnormalreturns: Wednesday links: life happens, $HYG vs. $LQD vs. $SPY and the death of the bunt. http://t.co/UFRfxAXRpO $IYR $VNQ $DRI…
Sensible Investing
1 Oct 14 10:51:38
RT @abnormalreturns: Wednesday links: life happens, $HYG vs. $LQD vs. $SPY and the death of the bunt. http://t.co/UFRfxAXRpO $IYR $VNQ $DRI…
Mike from Bear&Bull
1 Oct 14 10:15:10
In Trying to Save Darden, a Board Sealed Its Own Demise $DRI http://t.co/vr1OmHjUeZ
Tadas Viskanta
1 Oct 14 09:57:24
Wednesday links: life happens, $HYG vs. $LQD vs. $SPY and the death of the bunt. http://t.co/UFRfxAXRpO $IYR $VNQ $DRI $SCHW $BOND $EWH
Jean Souffrant
1 Oct 14 09:28:07
RT @SandraPedicini: Clarence Otis will get $36 million severance deal when he leaves Darden Restaurants this year, via @kylelarnold $DRI ht…
ROC United
1 Oct 14 09:27:22
RT @valuewalk: And now enter Darden Employees- Darden And Starboard Should Be Ashamed: ROC United http://t.co/jicnI3tdPH $DRI
ROC United
1 Oct 14 09:26:49
RT @SandraPedicini: Clarence Otis will get $36 million severance deal when he leaves Darden Restaurants this year, via @kylelarnold $DRI ht…
Howard Penney
1 Oct 14 08:51:39
@CTS49 @herbgreenberg Agreed. They asked to eat in the restaurant and the people at $DRI said NO. Says it all!
Theneeds Stocks
1 Oct 14 08:50:26
RT @herbgreenberg: Hey, @LaMonicaBuzz, pretty funny piece u did on Olive Garden’s food $DRI http://t.co/W8B0iXQlEV Quote: “That is really t…
S. Davidoff Solomon
1 Oct 14 08:37:39
RT @brianscantland: Compelling read || In Trying to Save Darden $DRI, a Board Sealed Its Own Demise || http://t.co/OzxvWbj2Qz by @StevenDav…
Paul R. La Monica
1 Oct 14 08:34:16
@joshtrader @herbgreenberg @CNNMoney We asked $DRI/Olive Garden to let us eat and film at a restaurant. They said no. cc: @CristinaAlesci
NASDAQ
1 Oct 14 08:31:12
$DRI - Additional Proxy Soliciting Materials (definitive) (defa14a) http://t.co/bPEpBUbIR8
Paul R. La Monica
1 Oct 14 08:31:01
RT @herbgreenberg: Hey, @LaMonicaBuzz, pretty funny piece u did on Olive Garden’s food $DRI http://t.co/W8B0iXQlEV Quote: “That is really t…
$Stocknewsalerts
1 Oct 14 08:29:12
$DRI Darden - DEFA14A (Additional Proxy Soliciting Materials (definitive)) SEC Filing From our Stock News Alerts App
DR JAMES CABOT
1 Oct 14 08:23:10
RT @herbgreenberg: Hey, @LaMonicaBuzz, pretty funny piece u did on Olive Garden’s food $DRI http://t.co/W8B0iXQlEV Quote: “That is really t…
Farida Mohamed
1 Oct 14 08:21:31
RT @herbgreenberg: Hey, @LaMonicaBuzz, pretty funny piece u did on Olive Garden’s food $DRI http://t.co/W8B0iXQlEV Quote: “That is really t…
Herb Greenberg
1 Oct 14 08:19:40
Hey, @LaMonicaBuzz, pretty funny piece u did on Olive Garden’s food $DRI http://t.co/W8B0iXQlEV Quote: “That is really terrible."
Rick Munarriz
1 Oct 14 08:09:04
Like those Olive Garden breadsticks, Darden's always dishing out more bread than it has to with stale results. #OtisMyMan $DRI
Joey
1 Oct 14 07:41:16
RT @SandraPedicini: Clarence Otis will get $36 million severance deal when he leaves Darden Restaurants this year, via @kylelarnold $DRI ht…
Barbarian Capital
1 Oct 14 07:37:53
$NDLS "One guest from each restaurant will win the coveted grand prize of FREE Noodles for a Year" sounds like the $DRI ultd pasta promo
Chris Grzeszczak
1 Oct 14 07:23:30
RT @kylearnold Darden CEO Clarence Otis will get $36 million severance $DRI @orlandosentinel http://t.co/VhWpdODLas … Ridiculous!
Sandra Pedicini
1 Oct 14 07:14:39
Clarence Otis will get $36 million severance deal when he leaves Darden Restaurants this year, via @kylelarnold $DRI http://t.co/vwdoMvFeeI
Kyle Arnold
1 Oct 14 07:14:25
Darden CEO Clarence Otis will get $36 million severance $DRI @orlandosentinel http://t.co/bbpBCRClBb
Jeffrey Newman
1 Oct 14 07:11:44
RT @brianscantland: Compelling read || In Trying to Save Darden $DRI, a Board Sealed Its Own Demise || http://t.co/OzxvWbj2Qz by @StevenDav…
Rob Hager
1 Oct 14 07:01:11
In Trying to Save Darden, a Board Sealed Its Own Demise http://t.co/PWxGUAOC9z via @dealbook $DRI
Brian Scantland
1 Oct 14 07:00:42
Compelling read || In Trying to Save Darden $DRI, a Board Sealed Its Own Demise || http://t.co/OzxvWbj2Qz by @StevenDavidoff via @dealbook
Jamie Heller
1 Oct 14 06:58:28
A thoughtful look back at the Darden dustup ahead of next week's shareholder meeting. $DRI http://t.co/dfW2VrDHGX via @dealbook
Theo Francis
1 Oct 14 06:35:08
There are many ways to lose a proxy fight: @StevenDavidoff on Darden’s brawl with Icahn: http://t.co/TBXwPXgNdx $DRI #corpgov
Howard Penney
1 Oct 14 06:22:07
This is just so EGREGIOUS and why the wholesale changes are needed! Darden’s Golden Goodbyes - IPS http://t.co/Wvtvcjsc0i $DRI
vanja hadzic
1 Oct 14 06:20:07
RT @valuewalk: ISS and Glass Lewis Recommend For All Twelve of Starboard's Nominees For Darden $DRI
ValueWalk
1 Oct 14 06:16:21
ISS and Glass Lewis Recommend For All Twelve of Starboard's Nominees For Darden $DRI
Stock Moo
1 Oct 14 05:49:11
$dri: Darden's Director Nominees Mail Letter To Shareholders http://t.co/uS6ViSkfuY
PredictWallStreet
1 Oct 14 05:35:09
Predict $DRI (http://t.co/QPBWaklbFN) "Olive Garden food flunks CNNMoney taste test" http://t.co/ope97yT7tf http://t.co/vk8XZ7effq
BV Services
1 Oct 14 05:17:09
$DRI Darden's Director Nominees Mail Letter To Shareholders.. http://t.co/KLDWovcUie
4-traders.com
1 Oct 14 05:10:06
Darden Restaurants : Director Nominees Mail Letter To Shareholders http://t.co/21TOfiXKEz $DRI
NASDAQ
1 Oct 14 05:07:38
$DRI - Darden's Director Nominees Mail Letter To Shareholders http://t.co/lmYmVoXvF4
$Stocknewsalerts
1 Oct 14 05:05:23
$DRI Darden - Darden's Director Nominees Mail Letter To Shareholders From our Stock News Alerts App
Florence Hains
1 Oct 14 01:05:25
RT @SeekingAlpha: Inflation Is Killing My Retirement: How I'm Dealing With It, Part 4 http://t.co/vAtjmZqGBG $BKW $CAG $CBRL $DLTR $DRI $FD…
FARES EL AROUI
1 Oct 14 01:05:11
RT @SeekingAlpha: Inflation Is Killing My Retirement: How I'm Dealing With It, Part 4 http://t.co/vAtjmZqGBG $BKW $CAG $CBRL $DLTR $DRI $FD…
Seeking Alpha
1 Oct 14 01:04:08
Inflation Is Killing My Retirement: How I'm Dealing With It, Part 4 http://t.co/vAtjmZqGBG $BKW $CAG $CBRL $DLTR $DRI $FDO $MCD $SBUX
				
				
By  +Follow June 21, 2013 10:21AM
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