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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
Market Updater
1 Sep 14 19:15:19
$DRI: Early Glance: Restaurant companies http://t.co/GR68BjedSQ http://t.co/5VOsjQVV2N
Finance News
1 Sep 14 19:10:18
RT @daily_finance: Olive Garden can't cook its way out of this mess http://t.co/5OLC6yMR0U $DRI
DailyFinance
1 Sep 14 18:45:14
Olive Garden can't cook its way out of this mess http://t.co/5OLC6yMR0U $DRI
Ely Bahiana
1 Sep 14 12:25:38
RT @daily_finance: Olive Garden can't cook its way out of this mess http://t.co/5OLC6yMR0U $DRI
DailyFinance
1 Sep 14 12:15:32
Olive Garden can't cook its way out of this mess http://t.co/5OLC6yMR0U $DRI
Turner LaCas
1 Sep 14 07:59:08
Olive Garden Can't Cook Its Way Out of This Mess http://t.co/Ej8CruVgYt via @daily_finance $DRI
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1 Sep 14 05:46:49
#BestSteakHouseInUSA Darden Restaurants $DRI - LongHorn Steakhouse - Texas Roadhouse $TXRH and Morton's Steakhouse
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1 Sep 14 05:20:05
Darden Restaurants Downgraded by Bank of America $DRI http://t.co/EYkzbCKLMx
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31 Aug 14 20:15:13
$DRI: Darden delays shareholder meeting http://t.co/uicG2ZiAN7 http://t.co/kbiZvMbs9T
linda monroe
31 Aug 14 20:12:26
Olive Garden Can't Cook Its Way Out of This Mess http://t.co/I5gss63V1J via @daily_finance $DRI
Investor Wand
31 Aug 14 04:14:18
Is $DRI a SELL? BofA Merrill Lynch thinks so:http://t.co/1kZ8YmyHJw
Danny Wilson
31 Aug 14 02:06:47
Olive Garden Can't Cook Its Way Out of This Mess http://t.co/G9NcMgo0Cz via @daily_finance $DRI
Steve Symington
30 Aug 14 08:21:00
Why Buffalo Wild Wings is a better version of Olive Garden's parent: http://t.co/mNHNqZqoE6 via @themotleyfool $BWI $CMG $DRI #FastCasual
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30 Aug 14 08:15:15
$DRI: Early Glance: Restaurant companies http://t.co/kiKRTwZHxs http://t.co/QfG8i0zRmf
Instaya
30 Aug 14 08:02:50
Restaurant chains worth watching @Darden_News @get_cosi $dri $cosi #activists #management #turnaround http://t.co/THtRoKwKZt #liveinstyle
Instaya
30 Aug 14 07:50:52
Darden restaurants about to sell Olive Garden http://t.co/X6ndM8LRFi via @daily_finance $DRI
DailyFinance
30 Aug 14 04:45:10
Olive Garden can't cook its way out of this mess http://t.co/5OLC6yMR0U $DRI
Bidness Etc
29 Aug 14 18:30:04
Bank of America has downgraded Darden Restaurants to Underperform as the management-shareholder rift continues http://t.co/eTQ6l5Wqor $DRI
Biz Headlines
29 Aug 14 17:15:15
$DRI: Why Darden Restaurants (DRI) Stock Is Lower Today http://t.co/RDTxjCDqHU http://t.co/b6lzcQe02s
Attiva Capital
29 Aug 14 12:34:28
Added today: $nti $vz $dri $yod $arr $mhgc
Daily Contracts
29 Aug 14 12:00:07
$DRI News: Exhibit 10.1 http://t.co/K7U8kO7fOC #florida #clarenceotis
Bidness Etc
29 Aug 14 07:43:58
Darden stock struggles after Bank of America downgrade http://t.co/euuhsb3hBE $DRI
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29 Aug 14 06:15:13
$DRI: [video] Darden's fishy financial disclosure http://t.co/MQBQ7ZS4z4 http://t.co/Ym2h8tvOru
Ticker Report
29 Aug 14 05:28:37
Darden Restaurants Stock Rating Lowered by Bank of America $DRI http://t.co/Egq6d1EW1w
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29 Aug 14 05:25:21
BDI gapping up again $DRI $FREE.
Okapi Partners
29 Aug 14 04:42:47
Starboard Files Definitive Proxy Materials to Elect Twelve Highly Qualified Director Nominees to $DRI http://t.co/jKFmy46pw8
finsents
29 Aug 14 04:16:41
$DRI:US 29Aug Negative News #Sentiment http://t.co/QtW4pZHp2z #SP500
TipRanks
28 Aug 14 21:49:52
1-star analyst Joseph Buckley from Merrill Lynch downgraded rating on $DRI to SELL. http://t.co/FpBrBnT33R
Alpha Maven Alerts
28 Aug 14 21:15:17
$DRI, Active, Yesterday, SD +2.43, #NYSE #ConsumerServices
Market News
28 Aug 14 17:15:14
$DRI: Final Glance: Restaurant companies http://t.co/bkEFcG6GRA http://t.co/DAU5XYJpaV
footnoted
28 Aug 14 15:46:44
Another dead week dump. Severance agreement with $DRI’s Clarence Otis http://t.co/H4tGbV3CYV
John Michael
28 Aug 14 15:24:53
RT @SeekingAlpha: S&P 500 And Aristocrat Dividend Dogs Tag 4.2% To 20.2% August Upsides http://t.co/0kooH02DX0 $ABBV $CINF $CLX $CTL $CVX $…
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28 Aug 14 15:23:56
RT @SeekingAlpha: S&P 500 And Aristocrat Dividend Dogs Tag 4.2% To 20.2% August Upsides http://t.co/0kooH02DX0 $ABBV $CINF $CLX $CTL $CVX $…
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28 Aug 14 15:19:29
S&P 500 And Aristocrat Dividend Dogs Tag 4.2% To 20.2% August Upsides http://t.co/0kooH02DX0 $ABBV $CINF $CLX $CTL $CVX $DRI $ED $EMR
Bluestone Financial
28 Aug 14 14:33:07
RT @Briefingcom: $DRI: Darden Restaurants: Starboard confirms it filed proxy materials for annual mtg to elect its 12 nominees;... http://t…
Bluestone Financial
28 Aug 14 14:33:01
RT @attivacapital: Positions added today: $yod $nti $dri
Attiva Capital
28 Aug 14 14:27:54
"@theflynews: $DRI Starboard urges Darden shareholders vote for board nominees: Full Story http://t.co/rIFP0NMCd5"
Attiva Capital
28 Aug 14 14:27:39
RT @Briefingcom: $DRI: Darden Restaurants: Starboard confirms it filed proxy materials for annual mtg to elect its 12 nominees;... http://t…
Attiva Capital
28 Aug 14 14:27:08
Positions added today: $yod $nti $dri
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28 Aug 14 14:15:15
$DRI: Extra Space Storage Larger Than S&P 500 Component Darden Restaurants http://t.co/6QUmdNm52f http://t.co/i629EWcXyo
$Stocknewsalerts
28 Aug 14 14:14:26
$DRI Darden - DEFA14A (Additional Proxy Soliciting Materials (definitive)) SEC Filing From our Stock News Alerts App
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28 Aug 14 14:12:48
$DRI Darden - 8-K (Current report filing) SEC Filing From our Stock News Alerts App
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$DRI Darden Restaurants Inc files Form 8-K (Events or Changes Between Quarterly Reports) SEC Filing.. http://t.co/CRY4sw8cqW
$Stocknewsalerts
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$DRI Darden - DFAN14A (Additional Proxy Soliciting Materials - Non-Management (definitive)) SEC Filing From our Stock News Alerts App
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28 Aug 14 13:09:05
$DRI: Darden Restaurants: Starboard confirms it filed proxy materials for annual mtg to elect its 12 nominees;... http://t.co/tiXi6tVO82
MarketCurrents
28 Aug 14 12:35:01
Starboard Value full of ideas on Darden Restaurants http://t.co/gjd4jjJGn3 $DRI
Daily Contracts
28 Aug 14 11:35:02
Real-Time feed of company contracts, original agreements and executive updates from Darden $DRI http://t.co/L5y9RjG4KB
Howard Penney
28 Aug 14 11:20:39
$DRI FLA 9th Circuit granted Starboard's Motion directing Darden to provide them data relating to the Red Lobster Sale among other things
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28 Aug 14 11:16:22
Starboard nominates 12 to the $DRI board
Market News
28 Aug 14 11:15:15
$DRI: Darden Reschedules 2014 Annual Meeting Of Shareholders For Friday, October 10, 2014 http://t.co/n00N4cG7o5 http://t.co/VxV46HjgkO
				
				
By  +Follow June 21, 2013 10:21AM
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