Darden Restaurants predicts Q1 earnings

Source: Food and Drink Digital

Date :8/26/2008 5:10:35 AM

Darden Restaurants Inc has announced that it expects diluted net earnings per share to be between US$0.60 and US$0.62 in the first quarter.

The company expects quarterly profit to come in well below analysts’ estimates and has seen shares fall 13 percent.

It was also reported that Red Lobster, Olive Garden and Longhorn Steakhouse’s combined US same-restaurant sales will decline 1.1 percent in the first quarter, blaming a “more challenging than anticipated” consumer environment.

“Our revised earnings outlook for the full year reflects expected first quarter results as well as our expectation that same-restaurant sales will remain under pressure for the balance of the fiscal year,” said Clarence Otis, Chairman and CEO.

Darden Restaurants is the world’s largest full-service restaurant company with annual sales of nearly US$6.7 billion. It owns and operates over 1,700 restaurants and employs 180,000 people.