Darden Restaurants Hit Low Targets (DRI)
Darden Restaurants Inc. (NYSE: DRI) reported second-quarter 2012 earnings this morning that were down -28% from the same period a year ago. EPS came in at $0.41, right on the consensus estimate, as was the sales figure of $1.83 billion.…
Darden Restaurants Inc. (NYSE: DRI) reported second-quarter 2012 earnings this morning that were down -28% from the same period a year ago. EPS came in at $0.41, right on the consensus estimate, as was the sales figure of $1.83 billion. Last year, Darden posted EPS of $0.54 last year, and total earnings of $75.8 million compared with this year’s profit of $54.1 million.
The company, which owns Olive Garden and Red Lobster stores among others, blamed the lackluster showing on poor performance at its Olive Garden restaurants and “pressure on check averages as guests continue to be cautious about spending and unfavorable year-over-year food costs.” Same-store sales at Olive Garden were down -2.5%, and up 6.8% at Red Lobster and 6% at the company’s Longhorn Steakhouses.
Darden did manage investors’ expectations pretty well though. Three months ago the EPS estimate for the second quarter was $0.55. That trickled down to $0.43 a week ago and right on target just a few days ago.
Darden shares are down about -1.5% in pre-market trading, at $43.10.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
