Darden Restaurants (DRI) Tops Q3 Views; Issues Favorable Guidance

March 17, 2009 4:44 PM EDT

Darden Restaurants, Inc. (NYSE: DRI) reports Q3 EPS of $0.80, ex-items, above the consensus of $0.68,. Revenues came in at $1.8 billion, versus the consensus of $1.81 billion.

Darden's Board of Directors declared a quarterly dividend of 20 cents per share.

Darden announced that it now expects a combined U.S. same-restaurant sales decline in fiscal 2009 of approximately 1.25% to 1.75% for Red Lobster, Olive Garden and LongHorn Steakhouse. This is favorable to the Company's prior guidance by approximately 50 basis points and reflects anticipated same-restaurant sales of approximately flat to down 2.5% in the last quarter of the fiscal year. The Company also announced that it continues to expect to open approximately 70 net new restaurants in fiscal 2009. As a result, the Company expects total sales growth of between 9.0% and 9.5% in fiscal 2009, compared to reported sales from continuing operations of $6.63 billion in fiscal 2008. This total sales growth includes the approximate two percentage point impact of a 53rd week in fiscal 2009; excluding the 53rd week, the expected total sales growth would be approximately 7.0% to 7.5%.

The Company also announced that it now anticipates reported diluted net earnings per share from continuing operations to increase between 1% to 4% in fiscal 2009, which includes the impact of the 53rd week. This is favorable to the Company's prior guidance by approximately five percentage points. This compares to reported diluted net earnings per share from continuing operations of $2.55 in fiscal 2008. The additional week is expected to contribute approximately two percentage points, or $0.06 per diluted share, of growth in fiscal 2009.

Darden Restaurants, Inc., through its subsidiaries, engages in the ownership and operation of a chain of restaurants in the United States and Canada.

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