Darden (DRI) Sees Q2 EPS Well Below Views; Sees Impact from Yard House, Hurricane Sandy

December 4, 2012 8:34 AM EST Send to a Friend
Get Alerts DRI Hot Sheet
Trade DRI Now!
Join SI Premium – FREE
Darden Restaurants, Inc. (NYSE: DRI) today reported that it expects diluted net earnings per share from continuing operations of approximately 25 to 26 cents for its fiscal second quarter ended November 25, 2012 (the Street sees EPS of 47 cents). The Company reported that it anticipates the transaction and closing costs associated with the purchase of Yard House, USA Inc. will adversely affect diluted net earnings per share from continuing operations for its fiscal second quarter by approximately five cents. Additionally, the Company reported that Hurricane Sandy adversely affected diluted net earnings per share from continuing operations for its fiscal second quarter by approximately one cent.

The Company also reported that it anticipates combined U.S. same-restaurant sales for the second quarter to be approximately -2.7% for Red Lobster, Olive Garden and LongHorn Steakhouse and U.S. same-restaurant sales for the quarter of +0.7% for its Specialty Restaurant Group. Darden estimates U.S. same-restaurant sales for the second quarter will be approximately -0.8%, -2.7% and -3.2% for LongHorn Steakhouse, Red Lobster and Olive Garden, respectively. Darden expects to release final fiscal second quarter sales and earnings results on Thursday, December 20, 2012, before the market opens.

Darden also provided updated sales and earnings expectations for fiscal year 2013. The Company anticipates total sales growth of between +7.5% and +8.5% for the year based upon combined U.S. same-restaurant sales of approximately -1.0% to flat for Red Lobster, Olive Garden and LongHorn Steakhouse, incremental sales starting in fiscal September from the acquisition of Yard House, and the opening of approximately 100 net new restaurants in fiscal 2013, not including the initial 40 Yard House restaurants operating at the close of the acquisition. And, the Company expects diluted net earnings per share from continuing operations of $3.29 to $3.49 for fiscal 2013, which includes approximately 8 to 10 cents of transaction and closing costs associated with the purchase of Yard House USA, Inc.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Guidance, Hot Guidance

Related Entities

Earnings

Add Your Comment