Darden Restaurants (DRI) Sees Q3 EPS Below Consensus

February 22, 2013 8:33 AM EST Send to a Friend
Darden Restaurants, Inc. (NYSE: DRI) today reported that it expects diluted net earnings per share from continuing operations for its fiscal third quarter ending February 24, 2013, to be approximately $1.00 to $1.02. The Company also estimates that, compared to the prior year, blended U.S. same-restaurant sales for the third quarter for Olive Garden, Red Lobster and LongHorn Steakhouse will be approximately -4.5% and that this result was adversely affected by approximately 90 basis points due to more severe winter weather this year than last year. In addition, Darden estimates that blended U.S. same-restaurant sales for the third quarter for its Specialty Restaurant Group will be approximately +2.0%. Among the Company's large brands, U.S. same-restaurant sales for the third quarter are estimated to be approximately -1.5% at LongHorn Steakhouse, -4.0% at Olive Garden and -7.0% at Red Lobster. The Company expects to release its fiscal 2013 third quarter earnings on Friday, March 22, 2013, at 7:00 am ET.

*** The Street is looking for Q313 EPS of $1.13.

Based on estimated results for its fiscal third quarter, Darden updated its financial outlook for fiscal 2013. The Company anticipates total sales growth for the year of between +6% and +7%, which reflects combined U.S. same-restaurant sales for the year for Red Lobster, Olive Garden and LongHorn Steakhouse that is now expected to be between -1.5% to -2.5%, incremental sales starting in fiscal September from the acquisition of Yard House and the addition of approximately 105 net new restaurants this year, not including the initial 40 Yard House restaurants in operation when the acquisition was completed. The Company expects diluted net earnings per share from continuing operations for fiscal 2013 to be between $3.06 to $3.22, which includes approximately 9 cents of transaction and closing costs associated with the purchase of Yard House.


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