Darden Restaurants, Inc. (DRI) Posts Q4 EPS of 65c

Darden Restaurants, Inc. (NYSE: DRI) reported Q4 EPS of $0.65, which may not compare with the analyst estimate of $0.94. Revenue for the quarter came in at $2.32 billion versus the consensus estimate of $2.33 billion.

The Company estimates that diluted net earnings per share for the fourth quarter of this year were adversely affected by approximately 19 cents due to legal, financial advisory and other costs related to implementation of the strategic action plan Darden announced in December 2013 and charges related to various asset impairments.

In the fourth quarter, U.S. same-restaurant sales increased 2.4% at LongHorn Steakhouse and 2.0% at the Specialty Restaurant Group and declined 3.5% at Olive Garden and 5.6% at Red Lobster.

Darden's Board of Directors declared a quarterly cash dividend of 55 cents per share on the Company's outstanding common stock. The dividend is payable on August 1, 2014 to shareholders of record at the close of business on July 10, 2014.

Red Lobster Sale

Darden expects to receive net cash proceeds from the sale of Red Lobster, after tax and transaction costs, of approximately $1.6 billion, of which approximately $1.0 billion will be used to retire outstanding debt. The remaining net proceeds of approximately $500 million to $600 million will be deployed in fiscal 2015 for a new share repurchase program of up to $700 million. In addition to strengthening the Company's credit metrics, with the lower debt levels and reduced outstanding share count, Darden expects to maintain its current quarterly dividend of 55 cents per share, or $2.20 annually. The transaction is expected to close in the Company's first quarter of fiscal 2015.

For earnings history and earnings-related data on Darden Restaurants, Inc. (DRI) click here.

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