Darden (DRI) Guides Q2 EPS Below Views; Cuts FY12 EPS Growth Outlook

Darden Restaurants, Inc. (NYSE: DRI) today reported that it expects diluted net earnings per share from continuing operations of approximately $0.41 for its fiscal second quarter ended November 27, 2011, versus $0.54 expected by the Street.

The Company also reported that it anticipates combined U.S. same-restaurant sales growth for the second quarter to be approximately +1.8% for Red Lobster, Olive Garden and LongHorn Steakhouse and +3.9% for its Specialty Restaurant Group. Darden estimates U.S. same-restaurant sales for the second quarter will be approximately +6.8%, +6.0% and -2.5% for Red Lobster, LongHorn Steakhouse and Olive Garden, respectively. Darden expects to release final fiscal second quarter sales and earnings results on Friday, December 16, 2011, before the market opens.

Darden also provided updated sales and earnings expectations for fiscal year 2012. The Company anticipates total sales growth of between +6.0% and +7.0% for the year based upon combined U.S. same-restaurant sales growth of approximately +2.0% to +3.0% for Red Lobster, Olive Garden and LongHorn Steakhouse and the opening of 80 to 90 net new restaurants. And, the Company expects diluted net earnings per share growth from continuing operations of +4% to +7% for fiscal 2012. Dardent previously forecast 12 - 15 percent of growth.

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