Darden Restaurants says its fiscal fourth quarter earnings climbed 10 percent as sales from new restaurants helped balance a decline from established Olive Garden and Red Lobster locations.
Its earnings matched Wall Street expectations while revenue was below analysts’ estimates.
Its shares fell more than 3 percent in premarket trading.
advertisement
The Orlando, Fla., company says its net income rose to $151.2 million, or $1.15 per share, in the three months that ended May 27. That’s up from $137.4 million, or 99 cents per share, a year ago and matched Wall Street expectations.
Revenue rose 4 percent to $2.07 billion. Analysts expected revenue of $2.11 billion.
Sales at locations open more than a year fell nearly 4 percent for Red Lobster and 2 percent for Olive Garden. Darden also runs LongHorn Steakhouse restaurants, and sales at those established locations climbed 3 percent.
© 2012 The Associated Press. All rights reserved.
