News Column

Olive Garden, Red Lobster owner Darden's 4Q earnings tumble on charges, costs; revenue up

June 20, 2014

The Associated Press



ORLANDO, Fla. - Darden's fiscal fourth-quarter profit dropped 35 per cent, dragged down by charges and costs tied to its strategic plan to reshape the restaurant company.

Its shares dropped more than 3 per cent in premarket trading.

The owner of Red Lobster, Oliver Garden and other restaurants earned $86.5 million, or 65 cents per share, for the three months ended May 25. A year earlier the Orlando, Florida-based company earned $133.2 million, or $1.01 per share.

Adjusted earnings were 84 cents per share. Analysts predicted 94 cents per share.

Darden is looking to sell Red Lobster to investment firm Golden Gate Capital in a proposed $2.1 billion deal. Starboard Value LP and Barington Capital Group LP have challenged Darden's planned sale.

Darden Restaurants Inc.'s revenue rose slightly to $2.32 billion, just short of the $2.33 billionWall Street predicted.


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Source: Canadian Press DataFile


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