Originally published at www.seclive.com
Darden Restaurants, Inc. (NYSE:DRI) announced its first quarter financial results for the fiscal year 2014, with earnings plummeting 37% from a year ago. The company, which owns and operates brands such as Red Lobster, Olive Garden, and LongHorn Steakhouse, attributed some of its performance to increased food and beverage costs while also experiencing decreased same-restaurant sales. Same-restaurant sales at its largest chain by revenue, Olive Garden, decreased 4% while same-restaurant sales fell 5.2% at Red Lobster, and increased 3.2% at LongHorn Steakhouse. When combining all three, same-restaurant sales fell 3.3%. Total costs and expenses increased 9.6%, with labor increasing 9.9% while food and beverage costs rose 6.5%. Earnings decreased 37% from $110.8M to $70.2M, while earnings per share decreased from $0.85 to $0.53. Darden also announced its president and COO Drew Madsen will retire.
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