Olive Garden parent Darden Restaurants (NYSE:DRI) revealed an 18% profit decline on Friday amid weaker same-store sales at its three major chains but still managed to top Wall Street expectations and boast higher sales.
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Darden cut its third-quarter and full-year profit expectations last month citing softening demand as consumers cut back in the face of higher taxes and gas prices.
In its most recent quarter, same-store sales, a key measurement of sales at stores open longer than a year, fell 4.1%.
Yet, the Orlando-based operator of chain restaurants like Red Lobster and LongHorn Steakhouse reported net earnings of $134.5 million, $1.02 a share, compared with a year-earlier $164.1 million, or $1.25.
The results were a penny ahead of average analyst estimates in a Thomson Reuters poll.
Fueled by stronger demand and its August acquisition of Yard House restaurants, revenue for the three months ended Feb. 24 climbed 4.6% to $2.26 billion, matching the Street’s view.
Darden continues to anticipate sales growth between 6% and 7% in fiscal 2013, with same-store sales at Red Lobster, Olive Garden and LongHorn falling between 1.5% and 2.5%. It sees non-GAAP EPS in the range of $3.06 to $3.22, bracketing the consensus view of $3.16.