Olive Garden owner Darden Restaurants reports second-quarter loss of $32.8 million
Darden Restaurants Inc. says sales improved at Olive Garden during the fiscal second quarter, helping the company beat market expectations for the period.
Shares of the Orlando, Florida-based company rose 2 percent in extended trading Tuesday.
Darden has been trying to reshape its business after changing consumer tastes hurt its sales. It sold off its Red Lobster chain and has updated its menus and marketing campaigns, with mixed results.
The company on Tuesday reported a loss of $32.8 million, or 26 cents per share, for the period that ended on Nov. 23. On an adjusted basis, it earned 28 cents per share for the period. Analysts surveyed by Zacks Investment Research were anticipating earnings of 27 cents per share.
Darden's revenue rose 5 percent to $1.56 billion. Analysts were expecting $1.55 billion.
Revenue from its restaurants open at least a year increased 0.5 percent for Olive Garden, along with gains at LongHorn Steakhouse, The Capital Grille, Eddie V's, Yard House and Seasons 52. This is considered a key indicator of financial performance as it strips away the impact of recently opened and closed sites.
Darden Restaurants shares have increased nearly 3 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed almost 7 percent.
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Elements of this story were generated by Automated Insights using data from Zacks Investment Research. DRI stock research report from Zacks.
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Keywords:Darden Restaurants,Earnings Report