Darden says fourth-quarter earnings decline, raises dividend to 32 cents a share

Darden Q4 profit slips

ORLANDO, Fla. — Darden Restaurants Inc. said Wednesday that its fiscal fourth-quarter earnings slipped amid continued dampened consumer spending.

Darden said its net income declined to $115.6 million, or 80 cents a share, in the quarter ended May 30, from $123 million, or 87 cents a share, in the year-earlier quarter. Sales fell to $1.86 billion from $1.98 billion a year earlier.

The Orlando-based company, whose restaurants include Olive Garden, Red Lobster, and LongHorn Steakhouse, had income excluding items of 86 cents per share, below analysts’ estimate of 88 cents.

Combined, same store sales for the three restaurant chains declined 2.3 percent in the period, the company said.

Sales at stores open at least a year is a key indicator of a retailer’s performance because it excludes growth at stores that open or close during the year.

Darden said it expected same store sales growth to climb between 2 percent and 3 percent at those three chains in the new fiscal year.

The company also announced a dividend for the quarter of 32 cents a share, up from 25 cents previously. The dividend is payable on Aug. 2 to shareholders of record as of July 9.

In the fiscal year ended May 30, Darden’s earnings rose to $404.5 million, or $2.90 a share, from $372.2 million, or $2.71 a share, in the previous year. Sales declined to $7.11 billion from $7.22 billion.

Darden shares fell as much as 26 cents to $41.64 in after hours trading, when the report was released. They had fallen 49 cents to $41.90 in regular trading Wednesday.