Results include special items related to the sale of Red Lobster
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Darden Restaurants Inc. swung to a net loss for the Aug. 24-ended first quarter, a period that included special items related to the sale of its 706-unit Red Lobster division, the Orlando, Fla.-based casual-dining operator reported Friday.
During the quarter, Darden completed the sale of Red Lobster to Golden Gate Capital in a $2.1 billion deal.
Same-store sales were mixed at Darden’s two largest brands, increasing 2.8 percent at LongHorn Steakhouse and declining 1.3 percent at Olive Garden. Among the company’s specialty restaurants, same-store sales dipped 0.3 percent at Seasons 52, but increased 2.3 percent at Yard House, 3.9 percent at Capital Grille, 1.1 percent at Bahama Breeze and 2.5 percent at Eddie V’s.
Darden ended the quarter with 1,504 restaurants.
1Q NET LOSS
Result: -$19.3 million, or -14 cents per share
% Decrease: 145.7% (from $42.2 million, or 32 cents per share)
1Q REVENUE
Result: $1.6 billion
% Increase: 4.2% (from $1.53 billion)
1Q SAME-STORE SALES
% Decrease at Olive Garden: 1.3%
% Increase at LongHorn Steakhouse: 2.8%
% Increase at Specialty Restaurant Group: 2.1%
Source: Company report
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Contact Ron Ruggless at [email protected].
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