Darden Restaurants Inc.’s net income for the fourth quarter ended May 25 fell 35.1 percent, the company reported Friday, which included charges related to the pending sale of the 706-unit Red Lobster brand.
The Orlando, Fla.-based casual-dining company said it planned to complete the planned $2.1 billion sale of Red Lobster to private equity firm Golden Gate Capital in July. Activist investors have opposed the sale.
The 65 cents in quarterly earnings per share included 36 cents from continuing operations and 29 cents from discontinued operations, which related to the pending Red Lobster sale.
Darden ended the quarter with 1,501 casual-dining restaurants, excluding Red Lobster. Its holdings include 837 Olive Garden units in the United States and Canada, 464 LongHorn Steakhouse locations, 54 Capital Grille restaurants, 52 Yard House units, 37 Bahama Breeze locations, 38 Seasons 52 restaurants, and 15 Eddie V’s units.
4Q NET INCOME
Result: $86.5 million, or 65 cents per share% Decrease: 35.1% (from $133.2 million, or $1.01 per share)
4Q REVENUE
Result: $1.65 billion (excluding $666.2 million in sales from discontinued operations)% Increase: 3.6% (from $1.59 billion)
4Q SAME-STORE SALES
% Decrease at Olive Garden: 3.5%
% Decrease at Red Lobster: 5.6%
% Increase at LongHorn Steakhouse: 2.4%
% Increase at Specialty Restaurant Group: 2%
Source: Company report
FULL-YEAR NET INCOME
Result: $286.2 million, or $2.15 per share% Decrease: 30.5% (from $411.9 million, or $3.13 per share)
FULL-YEAR REVENUE
Result: $6.29 billion (excluding $2.47 billion from discontinued operations)% Increase: 6.2% (from $5.92 billion)
FULL-YEAR SAME-STORE SALES
% Decrease at Olive Garden: 3.4%
% Decrease at Red Lobster: 6%
% Increase at LongHorn Steakhouse: 2.7%
% Increase at Specialty Restaurant Group: 1.6%
Source: Company report
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Contact Ron Ruggless at [email protected].
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