Darden defends progress but swings to Q1 loss
SEAFOODNEWS.COM [Wall Street Journal] By Julie Jargon - September 15, 2014 -
Darden swung to a loss in its latest quarter and characterized activist's revival plan as already under way.
Darden Restaurants Inc. on Friday defended its efforts to turn around its Olive Garden casual dining chain and said it is already implementing many of the cost-cutting initiatives that activist shareholder Starboard Value LP proposed Thursday in an about 300-page presentation.
Same-store sales at Olive Garden fell 1.3% in the quarter ended Aug. 24. They grew 2.8% at LongHorn Steakhouse and rose 2.1% at its specialty-restaurant group, which includes such higher-end chains as Capital Grille and Bahama Breeze.
Darden reported a loss from continuing operations of $19.3 million, or 14 cents a share, in the quarter, compared with a profit of $42.2 million, or 32 cents a share, a year earlier. Revenue increased 4% to $1.6 billion. The company reiterated its earnings outlook for the year.
To Read Full Story Login Below.