Darden Restaurants Reports Second Quarter Diluted Darden Restaurants Reports Second Quarter Diluted Net Earnings Per Share Of 26 Cents; Declares A Quarterly Dividend Of 50 Cents Per Share
December 20, 2012
ORLANDO, Fla., Dec. 20, 2012 /PRNewswire/ -- Darden Restaurants, Inc. (NYSE: DRI) today reported diluted net earnings per share and sales for the second quarter ended November 25, 2012.
Highlights for the quarter include the following:
Second quarter diluted net earnings per share from continuing operations were 26 cents, a 37% decrease from the 41 cents per diluted share in the second quarter of last year. Earnings from continuing operations in this year's second quarter were $33.7 million and sales were $1.96 billion, which compare to earnings from continuing operations of $54.1 million and sales of $1.83 billion in the second quarter last year.
Second quarter total sales from continuing operations of $1.96 billion represent an increase of 7.0% compared to the second quarter of last year. The increase reflects a same-restaurant sales increase of 0.7% for the Company's Specialty Restaurant Group, incremental sales from the 11 Eddie V's restaurants acquired on November 14, 2011, the acquisition of 40 Yard House restaurants on August 29, 2012 and the addition and operation of another 99 net new restaurants compared to the second quarter last year, offset by a combined same-restaurant sales decline of 2.7% for Olive Garden, Red Lobster and LongHorn Steakhouse. In the second quarter, U.S. same-restaurant sales decreased -0.8%, -2.7% and -3.2% for LongHorn Steakhouse, Red Lobster and Olive Garden, respectively.
The Company estimated that costs associated with the acquisition of Yard House USA, Inc., which was completed on August 29, 2012, the beginning of this year's second quarter, adversely affected diluted net earnings per share for this year's second quarter by approximately five cents.
Darden's Board of Directors declared a quarterly dividend of 50 cents per share.
Operating Highlights
OLIVE GARDEN'S second quarter sales of $849 million were 1.5% higher than the prior year, driven by revenue from 46 net new restaurants offset by a 3.2% decrease in U.S. same-restaurant sales. For the quarter, on a percentage of sales basis, lower food and beverage expenses offset an increase in restaurant expenses and depreciation expense, which resulted in an increase for the quarter in operating profit, but a decrease in operating profit as a percentage of sales.
RED LOBSTER'S second quarter sales of $590 million were 2.1% lower than the prior year as a result of a U.S. same-restaurant sales decrease of 2.7% that was offset somewhat by revenue from five net new restaurants. For the quarter, on a percentage of sales basis, lower food and beverage expenses and restaurant labor expenses were more than offset by an increase in restaurant expenses, selling, general and administrative expenses and depreciation expense, which resulted in a decrease for the quarter in both operating profit and operating profit as a percentage of sales.
LONGHORN STEAKHOUSE'S second quarter sales of $275 million were 7.8% higher than the prior year, driven by revenue from 32 net new restaurants offset by a U.S. same-restaurant sales decrease of 0.8%. For the quarter, on a percentage of sales basis, higher food and beverage expenses, restaurant labor expenses, restaurant expenses and depreciation expense resulted in a decline for the quarter in both operating profit and operating profit as a percentage of sales.
THE SPECIALTY RESTAURANT GROUP'S second quarter sales of $241 million were 76.4% higher than the prior year, driven by the addition of the 40 Yard House restaurants purchased on August 29, 2012 plus one new Yard House restaurant that opened in October 2012; same-restaurant sales increases of 0.8% at The Capital Grille and 1.9% at Bahama Breeze offset by a same-restaurant sales decline of -1.0% at Seasons 52; three net new restaurants at The Capital Grille, five net new restaurants at Bahama Breeze and four net new restaurants at Seasons 52; and the addition of the 11 Eddie V's restaurants purchased on November 14, 2011.
Fiscal 2013 September, October and November U.S. Same-Restaurant Sales Results
Darden reported U.S. same-restaurant sales for the fiscal months of September, October and November as follows:
https://investor.darden.com/investors/news-releases/press-release-details/2012/Darden-Restaurants-Reports-Second-Quarter-Diluted-Net-Earnings-Per-Share-Of-26-Cents-Declares-A-Quarterly-Dividend-Of-50-Cent/default.aspx
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