Darden Q1 Profit Declines; Announces Workforce Reductions & Spending Cuts

(RTTNews) - Darden Restaurants Inc. (DRI) reported that its first-quarter net income decreased to $70.2 million or $0.53 per share, from $110.8 million or $0.85 per share, last year.

On average, 27 analysts polled by Thomson Reuters expected the company to report profit per share of $0.70 for the quarter. Analysts' estimates typically exlclude special items.

Sales were $2.16 billion, compared to $2.03 billion, a year ago. The company said the increase reflects same restaurant-sales growth of 0.5% for the company's Specialty Restaurant Group, the addition of 46 Yard House restaurants and the operation of another 103 net new restaurants compared to the first quarter last year. Analysts expected revenue of $2.20 billion for the quarter.

The company reported that, following a comprehensive review, it is taking steps that will reduce its annualized operating support spending by approximately $50 million through a combination of workforce reductions and program spending cuts.

Darden also announced that Drew Madsen, the company's President and Chief Operating Officer, has decided to retire at the end of the second quarter. He will be succeeded, effective immediately, by Gene Lee, who currently serves as the President of Darden's Specialty Restaurant Group.

Darden Restaurants announced it continues to expect net earnings per share for fiscal 2014 to decline between 3% and 5% compared to fiscal 2013, which is consistent with the outlook provided in June, despite lower first quarter earnings than the company anticipated in June.

Darden's Board declared a quarterly dividend of 55 cents per share.