Darden Raises Q1 Adj. EPS Outlook; Backs FY15 Profit View - Quick Facts

(RTTNews) - Darden Restaurants Inc. (DRI) said Tuesday that it expects net loss per share from continuing operations for its fiscal first quarter ended August 24, 2014 to be about $0.13 to $0.15, and quarterly adjusted net earnings per share from continuing operations of $0.31 to $0.33. Analysts polled by Thomson Reuters expect the company to report earnings of $0.30 per share for the first-quarter. Analysts' estimates typically exclude special items.

The company said in August that it expected loss per share from continuing operations in a range of $0.16 to $0.18 per share and adjusted earnings per share from continuing operations of $0.28 to $0.30 per share for the first quarter of fiscal 2015.

The company today said that the adjusted results exclude approximately two cents of Red Lobster related shared support costs incurred in June and July that moved to Red Lobster with the sale of that business, approximately three cents of costs related to other aspects of the Company's strategic action plan, approximately four cents related to restaurant impairment charges and approximately 37 cents of debt breakage costs related to the planned retirement of $1 billion of the Company's debt.

The company noted that it anticipates U.S. same-restaurant sales for the first quarter to be approximately +2.8% for LongHorn Steakhouse, -1.3% for Olive Garden and +2.1% for its Specialty Restaurant Group. The Specialty Restaurant Group's results reflect preliminary U.S. same-restaurant sales of approximately +3.9% for The Capital Grille, +2.5% for Eddie V's, +2.3% for Yard House, +1.1% for Bahama Breeze and -0.3% for Seasons 52.

The company continues to expect that net earnings per share from continuing operations to be in the range of $1.81 - $1.90 for fiscal 2015. On an adjusted basis, the company continues to anticipate net earnings per share from continuing operations of $2.22 to $2.30 for the year. Analysts project annual earnings per share of $2.22.

These expectations reflect the Company's projection that U.S. same-restaurant sales growth for fiscal 2015 for Olive Garden, LongHorn Steakhouse and the Specialty Restaurant Group will be flat to +1%, +1% to +2% and approximately +2%, respectively.

Darden expects to release sales and earnings results for its fiscal first quarter on September 12, 2014, before the market opens.