Darden Reports Q1 Adj. EPS From Cont. Ops. Of $0.32 - Quick Facts

(RTTNews) - Darden Restaurants, Inc. (DRI) reported a first-quarter net loss from continuing operations of $19.3 million or $0.14 per share, compared to net earnings from continuing operations of $42.2 million or $0.32 per share, last year. On an adjusted basis, net earnings per share from continuing operations were $0.32, for the quarter.

The company noted that its 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 retirement of approximately  $1 billion of the company's debt.

On average, 23 analysts polled by Thomson Reuters expected the company to report profit per share of $0.32 for the quarter. Analysts' estimates typically exclude special items.

Sales from continuing operations were $1.60 billion, compared to $1.53 billion in the first quarter last year. Analysts expected revenue of $1.59 billion for the quarter.

The company said the increase in sales reflects the operation of 55 net new restaurants compared to the first quarter last fiscal year and same restaurant-sales increases for LongHorn Steakhouse and the Specialty Restaurants, slightly offset by a same-restaurant sales decline for Olive Garden.

Darden's Board declared a quarterly cash dividend of $0.55 per share.

The company announced that it expects net earnings per share from continuing operations of $1.74 to $1.84 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 expect the company to report fiscal 2015 profit per share of $2.23.