EmailDarden Restaurants (DRI $56.78 +2.07) reported first quarter earnings of $0.85 per share, $0.01 better than the Capital IQ consensus of $0.84, while revenues rose 4.8% year/year to $2.03 billion the $2.03 billion consensus. The company reaffirmed guidance for fiscal year 2013 EPS of 5-9% growth (~$3.43-3.56) versus the $3.87 consensus and revenues of -10% growth (approximately $8.72-8.80 billion) versus the $8.71 billion consensus. The increase (in sales) reflects same-restaurant sales growth of 2.2% for the Company's Specialty Restaurant Group, the acquisition of 11 Eddie V's restaurants on November 14, 2011, and the addition and operation of another 92 net new restaurants compared to the first quarter last year, offset by a combined same-restaurant sales decline of 0.3% for Olive Garden, Red Lobster and LongHorn Steakhouse.
In the first quarter, U.S. same-restaurant sales increased 3.6% at LongHorn Steakhouse and 0.3% at Olive Garden, and declined 2.6% at Red Lobster. "We also benefitted from our diverse food basket, with a decline in seafood costs on a year over year basis moderating the significant spike in the cost of beef." Outlook: Darden affirmed its financial outlook for fiscal 2013, which includes the sales and earnings impact of its August 29, 2012 acquisition of Yard House. The Company continues to expect that combined U.S. same-restaurant sales growth in fiscal 2013 for Red Lobster, Olive Garden and LongHorn Steakhouse will be ~1% to 2% and that it will open approximately 100 to 110 net new restaurants in fiscal 2013, not including Yard House.
