Reuters: Global Markets: Darden warns on second quarter as promotions miss mark

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Darden warns on second quarter as promotions miss mark Dec 4th 2012, 14:41 NEW YORK | Tue Dec 4, 2012 9:41am EST NEW YORK (Reuters) - Darden Restaurants Inc (DRI.N) warned on Tuesday that earnings for the latest quarter would miss expectations after unsuccessful promotions led to a decline in sales at its Olive Garden, Red Lobster and LongHorn Steakhouse chains. Shares in Orlando, Florida-based Darden fell almost 9 percent in premarket trading. The company now expects earnings from continuing operations of 25 cents to 26 cents per share for the second quarter ended November 25. Costs associated with its purchase of Yard House USA Inc would cut earnings by 5 cents per share, while Hurricane Sandy would reduce EPS by about 1 cent. Analysts, on average, expected fiscal second-quarter earnings, excluding items, of 47 cents per share, according to Thomson Reuters I/B/E/S. Darden expects same-restaurant sales to be down 3.2 percent at Olive Garden, off 2.7 percent at Red Lobster and down 0.8 percent at LongHorn Steakhouse during the second quarter. Darden is scheduled to release final second-quarter results on December 20. Darden shares fell to $47.40 in premarket trading from their close of $52.42 on Monday.

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