Charges, costs weigh on Darden's 4Q results

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Associated Press

Posted on June 20, 2014 at 8:00 AM

Updated Friday, Jun 20 at 8:03 AM

ORLANDO, Fla. (AP) — Darden's fiscal fourth-quarter profit dropped 35 percent, dragged down by charges and costs tied to its strategic plan to reshape the restaurant company.

Its shares dropped more than 3 percent in premarket trading.

The owner of Red Lobster, Oliver Garden and other restaurants earned $86.5 million, or 65 cents per share, for the three months ended May 25. A year earlier the Orlando, Florida-based company earned $133.2 million, or $1.01 per share.

Adjusted earnings were 84 cents per share. Analysts predicted 94 cents per share.

Darden is looking to sell Red Lobster to investment firm Golden Gate Capital in a proposed $2.1 billion deal. Starboard Value LP and Barington Capital Group LP have challenged Darden's planned sale.

Darden Restaurants Inc.'s revenue rose slightly to $2.32 billion, just short of the $2.33 billion Wall Street predicted.

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