Darden Restaurants Inc. (DRI) Monday said it expects net earnings per share from continuing operations for its fiscal third quarter ending February 23 to be approximately $0.82.
The company estimates that lower sales and higher direct costs associated with more severe winter weather than last year hurt net earnings per share for this year's third quarter by around seven cents.
The firm also estimates that legal, financial advisory and other costs associated with implementation of the strategic action plan it announced in December 2013 reduced net earnings per share by about six cents.
On average, 29 analysts polled by Thomson Reuters expect earnings of $0.93 per share for the quarter. Analysts' estimates typically exclude special items.
Darden expects U.S. same-restaurant sales for the third quarter to increase 0.3 percent at LongHorn Steakhouse, decline 5.4 percent at Olive Garden and drop 8.8 percent at Red Lobster.
Further, Darden reaffirmed its previous earnings outlook for fiscal year 2014, due in part to greater than anticipated progress in implementing its cost management initiatives, which helped offset the impact of the severe winter weather and other topline challenges in the third quarter.
Darden still expects a decline in net earnings per share for fiscal year 2014 of 15 to 20 percent compared to fiscal year 2013, excluding any costs incurred in the third and fourth quarters in connection with the strategic action plan announced in December.
The company expects to release third-quarter earnings on March 21.
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