On Friday, Darden Restaurants (DRI) reported lower quarterly profits and weaker sales at its Olive Garden and Red Lobster chains. Despite the news, DRI stock climbed almost 3%.
DRI stock gained after Darden said it earned $109.7 million during its fiscal third quarter, down 23% from $134.4 million in the year-ago period. EPS came in at 82 cents, in line with the company’s previously-stated guidance, but below the 85 cents a share that Wall Street had forecast, the Associated Press noted.
During the quarter, DRI revenue fell 1% to $2.23 billion. That also was slightly short of the $2.26 billion analysts were expecting.
Sales at its Red Lobster chain tumbled 8.8%, while Olive Garden sales dropped 5.4%.
DRI noted that rising shrimp prices, due to Asian production problems, had pushed up expenses during the quarter. Harsh weather was also cited for denting restaurant traffic over the past several months.
On Thursday, DRI stock closed at $49.30 per share. DRI stock has been flat over the past year.
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