The world’s largest casual-dining company on Tuesday reported somewhat encouraging financial results for fiscal 2009 but said the economic climate that’s stifling the foodservice industry will linger through fiscal 2010.
Orlando, Fla.-based Darden Restaurants, parent company of Red Lobster, posted net earnings from continuing operations of USD 371.8 million (EUR 265.1 million) on USD 7.22 billion (EUR 5.15 billion) in sales in fiscal 2009, compared to net earnings of USD 369.5 million (EUR 263.4 million) on USD 6.63 billion (EUR 4.73 billion) in sales in fiscal 2010.
“Given the current level of uncertainty, we think it’s prudent to be cautious in developing our plans for the year,” said Darden CEO Clarence Otis. “As a result, we’re assuming that the economic and industry weakness we’ve experienced over the past six months will continue through fiscal 2010.”
Darden CFO Brad Richmond expects same-restaurant sales for its three largest brands — Red Lobster, Olive Garden and LongHorn Steakhouse — to remain flat or decline slightly (up to 2 percent) in 2010.
In the fourth quarter, which ended on 31 May, Red Lobster’s same-restaurant sales fell 0.6 percent. However, thanks to 10 new restaurants, the chain’s sales reached USD 734 million (EUR 523 million), up 6.8 percent from same period last year.
Red Lobster’s same-restaurant traffic was down 2 to 3 percent in March, down 3 percent in April and down nearly 10 percent in May.
