Darden today reported financial results for the third quarter ending 23 February 2014.
Red Lobster’s third quarter sales of USD 611 million (EUR 443 million) were 8.7 percent lower than the previous year, which reflected its U.S. same-restaurant sales decline of 8.8 percent partially offset by one net new restaurant.
For the quarter, on a percentage of sales basis, food and beverage expenses, restaurant labor expenses, restaurant expenses, and depreciation and amortization expenses were higher compared to the third quarter of last year, while selling, general and administrative expenses were lower. The net result is that operating profit and operating profit as a percentage of sales were below last year.
Profit for the restaurant company’s other brands, including Olive Garden and Longhorn Steakhouse also declined.
The company said “implementing its cost management initiatives which helped to offset the impact of the more severe winter weather and other topline challenges in the third quarter.”
