Shares of Darden Restaurants (DRI) - Get Report fell in premarket trading Thursday after reporting fiscal first-quarter earnings that beat analysts' forecasts, revenue that missed slightly, and after it restated its fiscal 2019 per-segment profits.
Shares of Darden, the operator of Olive Garden, Longhorn Steakhouse and Cheddar's Scratch Chicken restaurant chains, were down more than 4% in early trading on Thursday after the Orlando-based company said it earned $170.6 million, or $1.37 a share, vs. $166.2 million, or $1.32 a share, a year earlier. Sales rose to $2.13 billion from $2.06 billion.
Analysts polled by FactSet had been expecting earnings of $1.36 a share on sales of $2.134 billion. Same-restaurant sales dropped to 2.2% from 2.6% a year ago.
Darden also revealed that it restated its fiscal 2019 segment profit to exclude non-cash real estate-related expenses "to conform to the current year presentation."
For fiscal 2020, Darden reiterated total expected sales growth of 5.3% to 6.3%, same-restaurant sales growth of 1% to 2%, and per share from continuing operations of between $6.30 and $6.45, including approximately 15 cents related to the addition of a 53rd week of operations.
Separately, Darden's board approved a regular quarterly cash dividend of 88 cents a share, payable on Nov. 1, to shareholders of record at close of business on Oct. 10. It also announced a $500 million share repurchase program.
Shares of Darden were down 4.26%, or $5.42 a share, at $121.80 in early trading on Thursday.