Darden Restaurants Inc., coming off a rough quarter for its traditionally stable Olive Garden chain, says the hurdles up ahead are nothing compared to those behind it.
The casual-dining company, which also owns the Red Lobster and Longhorn Steakhouse chains, raised its earnings outlook for the fiscal year after posting third-quarter earnings up 13% over the year-ago period.
Despite analysts agreeing with Darden’s optimism, shares dropped 4% to $46.11 Friday, indicating investors are skeptical.
Darden’s Chief Executive Clarence Otis says the current inflationary pressures of food and gasoline on the restaurant industry “are modest when we consider all that we’ve been through.”