Dar­den: Failed pro­mos low­ered out­look

Austin American-Statesman - - BUSINESS -

OR­LANDO, FLA. — Dar­den Restau­rants Inc. is cut­ting its profit forecast for the year, with the owner of Olive Garden and Red Lob­ster blam­ing failed pro­mo­tions and neg­a­tive pub­lic­ity gen­er­ated by its tests to limit health care costs for work­ers.

The Or­lando-based com­pany’s stock tum­bled nearly 10 per­cent.

Dar­den Chair­man and CEO Clarence Otis said Tues­day that the com­pany’s pro­mo­tions didn’t res­onate as well with “fi­nan­cially stretched” din­ers as those of com­peti­tors dur­ing its fis­cal sec­ond quar­ter. He said the dis­ap­point­ing re­sults show the need for bold changes and that Dar­den would re­vise its pro­mo­tional cal­en­dars to bet­ter fit with the fi­nan­cial re­al­i­ties of din­ers.

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