Darden: Failed promos lowered outlook
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.