Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Darden Restaurants Says Beef Costs Will Climb 12% in Fiscal 2013

Feb. 24 (Bloomberg) -- Darden Restaurants Inc., operator of the Red Lobster, Olive Garden and LongHorn Steakhouse chains, said beef costs may climb 12 percent during the fiscal year that starts May 28.

The meat will be the “primary driver of increased costs,” Orlando, Florida-based Darden said today in a slideshow presentation for an analyst meeting. Seafood costs may drop 3 percent, while chicken rises 2 percent, the company said. Seafood accounts for 31 percent of Darden’s food costs, followed by beef at 14 percent and chicken at 5 percent.

While dairy prices will be stable, wheat, flour and pasta costs may decline 2 percent, and produce expenses will increase 1 percent, the restaurant chain said. Costs for all commodities and energy will be flat, Darden said.

Food and beverage inflation is forecast at 0.5 percent to 1.5 percent, according to the presentation. That’s down from an estimated 6.1 percent increase in the current fiscal year, which ends May 27, Darden said.

To contact the reporter on this story: Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.