Darden Profit Misses Analysts Expectations

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Sept. 20 (Bloomberg) -- Miller Tabak Analyst Stephen Anderson discusses Darden's earnings reports with Julie Hyman on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Turn around in the second half of next year.

He joins us for the sector report.

Thank you for joining us.

Let's talk about the quarter that was here, because as we know, we saw this in the retail business as well.

Consumers were spending less across the board.

Restaurants like garden -- darden were offering discounts.

Did that work?

In the august quarter, it's no surprise that casual dining took it o nthe -- on the chin.

People reallocated their assets towards housing.

I think people have been starting to rush into those sectors.

Our longer view is that the macro factors supporting discretionary spending remain positive.

Things like non-farm payrolls, weekly jobless claims.

Even gasoline prices are down.

These factors should be supportive of casual dining.

Were there any glimmers of hope here in this report that lead you to believe that?

How are things going in the current quarter?

June and july were not so great.

Gas prices did spike in june and july.

They have turned down in august.

That has been contributing to a bit of a recovery in restaurants.

Restaurant sales improved sequentially by more than 400 basis points.

Although koster made slightly negative, they outperformed -- it turned out the darden's messaging of promoting value is starting to work, although it is taking its time.

We think that comparisons will start to get easier as darden starts to anniversary these changes.

One year ago, darden started to implement based out of concerns.

Do you think we will see improvement across restaurants as well going into the end of the year?

I do.

Easier comparisons with weather, some of the effects on the debates last year that kept some traffic at home.

If we don't see a repeat of hurricane sandy or the blizzard that knock this out cold last year, i think we could set ourselves up for decent gains in

This text has been automatically generated. It may not be 100% accurate.


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