Darden Restaurants Inc. posted a 16.4% drop in quarterly profit as higher sales at Olive Garden and the company’s other restaurants failed to offset rising food and labor costs.
Darden, which also operates chains such as LongHorn Steakhouse and Capital Grille, on Thursday said sales rose 6.1% in its fiscal first quarter to $2.45 billion, just under the $2.47 billion Wall Street analysts had been expecting.
Meanwhile, profit fell to $193 million from $230.9 million a year earlier, with consistent drops seen across its brands. Costs rose nearly 9% during the quarter, with increases for food and beverages, labor, marketing and other restaurant expenses.
DRI is in a uptrend. Be careful taking entries that are against the trend. It’s suggested that you wait until the next SELL signal or weakening uptrend signal before taking entries on this bearish play.
Morning Update The last AH signal for DRI was a WEAKENING SELL on the 3m Timeframe
The last signal can occasionally be indicative of a sustained trend, however opening volatility can quickly change the situation so be sure to be mindful and take profit if you see it.