Shares of Darden Restaurants Inc. fell on Thursday, after the operator of Olive Garden, Red Lobster and LongHorn steakhouse said its fourth-quarter profit fell more than analysts expected as consumer spending remained volatile.
THE SPARK: The restaurant chains' combined revenue at locations open at least a year declined 2.3 percent in the company's 2010 fiscal fourth quarter. The Orlando, Fla.-based company's CEO said month-to-month sales volatility in the industry during the March-through-May period "is an indication consumers remain cautious." Still he said in this fiscal year he expects economic and industry conditions to improve, with same-restaurant sales growth at the chains seen rising 2 precent to 3 percent.
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