Darden Restaurants (DRI) shares plummeted 7.33% in pre-market trading on Thursday, as the company reported third-quarter financial results that included a profit miss.
The restaurant operator's fiscal Q3 sales of $3.35 billion slightly exceeded analyst expectations of $3.33 billion. Adjusted earnings per share from continuing operations also came in above estimates at $2.95, compared to the forecast of $2.94. However, the reported GAAP EPS from continuing operations was $2.68, which appears to have disappointed investors and triggered the sell-off.
Despite providing a full-year outlook that includes total sales growth of approximately 9.5% and same-restaurant sales growth of about 4.5%, the market reacted negatively to the quarterly profit performance. The company also announced a quarterly dividend and updated its financial guidance during the earnings release.