Darden Shares Slip as Olive Garden Profit Declines

Dean Seal

Darden Restaurants Inc. shares fell about 3.8% to $137.53 on Friday. That’s as earnings at its main chain, Olive Garden, fell 6.9% after the company reported lower second-quarter earnings.

The restaurant chain operator said revenue fell 3% to $187.2 million. Olive Garden’s segment profit, which represents net sales after deducting food and beverage, restaurant labor and marketing expenses, fell to $218.9 million from $235.5 million a year earlier.

Olive Garden is the company’s largest chain and the largest contributor to revenue.

Darden and other restaurateurs saw their profits fall this year, even as they increased menu prices to offset rising costs.

The stock has fallen more than 8% this year.

Write to Dean Seal at Dean.seal@wsj.com.

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