Enter multiple symbols separated by commas

Darden Restaurants Sees Charge On Sale, Closure of Smokey Bones

Darden Restaurants said Saturday it expects to post a charge in its fiscal fourth quarter related to its plans to close and sell its Smokey Bones Barbeque & Grill restaurants.

Darden said it closed 56 of its Smokey Bones restaurants and is offering the remaining 73 restaurants for sale, as part of an plan to improve Darden's performance.

The Orlando, Florida-based restaurant operator, which also operates the Olive Garden and Red Lobster restaurants, said it expects a pretax, fourth-quarter charge of about $260 million in connection with this action.

Darden said it expects earnings from continuing operations in its fiscal year ended May 2007 to be between $2.48 and $2.52 a share, above a prior forecast of $2.38 to $2.42 a share.

Analysts, on average, have estimated earnings of $2.40 a share, according to Thomson Financial.

The actions related to its Smokey Bones restaurants is expected to result in a loss from discontinued operations of $1.16 to $1.21 a share in fiscal 2007.

The 56 Smokey Bones restaurants closed as of Friday night and the company will continue to operate the remaining 73 until they are sold, a Darden spokesman told Reuters.

Darden said it will give 4,000 employees who worked at closed Smokey Bones restaurants opportunities to transfer to other Darden restaurants.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.