Shares of Orlando based Darden Restaurants took a hit after the company reported much lower than expected quarterly profit as costs increased and sales at its flagship Olive Garden restaurant chain dropped.
Darden said legal and other costs related to the company's sale of its Red Lobster chain also hurt the profit.
Darden is selling Red Lobster seafood restaurants in a $2.1 billion deal that is being challenged by two major shareholders who want the company to take other steps to improve profitability.
Net income fell to $86.5 million, or 65 cents per share in the fourth quarter from $133.2 million, or $1.01 per share, a year earlier.
Analysts on average had expected a profit of 94 cents per share, according to Thomson Reuters.
Sales at Olive Garden fell about 3 percent to $926 million, while Red Lobster's sales dropped about 6 percent to $664 million.
Darden is the largest full-service restaurants operator in the United States. Its other chains include LongHorn Steakhouse, Seasons 52, Capital Grille and Bahama Breeze
Darden's stock (DRI ) lost more than 3 percent or $1.95 on the day at $47.58 per share.
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