Darden Restaurants cut its profit forecast for the 2013 fiscal year, with the owner of Olive Garden and Red Lobster blaming failed promotions and negative publicity generated by its tests to limit health-care costs for workers.
In October, Darden had said it was putting more workers on part-time status in a test aimed at limiting costs from President Barack Obama’s health care law, requiring companies with 50 or more workers to provide basic coverage for full-time workers and their dependents.
Darden shares fell $5.02, or 9.6 percent, to $47.40 yesterday.
The company said it expects a profit from continuing operations of 25 cents or 26 cents per share for its second quarter, ended Nov. 25.
Darden projected fiscal 2013 profit from continuing operations of $3.29 to $3.49 per share on revenue of $8.6 billion to $8.7 billion.