U.S. restaurant operator Darden Restaurants Inc. recently reported operating performance that is weaker than our previous expectations. We are revising the outlook on Darden to negative from stable. At the same time, we are affirming our ratings on Darden, including the 'BBB' corporate credit rating. The negative outlook reflects our expectation that weak sales and earnings trend could persist into fiscal 2014, which could lead to a downgrade if this results in further pressure on the company's market position and already weakened credit protection measures stemming from its debt-financed acquisition of Yard House in 2012. NEW YORK (Standard&Poor's) March 7, 2013-- Standard&Poor's Ratings Services today revised its outlook on Orlando, Fla.-based Darden Restaurants Inc. to negative
