Sept 18 - Olive Garden ( DRI ) parent Darden Restaurants ( DRI )

missed first-quarter profit estimates on Thursday, hurt by

higher input and marketing costs amid rising economic

uncertainty.

The company raised its annual sales growth forecast to 7.5%

to 8.5%, but the midpoint of the range came in largely below

analysts' average estimate of 8.3%, according to data compiled

by LSEG.

The LongHorn Steakhouse owner's shares, which have gained

nearly 12% this year, were down about 8% in premarket trading

following the results.

Darden Restaurants ( DRI ), like its peers in the fast food

industry, has rolled out value deals such as $6 take-home

offerings, while also ramping up its marketing and advertising

efforts to attract cost-conscious diners.

However, rising product prices and a weakening labor market

have been driving customers to opt for at-home meals, making it

harder for restaurant owners to sustain sales growth.

Data showed that restaurant spending in the U.S. declined in

July as inflation squeezed discretionary budgets.

The company's quarterly total operating costs and expenses

rose 8.8% to $2.71 billion, in part due to the higher costs from

ingredients such as beef.

Peers Chipotle Mexican Grill ( CMG ) and Taco Bell parent

Yum Brands ( YUM ) reported sales declines in their recent

quarters.

Darden posted adjusted profit of $1.97 per share for the

quarter ended August 24, missing estimates of $2 per share. The

company's quarterly profit miss comes after three consecutive

quarters of surpassing analysts' expectations.

Its first-quarter sales of $3.04 billion were in line with

Wall Street estimates.

Darden maintained its full-year adjusted profit forecast of

$10.50 to $10.70 per share.