Darden Restaurants misses quarterly sales estimates as demand weakens

March 20 (Reuters) - Olive Garden-parent Darden Restaurants DRI.N missed Wall Street estimates for quarterly same-store sales on Thursday, as diners pulled back on eating out amid rising costs of living.

The company posted third-quarter comparable sales growth of 0.7%, missing analysts' estimates of 1.82%, according to data compiled by LSEG.

Persistent inflation has hurt restaurant operators such as Darden, Domino's Pizza DPZ.O and McDonald's MCD.N, prompting them to offer promotions, limited-time discounts and value meals.

"Restaurant spending is under serious pressure as concerns about tariffs, inflation and the overall economy cause consumers to slam the brakes on discretionary spending," said Rachel Wolff, an analyst at Emarketer.

Frigid temperatures in February further slowed customer traffic that had rebounded in January after weak trends during December, according to data from foot traffic analytics provider Placer.ai.

At Olive Garden, same-restaurant sales grew 0.6% in the quarter compared with a 2% rise in the prior three months, while LongHorn Steakhouse witnessed a 2.6% growth compared with an increase of 7.5% in the previous quarter.

Darden also narrowed its annual profit forecast, now expecting adjusted net earnings per share from continuing operations between $9.45 and $9.52, the midpoint of which is slightly below the midpoint of its prior estimate of $9.40 to $9.60.

Shares of the company fell about 2% before the bell.

On an adjusted basis, the company earned $2.80 per share for the quarter ended February 23, narrowly beating analysts' average estimate of $2.79 per share.