Darden shares drop after analyst cuts estimates

Darden shares fell $1.93, or 8.4 percent, to $20.96.

Analyst John Ivankoe chopped his estimates for 2009 profit to $2.05 per share from $2.74 per share.

In a note to investors, Ivankoe acknowledged the cut was "dramatic," but said it is based on expectations for a same-store sales decline of 3.7 percent for the second quarter of the year through the fourth quarter. Previously, he had expected same-store sales to rise 0.8 percent during the period.

Same-store sales, or sales at locations open at least a year, is a key indicator of restaurant performance.

Ivankoe added that the first quarter of fiscal 2010 could also be "tough."

Most restaurants have faced a cutback in consumer spending as the economy has gone downhill, leading to lower sales and profits. Consumers have been eating at home more or have been choosing to eat out at less expensive fast food chains rather than more expensive sit-down restaurants.

Ivankoe has an "Overweight" rating on the shares.