Outback Says Profit Forecast Should Be Cut

Outback Steakhouse Inc. said analysts’ expectations for the quarter ended Dec. 30 should be lowered by 15% to 18%, citing lower-than-expected sales, higher labor and utility costs and start-up costs associated with new restaurant formats. The Tampa, Fla.-based company said the benefit of more favorable Christmas-related trading days, which resulted in an increase of about 1.5% in December sales, was offset by severe weather in the Northeast and central United States. The company, which operates more than 600 restaurants, also said it opened 10 fewer steakhouses than expected during the quarter because of permit and construction delays. Outback’s shares dropped $2.44, or nearly 10%, to close at $22.06 on the NYSE.