By Dhirendra Tripathi

Investing.com – Darden stock (NYSE:) was down 5% Friday after the company said its Chief Executive Gene Lee will retire in May.

Gene will step down as President and Chief Operating officer Ricardo Cardenas. However, he will continue to be chairman. He served as CEO during the past seven years. 

Stock was also affected by the decision of the restaurant chain to accelerate its wage increases. In January, minimum hourly earnings for Darden’s staff will be $12, gratuities included. Lee stated that the increase will result in an average hourly earning of $20

The company’s total sales rose by 37% to $2.27 Billion last year, driven by an increase in same-restaurant sales of more than 34% and 34 new restaurants. We were able to offer vaccinations that encouraged people to go out and eat at restaurants.

The adjusted profit per share rose to $1.48 and, like the sales figures, exceeded estimates.

This gave the company confidence to increase its guidance. Now, it expects its annual revenue to be $9.55-$9.70 billion. That’s an improvement on the September guidance that was $9.4billion-$9.6billion.

The center of the guidance range sees same-restaurant sales growing at 30%. The company expects that it will open between 35-40 restaurants by the end of May 30, 2009.