On Tuesday, both Kroger Co. (NYSE: KR), the nation's largest traditional grocer, and casual dining chain operator Darden Restaurants Inc. (NYSE: DRI) reported better-than-expected profit increases.

Cincinnati-based Kroger Co. said first-quarter profits rose 15% from the year-ago quarter to $386 million, or 58 cents per share, due in part to discounts on food, gas, and drugs that drew in budget-strapped consumers. For the quarter ended May 24, revenue climbed 12% to $23.11 billion.

Analysts polled by Thomson Financial had expected a earnings of 55 cents a share on revenue of $22.32 billion.

Kroger also reported that same-store sales rose 5.8%, excluding fuel, and 9.2% including fuel sales.

The company offered fiscal-year earnings guidance of $1.85 to $1.90 per share, compared to the analysts' forecast of $1.90 per share.

Kroger shares rose $1.82 Tuesday to $27.82, then fell in after-hours trading. The shares have risen 10.2% in the past three months.

Darden said it swung to a profit of $101.8 million, or 71 cents per share, in its fiscal fourth quarter, boosted by strong sales at the Olive Garden and Longhorn Steakhouse. Adjusted earnings were 78 cents per share. For the quarter ended May 25, revenue rose 25% to $1.83 billion.

Analysts surveyed by Thomson Financial had expected profit of 75 cents per share on revenue of $1.82 billion.

Same-store sales in the U.S. grew 5.8% at the Olive Garden during the quarter, but fell at Red Lobster and Longhorn Steakhouse.

For the year, Orlando-based Darden said earnings soared 87% to $377.2 million, and revenue rose 19% to $6.63 billion.

Shares rose 95 cents Tuesday, or 3.1%, to close at $31.60, then fell in after-hours trading. Darden shares have fallen 7.3% in the past three months.

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