NEW YORK - Darden Restaurants Inc., operator of the Olive Garden and Red Lobster chains, said last week that consumers are still look for restaurant deals and that rising gasoline prices threaten the recovery of the restaurant industry, Reuters reports.

"The environment, while improving, remains more fragile than normal and it's very much driven by promotional effectiveness," said Darden??s CFO Brad Richmond.

While Richmond said he predicts Darden??s sales to rise up to two percent for the fiscal year ending in late May, Darden??s CEO Clarence Otis acknowledged that rising fuel prices pose a threat to the restaurant industry??s recovery.

"They'll have a dampening effect. They definitely serve as a tax on consumers, gasoline prices," Otis said.

Darden??s margins during the third quarter were aided by low employee turnover and scheduling flexibility that allowed restaurants to staff its locations according to traffic. Richmond said those trends would continue in the current quarter.