Darden Restaurants Inc.'s (DRI) fiscal fourth-quarter earnings rose 10% as the casual-dining company saw a slight increase in sales driven by gains at its smaller specialty dining segment and a higher store count, but it projected continued weak growth for its major brands.

Like other companies in the casual-dining sector, Darden--whose brands include Olive Garden, Red Lobster and LongHorn Steakhouse--has had to cope in recent years with the challenges of cost-conscious consumers and high commodity prices. Darden's earnings growth has fluctuated during the past year as the company grapples with higher food costs and more competition.

The oversaturated casual-dining market has created pressure for restaurant operators to stay attractive on price in order to win customers while finding other ways to make up margins. Bloomin" Brands Inc., parent of Outback Steakhouse, filed plans in April for an initial public offering of up to $300 million in common stock to help pay down debt, while Applebee's-owner DineEquity Inc. (DIN) is undertaking a strategy to sell underperforming company-owned locations to franchise operators to improve its margins.

Meanwhile Darden has been trying to push growth at its Olive Garden chain, which makes up almost half of the company's revenue. The restaurant's same-store sales increased for the first time in more than a year in the third quarter, and Darden has attempted to garner momentum at the chain through value-focused advertising messages and more affordable core menu dishes.

"From a sales perspective, growth in the fourth quarter was below expectations, due largely to same-restaurant sales declines at both Olive Garden and Red Lobster that reflected less effective than anticipated nationally advertised promotions," Chief Executive Clarence Otis said. "We believe the business environment in fiscal 2013 will be similar to that in fiscal 2012, with slow and uneven recovery in both the economy and our industry."

For the quarter ended May 27, Darden reported a profit of $151.2 million, or $1.15 a share, up from $137.4 million, or 99 cents a share, a year earlier. Sales rose 3.8% to $2.07 billion reflecting growth in the company's specialty restaurant group and the addition of another 89 new restaurants.

Analysts polled by Thomson Reuters most recently forecast earnings of $1.15 a share on revenue of $2.11 billion.

Operating margin widened to 24.1% from 23.9%.

Combined U.S same-restaurant sales--those at restaurants opened at least 16 months--declined 1.9%. By chain, same-restaurant sales fell 1.8% at Olive Garden and 3.9% at Red Lobster but jumped 3% at LongHorn. Its smaller specialty restaurants segment, which includes brands like The Capital Grille and Eddie V's restaurants, grew 2.7%, driven by the addition of new restaurants.

Looking ahead to fiscal 2013, the company projected total same-restaurant sales growth of between 1% to 2%--below the company's long-term range--at Olive Garden, Red Lobster and LongHorn. Darden predicted total sales growth between 6% and 7% and earnings growth between 8% and 12% for the year. Wall Street was looking for 7% sales growth and 13% earnings growth.

Shares were down 3.3% at $48.75 in recent premarket trade. The stock is up 11% so far this year.

Write to Victoria Stilwell at Victoria.Stilwell@dowjones.com