10-KPeriod: FY2001

DARDEN RESTAURANTS INC Annual Report, Year Ended May 27, 2001

Filed August 16, 2001For Securities:DRI

Summary

Darden Restaurants, Inc. has filed its annual report for the fiscal year ended May 27, 2001. The company, a leader in the U.S. casual dining sector, operated 1,131 restaurants across 49 states and Canada, primarily through its Red Lobster and Olive Garden brands. The report highlights a year of growth, with both Red Lobster and Olive Garden showing positive same-restaurant sales increases and expanding their restaurant footprints. Strategic priorities for Darden include leadership development, service and hospitality excellence, and culinary innovation. The company is also actively expanding its newer concepts, Bahama Breeze and Smokey Bones BBQ Sports Bar, with plans for national rollout. Darden emphasizes its robust operational infrastructure, including a focus on quality assurance, efficient distribution, and sophisticated marketing strategies, all supported by significant investments in technology to enhance control, service, and employee effectiveness. The company anticipates continued growth through both organic expansion and potential acquisitions.

Key Highlights

  • 1Darden Restaurants operated 1,131 restaurants across the U.S. and Canada as of May 27, 2001, primarily consisting of Red Lobster (629 units) and Olive Garden (472 units).
  • 2Both Red Lobster and Olive Garden demonstrated strong same-restaurant sales growth in fiscal year 2001, with increases of 5.9% and 7.2%, respectively.
  • 3Red Lobster experienced a record year in both sales and profits, marking its fourteenth consecutive quarter of same-restaurant sales increases.
  • 4Olive Garden also achieved a record year for profits and recorded 27 consecutive quarters of same-restaurant sales increases.
  • 5The company is actively expanding its newer concepts, Bahama Breeze (21 restaurants) and Smokey Bones BBQ Sports Bar (9 restaurants), with plans for national expansion in fiscal year 2002.
  • 6Darden is investing in technology, upgrading its financial and human resource systems, and implementing a high-speed data network to connect all restaurants.
  • 7The company is committed to disciplined site selection and operational excellence, with plans to open approximately 40-49 new restaurants in fiscal year 2002 across its key brands.

Frequently Asked Questions

The primary growth drivers were the strong performance of its core brands, Red Lobster and Olive Garden. Both concepts achieved record profits and saw significant increases in same-restaurant sales, indicating healthy consumer demand and effective operational strategies. Additionally, Darden is strategically expanding its newer concepts, Bahama Breeze and Smokey Bones, with clear plans for national rollout.

Darden is making substantial investments in upgrading its management information systems. This includes implementing web-enabled, integrated application suites for financial and human resources, as well as establishing a high-speed data network connecting all restaurants. These initiatives are aimed at enhancing financial control, cost management, guest service, and employee effectiveness.

Darden's strategy focuses on growing its existing concepts by opening new restaurants in high-potential locations and developing or acquiring additional concepts. They plan to open 40-49 new restaurants in fiscal year 2002, with a particular emphasis on expanding Bahama Breeze and Smokey Bones nationally, while also continuing to optimize Red Lobster and Olive Garden.

Yes, Darden operates restaurants in Canada, including Red Lobster and Olive Garden locations. Additionally, Red Lobster Japan Partners, a Japanese retailer unaffiliated with Darden, operates 34 Red Lobster restaurants in Japan under a franchise agreement. Darden does not have an ownership interest in the Japanese operations, and royalty income from this arrangement is not material.