10-KPeriod: FY2002

DARDEN RESTAURANTS INC Annual Report, Year Ended May 26, 2002

Filed August 19, 2002For Securities:DRI

Summary

Darden Restaurants, Inc. presents its 2002 Form 10-K, detailing a strong performance driven by its core casual dining concepts, Red Lobster and Olive Garden. The company, the largest publicly held casual dining restaurant company globally, operated 1,211 restaurants across the United States and Canada as of May 26, 2002. Both Red Lobster and Olive Garden achieved record sales and profits in fiscal year 2002, demonstrating robust same-restaurant sales growth for 18 and 31 consecutive quarters, respectively. The company is focused on strategic imperatives including leadership development, service excellence, and culinary innovation, supported by investments in technology and diversity. Darden is also expanding its newer concepts, Bahama Breeze and Smokey Bones BBQ Sports Bar, with significant growth plans for both in the coming fiscal year. The report highlights a disciplined approach to site selection and operational efficiency as key drivers for continued success in a competitive market.

Key Highlights

  • 1Darden Restaurants, Inc. is the largest publicly held casual dining company worldwide, operating 1,211 restaurants across the US and Canada as of May 26, 2002.
  • 2Both flagship brands, Red Lobster and Olive Garden, achieved record sales and profits in fiscal year 2002, signaling strong performance and customer appeal.
  • 3Red Lobster reported 18 consecutive quarters of U.S. same-restaurant sales increases, while Olive Garden achieved 31 consecutive quarters of U.S. same-restaurant sales increases.
  • 4The company is actively expanding its newer concepts, Bahama Breeze (29 restaurants) and Smokey Bones BBQ Sports Bar (19 restaurants), with plans for significant growth in fiscal year 2003.
  • 5Darden emphasizes a strategic focus on leadership development, service excellence, and culinary innovation, supported by investments in technology and diversity.
  • 6The company maintains rigorous quality assurance standards, particularly for seafood sourcing, and manages a complex supply chain through a dedicated purchasing and distribution network.
  • 7Darden is committed to leveraging technology as a competitive advantage, with ongoing upgrades to its financial and human resource systems.

Frequently Asked Questions

The primary growth drivers for Darden Restaurants in fiscal year 2002 were the strong performance of its core brands, Red Lobster and Olive Garden, which both achieved record sales and profits. Additionally, the company saw positive consumer response to its newer concepts, Bahama Breeze and Smokey Bones BBQ Sports Bar, leading to expansion plans for these brands.

Darden Restaurants addresses intense competition by focusing on key strategic imperatives: leadership development, service and hospitality excellence, and culinary and beverage excellence. They also invest in technology for operational efficiency and utilize sophisticated marketing research to understand and meet evolving consumer expectations. The company also emphasizes disciplined site selection and maintains high-quality standards for food and operations.

Darden plans significant expansion for Bahama Breeze and Smokey Bones BBQ Sports Bar in fiscal year 2003. They aim to open 6-10 new Bahama Breeze restaurants and 20-25 new Smokey Bones restaurants, reflecting confidence in the growth potential of these concepts.

Darden Restaurants places a strong emphasis on quality assurance, especially for seafood. They utilize a dedicated Quality Assurance Department, maintain microbiological laboratories for testing, conduct 'Point Source Inspection' in Asia, and source seafood directly from producers to meet or exceed specifications. They also work with suppliers who adhere to comprehensive industry standard Hazard Analysis Critical Control Points (HACCP) programs.