10-KPeriod: FY2013

DARDEN RESTAURANTS INC Annual Report, Year Ended May 26, 2013

Filed July 19, 2013For Securities:DRI

Summary

Darden Restaurants, Inc. (DRI) presented its 2013 Form 10-K, detailing its robust performance as the world's largest company-owned full-service restaurant operator. As of May 26, 2013, the company operated a vast network of 2,138 restaurants across the United States and Canada, featuring well-established brands like Olive Garden and Red Lobster, alongside growing specialty brands such as LongHorn Steakhouse, The Capital Grille, Yard House, Bahama Breeze, Seasons 52, and Eddie V's. The company highlighted its strategic focus on brand relevance, operational excellence, and continued growth through same-restaurant sales increases and disciplined expansion. Darden emphasized its commitment to fostering a strong culture, investing in technology for enhanced guest and employee engagement, and pursuing cost-reduction initiatives. Acquisitions, such as Yard House in August 2012, and strategic partnerships for international expansion were key components of its growth strategy. The report also touched upon ongoing efforts in sustainability, health and wellness, and community engagement, underscoring a holistic approach to business operations and corporate responsibility.

Financial Statements
Beta
Revenue$5.92B
Cost of Revenue$4.62B
Gross Profit$1.06B
SG&A Expenses$625.40M
Operating Expenses$5.52B
Operating Income$400.00M
Interest Expense$126.20M
Net Income$411.90M
EPS (Basic)$3.19
EPS (Diluted)$3.13
Shares Outstanding (Basic)129.00M
Shares Outstanding (Diluted)131.60M

Key Highlights

  • 1Operated 2,138 company-owned restaurants across the U.S. and Canada as of May 26, 2013, with key brands including Olive Garden, Red Lobster, and LongHorn Steakhouse, alongside a growing portfolio of specialty brands.
  • 2Reported significant expansion, with 104 net new restaurants opened in fiscal year 2013, and projected approximately 80 net new openings for fiscal year 2014.
  • 3Acquired Yard House USA, Inc. in August 2012 for $585 million, expanding its brand portfolio and market presence.
  • 4Continued to pursue new business development avenues, including franchising outside the U.S. and Canada, testing 'synergy restaurants,' and selling consumer packaged goods (CPG) such as Olive Garden's salad dressing and Red Lobster's Cheddar Bay Biscuit Mix.
  • 5Emphasized a strategic focus on enhancing brand relevance, driving same-restaurant sales growth, and improving operational efficiencies through technology and cost management initiatives.
  • 6Highlighted a commitment to corporate values, employee development, and diversity, being recognized as one of FORTUNE's '100 Best Companies to Work For'.

Frequently Asked Questions

Darden Restaurants, Inc. is the world's largest company-owned and operated full-service restaurant company. As of May 26, 2013, they operated 2,138 restaurants across the United States and Canada, featuring a diverse portfolio of well-known brands.

Key growth strategies included opening 104 net new restaurants in fiscal year 2013, with plans for continued expansion. They also focused on increasing same-restaurant sales, leveraging their expertise across brands, exploring franchising opportunities internationally, and testing new restaurant formats like 'synergy restaurants'.

The company completed the acquisition of Yard House USA, Inc. in August 2012 for $585 million. Additionally, Darden entered into various area development and franchise agreements to expand its brands in international markets such as Japan, the Middle East, Mexico, and other Latin American countries.

Darden's core purpose is 'To nourish and delight everyone we serve,' supported by values including integrity, respect, caring, diversity, continuous learning, service, teamwork, and excellence. They also demonstrated commitment to sustainability, health and wellness initiatives, and community support through the Darden Foundation.