8-KOther Events

DARDEN RESTAURANTS INC 8-K Report (Jun 22, 2001)

Filed June 22, 2001For Securities:DRI

Summary

Darden Restaurants, Inc. announced record fiscal year and fourth quarter earnings per diluted share for the period ending May 27, 2001. The company reported strong sales growth across its portfolio, with Red Lobster and Olive Garden exceeding casual dining industry averages in comparable-restaurant sales. This performance occurred despite an uncertain economic environment, highlighting Darden's successful strategies focused on customer experience and value. Furthermore, Darden announced the significant national expansion of its Smokey Bones BBQ Sports Bar concept, with plans to double the number of restaurants in fiscal year 2002. This strategic move, coupled with continued growth at Bahama Breeze, indicates Darden's commitment to diversifying its brand portfolio and pursuing long-term growth beyond its core brands. The company also continued its share repurchase program, demonstrating a focus on shareholder returns.

Key Highlights

  • 1Darden reported record annual earnings per diluted share of $1.59, a 21% increase year-over-year (excluding a prior year non-operating gain).
  • 2Fourth quarter earnings per diluted share reached $0.50, a 16% increase year-over-year (excluding a prior year non-operating gain).
  • 3Total annual sales increased nearly 9% to $4.02 billion, with fourth quarter sales up nearly 8% to $1.08 billion.
  • 4Olive Garden achieved its 27th consecutive quarter of comparable-restaurant sales growth (7.2% annually, 7.1% in Q4), and Red Lobster achieved its 14th consecutive quarter (5.9% annually, 3.8% in Q4).
  • 5Darden announced plans for the national expansion of Smokey Bones BBQ Sports Bar, aiming to double the number of locations in fiscal year 2002.
  • 6Bahama Breeze opened two new restaurants in the quarter, bringing its total to 21, with plans for 8-10 new openings in fiscal 2002.
  • 7The company repurchased 2.0 million shares of common stock in the fourth quarter, totaling 8.4 million shares for the year.

Frequently Asked Questions

Darden Restaurants reported record earnings per diluted share of $1.59 for the full fiscal year and $0.50 for the fourth quarter, representing significant year-over-year growth. Total annual sales reached $4.02 billion, with a nearly 9% increase, and fourth quarter sales were $1.08 billion, up nearly 8%.

The consistent comparable-restaurant sales growth at Red Lobster and Olive Garden, exceeding industry averages for 14 and 27 consecutive quarters respectively, indicates strong customer loyalty and effective operational strategies for Darden's core brands. This sustained performance is a key driver of the company's overall financial success.

Darden announced a significant strategic initiative to expand the Smokey Bones BBQ Sports Bar concept nationally. The company plans to double the number of Smokey Bones restaurants in fiscal year 2002, signaling strong confidence in the brand's growth potential and its ability to contribute significantly to Darden's overall portfolio.

Darden demonstrated a commitment to shareholder returns by continuing its share repurchase program, buying back 2.0 million shares in the fourth quarter and a total of 8.4 million shares for the fiscal year. This activity reduces the number of outstanding shares, potentially increasing earnings per share.