Summary
Darden Restaurants, Inc. filed a Form 8-K on June 21, 2002, reporting record earnings per diluted share for both the fiscal year and the fourth quarter ended May 26, 2002. The company announced record annual sales of $4.4 billion, a 9% increase, and record fourth-quarter sales of $1.2 billion, an 8% increase. Excluding unusual restructuring credits, the company reported a 22% year-over-year increase in annual earnings per diluted share to $1.29 and a 21% increase in fourth-quarter earnings per diluted share to $0.40. These strong results were driven by robust comparable-restaurant sales growth at its key brands, Olive Garden and Red Lobster, which exceeded industry averages.
Key Highlights
- 1Darden Restaurants reported record annual earnings per diluted share of $1.30 and record fourth-quarter earnings per diluted share of $0.40 for the period ended May 26, 2002.
- 2Full-year sales increased by over 9% to $4.4 billion, with fourth-quarter sales up over 8% to $1.2 billion.
- 3Excluding restructuring credits, the company saw a 22% increase in annual earnings per diluted share ($1.29) and a 21% increase in fourth-quarter earnings per diluted share ($0.40) compared to the prior year.
- 4Olive Garden achieved its 31st consecutive quarter of comparable-restaurant sales growth (5.3% in Q4, 6.3% for the year).
- 5Red Lobster achieved its 18th consecutive quarter of comparable-restaurant sales growth (3.7% in Q4, 6.2% for the year).
- 6Bahama Breeze and Smokey Bones BBQ Sports Bar continued their expansion, with Bahama Breeze expecting 6-10 new openings in FY2003 and Smokey Bones targeting 20-25 new openings.
- 7Darden repurchased 1.4 million shares of its common stock in the fourth quarter, totaling 9 million shares for the year.
Frequently Asked Questions
Darden Restaurants reported record annual sales of $4.4 billion and record fourth-quarter sales of $1.2 billion. Earnings per diluted share were $1.30 for the full year and $0.40 for the fourth quarter. Excluding unusual restructuring credits, the company reported $1.29 in diluted earnings per share for the year (a 22% increase) and $0.40 for the fourth quarter (a 21% increase).
Both Olive Garden and Red Lobster demonstrated strong performance with consecutive quarters of comparable-restaurant sales growth. Olive Garden achieved its 31st consecutive quarter (5.3% in Q4, 6.3% for the year), and Red Lobster marked its 18th consecutive quarter (3.7% in Q4, 6.2% for the year). Both brands also achieved record average sales per restaurant.
The company is actively expanding its Bahama Breeze and Smokey Bones BBQ Sports Bar concepts. Bahama Breeze opened three new restaurants in the quarter, bringing its total to 29, and anticipates opening between six and ten more in fiscal year 2003. Smokey Bones also opened three new locations, reaching 19 units, and plans for aggressive growth with 20 to 25 new openings projected for fiscal year 2003.
Yes, Darden continued its share repurchase program, buying back 1.4 million shares of its common stock in the fourth quarter. This brought the total number of shares repurchased during the fiscal year to 9 million.