8-KOther Events

DARDEN RESTAURANTS INC 8-K Report (Sep 19, 2002)

Filed September 19, 2002For Securities:DRI

Summary

Darden Restaurants, Inc. reported strong financial results for its fiscal first quarter ended August 25, 2002. The company achieved record quarterly sales of $1.17 billion, a 9.4% increase over the prior year, driven by robust performance at its flagship brands, Red Lobster and Olive Garden. Earnings per diluted share reached 40 cents, an 18% increase year-over-year, underscoring the company's ability to generate growth even in challenging economic conditions. Both Red Lobster and Olive Garden demonstrated consistent same-restaurant sales growth, with Red Lobster achieving its 19th consecutive quarter and Olive Garden its 32nd consecutive quarter of such gains. The company also made progress in expanding its newer brands, Bahama Breeze and Smokey Bones BBQ Sports Bar, with new restaurant openings. Additionally, Darden continued its commitment to shareholder returns through a significant share repurchase program and a 50% increase in its semi-annual cash dividend.

Key Highlights

  • 1Reported record quarterly sales of $1.17 billion, a 9.4% increase year-over-year.
  • 2Achieved earnings per diluted share of $0.40, an 18% increase compared to the prior year.
  • 3Red Lobster achieved its 19th consecutive quarter of same-restaurant sales growth with a 6.6% increase.
  • 4Olive Garden posted its 32nd consecutive quarter of same-restaurant sales growth with a 4.8% increase.
  • 5Continued expansion with new openings at Bahama Breeze and Smokey Bones BBQ Sports Bar.
  • 6Repurchased 2.0 million shares of common stock and authorized an additional 18.5 million shares for repurchase.
  • 7Increased the semi-annual cash dividend by 50% to 4 cents per share.

Frequently Asked Questions

Darden Restaurants reported record quarterly sales of $1.17 billion, a 9.4% increase from the previous year. Earnings per diluted share were $0.40, an 18% increase year-over-year. This strong performance was driven by robust sales at Red Lobster and Olive Garden.

Both flagship brands showed impressive comparable sales growth. Red Lobster achieved its 19th consecutive quarter of same-restaurant sales growth with a 6.6% increase, while Olive Garden marked its 32nd consecutive quarter with a 4.8% increase in same-restaurant sales.

Darden continued its share repurchase program, buying back 2.0 million shares and receiving Board approval for an additional 18.5 million share repurchase authorization. Furthermore, the company declared a semi-annual cash dividend of 4 cents per share, representing a 50% increase from the previous dividend.

Yes, Darden reported expansion for its newer brands. Bahama Breeze opened one new restaurant, bringing its total to 30, with more planned. Smokey Bones BBQ Sports Bar also opened two new restaurants, with significant expansion planned for the fiscal year to more than double its current footprint.