8-KOther Events

DARDEN RESTAURANTS INC 8-K Report (Feb 25, 2004)

Filed February 25, 2004For Securities:DRI

Summary

Darden Restaurants, Inc. (DRI) filed an 8-K on February 25, 2004, to announce an upward revision to its third-quarter diluted earnings per share (EPS) guidance. The company now expects Q3 EPS to be in the range of 45 to 46 cents, an increase driven by stronger-than-expected sales and profitability in fiscal January and February. This revised guidance translates to an estimated diluted EPS growth of 12% to 15% for the full fiscal year 2004.

Key Highlights

  • 1Darden Restaurants has raised its third-quarter diluted EPS guidance to a range of 45 to 46 cents.
  • 2The increased EPS forecast is attributed to better-than-anticipated sales and profitability in fiscal January and February.
  • 3The company now projects full-year fiscal 2004 diluted EPS growth to be between 12% and 15%.
  • 4Olive Garden reported a same-restaurant sales increase of 4% to 5% for fiscal February, driven by higher check averages and a slight increase in guest counts.
  • 5Red Lobster experienced a same-restaurant sales increase of 0% to 1% for fiscal February, with improved check averages offsetting a decrease in guest counts.
  • 6Favorable weather comparisons in February provided an approximate 1% boost to sales for both major brands.
  • 7Darden plans to release its official Q3 earnings on March 17, 2004, and will host an investor conference call the following morning.

Frequently Asked Questions

Darden announced an upward revision to its third-quarter diluted earnings per share (EPS) guidance due to stronger-than-expected sales and profitability in the months of January and February.

Olive Garden saw a healthy same-restaurant sales increase of 4-5% in February, while Red Lobster's same-restaurant sales were flat to up 1%. Both benefited from improved check averages, though Red Lobster saw fewer guests.

The company now anticipates its diluted earnings per share growth for fiscal year 2004 to be in the range of 12% to 15%.

Darden is scheduled to release its official fiscal 2004 third-quarter earnings on Wednesday, March 17, 2004, after the market close, followed by a conference call the next morning.