8-KOther Events

DARDEN RESTAURANTS INC 8-K Report (Mar 17, 2004)

Filed March 17, 2004For Securities:DRI

Summary

Darden Restaurants, Inc. reported a record-breaking third quarter for fiscal year 2004, with earnings per diluted share of 46 cents, a significant 31% increase compared to the prior year's 35 cents. This strong performance was driven by total sales growth of 5.1% to $1.24 billion and exceptional results at its Olive Garden brand. The company highlighted the consistent growth of Olive Garden, marking its 38th consecutive quarter of same-restaurant sales increases. While Red Lobster experienced a decline in same-restaurant sales, the company noted a moderation in traffic declines and a strong double-digit increase in operating profit due to effective cost management. Darden also continued its share repurchase program, underscoring its commitment to returning value to shareholders.

Key Highlights

  • 1Reported record third quarter earnings per diluted share of 46 cents, up 31% year-over-year.
  • 2Total sales increased 5.1% to $1.24 billion for the third quarter.
  • 3Olive Garden achieved its 38th consecutive quarter of same-restaurant sales growth, with a 5.4% increase.
  • 4Red Lobster's same-restaurant sales declined 5.1%, but traffic declines moderated, and operating profit saw a significant increase due to cost management.
  • 5The company's tax rate decreased to 31.1% from 33.8% due to favorable resolution of prior year tax matters.
  • 6Darden continued its share repurchase program, buying back 4.1 million shares in the third quarter.
  • 7Total restaurant count across all brands grew to 1,311 from 1,254 in the prior year.

Frequently Asked Questions

The record earnings were driven by a 5.1% increase in total sales to $1.24 billion and exceptional performance at Olive Garden, which achieved its 38th consecutive quarter of same-restaurant sales growth. Despite a decline in same-restaurant sales at Red Lobster, improved cost management led to a strong increase in its operating profit.

Olive Garden reported a 5.4% increase in same-restaurant sales, contributing to a record operating profit. Red Lobster's same-restaurant sales decreased by 5.1%, but the company saw a moderation in traffic declines and a significant increase in operating profit due to focused cost management initiatives.

Darden continued its share repurchase program in the third quarter, buying back 4.1 million shares. This demonstrates the company's ongoing commitment to returning value to shareholders.

Yes, the company reported a third-quarter tax rate of 31.1%, down from 33.8% in the prior year. This decrease was attributed to a favorable resolution of prior year tax matters.