8-KEarnings & ResultsExhibits & Filings

DARDEN RESTAURANTS INC 8-K Report, Financial Results (Sep 22, 2004)

Filed September 22, 2004For Securities:DRI

Summary

Darden Restaurants, Inc. reported its first quarter fiscal year 2005 results on September 22, 2004, showing an increase in diluted earnings per share to $0.44, a 10% rise from $0.40 in the prior year's first quarter. Total sales also saw a modest increase of 1.5% to $1.28 billion. The company highlighted that these results were achieved despite adverse effects from Hurricane Charley and the Summer Olympics. Key operational performance varied across brands. Olive Garden continued its strong track record with its 40th consecutive quarter of U.S. same-restaurant sales growth, while Red Lobster experienced a decline in same-restaurant sales. The report also detailed significant leadership transitions, with Clarence Otis, Jr. set to succeed Joe Lee as CEO in December 2004, and Drew Madsen moving into the role of Darden's President and Chief Operating Officer. The company continued its share repurchase program, demonstrating a commitment to returning value to shareholders.

Key Highlights

  • 1Reported first quarter diluted EPS of $0.44, a 10% increase year-over-year.
  • 2Total sales for the quarter were $1.28 billion, up 1.5% compared to the prior year.
  • 3Olive Garden achieved its 40th consecutive quarter of U.S. same-restaurant sales growth, with a 2.8% increase.
  • 4Announced upcoming CEO transition: Clarence Otis, Jr. to succeed Joe Lee in December 2004.
  • 5Drew Madsen appointed as Darden's President and Chief Operating Officer, effective December 2004.
  • 6Continued share repurchase program, buying back 2.9 million shares in the quarter.
  • 7Red Lobster experienced a U.S. same-restaurant sales decrease of 7.6%.

Frequently Asked Questions

The company reported a 10% increase in diluted earnings per share to $0.44 and a 1.5% increase in total sales to $1.28 billion. This growth was primarily driven by strong performance at Olive Garden and disciplined cost management across brands, which helped offset challenges like Hurricane Charley and the Summer Olympics.

Olive Garden demonstrated continued strength with its 40th consecutive quarter of same-restaurant sales growth (2.8%). Red Lobster, however, saw a decrease in same-restaurant sales by 7.6%, though profit margins per guest improved due to cost efficiencies. Bahama Breeze showed sales improvement, and Smokey Bones continued its expansion with new restaurant openings.

Darden announced that Clarence Otis, Jr. will become the new CEO in December 2004, succeeding Joe Lee, who will remain as Chairman until his planned retirement in December 2005. Additionally, Drew Madsen, currently President of Olive Garden, will assume the role of Darden's President and Chief Operating Officer in December 2004.

Yes, the company continued its share repurchase program during the quarter, buying back 2.9 million shares of its common stock. Since its program began in 1995, Darden has repurchased a significant number of shares.