EXHIBIT 99.1


dardenlogoa32.jpg
Darden Restaurants Reports Fiscal 2019 First Quarter Results and
Increases Financial Outlook For The Full Fiscal Year

 
ORLANDO, Fla., September 20, 2018 /PRNewswire/ -- Darden Restaurants, Inc., (NYSE:DRI) today reported its financial results for the first quarter ended August 26, 2018.
 
First Quarter 2019 Financial Highlights, Comparisons Versus Same Fiscal Quarter Last Year
Total sales increased 6.5% to $2.06 billion, including 3.2% growth from the addition of 52 net new restaurants
Blended same-restaurant sales increased 3.3%
 
+5.3% for Olive Garden
 
-4.0% for Cheddar's Scratch Kitchen
 
+3.1% for LongHorn Steakhouse
 
+0.6% for Yard House
 
+3.9% for The Capital Grille
 
-1.9% for Seasons 52
 
+3.0% for Eddie V’s
 
+1.1% for Bahama Breeze

Reported diluted net earnings per share from continuing operations increased 41.1% to $1.34 and increased 35.4% from last year's adjusted diluted net earnings per share*
The Company repurchased approximately $31 million of its outstanding common stock
* See "Non-GAAP Information" below for more details

“We are pleased to report another quarter of strong results and market share gains,” said CEO Gene Lee. “Our competitive advantages continue to work hard for us, allowing us to invest in our people and brands to deliver exceptional guest experiences.”

Segment Performance
Segment profit represents sales, less costs for food and beverage, restaurant labor, restaurant expenses and marketing expenses.
 
 
Q1 Sales
 
 
 
Q1 Segment Profit
 
 
($ in millions)
 
2019
 
2018
 
% Change

 
2019
 
2018
 
% Change

Consolidated Darden
 
$2,061.4
 
$1,936.1
 
6.5
%
 
 
 
 
 
 
Olive Garden
 
$1,052.0
 
$989.9
 
6.3
%
 
$218.2
 
$199.1
 
9.6
 %
LongHorn Steakhouse
 
$430.4
 
$404.5
 
6.4
%
 
$70.2
 
$63.6
 
10.4
 %
Fine Dining
 
$129.9
 
$122.2
 
6.3
%
 
$20.7
 
$19.2
 
7.8
 %
Other Business
 
$449.1
 
$419.5
 
7.1
%
 
$65.3
 
$65.9
 
(0.9
)%

U.S. Same-Restaurant Sales Results
 
Q1
 
Olive
Garden
LongHorn Steakhouse
Same-Restaurant Sales
5.3%
3.1%
Same-Restaurant Traffic
1.5%
(0.3)%
Pricing
1.9%
1.6%
Menu-mix
1.9%
1.8%


1


Dividend Declared
Darden's Board of Directors declared a regular quarterly cash dividend of $0.75 per share on the Company's outstanding common stock. The dividend is payable on November 1, 2018 to shareholders of record at the close of business on October 10, 2018.

Share Repurchase Program
During the quarter, the Company repurchased approximately 0.3 million shares of its common stock for a total cost of approximately $31 million. As of the end of the fiscal first quarter, the Company had approximately $480 million remaining under the current $500 million repurchase authorization.

Updated Fiscal 2019 Financial Outlook
The Company increased its financial outlook for Fiscal 2019 based on year-to-date results and its expected performance for the remainder of the year.
 
Current (09/20/18)
Prior (06/21/18)
Same-restaurant sales growth
2.0% to 2.5%
1.0% to 2.0%
Total sales growth
5.0% to 5.5%
4.0% to 5.0%
Effective tax rate
10% to 11%
11% to 12%
Diluted net earnings per share from continuing operations
$5.52 - $5.65
$5.40 - $5.56
Diluted average common shares outstanding for the year
Approx. 126M
Approx. 125M

Investor Conference Call
The Company will host a conference call and slide presentation on Thursday, September 20 at 8:30 am ET to review its recent financial performance. To listen to the call live, please go to https://www.webcaster4.com/Webcast/Page/1007/27199 at least fifteen minutes early to register, download, and install any necessary audio software. Prior to the call, a slide presentation will be posted on the Investor Relations section of our website at: www.darden.com. For those who cannot access the Internet, please dial 1-800-369-2058 and enter passcode 3047110. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.

About Darden
Darden is a restaurant company featuring a portfolio of differentiated brands that include Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V's. Our people equal our success, and we are proud to employ 180,000 team members in more than 1,700 restaurants. Together, we create memorable experiences for nearly 390 million guests each year in communities across North America. For more information, please visit www.darden.com.

Information About Forward-Looking Statements
Forward-looking statements in this communication regarding our expected earnings performance and all other statements that are not historical facts, including without limitation statements concerning our future economic performance, are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements speak only as of the date on which such statements are first made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. We wish to caution investors not to place undue reliance on any such forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to materially differ from those anticipated in the statements. The most significant of these uncertainties are described in Darden's Form 10-K, Form 10-Q and Form 8-K reports. These risks and uncertainties include technology failures including failure to maintain a secure cyber network, food safety and food-borne illness concerns, the inability to hire, train, reward and retain restaurant team members or monitor and proactively respond to employee dissatisfaction, a failure to develop and recruit effective leaders, litigation, unfavorable publicity, an inability or failure to manage the accelerated impact of social media, risks relating to public policy changes and federal, state and local regulation of our business, long-term and non-cancelable property leases, labor and insurance costs, failure to execute a business continuity plan following a disaster, health concerns including food-related pandemics or virus outbreaks, intense competition, failure to drive profitable sales growth, a lack of availability of suitable locations for new restaurants, higher-than-anticipated costs to open, close, relocate or remodel restaurants, a failure to execute

2


innovative marketing tactics, a failure to address cost pressures, shortages or interruptions in the delivery of food and other products and services, adverse weather conditions and natural disasters, volatility in the market value of derivatives, economic factors specific to the restaurant industry and general macroeconomic factors including interest rates, disruptions in the financial markets, risks of doing business with franchisees, licensees and vendors in foreign markets, failure to protect our intellectual property, impairment in the carrying value of our goodwill or other intangible assets, failure of our internal controls over financial reporting and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.
 

Non-GAAP Information
The information in this press release includes financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as adjusted diluted net earnings per share from continuing operations. The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. The Company believes that the presentation of certain non-GAAP measures provides useful supplemental information that is essential to a proper understanding of the operating results of the Company’s businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP measures are included in this release.


(Analysts) Kevin Kalicak, (407) 245-5870; (Media) Rich Jeffers, (407) 245-4189

Fiscal Q1 Reported to Adjusted Earnings Reconciliation
 
Q1 2019
 
Q1 2018
$ in millions, except EPS
Earnings Before Income Tax
Income Tax Expense
Net Earnings
Diluted Net Earnings Per Share
 
Earnings Before Income Tax
Income Tax Expense
Net Earnings
Diluted Net Earnings Per Share
Reported Earnings from Continuing Operations
$176.0
$7.1
$168.9
$1.34
 
$159.5
$38.2
$121.3
$0.95
% Change vs Prior Year
 
 
 
41.1
%
 
 
 
 
 
Adjustments:
 
 
 
 
 
 
 
 
 
Cheddar's integration expenses




 
6.4

2.2

4.2

0.04

Adjusted Earnings from Continuing Operations
$176.0
$7.1
$168.9
$1.34
 
$165.9
$40.4
$125.5
$0.99
% Change vs Prior Year
 
 
 
35.4
%
 
 
 
 
 



3








DARDEN RESTAURANTS, INC.
NUMBER OF COMPANY-OWNED RESTAURANTS
 
8/26/18

8/27/17

Olive Garden1
858

847

LongHorn Steakhouse
506

491

Cheddar's Scratch Kitchen
157

141

Yard House
73

68

The Capital Grille2
58

56

Bahama Breeze
40

38

Seasons 52
42

41

Eddie V's
19

19

Darden Continuing Operations
1,753

1,701

1Includes six locations in Canada for all periods presented.
2Includes one The Capital Burger restaurant in fiscal 2019.
                
            


4



DARDEN RESTAURANTS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In millions, except per share data)
(Unaudited)

 
Three Months Ended
 
8/26/2018
 
8/27/2017
Sales
$
2,061.4

 
$
1,936.1

Costs and expenses:
 
 
 
Food and beverage
583.3

 
555.2

Restaurant labor
679.3

 
624.2

Restaurant expenses
357.9

 
342.9

Marketing expenses
66.5

 
66.0

General and administrative expenses
104.5

 
98.0

Depreciation and amortization
80.7

 
76.1

Impairments and disposal of assets, net
0.1

 
(0.8
)
Total operating costs and expenses
$
1,872.3

 
$
1,761.6

Operating income
189.1

 
174.5

Interest, net
13.1

 
15.0

Earnings before income taxes
176.0

 
159.5

Income tax expense
7.1

 
38.2

Earnings from continuing operations
$
168.9

 
$
121.3

Losses from discontinued operations, net of tax benefit of $(1.1) and $(1.0), respectively
(2.7
)
 
(2.3
)
Net earnings
$
166.2

 
$
119.0

 
 
 
 
Basic net earnings per share:
 
 
 
Earnings from continuing operations
$
1.36

 
$
0.97

Losses from discontinued operations
(0.02
)
 
(0.02
)
Net earnings
$
1.34

 
$
0.95

Diluted net earnings per share:
 
 
 
Earnings from continuing operations
$
1.34

 
$
0.95

Losses from discontinued operations
(0.02
)
 
(0.02
)
Net earnings
$
1.32

 
$
0.93

Average number of common shares outstanding:
 
 
 
Basic
123.8

 
125.2

Diluted
125.8

 
127.3







5




DARDEN RESTAURANTS, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
 
 
8/26/2018
 
5/27/2018
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
151.8

 
$
146.9

Receivables, net
68.8

 
83.7

Inventories
194.6

 
205.3

Prepaid income taxes
18.5

 
15.9

Prepaid expenses and other current assets
99.8

 
89.9

Assets held for sale
11.1

 
11.9

Total current assets
$
544.6

 
$
553.6

Land, buildings and equipment, net
2,473.6

 
2,429.8

Goodwill
1,183.7

 
1,183.7

Trademarks
950.8

 
950.8

Other assets
344.2

 
351.7

Total assets
$
5,496.9

 
$
5,469.6

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
268.7

 
$
277.0

Accrued payroll
138.2

 
177.5

Accrued income taxes
3.5

 

Other accrued taxes
62.2

 
56.6

Unearned revenues
382.5

 
415.8

Other current liabilities
469.2

 
457.6

Total current liabilities
$
1,324.3

 
$
1,384.5

Long-term debt
926.8

 
926.5

Deferred income taxes
118.1

 
114.0

Deferred rent
329.8

 
318.0

Other liabilities
522.7

 
531.8

Total liabilities
$
3,221.7

 
$
3,274.8

Stockholders’ equity:
 
 
 
Common stock and surplus
$
1,667.4

 
$
1,631.9

Retained earnings
693.5

 
657.6

Treasury stock
(7.8
)
 
(7.8
)
Accumulated other comprehensive income (loss)
(76.4
)
 
(85.2
)
Unearned compensation
(1.5
)
 
(1.7
)
Total stockholders’ equity
$
2,275.2

 
$
2,194.8

Total liabilities and stockholders’ equity
$
5,496.9

 
$
5,469.6



6



DARDEN RESTAURANTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
 
Three Months Ended
 
8/26/2018
 
8/27/2017
Cash flows—operating activities
 
 
 
Net earnings
$
166.2

 
$
119.0

Losses from discontinued operations, net of tax
2.7

 
2.3

Adjustments to reconcile net earnings from continuing operations to cash flows:
 
 
 
Depreciation and amortization
80.7

 
76.1

Stock-based compensation expense
17.9

 
8.4

Change in current assets and liabilities and other, net
(61.1
)
 
(26.4
)
Net cash provided by operating activities of continuing operations
$
206.4

 
$
179.4

Cash flows—investing activities
 
 
 
Purchases of land, buildings and equipment
(106.4
)
 
(95.7
)
Proceeds from disposal of land, buildings and equipment
0.8

 
2.9

Purchases of capitalized software and changes in other assets, net
(3.6
)
 
(3.9
)
Net cash used in investing activities of continuing operations
$
(109.2
)
 
$
(96.7
)
Cash flows—financing activities
 
 
 
Proceeds from issuance of common stock
33.3

 
15.8

Dividends paid
(93.0
)
 
(79.1
)
Repurchases of common stock
(31.3
)
 
(100.2
)
Principal payments on capital and financing leases
(1.6
)
 
(1.0
)
Other, net
0.2

 
0.1

Net cash used in financing activities of continuing operations
$
(92.4
)
 
$
(164.4
)
Cash flows—discontinued operations
 
 
 
Net cash provided by (used in) operating activities of discontinued operations
0.1

 
(4.6
)
Net cash provided by (used in) discontinued operations
$
0.1

 
$
(4.6
)
 
 
 
 
Increase (decrease) in cash and cash equivalents
4.9

 
(86.3
)
Cash and cash equivalents - beginning of period
146.9

 
233.1

Cash and cash equivalents - end of period
$
151.8

 
$
146.8



7

View differences made from one to another to evaluate Darden Restaurants Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 8-K Corporate News to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Darden Restaurants Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

FREE Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue for FREE

Log in with your credentials

or    

Forgot your details?

Create Account