EXHIBIT 99
Press Release dated June 22, 2000, of Darden Restaurants, Inc.
DARDEN RESTAURANTS REPORTS RECORD ANNUAL AND
FOURTH QUARTER EARNINGS PER DILUTED SHARE
ORLANDO, FL - Darden Restaurants, Inc. today reported record earnings per
diluted share of $1.31 for the fiscal year ended May 28, 2000 on earnings after
tax of $173.1 million, excluding unusual fourth quarter non-operating gains this
year and last year. This represents a 36% increase in annual earnings per
diluted share.
Fourth quarter earnings per diluted share increased 30% to 43 cents on earnings
after tax of $54.4 million (excluding the unusual gains). The world's largest
casual dining company said full year sales increased 7% to $3.70 billion. Fourth
quarter sales increased by over 10% to $1.01 billion, propelled by impressive
comparable restaurant sales gains at Red Lobster and Olive Garden.
"This has been an outstanding year for Darden Restaurants," said Joe R. Lee,
Chairman and Chief Executive Officer. "We achieved record sales and earnings per
share and solidly positioned Darden for continued success. Guests are telling us
that the foundations for our growth, Red Lobster and Olive Garden, are providing
more satisfying food and more gracious service in a more enjoyable atmosphere.
With the strong momentum at Red Lobster and Olive Garden, we are ramping up new
restaurant growth at both companies. The current strength and growth prospects
of Red Lobster and Olive Garden, the continued excitement and expansion of
Bahama Breeze and the very encouraging early results of our Smokey Bones test
concept, give me great confidence in our ability to capitalize on the tremendous
growth opportunity in the casual dining industry."
Highlights for the quarter and fiscal year ended May 28, 2000, included the
following:
o Annual earnings after tax, excluding an unusual $3.6 million after tax
fourth quarter non-operating gain, were $173.1 million, or $1.31 per
diluted share, on sales of $3.70 billion. Last year, earnings after tax
before an unusual fourth quarter non-operating gain were $135.3 million, or
96 cents per diluted share, on sales of $3.46 billion.
o Fourth quarter earnings after tax, before the non-operating gain, were
$54.4 million, or 43 cents per diluted share, on sales of $1.01 billion.
Last year, fourth quarter earnings after tax before the non-operating gain
were $45.9 million, or 33 cents per diluted share, on sales of $914.0
million.
o Red Lobster led the casual dining industry with a same-restaurant sales
increase of 13.1% in the fourth quarter. This was Red Lobster's 10th
consecutive quarter of comparable restaurant sales increases.
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o Olive Garden continued its impressive record of growth with a 5.3%
same-restaurant sales increase, its 23rd consecutive quarter of comparable
restaurant sales increases, and opened six new Tuscan farmhouse style
restaurants.
o Bahama Breeze opened four additional restaurants during the fourth quarter,
increasing the total number of restaurants in operation to 14. The newest
restaurants are located in Phoenix, Miami, Ft. Myers, FL and Atlanta.
o Smokey Bones Sports Bar and BBQ opened its second restaurant in Orlando,
and expects to open a third restaurant later this summer, in Columbus, OH.
o Darden purchased 3.4 million shares of its common stock in the fourth
quarter bringing to 11.5 million the total number of shares repurchased
during the year.
o As a result of favorable lease terminations, Darden reversed certain
liabilities established for previously announced restructuring actions.
This unusual, non-operating gain increased earnings after tax by $3.6
million and diluted earnings per share by 3 cents for the fourth quarter
and the year.
Operating Highlights
RED LOBSTER'S fourth quarter sales of $576.4 million were 11% above prior year.
The company's signature "Lobsterfest" promotion was particularly successful this
year and contributed to a record fourth quarter same-restaurant sales increase
of 13.1%. Strong guest traffic accounted for over half of the comparable sales
gain. Sales of $2.07 billion for the fiscal year were almost 6% above prior year
and average sales per restaurant for the year were $3.2 million - a record level
for Red Lobster. Operating profits for the fourth quarter and fiscal year
increased at strong double-digit percentage rates.
"Our fourth quarter performance was remarkable," said Dick Rivera, President of
Red Lobster. "Our outstanding crew members are dedicated to providing our guests
with hospitality you can taste and touch, and this commitment led to the most
successful Lobsterfest promotion in our history. Our crew's passion for these
fundamental tenets of our operating principles - Our Compass - is also why we
enjoyed such exciting results for the year. Our vision is clear, we want to be a
world-class company of seafood restaurants. This year, we made meaningful
progress toward that goal."
OLIVE GARDEN'S fourth quarter sales of $408.6 million were 5% above prior year
and its fourth quarter same-restaurant sales increased 5.3% - the 23rd
consecutive quarter of comparable restaurant sales increases. Sales gains
continue to be driven by strong guest count growth and increased guest
satisfaction levels. In addition, Olive Garden restarted growth in new
restaurants by opening six Tuscan farmhouse style restaurants during the fourth
quarter. Sales of $1.58 billion for the fiscal year were almost 7% higher than
the prior year, and annual average sales per restaurant increased to $3.4
million - a record level for Olive Garden. This increase in sales volume
generated a strong double-digit percentage increase in operating profit for the
fiscal year.
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"We are pleased to have taken our company to yet another level of excellence
this year," said Brad Blum, President of Olive Garden. "Record sales and
operating profits led to a record return on sales and record return on capital.
These financial results reflect the Olive Garden team's success in elevating
every aspect of our dining experience. Our dedication to Hospitaliano, and
providing our guests a genuine Italian dining experience, makes us determined to
do an even better job of offering exceptional Italian foods and wines with great
hospitality in a warm, inviting environment."
BAHAMA BREEZE opened four additional restaurants during the quarter, bringing
the total number of restaurants in operation to 14. The newest restaurants are
located in Phoenix, Miami, Ft. Myers, FL and Atlanta. The concept continues to
be well received by guests, with exceptionally strong sales volumes producing
restaurant earnings levels that exceed management's expectations. Bahama Breeze
has begun construction on five more restaurants set to open later this year.
SMOKEY BONES opened its second restaurant in Orlando during the quarter. Initial
results from the two restaurants in operation are very encouraging, and a third
restaurant is expected to open in Columbus, OH later this summer.
Other Actions
Darden continued its repurchase of common stock in the open market, purchasing
3.4 million shares in the fourth quarter, for a total of 11.5 million shares
purchased during the year. Cumulatively, since the inception of its repurchase
program in December 1995, the Company has repurchased 44.1 million shares from a
total authorization of 64.6 million shares.
As a result of favorable lease terminations associated with previously announced
restructuring actions, Darden reversed certain estimated liabilities in the
fourth quarter. This resulted in a $3.6 million after tax unusual gain.
Including this unusual gain, earnings per diluted share were $1.34 for fiscal
year 2000 and 46 cents for the fourth quarter, and earnings after tax were
$176.7 million for the year and $58.0 million for the quarter. This unusual gain
had no impact on the Company's cash flow.
Darden Restaurants Inc., in Orlando, FL, owns and operates Red Lobster, Olive
Garden, Bahama Breeze and Smokey Bones restaurants with annual sales of $3.7
billion.
FORWARD-LOOKING STATEMENTS IN THIS NEWS RELEASE, IF ANY, ARE MADE UNDER THE SAFE
HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995.
CERTAIN IMPORTANT FACTORS COULD CAUSE RESULTS TO DIFFER MATERIALLY FROM THOSE
ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS, INCLUDING THE IMPACT OF CHANGING
ECONOMIC OR BUSINESS CONDITIONS, THE IMPACT OF COMPETITION, THE AVAILABILITY OF
FAVORABLE CREDIT AND TRADE TERMS, THE IMPACT OF CHANGES IN THE COST OR
AVAILABILITY OF FOOD AND REAL ESTATE, GOVERNMENT REGULATION, CONSTRUCTION COSTS,
WEATHER CONDITIONS AND OTHER FACTORS DISCUSSED FROM TIME TO TIME IN REPORTS
FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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DARDEN RESTAURANTS, INC.
NUMBER OF RESTAURANTS
5/28/00 5/30/99
622 Red Lobster USA 635
32 Red Lobster Canada 34
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654 Total Red Lobster 669
464 Olive Garden USA 459
5 Olive Garden Canada 5
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469 Total Olive Garden 464
14 Bahama Breeze 6
2 Smokey Bones 0
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1,139 Total Restaurants 1,139
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