As filed with the Securities and Exchange
Commission on October 29, 2002.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 29, 2002
Darden Restaurants, Inc.
(Exact name of registrant as specified in its charter)
Florida 1-13666 59-3305930
(State or other jurisdiction (Commission file number) (IRS employer
of incorporation) identification No.)
5900 Lake Ellenor Drive, Orlando, Florida 32809
(Address of principal executive offices)
Registrant's telephone number, including area code:
(407) 245-4000
Not Applicable
(Former name or former address, if changed since last report)
Item 5. Other Events.
------------
On October 29, 2002, the Company issued a news release entitled
"Darden Restaurants Reports October Same-Restaurant Sales
Results," a copy of which is being filed herewith as Exhibit 99.
Item 7. Financial Statements and Exhibits.
---------------------------------
(c) Exhibits.
Exhibit Number
(by reference to
Item 601 of
Regulation S-K) Description
99 Press Release dated October 29, 2002,
entitled "Darden Restaurants Reports
October Same-Restaurant Sales
Results."
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: October 29, 2002 DARDEN RESTAURANTS, INC.
By: /s/ Paula J. Shives
-----------------------------------
Paula J. Shives
Senior Vice President
General Counsel and Secretary
3
INDEX TO EXHIBITS
Exhibit Number Description of Exhibit
99 Press Release dated October 29, 2002, entitled "Darden
Restaurants Reports October Same-Restaurant Sales Results."
4
EXHIBIT 99
DARDEN RESTAURANTS
Red Lobster(R)Olive Garden(R)Bahama Breeze(R)Smokey Bones(R)
www.darden.com
NEWS/INFORMATION
Corporate Relations
P.O. Box 593330
Orlando, FL 32859
Contacts:
(Analysts) Matthew Stroud (407) 245-5550
(Media) Rick Walsh (407) 245-5366
FOR RELEASE
October 29, 2002
4:30 PM EDT
DARDEN RESTAURANTS REPORTS OCTOBER
SAME-RESTAURANT SALES RESULTS
ORLANDO, FL - Darden Restaurants, Inc., (NYSE: DRI) today reported
same-restaurant sales for the four-week October fiscal month ended October 27,
2002. This period is the second month of Darden's fiscal 2003 second quarter.
Same-restaurant sales at Olive Garden were up 2% to 3% for the month, which
reflected a 3% to 4% increase in check average and a 1% to 2% decline in guest
counts. The check average gain was due to a 2% to 3% increase in pricing and a
1% increase from menu mix changes. During fiscal October of last year, Darden
Restaurants achieved a significant boost in sales and traffic as a result of its
participation in the restaurant industry's "Dine Out for America" campaign to
benefit the American Red Cross Disaster Relief Fund. The campaign received
strong support from guests because all of the Company's pre-tax profit on
October 11, 2001, was contributed for the benefit of victims of the September 11
terrorist attacks. Excluding the effect of the "Dine Out for America" campaign,
Olive Garden's same-restaurant sales for this fiscal October were up 3% to 4%
and its same-restaurant guests declined 0% to 1%.
Olive Garden's fiscal October results include the final two weeks of its
signature "Never-Ending-Pasta-Bowl" priced at $7.95, which began August 26 and
ended October 13, followed by two weeks without any advertising. The same
promotion ran during the comparable month last year. In fiscal October of last
year, Olive Garden had a 5% to 6% same-restaurant sales increase, which
reflected a 2% to 3% increase in guest counts and a 3% increase in check average
that resulted primarily from pricing increases. Year-to-date same-restaurant
sales growth at Olive Garden through the end of fiscal October is 4% to 5%,
which reflects a 3% to 4% increase in check average and a 0% to 1% increase in
guest counts.
Same-restaurant sales at Red Lobster were down 2% to 3% for fiscal October
as a result of a 2% to 3% increase in check average and a 4% to 5% decline in
guest counts. The check average increase was primarily due to pricing. Excluding
the effect of the "Dine Out for America" campaign, Red Lobster's same-restaurant
sales declined 1% to 2% and its same-restaurant guest counts were down 3% to 4%.
Red Lobster's "30-Shrimp for $9.99" promotion started on September 9 and
will run through November 3. The same promotion ran during the comparable month
last year. In fiscal October of last year, Red Lobster had a 7% to 8%
same-restaurant sales increase, driven by a 7% increase in guestcounts and a
slight increase in check average. The check average gain was the result of a 2%
to 3% increase in pricing offset by a 2% decline because of menu mix changes.
Year-to-date same-restaurant sales growth at Red lobster through the end of
fiscal October is 3% to 4%, which reflects a 3% to 4% increase in check average
and a 0% to 1% increase in guest counts.
"The environment was more challenging than expected during our fiscal
October", said Joe Lee, Darden's Chairman and Chief Executive Officer. "Both Red
Lobster and Olive Garden had value oriented promotions, but as we began the
month it became clear that the advertising supporting Red Lobster's offer had a
less compelling `call to action' than circumstances warranted. We then made
changes that were not fully in place until late in the month. Olive Garden is
well-positioned with the highest value rating in casual dining, and combined
this strength and an attractive offering to produce solid sales results."
"We continue to expect combined same-restaurant sales growth for Red
Lobster and Olive Garden for the full fiscal year to be between 3% and 5%, which
is consistent with the long-term goal we've communicated for some time now",
said Clarence Otis, the Company's Chief Financial Officer. "This reflects our
expectation of 2% to 4% combined same-restaurant sales growth for the balance of
the year. The diluted earnings per share growth we expect for the fiscal year
has not changed. We continue to anticipate that earnings per share growth will
be in the 15% to 20% range we target for the long term. For the second quarter
of the year, we expect diluted earnings per share of 21 to 22 cents, an 11% to
16% increase over the second quarter of last year."
Darden Restaurants, Inc., in Orlando, FL, owns and operates Red Lobster,
Olive Garden, Bahama Breeze and Smokey Bones BBQ Sports Bar restaurants.
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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