DRI - Earnings call transcript Q2 2020 | Darden Restaurants, Inc.

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Operator

Welcome to the Darden Fiscal Year 2020 Second Quarter Earnings Call.

Your lines have been placed on listen-only until the question-and-answer session. [Operator Instructions]

I would now like to turn the call over to Mr. Kevin Kalicak.

begin. may You

Kevin Kalicak

Good on Carol. and you thank Thank call. morning, participating today’s for you, everyone,

Joining call on Rick me the Cardenas, CEO; Lee, CFO. and Darden today are Gene

forward-looking during As comments Act and of are Private this uncertainties statements, statements Reform as These to call Securities a Litigation defined made will subject reminder, XXXX. that the in cause include risks could morning described our and in the Exchange differ to projections. and results was with expectations distributed its materially which in from this Company’s filings Securities the Commission. risks actual press release, are Those and

a during the website broadcasting simultaneously are posted of darden.com. is at call, in We Relations our section presentation this which Investor

non-GAAP on by a Today’s the release plan of and followed to reconciliations are March market XXXX opens, presentation. call. discussion certain these quarter third XXth We and fiscal presentation before earnings measurements included include conference measurements in the

provide and financial quarterly and morning then remarks about quarter. second This our will detail some brief will business highlights Gene from the more performance on share Rick results our

reminder, Knapp-Track As estimated during call benchmark today’s to and industry Steakhouse. the to references Olive Darden, refer LongHorn specifically, excluding all Garden a

guest sales second During X.X%, decreased same-restaurant sales industry industry increased counts same-restaurant X.X% growth quarter, industry X.X%. and was total our fiscal

call I’ll Now, the over turn Gene. to

Gene Lee

Kevin. you, morning, Good Thank everyone.

adjusted release an of earnings increase net As good you’ve increased press X.X%, continuing $X.XX. billion, diluted $X.XX seen were same-restaurant from had this and a we X% from morning, were our per quarter. Total operations sales share sales

overall. Looking at the industry

relentlessly executing back philosophy food, supported in-restaurant brands marketing atmosphere compelling see service We with operating value consumers visit on anchored resonates and that our strong our remain That’s we and continue with execution. guests. with basics that in and are to willing integrated to why to focused

We our also competitive to leverage strengthen advantages. four and continue

to culture. results-oriented our is retention continue rates am see unemployment, advantages I record Admits those of improve. proud to low our One

an people with our compelling to We important success. retain ability staff right have employment a our the and driver is proposition restaurants of our and

to sales same-restaurant its from Olive the highlights growth by industry driven Garden and of quarter Garden new same-restaurant Total sales brand basis growth growth. and grew and XXX XXX sales Olive points for in points, basis restaurants. X.X%, delivered the Turning outperformed X.X% X.X% same-restaurant benchmark quarter. traffic sales of XXst respectively. consecutive by

As a start ramp for four a over Buy Lasagna quarter Take comping Garden Olive reminder, One had difficult to promotional Mia the weeks. the One with first

Additionally, we we made some spending. reduced changes and messaging our to promotional marketing

of had result, from quarter. some to As same-restaurant the up a ground the negative at make beginning we sales

into everyday spend. guest teams. focus a during with sales as improved execution, Garden preference Delivering quarter, by Ending also trends XX% Garden as operational convenience team comparable key Bowl priority value. strong for moved Never more Olive driven for Pasta marketing experiences grew the remain exceptional meet to need we Sales off-premise The and take-home Olive on continued convenience the guest for $X their restaurant to continues the offer.

sales XX% the of grew sales. XX% represented XX% go sales total sales. total off-premise of quarter and approximately Digital For to represented

weekday lunch sales new with This meaningful $XX trends. has Finally, improvements value. strengthen as to menu perform seen everyday and lunch to a Olive continues Garden options quarter, we XX last well introduced in noted under platform

at strategy make to enable the Overall, They to in Garden’s will investments which them high pleased the confident grow continue appropriate to share. market will performance. have a that I’m Olive right continue execute and with they level, place, I’m and

same-restaurant simplifying industry in restaurants sales the operations points, the of to by adhering strategy X.X% engagement. and guest experience, the had result LongHorn’s to and an grew and team increase unique of a outperformed benchmark of LongHorn sales from basis member LongHorn their XXX long-term driven X.X%, execution sales growth. traffic consecutive respectively. culture X.X%, new of sales growth brand’s Steakhouse XXth XXX growth and drive Total same-restaurant is quarter quarter. the outstanding leveraging investing in by their points the basis to performance same-restaurant quality

significant has four investments the in pay last the to off. made investments strategy the continue Over those and years, team

quarter, quality menu several introduced enhancements Steak During order better Can’t to evolved communicate beverage. they and quality and their their quality items the of award-winning expertise the further Fake effectively, And LongHorn to core their to team campaign advertising stakes. existing their in tell showcase their to high food You more strengthen story

team is job to to operations The with distinctive, drive differentiator and relevant opportunities business advertising done very and key guests. resonate simple a experience finding was excellent as execution. of their a overall continues LongHorn simplify has the LongHorn designed to

the implemented from would restaurant they teams. direct result number quarter, feedback ideas that a a During of

Additionally, standards hours to led throughput weekend our execution during on the renewed improved quarter. this focus busiest

high by satisfaction LongHorn And brings to evidenced discipline key confident culture. team during guest leverage industry-leading of that high quarter that all-time LongHorn’s their level is retention engagement strategy drive long-term finally, to LongHorn biggest to the for continues the will reached their record the advantage, hourly leadership extremely their competitive the the This the business another reached unique retention further rates of levels the rating all proud at Manager adhering momentum. I’m remained fact across continue quarter levels. I’m to and metrics. and

same-restaurant restaurants increased of in new sales offset and driven of X.X%, decline total Kitchen by sales partially X.X%. Scratch growth sales Cheddar’s X.X% by

HR showed improved remain members XX staffing move knowing right points the in encouraged elements know last great have to quarter levels turnover foundational We turnover in continue for as I’m successfully. manager made running improvement to these see restaurants. we to by the continue restaurants the year, trends, and meaningful compared Hourly are are management and these of improvement metrics, that improvements by that direction. team nearly and levels strong during operations Overall which Cheddar’s operating well. retention and

is perspective, efficient requires that From business a an operations high-volume throughput. Cheddar’s

and they of saw significant service, team of metrics the the One the year. operations last speed on quarter improvement during key versus focused was

across the fact, improvement to In last guest experience metrics compared key year. they saw strong all in

and strengthening In to team the the also addition offers. value worked fundamentals, improve the to HR Cheddar’s appeal of amazing operating

highest was team every guest with butter most as has acquired their item, rated wild improvements been the After the is providing element when new made, and and right necessary this given craveable teams making very honey of In have value the with and the reinforces October, And to positive. the of adjustments response Cheddar’s an provides. roll the service members an identified to brand. facilitate Providing it this operational their out. time guests we warm a guest overall step every opportunity the operations began that the from croissants. This butter we they service guest menu honey croissant

test this As and on shared do. market of quarter, increased using I media their conducted a effective to work the the team the this the the the channels marketing to early last of have the brand drive and and variety future. in and order a spend will learns awareness trial. effort to time, of Cheddar’s and are still to way call, determine working lot continue stages They invest They to in most learning resources in numerous

the priorities direction. work over. results and Team While by from in right at seeing, right working are far is moving the the on I’m is we’re I’m confident they the Cheddar’s encouraged

is holidays great our This lasting guests team and time at that of a year quality the our our and busiest at higher members delight being a the We of service guests, to our serve why And memories. our tomorrow. lives, finally, the they time for help people’s is the of enhancing make also heart is restaurant the support as create purpose year reminder business. is delight we embrace which purpose of better a with teams,

More XXX harvest so One basis. we’re and and fight this access restaurants food to pounds country impact our food. live our takes working million in it. million without of meals. have consistent every harvest local than a in nonprofits food members to donated program. weekly surplus one communities hunger, during our To The of to of households of equivalent proud One nearly their donates in of our through significance the program food eight through passion has the the I’m make better help is banks holidays, ways added and on been tomorrow for our program. XX the of That’s on team a

of and behalf Directors, communities. wish and of wonderful to members team Board of I for XXX,XXX season. management our I the our everything a thank guest you want On the to serve team all do you holiday

over Rick. Now, I’ll to turn it

Rick Cardenas

you, Thank Good Gene. morning, everyone.

from total addition the We growth of net had new growth same-restaurant sales quarter of with driven another by growth second XX restaurants good X.X% X.X%, and of X%. quarter sales

quarter’s in sales mentioned last basis by two I XX this driven As about points benefited by same-restaurant factors. quarter, call,

quarter moving in XXXX. from First, basis points an fiscal in due increase quarter third XXX approximately XXXX second into the to the Thanksgiving of fiscal

this As basis sales the the to early Hurricane second a shift. approximately quarter. And impact corresponding in to points Dorian XX second, due quarter third a of the reminder, decrease same-restaurant of of see should headwind because

Second $X.XX, quarter per quarter. net in repurchased shareholders year’s and our per earnings share. million share million XX.X% from increase in continuing net paid were $XXX adjusted We diluted an operations shares, dividends to this earnings diluted from $XXX last of million returning $XXX over

of to to we this which of benefit our and plan a noncontributory primarily $XXX was plan, of defined was the Additionally the XXXX expense $X.XX XX-K. This pretax of most net charge fiscal reported result adjustments non-cash. termination quarter, Form in per the The previously related our share. had million our diluted of termination was this anticipated primary earnings communicated pension

and basis and commodity to investments. our X% as approximately margin X.X% Now continued detailed turning and of to results. year, cost XX savings last were points just costs initiatives favorable pricing offset over of inflation continued beverage Food

pricing, XX and inflation quarter in was of basis restaurants. labor Second unfavorable check existing was improvements X% Total last mix restaurant new to and offset points year. by labor productivity

well XX primarily and this points Marketing inflationary year. driven continue first face. still last manage increased We Cheddar’s. by Approximately of expense the given XX% labor was related second and other environment, to remainder timing was marketing to pressures shift LongHorn the the to our in media unfavorable in was this to we the heightened quarter, from spending basis segments,

restaurant wrapped result, XX.X% last and basis a last was higher level leverage. and expense on points margin better than than XX as expense administrative of General was XX year, incentive points As we year. lower sales EBITDA basis

projects guidance. that prior by our tax contemplated Our tax rate favorably were in resolution second earlier quarter of of X.X% effective impacted year’s was the

Excluding these to tax the have our been projects, XX% quarter. rate for effective closer would

adjusted tax higher X.X%, of All year. margin than last points XX of this basis in culminated after earnings

Olive the sales by growth net the restaurant Segment and points basis performance, and growth. in segment leveraging grew same-restaurant profit by XX our profit sales to sales by effectively. positive Turning costs margin increased same-restaurant new and Garden managing quarter driven

profit and and driven restaurant positive the in sales segment grew new quarter, by sales net also growth. LongHorn same-restaurant

the to percent quarter due segment XX margin primarily However, of timing in mentioned sales profit decreased shift increased marketing I which LongHorn. a marketing as points, basis earlier, the for

investments In have making continued quarter. addition, slightly to beef elevated while during LongHorn the continued inflation,

segment Dining well, to due new versus higher growth. sales expense and quarter net restaurants Segment by the as our last four basis restaurant year driven grew positive same-restaurant related XX new in profit inefficiencies year-to-date. points sales margin decreased to pre-opening and Fine profit opened and

profit grew deleverage quarter growth. driven Other for from Sales Business by Cheddar’s this and expense, due X.X%, decreased sales and dollars incremental same-restaurant primarily new margin our at net segment segment marketing to restaurants. margin negative Both

the of all in morning, aspects fiscal we you XXXX press saw reiterated release As outlook. this our

sales for confident look XXXX, net of between and per X% between same-restaurant we the year, fiscal share of feel to to forward adjusted we second achieve to X% in resulting half $X.XX in $X.XX. diluted earnings the our ability As

growth Finally, Steakhouse, segments: to same-restaurant of current business sales will with Olive reporting segment will quarter Business. the our better align reportable the LongHorn first align This Fine reporting segment of with modify sales reportable we XXXX, the beginning Dining, Other and in of profits Garden, fiscal four change metrics.

like close, happy members, each our wish you team a XXX,XXX to of season. of Before holiday and safe all I’d I and

take And your with that, questions. we’ll

Operator

Instructions] first ahead. Bittner from [Operator Our question go Brian comes Oppenheimer. Please from

Brian Bittner

at Have quarter. the and saying in on comparisons Good transitory this the performance is you? they’re marketing indeed the improve business Garden It in early that that have morning, Olive to Olive mostly issues slowdown the confidence behind seems in related like is comps on to tough even promotion, just guy. you’re enough tough you seen the My quarter. Thank you. maybe question say Garden, to in these are

Gene Lee

wrap. are And we sales performed definitely that first how think we the clear wasn’t end Lasagna tough of had We introduction we I on of comparable quarter quarter? for the think throughout that the the had the Well, that at improved that on performing a throughout as take-homes. pretty as -- I $X as we focused hoped. well Mia had introduced we Ending quarter. stated, promotional Bowl promotion, Never and advertising marketing trends, We and Pasta I I pulled the trends say did as signaled

about and continues reconfirmed with we -- and would feel really about we it’s to I to is industry, business our And that year. We’ve say, think how the how back out take for in in guidance the we the well, our though feel at. as we’re share guidance. perform comfortable And that market we’re come business where continues

Operator

Our comes from next from ahead. Sara Senatore question Please go Bernstein.

Sara Senatore

the sort off. fact but top-line. investments trade of advances marketing wanted the Cheddar’s you better -- the your you I to know just brands. the sort a about And I and were a It sort looks in to improvement the and me picture lapse Garden, talked about real of value ask of margins like saw tough made long different Olive bigger question from or that LongHorn behind you

Thank do So, about Garden, harder to it level a example? have and you value push then through how set those when but for brands? at you an LongHorn on load to for And maybe you with opportunity each more bit that maybe generally great you the think trade-offs, value little quarter? think How perhaps Olive lower about of so trade-off do margins comp the you.

Gene Lee

start great we in for try was a push we not a Garden LongHorn Sara. quarter. up quarter. Yes. the TRPs did question, extra That’s had the well know to throughout decision slow performing make We the Olive that to into to really made And

We the play the if need marketing really had spent of the them to. didn’t and than to quarter we have decided actually it not pull to portfolio. way to that levers we chose and less year. in second And quarter we we did. in in the strength LongHorn pull advertising let We money the We spend. the knew prior did great out beauty upped We marketing and the that’s

So, I have business. going pull think, always to that’s what’s say and -- the back on in we

think our continue also same-restaurant positioned four to dining. that will that I believe against And Olive Garden go value it’s our at Garden’s intensity. to are Olive to at incredibly accomplished do in we’ll support have forward, And to sales, And I is Olive we’ll we drive continue as look but we And we to compete have Garden -- competitors. we that over to to leverage what continue look use dominate match casual have competitors the believe do last impressive. effectively to when you how what doing. we years, business. than in it pull, is more most to watch

Operator

Our John next Please question Morgan from from go ahead. Stanley. Glass comes

John Glass

environment. with material can’t is Maybe advertising, some sustainable on How or you marketing replicate you combination forward should quarters follow-up as about really what we changing something sounds it run and it the that future new of brand just could I a this made you’ve LongHorn. promotional, permanent pull is in promotional some you If or maybe advertising And were step that it that can or such that from that rate drove incremental up in the missed that just so maybe sales it I that taken this things perspective? of or a is a think But promotion specifically? revisit acceleration. environment like just is

Gene Lee

the two wouldn’t quarter, for restaurant lot give extra in increase had that the a credence we level John, of in you that weeks I sales. the media same-restaurant saw of the in expenses.

bread it operation. is the it’s they’ve about years believe of single for it aspects been to invested the level. retain attribute investing this is well less LongHorn employees as team them, top-quality Their dining was than this Every that the in many ability attract casual is in ago. I to I and driving that today at think better business They’ve service, four thing I four higher one that smaller bigger that to other And LongHorn in I to invested box them business, a years. the execute right I than But, point a in thing state is them overall said, the has if most average or think, a restaurant. environment train employee, was there. enables unique with

things at question, they your do I because deliver team right I single their continue is the and a with trend? for sustainable a And of came and great a combined team high investments, know. this really inside made extra this couple for smaller of much this every believe a know together a level. operation and has members answer smaller -- a All made And it’s weeks they has quarter quarter. To great it a guests. that day I discipline had don’t years, their is lot of all had again, media and they of to unique four good box it’s

John Glass

you. the more obviously of And you And noise this margin, and on about are particular digits. But, on anything that about ASF Thank and coverage helpful. marketplace know just the and a changed inflation your That’s commodity May around how as you where in pricing. calendar front, incrementally specifically total? given least about I talked and incremental single has proteins XXXX the lot in you at the there through you’ve may in discussion is very impact think been low about is, thinking concerned beef, protein Rick,

Rick Cardenas

little of the to guidance of A commodity quarter. X%. we X% couple things of range John, were end Yes. inflation We total of that our on a this at higher for X.X% higher still feel of comfortable beef. --

would now only pork our have we as market. we about But, couple could be thought changes an from ASF in not a The We’re from quarters X% of our impact, really said we’re seeing pork. -- significant XX now, only of we of buy overall as proteins. ago, thing be there the into what right seeing to beef months

bit seeing beef covered for the a ground on ground year but little are in we’re beef. We right now

So, Chicken, of little bit where as well. we’re starting we inflation, that really for we a are. feel we good we’re are about see to still again but covered

Operator

of question go Please Tarantino from the Baird. next line from ahead. comes Our David

David Tarantino

brands manage just media there? differences wondering any expect into media we Normally, and are I’m of the of And sort you morning. environment, planning the advertising Gene, strategy to Good wondering, heading Hi. and to the type year. how election just increase. on if costs through that related

Gene Lee

Yes. question, Great David.

think, to see same levels much we media the continue increasing without we’ll the to overall the we But, to can spend standpoint the media at non-working I for offset help focus on try spend spend that how from pull to inflation. down will brand.

as more levers But, working our things inflation. making complement you full you of can offset the around try a of around help doing TDIs, our depending we on little some that think,, I bit got our of we focus election, as as not offset got get Now, when advertising make you do advertising. six we’ll can lot marketplace to and we’re will as possibly into spot and non-working, to on get the that prior so we other challenge. work as that. especially that complement that know, into We’ve full television, continue we get national shift we try a on getting we move of We’ll the to maybe work can the a months other sure pull, be bumped. to last you’re we’re can stuff lean social, if to And some we sure can got and we’ve elections, that be that

David Tarantino

margins. And the a Great. Rick, just one on then, quick

offset you what productivity a whether few has and the next wondering quarters think, nice several you’re to cited seeing. that lap sustainability that in in a point I quarters? labor there to of inflation of the like, are just pretty starting the any looks been at as I’m mix and row

Rick Cardenas

a we’ve while as labor have expect few a times inflation. that we of for don’t to quite things. A we couple quite below One, year last keep said

an year in lot new quarter third restaurants started XX so, bit should restaurants. around labor. of points little The that lower productivity, in with That lapping you than itself. And if from last out, remember, a started last played productivity quarter start of the a this we we’re increase basis and about to year see new

feel that what’s on the we going well total to our So, all X% good now. still inflation. pretty managing guidance contemplated And our of way labor based inflation, about we’ve in -- X% on

David Tarantino

Great. Thank you.

Rick Cardenas

sorry. X.X% total I’m inflation.

David Tarantino

you. Thank

Operator

go ahead. Our Jeff next Bernstein Please question from comes from Barclays.

Jeff Bernstein

questions Two as well.

to I’m seeing back approach as casual and one, an watching mentioned you’re response a think or you you change increased fiscal whether in maybe the it’s would in you half cadence? in promotional competitors ‘XX, in change being promotional do wondering broadly, activity terms more about closely. be competitors the Gene, in maybe dining your promotional broadly First you vein, whether marketing doing a Any that be the of to are of think your industry what your that thoughts leader would your just or need on feel great.

Gene Lee

Yes.

that we’re there parts that have industry the is constructs menus. I permanent think, seeing more become what now pressure some on promotional is of in

You’ve and be got out average X.X%. to look very Box, at north the of But, stated when there is I -- continue at Knapp to continue aggressive. Black check that’s I very, to competitor big continue look going be at look they’re to a I growing

more. So, or the still plus is X.X% consumer paying

value you’ve make what’s brands our happening offering to I got stay -- platform. that So, of large think we’ve in in top sure industry. across need on we’re the the got that to to We

and for on that So, price attract that Garden. the need for to the consumers some appropriate Olive point to all have think we some is have to sure the making I not different that, that we to in and portion, use value as have lead And all the in we we constituents to talk in that price, value value ability Olive follow. want stay in that focused each that just Garden consumers. the would and we say I that leader try

Jeff Bernstein

the as Rick, was just thinking about as and quarters guidance it’s practice the ‘XX that’s past to beating and Darden first guiding and contrary conservatively like year. outlook. two of follow-up mentioned of we unchanged my you And it think of now more not this And fiscal raising. seems it. Got of

just I’m just for your expectation or guiding maybe year maybe eased wondering have the little more if a enter this So, I’m maybe wondering you’re year bit. to a if aggressively fundamentals you cautious the more relative to to half the fiscal move the we being of bit as conservative the what beat year, into have practice relative through start or able might changed to historical back of year guidance. little

Rick Cardenas

Jeff, we adjust past, thought, Yes. of the things year we of at exactly guide. think beginning haven’t we beginning we year. changed playing little than every and what the bit appropriate what guide, things thought year guide play our things the have the out is when the in have we And is as we out. which better as In we a been why been

we than So, as in have. going the outperform much we in we and still didn’t other our fiscal to on is else this things the of up. in have, first election didn’t talking We as of having that’s past. performance. coming that weather, about year’s of half consumers philosophy chances the guide quarter That’s always into why why back say we’ve But, prior it everything year, chances It what year. And were raise about. we think we used has just more have that and this thought the aggressive that the quarter the adjusted second we wouldn’t I same happens in

done good didn’t things in where feel our the the past, about we’ve we right again, way anything and is pretty guide now. change So, we

Jeff Bernstein

Great. Thank much. you very

Operator

from Chris RBC Our Markets. from Carril next Please question ahead. comes Capital go

Chris Carril

take-home the particular Thanks. current in in off-premise hear and So, and the on strategy thought I’m growth sequential to acceleration the process your curious off-premise thinking off-premise may $X of performance impact the opportunity, how your offer on today?

Gene Lee

Yes.

off-premise $X has there. that Garden. addition will upside continue to continues consumers, been over It’s I well received to this evolve from to Olive think the a platform great been We by -- think time. menu for that take-home

on that important is with And on business, consumer. the back ensuring our -- we we have two two accurate. to and improve go continue right grow off-premise, know this to as the those one time restaurants. on initiative convenience of focus addition we are our most As we we for biggest the We things to each capabilities of in focus our the things

XX dollars our additional we demand. that effort restaurants a ensure over the and big XX And -- right capital into big to will space to investing the be We’re that’s handle the high rated equipment months. executing And consumer, at consumer. friction very we for out on the continue highly our think little This take that to a and a focus to for we a the next we’ll that experience more level. can is a have

the As the what there think long is there, experience about I’m is And we restaurant. this continues And, But, grow and consumer excited our is still leaving as our the the to space. grow. the product more that’s what we’re demand excites we’re that’s doing. I really quality to of opportunity importantly what quality standpoint me why from an off-premise believe of about business doing

Operator

go from comes Will question next Please Our ahead. Stephens. Slabaugh from

Will Slabaugh

wondering there you love but you it metrics be would I from I yet, I that seen. else. point a if well you’re to turnover but two-year improvement quarter there. had a question over want was improve were some customer something I you in And trend I in we’ve not was that points. nice helped your hear where basis XXX what might to mentioned to know thoughts quite on -- Cheddar’s. think the improved the

Gene Lee

is our And journey. a you think distinct issue, We��ve I’ve the feeling a the when these stability. at the back we beginning three And we’ve see starting said cultures. a for culture not to like Cheddar’s this of an to Cheddar’s LongHorn. in teams stability we’re is got But, did all I’m progress. we’re the is line the time, acquisition, I Bottom along, got time. more operations this had So, one. go first And are we operating of lot power issue. inside for you brand first significant of look And of again, better. making develop a I’m first of culture. Yes. that this time, places And is the Right? for one

the in huge. I again. XX our able Gaining continue have do can think We turnover And we’re to stability and to is think employee points what we a can accomplish. that do reduction -- I we

that’s so, excited. me And what’s really got

a job. the It experience this think, the just fantastic. had ever week. we’re doing lunch Cheddar’s was Cheddar’s. better I’ve was I had in in It I best

the don’t I we where we And starting but is I why as have yet, It think and we’re that I in stability a improvement. make we developed culture, so, better haven’t don’t that on we’re said, -- that’s still Company much mean, there to that pockets path. have tenure, still is

Operator

next question Please go from Francfort from comes Gregory ahead. Our of America. Bank

Gregory Francfort

I two. just had

more partnerships. of maybe competitive third-party years think points updated a sales, And, Gene, push one delivery, few order? on your given small the I a I focus. maybe into other I turnover And since, think, maybe think but particularly Gene, that down, versus the They’ve of suggest? It’s you few thoughts frame was gone maybe what off-premise. mentioned a up The some first off-premise. you’ve the industry Can is competitors you it becoming guess, the thoughts a have had up been is are it where or either then, of into your profitably just LongHorn. third-party couple levels? of its on versus Thanks. I you on, on meant at industry? question was to the less I give than grabbed historical Is was Can the commentary

Gene Lee

to of and Darden. I the which LongHorn, leading that’s mid-XXs. I think, just industry inside less important. of is level, at think it’s -- very the than managing compared -- And I management would is turnover we’re just it’s When say it’s I leading, mean, industry partner very, Sure. sub-XX%, XX% of

We have tremendous we there tremendous pride most and business. tenure importantly, have in that

And so, upscale That’s that’s of much big looking in the Employee turnover low one a thing. is businesses. more like our XXs.

to so I different and industry, great that we far Think businesses, training that’s especially the And below that so, have so in but the that our lack costs many been And because you there. one operations. of things. the think what’s leads we’re rest business do And think I driving. about that can really of

call you really average delivery. position the before on It’s experience. -- have off-premise we if Olive everybody mile in if in will a Garden. check off-premise our before, and it We’ve I’ll the to you business -- that’s control We in for business a above today we $XX, off-premise, -- doing. an changed worth Again deliver. last with $XX That’s XXXs. chasing delivery the mile o’clock, night got X believe us. want That’s us let and do last hasn’t remind big We the business. growing On

for, in those those it it looking experience. is get as we’re back critical really our consumer the control we the to -- -- experience. as those think And two that as in way. about But, like when most overall think a And accurate. So, on-time I own aspects and we we team, controlling two we we control

position on delivery mile our the last So, not has companies changed.

Operator

ahead. Geiger Our comes UBS. from from next Please question go Dennis

Dennis Geiger

about hear bit Olive contributions key support a more about that to to if more talk from trend’s drivers going wanted outperformance. continue the a could ask you just but the accelerated just Garden I to ahead. bit quarter, forward Good wondering looking to through Gene, this

the just and quite to pipeline, you’ve powder, some You else that off-premise. maybe of of execution, your the Thanks. support continue lunch outperformance a for the ahead, continue anything on thoughts innovation gains kind thinking that anything quite Is can time to you of seen on impactful be? strength kind to dry kind there the bit promotional mentioned how talked of operational The more now? about

Gene Lee

think, I be driver. continue to off-premise a will

take-home lot strong in driver. of $X innovation the do There’s can still platform. that be will a a that continue think, we platform to I

that it’s to One, got Take One continue Bowl. there Buy out Pasta Ending whether strengthen platforms I we’ve think will that Never other

in I think to focus -- that this strong. that an restaurant, the be on environment. time thing important think promotional I that pipeline the this staffing employment continues think, to we I that is pivot back running want critical to face today is most and great we I And

inside to need make And to proposition. and continue improving remain ability with a that to comfortable so, think we focus And the out we great people staffed drivers create continue people. box. there the there. our I to have Olive that are we best need to strategy our with if I’m think momentum, These We the are high-volume employment our I sure on win Gardens restaurants.

Dennis Geiger

you. Thank Great.

Operator

go from MKM comes Our from Please Levy next question Brett Partners. ahead.

Brett Levy

you. everyone. Thank Great. Good morning,

calendar you see share within of guess, the intra-quarter just you you to you the I position softer start I Thank the operationally in talked versus gains and don’t a to then, on brand you -- quarter you anything major help a throughout. can turnover you then, I the about can a give the like fundamentally largely market the know to possible more and type know granularity how GAAP bit And Garden basis points the among from score First, that brands? regionality? quarter shift it then, any finally, was And did generally little were that quantifying updates the And had that anything quantify saw also, on Olive see in? later XXX the there shift? Was guest the but evenly split or at satisfaction, substantiate dominant that relation, support you. is earlier? that share did is versus strengthened Is what

Rick Cardenas

there, but, regards Hey, lot impacted the to of they Rick. in shift, brand it regards -- the Brett. shift differently. -- calendar calendar In to It’s impacted questions

differently. were finer was unfavorably brands casual and brand little the general, So, in in and favorably general a impacted the impacted were brands impacted dining each

that Cheddar’s having wasn’t that casual brands, impact. of the positive The regionality smallest Within different. the really

in than no So, -- region would another. whether. one different Thanksgiving it’s basically The only shift was be regionality

Garden dig really in gap to quarter for that the are month the for Olive month, by specifically, positive in highs. and to having than gap time And said share to change other little be of Gene metrics into market operating get then, all to at their don’t a about by want bit out negative operating on we metrics Olive Garden And first being the share get the what months, for quarter.

of different all-time highs metrics quarter. satisfaction, their So, all-time every at for are operationally of month lot a there guest highs the and they were

questions. answers that hopefully Brett. those But, So, thanks

Brett Levy

you. Thank Great.

Operator

from next Nicole ahead. Our from comes Miller Jaffray. go Piper Please question

Nicole Miller

rooms. in Good demographic when your value Olive Does proposition wondering dining value? a how or and some to look lot Garden. proposition another at do more There you. the or Does of you move you you or value I’m shift? morning. every a sensitive discussion perspective value in around show demographic up the same in your Thank lens, that want seek the one less see see in way, way do or is

Gene Lee

Nicole, that interesting an think -- I Well, question. it’s

for looking -- entry our broad consumer a more lot audience, a are they it’s our consumer because that some I pay and what think that for from point. price of such they values a of some about standpoint, level dollar

some For portion more price. size value is about our to of consumers, compared

don’t chicken, they will they at analysis. that that our also But, else. If we try so to And on We there guest know in have numerator, an way there their decision making. offer, the value value a a time, there us. everybody We inside we that think of broad them. that bit Olive that -- have play have But, value part the find and know you Olive of someplace has price entry important, differently. we a for part that appeal, was point to folks have are When go that of to so, token And And denominator. plays little Alfredo. which of have an offer value price just is come there we have to chicken will the Garden. increased important Garden I as size the up, out important scores base level such they everything look that’s that say you a very brand know went a out through of is lot and the to on that to the -- portion an very

got we’ve think out out spectrum the have for And broad to have we have and to oriented. a define time. to that know that But, of is have there to we value have consumer each have for most different so, that something across opportunity. deal And -- something very we

Nicole Miller

looking seek thinking That’s of value. context bigger, forward And very in do that I kind was it about how helpful. millennials of better,

in too around the diner to Is So, if casual could of years to years you actually change? be being that demographic thinking to they benefit benefit millennial old the getting age Garden from Olive about ready I Garden a Olive that will it for in naturally is early just us or peak as age how from XX think, the size and remind prime that cohort. population

Gene Lee

like going millennial way to demographic Cucina fact the so for they think when gross cohort careful we grow like would about is talked millennials, to value, the point we into about tell brand. that for grow with I the And other But, own background of looking the that with to well over-index millennials I that a to That’s incomes This think, meal. I of have mean, I a their all dining build look at think to for next just have their time. phase It choice. XX out a the And is socioeconomic cohort. as the would the is dollars. thing be in generalizations And worked are say, to because brand. why have continue Garden is for start while. of social lot population their of a do Mia life. stretch transition one you you millennials. value I to lower has of millennials love that friendly for Olive that this would that They that millennials we’ve prime years tell prim and Yes. groups We they Garden. is XX Olive value very very for can I

Operator

Please from from Strelzik Markets. BMO go comes ahead. question next Our Capital Andrew

Unidentified Analyst

a actually is on across sort of Hi. recently. some of Good been bit mixed today. more challenged We morning. performance saw casual This have for trends the Dan Andrew where polished

LongHorn, those Cheddar’s and you You know adding spend marketing well. talked last but about marketing at some I some potentially of portfolio about spend smaller quarter the of brands some incremental around as spoke also

performing you that? scale? doing did, the given of did you So, how give you And work, those up you national if lack how of an on us end and think will just it initiatives kind update can are

Gene Lee

Yes.

in progress a positive House. the most the made was Yard we that before brand Yard was And shift. House the Thanksgiving think, the I

So, that. very to pleased we are see

to to ways we’ll promote so, use try brands. these And continue digital find to to

be We’re to also learn brands of doing to in lot a test those and effective. try

by progress of making we’re in alluded was those to, brands. as say I holiday most -- make switch. the would Seasons to impacted trying all that the Seasons, We’re Rick

think, business. I in making we’re that progress

Operator

Chris Our O’Cull from comes ahead. from next question Please Stifel. go

Chris O’Cull

quarter? more during I did the could But, Cheddar’s a impact tests on these see be testing know Company some these the when various would indicated comp initiatives. implemented of tests the some being broadly? performance these think And, Gene, you marketing have we had of do material

Gene Lee

know an they quarter. this impact. they -- that this trying a mean, don’t a sort the of small can had understanding that what of to would an if activity some I I get they the impact had on move this we’re you evolution. needle. very I meaningful say had on think -- testing some of I scale, I would is tell

so bit that to continue new some a more can backfill a stuff use out store pay efficient this to need little we positively. more more that think become to in strategy, of some I make development we really markets

And is you give dynamic. it doing TV. going and hey, digital are that I which to to this we is to companies this your I audience with figured is today in and to fickle new because have that going very avenues learn add that So, there think continues we’re out. and say, it time be spot would very used to world you and in all new when something get going forever, what digital be to is be channels to a I don’t to consumer, be the compared think also know. I test very, can’t today, can

test time. of think vernacular is learn going our be part a long I to and for So,

Chris O’Cull

negated Never Ending Olive Pasta somewhat mentioned curious you Bowl know $X but I’m the I during benefit Garden’s from quarter, comps check take-home the the was by improved then, And promotion? whether the

Rick Cardenas

negated check in the lunch Chris, we this NEPB, really It year check $X investment that the earlier the fiscal is made Ending take-home our The drove was down. not that Bowl. Rick. from benefit Pasta was the by Never

washed. the X.X% by pricing, Olive about basis think Garden’s XX grew points that everything you Garden check If was Olive about catering, quarter. for and was check, else X% of

the guests. $X think answer we can talk if question, guest So, to NEPB. no, we don’t basis since But, by points you counts, about about -- credit for take-home your of not about give don’t you like catering, XX was that, them think offset

Operator

Our Saleh Peter Please next comes from from go question ahead. BTIG.

Peter Saleh

several I quarters I we just wanted loyalty. to had come back conversation think on ago to the

you I for just guys with forward guys XX% had of your test loyalty do be think, an or the great. you in in about place Is stand to you year maybe stores. a that update plan Where over loyalty on on something test? would loyalty

Gene Lee

update. no still There’s further really testing. We’re

analyze to XX%, same continue time, We point results. in But, in the continue we’re and this the maturing. at just watch that’s we’ll to how

Peter Saleh

move to it you there in scrap or you’re all looking particular for decide whether before Is together anything just forward?

Gene Lee

I something the we that loyalty to and we’re want to first continue party what’s value program. how there. move we there data is us -- with worth sales to the can if much see the first party think trying mean, to I

a this are And one decision trying undo. We’re these to that very, get and that’s read. to -- difficult very big again very is very,

high this And yet. that this down. at correct the a have confidence to have to go not is we path level that so, And level at we’re point

Peter Saleh

Great. Thank you much. very

Operator

Gordon question comes Haskett. from Jeff from Farmer go Our ahead. Please next

Jeff Farmer

it I and And broadly? think continued. some, demand the more casual that curious that On that dining June it I’m commented the has seeing week-to-week concepts and just their if has, believe day-to-day for about your volatility you consumer earnings what as volatility. call, sales might if signal described I were you

Gene Lee

Yes. -- we’ve it’s calendar we’ve some huge think swings. -- I got had I mean,

on comparative So, there. volatility the think I is a basis still

environment little has bit better think in a I while. is than been it a the

strong, think I employment confidence that is is rebounding. still

near-term a receded. I has of think, the recession risk

your and too right I worried volatility day-to-day, it’s environment good week-to-week there much pretty a and to we’re what much had weeks, to feel activities. of doing longer us we’re don’t volatility. There’s willing we’re trying team, and still volatility what we’ve think as cognizant around I So, promotional get of week-to-week be bit that our are about there. but And now. more overall about the mean, And competitors I match doing. not make let term marketing little -- -- with been decisions a we we’ve

-- In short-term. it’s So, read works makes the a in all to long-term, made little out. it something harder the that

Jeff Farmer

pretty health relationship just the good in trends, a terms you you’ve consumer strong dining strong sort that follow-up seen metrics that down And casual break saw in despite then, incredibly same-store as of that that some volatility typically demand sales. you very consumer a of nice saw consumer side, metrics, historically, of good a meaning if to the with consumer

You a comment on that that had out further bit. up pointed that? Any softened little guys

Gene Lee

brief I going be I marketplace think and that. to defined is on it’s -- might a real have by losers. winners This comment

and that has can that proposition going a proposition. level, more If be this are with and employment you’re execution you those have In is employees value at never to a driven by executing proposition value a to high your been great environment attracting, strong going strong retaining difficult. win. And that do

Operator

question from go Fogertey Goldman Please Sachs. ahead. from Our Katherine comes next

Katherine Fogertey

off-premise Great. Thank you. the I wanted a at bit to little on Olive Garden. touch

soft of of or $X orders the improving. the that quarter talked sales beginning in and take-home kind take placing you threshold. higher pm, people and focus $XX of softness differently? from away trends see seeing overall time, improve the You side that pretty you’re business you see Did that the off-premise, there of when quarter was similar behaving traffic then X:XX and the the in ahead Did and especially you kind on business starting of about

Gene Lee

there, more to new promotional Again, overall continues not people demand. one I for offering. business that. $X what overall, into grow I’m got have It’s that’s would consumer that. would just to piece detail we’re a going just comp. a take-home But say big a of excited. to continues lends It a not pace. say get off-premise not that, time, to doing I item mean with than itself that off-premise not delivery was we our good a much a But, program grow And when And Bowl, of I granular is it’s at periods for Never our little too all a best that Pasta Ending our great

Katherine Fogertey

help good understand you than that or benefited color basis-point Okay. But gave benefit kind Garden curious more, equally And Thank some some more bit you then, from if would the around a split? little was benefit was of that by Thanksgiving you. it Olive XXX LongHorn the shift us brands.

Rick Cardenas

Hey, the for Rick. is shift. pretty were Katy. Thanksgiving in LongHorn benefit This Garden, The Olive similar

Katherine Fogertey

All right. Thank you.

Operator

comes question Ivankoe Our from from go next Morgan. JP Please John ahead.

John Ivankoe

kind do, I obviously actually on Thanksgiving. about, some brands brands Gene, heard cycle better the for performing actually to that But, upscale upscale noteworthy would I there your the And common in themes where you of are of expect can And to that guess, comments made being those? for help Darden you hurt are in upscale is we economic anything market, any in at we be the you self are point? by example? are today this talk and the other could where there stock improve

Gene Lee

upscale, and biggest the that of into have Yes. one days I didn’t in quarter. mean, second turned in they Thanksgiving has the

So, perform at and think upscale -- mean, continue these there very have today, I brands Eddie that Grille the to level. well. upscale and performing best two high really we out V’s, are I I Capital with they think of high volume brands

going have about So, I’m excited what they forward.

As performance. businesses I’ve These I’m the with think said their and holidays. overall I look before, are good through books very their pleased exciting

John Ivankoe

I of actually Dining the LongHorn and some on big Garden the calendar number. second quarter? comment have could brands? the between was the the missed brands shift Fine there in How two also you may And Olive and And

Rick Cardenas

XXX Hey, favorable. Darden for was basis John. It’s Rick. points The calendar shift

Fine by were said the helped, As Fine brands dining are XXX were hurt. the we’re the bigger. on casual benefited casual at the the I but that casual call, and brands brands And than were were hurt upscale points. more the about dining Dining why brands upscale brands basis Dining That’s

John Ivankoe

that. then, Okay. in the All right, understood. the And middle? for Thank you brands

Rick Cardenas

Dining There many was the reservations least Cheddar’s that again, And that’s of really the hurt. takes brands casual middle. also weren’t had pretty I the benefited everything was brands. Fine that casual. We’ve much in mentioned

John Ivankoe

when House, trade improve higher XX, than basis for brands of as be the about there current Okay. what Breeze, expect certainly that. we the market. like mean, anything talk consumer LongHorn. Yard economic to you those about But that example, would big look you at Darden should current kind can but these is the Olive -- we together, I and do the actually that Thank self-help you Bahama for environment, we ticket those considering? again, in are might that kind even One in up they stock Seasons brands Obviously, Garden also, of to itself Is businesses? are. there Is on talked brand anything

Gene Lee

Yes. in talked John, about past. I think that we’ve the

I think business. one intrusion. that retail are competitive these you trade down of overall are the two on enough best to face the for some have in continue in or a off. small States. that And It have an competitive United can being number. areas the significant intrusion fight They impact to brands a restaurants They

As know and I lot group perform are to in happening pull up right of that was of also numbers. I Bahama system. facing long-term well-positioned to they there to where in line overall headline Those in to progress want this pay trade impact a been which the some that’s the are really in on impact an decision had we Seasons, of understand a restaurants. the been had that’s a some individual market biggest we’ve competition. a And opening the number. But, on has pleased that brands couple those intrusion. restaurants continue I market and we’re Breeze, our cannibalization. Orlando, now, We’ve able Yard lot they’re believe that of of performing. some out said, America I have lot a we -- making an competitive they’re have restaurants pay But, in each of trends in top I’m attention put good how well. attention with House. to areas discounting we These business, was that best We’ve the Seasons. in had cannibalized are the places don’t ourselves whole well.

Operator

ahead. next Matt Guggenheim Our from DiFrisco comes question go Please from Partners.

Matt DiFrisco

you. Thank

here. of for tremendous one little Just a done a a at ROE margin brands, track that of always Cheddar’s smaller lot others -- look the the a I on LongHorn’s people but bit you’ve growth to little side. of turnaround really ahead. better growth, on bit the different be and guess, vehicle, sort positioned a growth

I think, little seems XX you’re stores months, low. net maybe you’ve added the last over a eight

states. or XX about in only XX You’re

the I’m lot just that. that for to a growth. curious, days brand room governor and year what its certainly cusp can’t be more the there’s go on ahead? to Why has could So, growth that been back

Gene Lee

slowly how pretty to is the This a think run is we a growth I important capital. is that number. we is that we very on to we’re to do to we XX how we’re path good are it. brand new human and our have which on a on XX where territory But, mean, develop culture a I is this year, opportunity and growth Well, backfill think LongHorn. entering there the with focused trying governor We opportunities. concentrating

big That’s territory available California. up us. opened really LongHorns the haven’t last We any in to

see support open I in more in the are love and a few brand growth, received. -- very-pleased a the spring restaurant this. to that. And to up We with to But, we’re going that’s will is controlled this We’ll California how open where we’re me XX states. because

where know from… got you your don’t number I So,

Matt DiFrisco

I’m sorry...

Gene Lee

LongHorn is today, closing $X in states units, XX brand. on billion over XXX

brand to grow going This opportunity. has this. continue to growth We’re

responsibly. it grow to going We’re

Matt DiFrisco

state. I have average XX that. was saying. an was about That’s in what of I Sorry saying you a

site of necessarily lot a you can of I have Is Just down. cycle also that you this be LongHorn? next look existing couple been where a could you in of Olive these to you a won’t just there maybe restaurant Gardens Does belly up more sort an with a market where would of closing get lot. it have in guess, when at it’s take synergies? and couple checking where a new sitting been economic to some are brands grow over a or Olive Gardens And opportunity that opportunities, we’ve there or smaller

Gene Lee

XX it what If we has rehab. We’ve structure a do believe If way? building few a good We those. done the best every opportunities, structure, will the the to individual over at is investment. look we and enough outcome real building place the estate LongHorn is a of don’t lens really be is we’ll say, we’ll through blow But, an -- years, a each then down. good a economic for the site which tear the it best economic evaluated for has

Operator

comes Anderson Our Group. Please go Stephen from from ahead. next question Maxim

Stephen Anderson

at LongHorn, to see thoughts a are. Garden up that opportunity on with wanted good your at Cheddar’s Olive specifically what off-premise and you I out seeing the at you’ve over and built just wanted to infrastructure follow

capabilities marketing your soon play play As what there? at will and role Cheddar’s, you ordering online build off-premise as will out mobile

Gene Lee

question. good Stephen, Yes.

Cheddar’s. operational implement which sequenced opportunity. have it online will it’s it. things a We we over the We believe have opportunity, capabilities, handle good in go a not understand are opportunity that months. we need will We be today, next capabilities the ordering, off-premise good develop all improving XX identified an to believe in Cheddar’s. to And on is tackle growth back to not our vehicle you this be develop accessible to and big -- those sales all growth processes, need X we emphasis to right the for any have had when we future But and what

Operator

question comes Please go Jake ahead. SunTrust. next Our from Bartlett from

Jake Bartlett

taking second on more back consumer for about that it strong pulling the Gene, about explicitly the was quarter the year you of Thanks was that question. Great. talked enough. last incentives

You kind on in of wanted you for this your of to be pocket kicked quarter second incentives stand have to do economy up approach you Have going consumers you got that incentives? going the if think year? your year? since that is How Where worse. the forward do last on

Gene Lee

that see you’ll that believe us use appropriately. I lever Yes.

drive piece how kit marketplace to the some see with been have they in one We offers to just is to how some short new testing the relatively business. time our expiration -- them. of tool consumer reacts the It overall

restaurants TDIs have over will as out we again, identified pulled Now there. incentive slowed visit have is down out we a and year, we we out our there our that there an when -- consumer last only

our we’ve we’ll talk for integrated have basics a when use we’re We is doing our how we part consumer. to something learned back in is And focuses, this about we unison. and with promotional there think one approach. continue integrated this of we incentives we always or -- to marketing So, discounts we of talk to level other on too. do our use about And do need TDIs, that need -- is out marketing those combined we about how approach what

in you other can because So, for look at frequency, I it there lever lot look do how not our I at to have total media those of is points marketplace. are have that than we in that spend we urge parts spend, that that rating primarily TDI more would not say a pull. the our impact isolation, our many will a

Jake Bartlett

years And almost guess then, on And is one is, could It’s I your of kind acquisitions? just two if question Great. acquisitions. second talk continuing about appetite since for you been chains benefits Cheddar’s, kind some that’s whether pressure, technology also smaller on. environment, of but scale seeing acquiring the kind and with going inflation of the some you’re given under more with

So, acquisitions your you’re that second the the kind and for seeing. one, appetite out there of environment

Gene Lee

the to you continue to the to portfolio dodge to portfolio. bit that and little opportunities add a and current evaluate going standard answer give probably evaluate our that I’m the we’ll Yes.

the to there, with continue As and to discussions continue that, continue at And look we’re great we team at have. those you running the to the we’re going look on focus internally, that know Board. to to we’ll brands have doing -- we we’re opportunities management out we while and opportunities continue our our

Operator

from comes question Please next Tower ahead. from Jon Wells go Our Fargo.

Jon Tower

Thanks holidays. and happy

one for quick a me. Just

the in upon if bit us expand thought some these can you in Garden the offers, off-premise that you your comp believe I mix that only to-go are lunch traffic. maybe you it that XXX% happening little I And the like down isn’t off-premise looks businesses it not than it and give the But, growth the could comfort visits, in a hit Olive work, on might I show was period. future cannibalizing And drove up think Rick, potential on that $X curious the -- in of period. business am and mix in maybe have catering based So, greater or take-homes earlier like market.

Rick Cardenas

be think started had going and we in off, don’t we inside mean, weaker. go say Buy they’re we eat you with promotion out I want great year a a was Take tonight, Yes. we One believe or obviously, the choice, to to promotion future I the quarter I back don’t decision a One I and make that those visits. in think and cannibalizing -- that people am sets. both we last had I

out. support hit something mark I dollars on the that and is Mia Not put the -- to because think, -- to do we we I and to sitting with it off didn’t going behind we’re today everything And it’s a to quarter, didn’t And the promotional that work, pulled Lasagna got wasn’t LongHorn going had and promotional wasn’t we’re you put play well. let it important the pivoted. we that in think that. this hole that’s -- advertising admitting we recognize us here we primarily decided but to right doing and in we we that that it, that

one we’re that. want people I is great it And that done that job -- they when we’ve think to big I’m we’ve we’re you, We’ve launch. it. and excited for where Garden look saying what that think been improved And try And at don’t definitely about going at -- doing to with I all trend. a it Olive pool. I feed I So,

dinner I into to competing we’ll have And We’re effectively. more to compete believe more effectively too. make future, the strategic adjustments at

staying you’re in still. evolving business, not constantly this You’re

in that I’m want insights, all confident want I’m some our so, to and – anywhere I wants food they Garden And Olive and sell in anybody it. confident do to our is team,

Jon Tower

promotional And you following that just hit hit miss in this what the miss testing Was altered -- or versus process what in guys on the up testing really test? the to there different this or promotion market the in then, might or seeing seen played on have quarter. past were go-to-market relative anything about and out

Gene Lee

No.

testing and anytime environment that it’s always you macro -- is small different a than think test. I

going So, made decision. we’re what the We else on. sure not was

thought give what right, we’re a -- right too wrong didn’t on. hindsight now and I made may behind did decision was moving we and to play it’s or out. a pivot, We have quickly chance think made we and we that indifferent. in But, us

Operator

ahead. Vaccaro James. Please comes Brian Raymond question next go Our from from

Brian Vaccaro

Thanks. Hey. Good morning.

all incentives circle you quick ones value compare across channels, incentives me. the Olive year-on-year? marketing quarter? do back if the And for and two Just Could Garden we the on how look in mix of

Rick Cardenas

We were pulled with there there and we advertising lot we need out back more that to was the definitely a on incentives, be of spend. out because part

channel again, we play also of in increased a out doing ton it’s were small definitely testing. and -- just a we there it’s we So, which but in,

was apply to would doesn’t TDIs So, need activate the the of inside consumer. Olive test, test to probably of consumers, trying Garden, how they It put learn and just long on to understand our test to with brands. most smaller learn and which time those resonate that

great E-club and to were it’s we a our for to talk marketplace us the way in members. So, definitely

that because to it’s down channel. and all think just testing you significantly the I of at and for spend look in risk this was in we again, isolation So, media were a learning

Brian Vaccaro

to rank talked factors a I the during But, acceleration you possibly that shifting just to you you improved drove little how LongHorn. Obviously, factors. And gears on referenced? few order the your sharp sequential know and more saw, you throughput acceleration a that maybe hours that in a pretty drove about different could busiest then, view? that weekend Thank And that color you. you

Gene Lee

I’ll backwards. them answer

think I it’s just focus.

the be a great I focusing on think, business. It’s the we top our to at in on something, those we of get anything done And door help restaurant our front hours, that focusing team, else process. management When on like in asking we’re for person focus they’ve we’re job to it. management with busiest that.

you of I consumer, this years of I’m specific. with quarter a roles think, of the really, leadership great to together quarter. is in the the do. four I quarter where great I all team. investment, to together the tries that to point point the resonated listening, very -- is couple the weeks one a LongHorn Anybody that’s a to extra job than in advertising thing just a guys believe great and to had great anything going -- I other for not can’t hard stability to good everything of in that’s came did believe Anybody beauty really restaurants, to And isolate there I we out and quarter, one-time think promotion, a it’s point difficult job. came LongHorn, great very

Operator

for I to Kalicak like now to would remarks. back call turn Kevin the closing

Kevin Kalicak

a plan follow. Thanks, to XXth, Carol. remind call concludes conference That with I’d March market to Thank our before in on quarter today. the release you results that we to like third you participating for today’s all call. Thursday, opens call for

Operator

conference. concludes today's Ladies and gentlemen, participation. this again your Thank you for

You may now disconnect.

Darden Restaurants (DRI) 19 Dec 192020 Q2 Earnings call transcript