Earnings call transcript Q4 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. Welcome to the Darden Fiscal Year 2023 Fourth Quarter Earnings Call.

Your lines have been placed on listen-only until the question-and-answer session. [Operator Instructions] As a reminder, the conference is being recorded.

If you have any objections, please disconnect at this time.

the to turn now will call Mr. over I Kalicak. Kevin Thank you, begin. may you

Kevin Kalicak

and Good for Darryl. you, thank morning, Thank call. everyone, you today's participating on

me Cardenas, Raj Joining Rick and are and CEO; Darden's Vennam, President CFO. today

as These differ comments could made cause uncertainties and Litigation call forward-looking Private As a materially subject expectations defined of to projections. during the XXXX. reminder, in Act that to from are will our actual this include results statements statements Reform and Securities risks

the in morning described are press filings release the this risks Those Exchange distributed was company's and with which its in Commission. Securities and

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

presentation. presentation measurements certain non-GAAP and these and discussion measurements include in of Today's the reconciliations are included

fiscal conference call. Looking quarter before to first XX, September we earnings a market Thursday, plan opens, by the release XXXX followed on ahead,

And to pre-COVID fiscal the a today's months of quarter XXXX. of reference performance During any ending trailing call, XXXX. is reference pre-COVID when quarter comparison the February to fourth is fourth a any discussing to comparison XX to fiscal performance annual

Steakhouse all Cheddar's to Additionally, refer dining LongHorn benchmark Kitchen. results to Scratch excluding references Darden, today Garden, Olive Intelligence's Box specifically Black industry casual and

with will full and fiscal the outlook our comments. Raj year industry quarter, will and fiscal same-restaurant XXXX share recapping During provide our sales year guest and fiscal quarter industry And decreased X.X% Rick decreased on results during full X.X% guest and counts fiscal remarks brief same-restaurant then, final This year, some fourth industry counts sales same-restaurant our share X%. close financial our same-restaurant details will fourth Rick and some morning, financial decreased XXXX, increased X.X%. industry

to will the turn Now over Rick. I call

Rick Cardenas

same-restaurant and the provided the year. met a for year. a outset good everyone. the Thank and strong outlook environment, what conclude quarter solid we traffic at was financial you, the industry or tough we benchmark Despite exceeded a sales outperformed and very had significantly to We of Kevin morning,

net the share X.X% grew $X opened year, diluted and sales per earnings full delivered restaurants. billion, fiscal of by new For we to $XX.X XX

opened also which in We we've is a year. new nine franchise different ever six countries, opened fiscal the restaurants in most international

to of for a leading responded the to fiscal our XX.X% performance, shareholder return positively year. total market The

have returns. We long-term delivered strong shareholder consistently

In XX the a from fact, company spun which since Darden off or Mills annualized General XX% fiscal years was an period. TSR achieved business year multiple over XX of any cycles, has greater ago, spans period

service operating at teams continue in anchored high level food, a philosophy on by Our and to our restaurant execute atmosphere. back-to-basics remaining focused

simplification performance efforts brand's to teams saw execution evidenced key Our holidays by as create drive guest we a through ongoing to year. our of record-level brands on many enable great throughout the from our restaurant experiences

sales achieved or highest day on brilliant Nowhere Garden, our satisfaction is sales than the highs history Olive Mother's and in with at it which leads the brands. metrics their near basics apparent and internal guest scores strong This our guest during focus being to all-time satisfaction the of remain week at across week more Day.

most all-time competition important Master Stake their steaks score which at grilled continue is which their their high. Series metrics of one is is completed sixth an training these Steakhouse drive LongHorn At annual recently LongHorn to grilling program. their results, To correctly and

Steakhouse the crowned $XX,XXX the program members course of Hall be highly competed champion of receive and Steak from year's grand Tennessee. in this team culinary Farragut, Kylie training months, LongHorn to for the Masters thousands champion, Congratulations to price. right in the Over this two engaging

in fiscal XXXX. am at proud center of I everything and teams the the support in particularly our restaurants accomplished

for their Never-Ending improved was value and their margin execute while providing Bowl, which significantly introduced For iconic example, still equity, leveraged Olive tremendous to brand much guests. Pasta successfully Garden simpler

one Garden, for dining brands LongHorn number And Scratch ranked were were practices the tool Throughout Kitchen brands categories The of food Cheddar's Grille the several Technomic's honored key for recognized measurement Capital in as major and including casual our within value. Award. Box year, Best Olive quality tracking of by brands Practices LongHorn of Choice among industry with Eddie Intelligence. several XX and received leaders in Seasons industry Employer and employment Award Black and the V's our

served Throughout fiscal us XXXX, our strategy well.

insights, and guests. our value advantages brands to rigorous oriented In strong driving culture scale, results effectively provide at Darden's even enabled their data more competitive operating strategic greater back-to-basics restaurants, philosophy, compete four to addition extensive a our planning execution significant in our to and and

highly to with teams our within allowed extensive price under of our long-term. footprints. all unit unmatched our the are the the restaurant geographic are advantages over high environment average scale while These industry. successfully through of inflationary by All leveraged portfolio volumes manage significant unpredictable advantages full-service Our generating brands, iconic inflation continuing to four

with Our iconic strategy Chris our of Ruth's further Ruth's Chris and Steak our our advantage, is the the scale brands. of last our strengthened week the were fits completion and complements of one portfolio enhances right for our company acquisition culture House. advantages

thrilled such And little hard is as team with brand integrate are Darden working add outstanding experienced to to disruption an so Chris as Ruth's our We talent. possible. and into high-caliber

in strategy achieved I long-term shareholder our am the to drive proud XXXX, of and continue to results and fiscal execute will growth value. we we

Raj. to Now, over it I turn will

Raj Vennam

the you, quarter of of Total addition sales good new growth X% and $X.X sales last restaurants. by fourth morning, driven higher Rick, same-restaurant for XX net Thank everyone. the billion, than and year, were X.X%

the XXX Our the same-restaurant quarter counts points. by XXX the industry sales basis same and outpaced for basis points exceeded guest by restaurant industry

$XXX earnings less meaningfully EBITDA basis from million Total shareholders. from to last pricing rate year to operations net to decreased generated last XX.X% million X.X%. this per inflation quarter, and We quarter while of $X.XX. in Diluted X.X%, to third slowed $XXX than increased XXX returned the the from quarter continuing share points

and points this quarter, better to driven by by Restaurant seafood basis basis XX to Chicken productivity XX P&L and improvements. high-single compared Turning digit of the inflation deflation driven quarter offset commodities inflation. beat were year, beverage pricing experienced food points fourth beef was helping better and above roughly X%. labor last expenses

basis XX expenses resulted Restaurant sales, XX restaurant all year, and was expectations last X% basis leverage. sales driven by basis our last Marketing expense XX.X%. higher points consistent year. EBITDA improving points than This with level of in to were than better points XX

expense is offset Our accrual on XX expenses we driven year-over-year of our basis year, our as were the the unfavorable general as unfavorability expense, way compensation. tax line. incentive higher hedge and administrative Due timing largely than last to mark-to-market points the deferred this compensation by on well this

generated from continuing XX.X% operations in was earnings XX.X% which we of $XXX million sales. Our effective was tax rate for the quarter and

significantly especially Looking the basis these other higher restaurant Garden, and year, industry same same-restaurant sales each than than performance The year. strong was higher last segment margin our segment by benchmark. of LongHorn Olive at of segments segments. last X.X% where respectively, drove profit at profit and segment each X.X%, at X.X% sales points our margin XX LongHorn, outperformed increased XX.X%

pre-COVID in result the of Fine last which the of was sales in traffic demand at basis Box X.X%, margin the year, retention fine resulted year Dining This outperforming a fourth levels. by more segment. our at restaurant XXX by on decreased This excluding points. Dining segment Fine drove wrapping dining XXX% segment Darden, quarter profit Same than of below still decline sales year-over-year last of benchmark, resurgence more the Black to

over retention traffic between the at XXX% consistently of Fine pre-COVID three has XXX% Looking levels. past been quarters, trends to Dining

at traffic was traffic year-over-year as of XXX% continued in that levels. Dining we expect traffic Fine the first We our fiscal softness XXXX quarter in segment wrap on pre-COVID

quarter. We the expect stabilize on traffic a to first basis year-over-year after

our million at results XXX XXX we top the look and EBITDA The of of from annual fiscal strong industry. outperformed $X.X operations. X.X% line the and we continuing same-restaurant points drove returned with traffic in shareholders our $X.X As industry cash. by above basis which strong year same-restaurant ended billion performance XXXX, sales had for was points We the basis to billion $XXX

investments margins quality and points. as grown G&A marketing Looking well XXX food of fiscal in pre-COVID, inflation. full and commodities labor restaurant improvements efficiencies. pricing at points expenses were to by and driven results productivity, XXX Food in this year our income have increased unfavorability operating and basis sales Offsetting beverage basis percent XXXX reduced below compared

model durable approximately and of was X flows. X% below at just well-positioned cash EBITDA times end times XXXX well Since our of balance have At Our delivered growth. we strong X.X significant times. debt-to-EBITDAR to the annualized generates adjusted fiscal sheet operating XXXX, range X.X targeted our

five our And of our when our years, the we've long-term over of earnings annualized we target compared annualized measured to been of -- plus shareholder returns our dividend last This high at of which achieve yield. framework. was growth is the end high the achieved of able growth been EPS X% by Cash by near XX.X% we've at our look as total framework XX.X% is performance and the after tax returns were above end driven middle framework. to

As still total look future, XX% to appropriate. target over returns we time the for our shareholder that XX% believe to we is

updated million. However, ago. to of to better updated million five share impact reflect our The price repurchase we're the is we framework since range increasing share $XXX the the range share appreciation $XXX last years repurchase

X I through into our fiscal on term completed and Ruth's of balance bringing last cash times. for a we acquisition an This million sheet, was to which outlook $XXX debt-to-EBITDAR XXXX, on Before Chris approximately to financed want the our week. provide we adjusted get loan update our

forward the profits our Dining locations. Chris in As Fine reside we of franchise profits Ruth's locations consistent sales in our treatment into while XXXX, our will revenues company-owned segment, from with the and existing move be from franchise will locations and segment, included other operated and

However, sales they operated been for XX Ruth's and a have us results months. Chris of include period Fine will until Dining owned by same-restaurant not

in and the call primarily savings. rate of we through mentioned supply of early our G&A million approximately end expect in chain we run $XX synergies by As achieve May, fiscal conference to XXXX

to approximately will expect fiscal per of $XX earnings also $X.XX in $X.XX share accretive anticipate total integration-related to We and XXXX to pre-tax. We Ruth's $X.XX $X.XX approximately fiscal by million expense acquisition our and XXXX. Chris in be

results, acquisition Ruth's fiscal the Now outlook related aforementioned to our but financial turning integration for Chris expense. and which excludes XXXX includes operating

and of restaurant relocations. $XX.X sales store total billion openings, addition driven including new to expect of gross four X.X% $XX.X Ruth's sales Chris the to XX approximately billion by same-restaurant of growth X.X% We portfolio,

includes to primarily and in And share million all total commodities net to X.X% are in diluted XX% XXX.X diluted of of for outstanding which Capital between the hourly X% spending flat beef inflation earnings categories approximately deflationary per effective and approximately of tax-rate inflation $X.XX. most $X.XX shares year, while digits. annual the and driven resulting inflation labor approximately other mid-single XX.X% average approximately million, by and to million X% produce, $XXX of $XXX to

of dividend $X.XX. X% And to dividend finally, increase approved $X.XX quarterly Board per our annual regular our implying share, an to an

I And turn that, Rick. back to with will it

Rick Cardenas

Thanks, Raj.

All pursuit of purpose to of us our delight nourish in together Darden everyone higher to we continue serve. work at and

guests. During we than XXX the year, million served more

team and We into positions. also in members manager managers XXX promoted Partner promoted to or our training X,XXX Managing program General hourly Manager nearly

we English children or continue programs to scholarship them awarded dependents of And invest allows Darden $X,XXX team which development Fluency, that members. Next And with to free. members' scholarships each program our like to Course our new worth post-secondary team in XXX Fast education learn for nearly

We to efforts serve nourishing ongoing hunger. communities to through and delighting remain also we committed our the fight

program, local in of Harvest donation million part XXXX. restaurants As meals our to Darden fiscal X.X donated food banks food our

to helped million provide Feeding that across food our banks, America continued Darden food bringing total different partnership banks mobile also XX XX $X the the with America the country. to another We donation successful trucks Foundation with food from Feeding

of team guests, more and even addition nourish delight more members gives Chris and Ruth's The the opportunity to more us communities.

an members addition are Cheryl I And portfolio. our X,XXX I As from and they Ruth's excellent earlier, welcome, Henry team want Chris. to nearly to said the

excited are We family. part you Darden officially of are the that now

restaurants our center thank I our outstanding our year. support to also for their the in and efforts want team throughout members

I and We are to guests industry fortunate proud in each am for people to best of the caring the our have other. commitment and their

questions. your take we'll Now,

Operator

you. Thank

Please of Jon We a question-and-answer conducting questions from with first Citigroup. the come proceed Instructions] Tower now with line [Operator your questions. will session. Our be

Jon Tower

choppier I'll to curious fourth had bit I'm environment the Great. off, the your in has in the start you guess little mentioned gotten release idea quarter. I that Thanks. -- a

follow-up your exactly you So to respect backdrop see on I'm perhaps and in behavior what you consumer then, -- the at I saw curious specifically with industry-wide. please. articulate a could what if And brands to you own that, got would

Rick Cardenas

as talked is of up John. bounce Hey, the choppiness really about last fine it from year's This Omicron. Rick. QX, I we've back dining was very mean strong against going

bounced third to Raj quarter, bit they of dining -- will of because the because alluded in alluded end year. we to And be as actually, quarter this quarter, last same back already the the for little going was toughness how the at a QX, this of so kind And back. the tougher of probably fine is bounce

as don't you about understand casual are is mix, at across Cheddar's. But data there. all overall, And sources, there overall. material seeing And trends that said, our only seems that real pretty restaurant think we're there some. external add-ons to cracks this And I internal any check core there. we consumer industry say, about if within mix we between and brands. we've What concerning. and this some be anything in based is But is minimal occasions switching on before, see lower Not the talked to priced our trying we're no cracks not and strong but watching point. the There changes not negative our seeing will switching, at appears

one alcohol of the And is guest saw year our And end primarily a probably function bit at a little similar trends bit of -- we the year, last check this seeing management little brands. you last count that's of higher but we're year. check last in area of is we think because in to sales part with

So we of consumer. the about choppy. quarter kind think was we And think didn't that's the really where

We happened. what expected happen that and to that's

Jon Tower

that CapEx openings on Got looks a for of as and previously little just unit had time I'm higher. it. outlook same appreciate clarification. unit integrating a versus the bit it. It what thought. you're function Thanks went at Is growth just expecting the slower I you Ruth’s curious growth like well. the

you on could So there explain as what's going well?

Rick Cardenas

Yeah.

necessarily it's I think not integration Ruth's. of

to for should make to earn in more and back return the they after come want where see CapEx to higher You the and think be about for had bidding prudent sure are we've we We're restaurants. what we that. openings, last in our making And really which to on bid starting that we're be a contractor that during some want was even and and pandemic as we that stopped starting we pandemic sites seeing call, prudent bidding to in Raj wanted the said earning competitive.

it of risks. sure really that's And so restaurants It's the not we wanted returns kind of we have and we to make have be prudent still all right and and great that our in returns where is. of because

Jon Tower

Got it. Thanks. I appreciate the question.

Operator

Thank you.

come with your questions Chris O'Cull proceed from Our Please line next with of questions. the Stifel.

Chris O'Cull

be can year? underlying at or rate. growing indications great. any expecting I'm you that the be Raj, seeing in the Hi, to low today imply if morning, are particularly color to give EPS the soften some your you to would a looks it Good $X.XX slower seems I growth exclude the had it why you seem business from guess, it expected I the of accretion underlying guys. at the $X.XX over course about question guidance. longer-term this you just the thinking could business below Are to just outlook, Ruth's softening guidance, as earnings curious end. I'm if -- a to

Raj Vennam

Chris. Yeah,

GDP look, all consideration We think where have -- on is think, build right. you consensus right. And information if all the the it's economic today. -- information we look at industry still we you in last taking flattish the at traffic, the for plan I look was what next GDP that if a negative we're the into and a have, year had -- forecast year, growing, we based

that's outperform, we're plan. you to the a look consideration is business we then guidance if we base while plan and a and into do we growth continue how expect around to a of incorporate at get about bit decent taking range really some kind we variability we as you think our But build quite to how of So that guide, the that's it. a midpoint and outperformed that to build and

Chris O'Cull

outlook keeping more a seeing not next the you're the just over based you are the XX kind economy what any of predictions on are conservative months? So softening for today,

Raj Vennam

weeks, would we're look But we think today. industry about, QX, our if last fairly not talked I at sale is I some GAAP few as Well, -- you I do say the we Yeah. that similar. softening it's expect a Fine we're mean that indicate seeing any there trends of not Dining, underlying would us. function that, But that change for environment -- would just outside no, in that's wrap. trends softness any major of is a that the in recent to

Chris O'Cull

Great. Thanks.

Operator

Thank you.

questions. Gonzalez Our proceed the with Please Markets. next KeyBanc with come line questions of your Eric from Capital

Eric Gonzalez

Hey. regarding 'XX you -- Sure. to the just how an about X%? fiscal And guidance, to industry's compares also, underlying was which outlook and Thanks. assumption exited X.X%. level then what of pricing to the around do have within where the for maybe Raj, that Thanks. the rate embedding growth the you comp And you're that talk X.X% I think you year? for Can

Raj Vennam

Yeah, Eric.

we expect of guidance for way X%, of year would X.X%, the think So that. range X.X% to our X.X% imply to the traffic flat comp to would which pricing a in about That it the have negative X.X% is, to us. imply for we

on the implied have from all look into plan extrapolate our factors the can control. a We're be can going macro-environment at things taking just that to You way. we more the but industry year-over-year and significantly the focus we lot that And be. and not different we build we then what year, can GAAP consideration a into expecting

expect exiting throughout to exited as we pricing, we with -- that down comp quarter the we X% to as yeah, and said far As tick but the closer year. the

that year, X%, of X%. end we the the to closer the by with start but it by get QX, So call

by year's next X%. year took about the lot of impact Now, pricing we actions last already

close really and where So are. is the X% to so probably that's we carryover from prior year

Eric Gonzalez

about industries you just your think needed? thus how to you then any potentially progresses, think and a evolve that's And and what far? pull promotional promotional as mentioned this could as being activity the year, GDP remaining you that, noticed uptick maybe challenging traffic as levers might have you it. flattish you if significant in follow-up Got year And strategy

Rick Cardenas

advertising And is This a jumped major that the TV look to Olive -- by TV. Rick. filters, on one is same Garden, big what We're to discount. said, we're to competitor But to brand advantages or promotional the in have our and it's for to We side. use doing. continue continue our you're life, execute to going first, bit more a on it's little Eric. elevating simple competitor that going to Garden activity remains it's because competitive the launched but Olive Hey, got We've marketing competitive strategy some back be at brand's a competitors. bringing advantage deep at the seeing equity not to

when So talked we strategy increase going if expect it a to we core changes. really last earn in we're guest to do, marketing if we We'll of call, spend, about as our react our to But stick growth. accordingly the we count return. something

discount necessarily to go it. don't we strategy our to that's and the expect us back and we're craze to stick deep try going So to into

Eric Gonzalez

Thanks. Great.

Operator

Thank you.

come Bittner questions your the Oppenheimer. with Brian line of from next Our Please questions. proceed with

Brian Bittner

Good because framework. same-store this above Chris long-term sales you implied out framework. I'd EPS is you your have slightly the Ruth's, and guidance, business lower like a just to as But follow-up the guidance to suggested, yes, Thanks. as of relative do go when XXXX growth back core to earnings this morning. kind strip

it driven want inflation? know pricing underpricing being in X.X% X% inflation you little just kind more. to to bit by of but is there I I said to So Is at X%. dig X% a

inflation underpricing much. you're So, doesn't on like seem that planning

the better framework. Just understand guidance long-term your a those is again dynamics little above trying to given comp

Raj Vennam

Yeah, Brian.

Ruth's the $X.XX you the look think the at actually or look even our for way at it middle excluding -- of at accretion. guidance is we framework if Ruth's I is,

middle you If that -- in the of at the still of of we're north range. that's guidance that out, take a middle XX% -- the TSR at

the we trading blackout. for shares want buy point of haven't able been Now, now, to one because back I is, of to almost out months three things

when said, And has like that that, and the still on next get incorporate so the to we EPS yield that even you year. as growth. impact for dividend EPS we an But TSR double-digit with

Brian Bittner

pressuring commodities the follow inflation total the just the X.X% And touch on X%, to as within are just above X%. total Can realized X% that the Okay. X% other it the outlook? up to to some inflation framework you of up, relates be of to commodity assumptions obviously cost outlook that's

Raj Vennam

really to wage to It's Brian. to hourly inflation closer And it labor. I be the that call Yeah, be also digits. that. mid-single salary expect in their then

that to And we of people. is choose function some pay of a how our

we types to investment -- that's continue been to the industry prudent. been We do the our help we above increases to have deliver. of performance We the merit And that sustain think want that's and us make to are type that. we've able of

And a point, XXX doesn't XXX very decisions. that look are They we the that of into how thoughtful to at are gap make happen, things lot go those basis magically. we You basis industry that. point about

Brian Bittner

Thanks, Raj.

Operator

Thank you.

questions Palmer the line come of questions. from next David your with with Please Our Evercore. proceed

David Palmer

on same-store multi-year how Thanks. about your if concern you ask you I particular, this potential often your thoughts guidance. year thinking fiscal about in about assumptions through and next any wanted have over that the a And about year. trend you're in sales slowing -- to

Raj Vennam

we to that fiscal to expect we're little year. pre-COVID we this thinking fairly -- of we is from were terms in be relative bit build how similar retentions Yeah. about where plan The moderate the way a to levels

have an pricing -- the the of moderates QX. down sales I That fact to So goes sales. on rate the -- perspective, not differences. price the impact be it's closer same-restaurant but off to drop-off, X% But by then The X% significant down that a going to with going bit. same-restaurant higher from start and then, driven by think a by a to will to little pricing we're price

I the year. it as relative be last about to expect think consistent retention, fairly guest quarter-to-quarter we we to mentioned, As counts,

David Palmer

earnings your And embedded with regard to are advertising what advertising, guidance spend? into for assumptions sort of

Raj Vennam

than year basis are points assuming what last total more in points marketing. spent in XX to basis we basically XX somewhere that We

that So what we 'XX. different in from that's fiscal of did not kind

David Palmer

Got it. you. Thank

Operator

you. Thank

line Please your come questions from Charles with with Andrew Our TD next the of questions. proceed Cowen.

Andrew Charles

you. Great. Thank

around Given for impacts I how question your fits Never times year forecast at macro value promotion the guess two timing open oriented Garden. Pasta you Olive thinking that to framework. the Ending at slow potentially the different provincial your The XXXX, one pace curious perhaps I'm are backdrop? the during is, keep in of it promotion changing to running or slowing macro in that the

Rick Cardenas

Hey, Andrew.

we're reasons, for we with Pasta details. going competitive the For made not last Ending is about especially believe Bowl definitely We Never year. do talk plan changes to promotion a really us, strong the

there's And so any do we're going going we'll if that it. it look about to at can and if definitely with do PB things But talk we to twice. not

Andrew Charles

what's please Raj, Okay. guidance XXXX G&A? for within then, And help us embedded

Raj Vennam

Yeah.

think for the guidance. there. -- closer should closer million fiscal XX would to year. point, closer so, our it X.X% with to ended be that you call $XXX coming million. we maintaining embedded best -- the you we I'd that with $XXX which say -- get especially would our that Ruth's would at or is in, in this probably Obviously, the But of Yeah. sales, year total number to plus is I minus still the estimate

Andrew Charles

Helpful. Thank you.

Raj Vennam

different. way, be cadence clarify talk do want other we I to the about little just a one the Hey. thing. G&A, as By We to expect

it million few about So, how think highest It's QX -- a quarter is throughout then we $XXX for closer the down be level, going $X just quarters. to from the kind call next tick it the million probably a standpoint. cadence to of and

some -- specific are things that be are to influencing there sudden So variables higher. that QX

Operator

Thank you.

come of with questions. questions proceed Carril Please Our line from next your the with Chris Capital RBC Markets.

Chris Carril

morning. Good Hi.

the more for just can We've growth how been thinking and So, sales clear and Garden term. dining pretty fit this? largest so factor could 'XX, how fine they they your guide. on the curious near in same just expect to how LongHorn provide if brands and you about any thoughts on that restaurant the in Olive you're any guidance segment returning comp your impact comparisons But you into brands, additional to how detail you provide into far largest very and

Raj Vennam

pricing way Yeah. is are in. is of we're the And thinking higher, Fine would LongHorn upside I in of be bit really outside of how it. probably would just then is would because probably -- the the closer I And the inflation primarily be. about our that. brands. go -- to core the brands is there big Dining through middle the need to then let's south thinking probably a Garden it bit to casual range little our be that's be would and the to Olive about of guess, expectation a stake And say that going we're range little

Chris Carril

Okay. really improvement Great. the That's and you drive helped the improvements helpful. to And productivity mentioned in then, labor XQ.

tailwind maybe are and be 'XX? in that So you in of about thinking a from improvements and here Thanks. the how productivity of context Ruth's then ex-Ruth's just could much how

Rick Cardenas

Chris. Yeah,

our years, during but improving have we would expect done COVID. last job a that productivity improvements some brands the extent to to continue over before, great not said the productivity. we've have had to time, As We over

having bit. only discuss to training, to eight As productivity little right help owned days. we continue Ruth's should not have down, We've now. improving to turnover for look that We're them going at come

getting we'll be through integration So get the to through have for them to little a actually just is going bit. probably a productivity for -- downer

year before to us the But to under said, as a should for we Ruth's eight continue little talk days it I labor we progresses bit we improve turnover on longer our to our about as tick So continue let better expect improve details productivity, we the as and let's than as training. belt get there. our

Chris Carril

Great. Thanks so much.

Operator

you. Thank

Baird. David of come questions Please the Our your proceed Tarantino from next questions with with (ph). line

David Tarantino

I traffic down on thoughts industry seems I what X%. ask your to terms your now, strong that traffic. of guess macroenvironment. seeing the the in line Good consumer Hi. mean, wanted Rick, morning. actually the current with up don't And right I pretty is comments

We 'XX haven't numbers seen and maybe types since those of 'XX.

So quarter. in of traffic your And slightly outperforming, even kind but know I'm traffic? thoughts just on think Darden's wondering the was I what negative I been your

on weighing traffic environment? So, I the and guess thoughts what's what's on the overall your

Rick Cardenas

did our experience really and Thanks a to economy, low David. value. think for making is seen even not I they that tradeoffs. are. execution, it's slowing what about that. the of say reasons maybe have And for a a what in there's consumer about as I impact to not what Yeah, And it's as They're get wherever prices, about want afford. we There And spending always earlier can seek they restaurant an question. it's or in the the consumers have. couple much the tension between people competitors continue in

And as is said you're give I if difficult away-from-home really to before, food up executing.

brands. so is, what it that every to appeals it think can And to doing. economic that's to means that despite we've about the challenges, get been our means you going we their we what day. And promise do what's that believe is and to we guests, to what brand on What deliver it what value win. And operators

would the is and our whatever So to the control counts the get and restaurant have consumer the gap that that economy the a and buck we and we're going of happening we provide. going continue to trend expect guest has. to the every value And the has experience in we're been control the industry control can industry. we we what day And consumers we that space, what to the restaurants hope to to can

David Tarantino

I one Great. to less becoming as relates Maybe has I you you've I more do But, that little become pricing for the economy? industry do know, think think, issues than industry. just that. the mean, one the today's are traffic? price-sensitive in you priced follow-up of a it consumers think on

Rick Cardenas

over trends, overall, tick mean restaurants there would wherever traffic Whether continues might about would establishment, four think tick some it's take quarters, the whether would to consumers think restaurant have last to a so everywhere. GDP down what But be in that or you GDP expect and a it's tick continued traffic has you down. down, the sensitivity or GDP down in is, you. price that at retail I in it's as to it

think we of were that. year more little was And of I to only QX. saw industry The that. from Yes. from benefited Omicron last a the part do a the that don't I believe ones in hit bit bounce-back that of because

I did. think others

our see all And less plays which you industry. negative let's We've assume negative actually the so year, this traffic out. the traffic. than for does assumes given how guidance And

should going and continue that every there. we're we restaurant. bit the that to to day you do bring softness think So is perform there our things do of But we little to into tell a guests

David Tarantino

Great. Thank you.

Rick Cardenas

Thanks.

Operator

you. Thank

Our next Please of proceed Barclays. Bernstein your questions line with come questions. from the with Jeffrey

Jeffrey Bernstein

you. Thank Great.

the dividend First I your close share long-term XX% the one a like of CapEx on previously little the the bit part and to thought. up in And midpoint by usage you algorithm. is going repurchase you up by was than going million. perhaps $XXX cash bumped guess as just what more

there then other direction. know about easing. would mean, the to returned Any I of I noted for wondering wondering with the going valuation have thoughts acquisition. think be I maybe previously have been that And And you I in just the seeing market you've great. potential one in the what's have Ruth's I'm I M&A. context follow-up. more, whether challenges the you're

Raj Vennam

Yeah.

me Let it commentary. for cash then I'll the the to about over Rick M&A turn and talk

operating as our far you terms -- would at in cash $X.X billion of So generate we if business, look somewhere guidance $X.X usage, imply our cash around cash to flow. as billion,

you So dividend all -- build between if of may we midpoints and share maybe ranges still be at cash all it of of the million. close be with building the we take still those the repurchase, $XXX and would call CapEx cash balance would a an to the

of any not embedded sort have commitments tapping to in these borrowings really we're here. that So we into meet

share reflect our the for haven't updated we share five the years. the really as because price years change long term to is five in from framework far framework range, repurchase that ago As

reflecting that it change feels as all that's like double, basically it's our as much during price has that that timeframe. So share doubled

And so now, Rick. to just that, it turn with I'll

Rick Cardenas

just to I'll that. add something

pre-COVID, you at the cash EBITDA $X.X was think our $X.X or today If -- based billion. it's about and flow saying Raj about is $X.X look EBITDA, with billion billion, on

more cash do those and and lot a us to things gives M&A. buyback share increase that So our

adds you biggest is scale so which about M&A -- often. And M&A our we've to if think but talked advantage. our

best capital to those. our continue of M&A about to continues and our Board is we And management talk the to one uses to talk Board, of

with got deal. we just the Ruth's so And but done

plenty back at times wouldn't of be got us the in do EBITDAR cash, little two we that's of our basically doesn't debt debt-to-adjusted we've let got we've said, capacity. So the down plenty there. bit that of mean we're a and market It Raj end But at road. adjusted low the range.

So we do more have things. plenty of capacity to

Jeffrey Bernstein

color and Darden if company give year-ends just it's different entire owned a to fiscal quarters to for for into forward. going some then modeling the franchise model, to as 'XX the going Ruth's not any insight to XX-XX provide rate if restated a you. quarter get results growth better as you're year. of trying type with or the perspective us any help tough Yeah. clarification, Ruth's with whether you'll from provide to you I us and know pro-forma model results And or a just Thank operating wondering maybe a just pro-forma

Raj Vennam

we're look restating at a don't history. plan Really only We the the you fiscal quarters, calendars when on month the half.

to think and -- Darden also want to how I it overall P&L. the think I about material is

Operator

you. Thank

Our next Bank Please proceed come your Senatore line of the of with Sara questions. from America. questions with

Sara Senatore

Great. Thank you.

the gap pricing that year course and -- maybe the there different different the the will implications a a rolling to that margins sense which the be course might of clarification, of you reason the it the of between over over input about math or assume over from cadence the thinking the is talked is believe of suit the inflation of of the fair course year, you're inflation follow cadence the in therefore is look kind First might pricing off and year. to

question one first the then have please. that's and another Ruth's, I'll So

Raj Vennam

Hey question. Sara. Great

be don't expect different. inflation, As we the we about cadence think to significantly

We're bit we quarter, not have basis a be difference. basis huge in the a talking I think from first different but little more XX about quarter-to-quarter. to points may points XX

X% for to that range is overall. X% we the provided what So

quarters But to little the close quarter less than bit -- closer a first quarters. You difference that. a other meaningful be then might can to expect X% be between and then, there's not really

out pricing So levels. we a where is little price that with of QX starting there QX versus are bit year-over-year, we get -- delta a would the that exited we inflation, of because as higher imply in

said you also So, had a you second question. I know

So I'll wait for that.

Sara Senatore

I'll And Yeah. clarify the quarter, implication the over to is, actually, that and else fourth that level gains the then ask of the less course then the or of you year. you'll but just by have Thank productivity you. is price sort loaded something more question, be find on which inflation if one needing to

Raj Vennam

Yeah.

to gap time the back half. by get the we we do the think I expect reverse to

than we annual In we fact, embedded line earnings from quarterly more it's the in lowest we while that balanced standpoint QX QX way QX, and see at the highest-growth when the an do we look are our at the in QX while -- providing more guidance, growth last year, look provided. our that with providing cadence, earnings the

Sara Senatore

Okay. a then Thank said, And I presumably, for But ahead you lot know you've very Ruth's Rick only had just of much. went a that diligence question. that. days. eight you there's of

of is the and versus the potential -- that of primarily your chain Dining, as G&A. about think through you restaurant-level XXXX look coming is that I primary So like If know supply end chain mentioned gap. Fine and for fiscal the I difference Ruth's $XX that roughly by supply I cost goods at the margins bridge to is million

Rick Cardenas

from supply chain. said our most most the -- we've G&A of our that and in Well, of past G&A synergies come

the before. half-and-half we whenever past that when about have in done it's acquisitions So, we

should the term long So cost-of-sales. get benefits yes, from in Ruth's

and reinvest Now of the cost-of-sales benefits some too. get other some brands that may we will of those our said,

So won't all flow Ruth's. it to

I will actually EBITDA that say at the industry Ruth's that could the does. margin that brands restaurant-level many in and our acquire improve there aren't we

So, across Darden.

Grille, a restaurant look lower be they high on might bit you your higher, at on pretty how depending of not they're Now little margin. they be But might definition depending close. as it as Capital

so Capital Grille Darden's margin, because And than helps Ruth's average and Darden's margin. higher is

So us. that's a deal good pretty for

Sara Senatore

Very Thank you I see. both helpful. so much.

Rick Cardenas

Sure.

Operator

you. Thank

questions line Gordon Please come the proceed with with Haskett. next from questions. your of Our Jeff Farmer

Jeff Farmer

you. Thank

post-Ruth you share on both expense some information about following on acquisition, interest Just how modeling G&A, G&A relates thinking as moving it to shared can be we forward? up but should you and anything

Raj Vennam

a for I looking have. Jeff. be Ruth's million $XX probably is to a I'd exposure interest Yeah, of other going which interest we say, to think we're is the million interest rate the is lease just other of and year-over-year, likely And then total expense at acquisition. short-term related $XX

So that's thing interest. on the the

There'll the into working Darden's purchase And accounting from take it and some the on G&A, that I have. would then G&A just you be Ruth's consideration really lay through. what we're

impact. will valuation that. of guidance, some but that ready We've our updates on in P&L in our a to But and and so have not incremental than geography, incorporated huge some in more a share yet. those be our we'll embedded So that's more details we're step-up

Jeff Farmer

Okay. one And more. just

you that One and of has opportunities this you of your and named data able competitive in forward last harnessing years share extensive and as 'XX data of how two some really data maybe advantages in potentially the leverage untapped over were moving that analyzing or to terms examples move several insights. one can been But you forward?

Rick Cardenas

Yeah, is Jeff. This Rick.

machine-learning with better. and help You AI help to restaurants lot way right. company, that forecast count down do the the forecast of and our think move starting we And use all starting a data, would we're are business through to to what about guest our

looked So if and schedule that's of receive you better, forecast you order better, machine-learning you is your traffic big you one AI. using the things at we've better, better, that

we help to data remember, But are, and the got we market guests. year one as what we every use things that think of what patterns we do how our at about guests do we look our guests to to

pricing -- execution if you're is analytics would and that big operations with asking too. I say, improve through the have. we data But also for thing one We

elasticity. team our got of we've they They look that look do here at at And with scale. that at great can we our pricing. restaurants, at analytics So, look does because they categories, in-house a help items, look all

Jeff Farmer

you. Thank right. All

Operator

you. Thank

Our with your from with next Please Bernstein. the coming Gargiulo question proceed is questions. Danilo of line

Danilo Gargiulo

even beyond expectations. the talking Good what And you accelerate? is integration timeline Cheddar's timeline morning. I'm embedding wondering XXXX timeline the the impacting for the your that you it EPS to in is that are are previous I'm that you this integration set today. acquisition And expecting of and will take what how accretion

Raj Vennam

stuff we're to Danilo, our lot the through over expectation XX next months. Hey, still steps, months the XX a is happens working but the of

-- sure we And make it We're do later why come We're we synergies going this trying to we're set -- this disruption trying long some to minimize prudent. to we're thoughtful. to because right, and got operators. design not we be success make to be so those to want that's of term. for right because the to We want up

working acquisitions different it's With being three plan prior businesses essentially these taking as great business. it. but lot parts a our from -- from into And doing, on and And it the acquisition. team we brought into incorporated we a with Ruth's, have of lot more a we Obviously, very we've parts of under complicated, are so how for are -- roof. one different actually integration Cheddar's we was complicated have the consideration of integrate everything Cheddar's thoughtfully learned we're being in That's learnings our phasing shouldn't as actually not this. be

Danilo Gargiulo

is But you Thank there happen. any internal expansion what have know starting you. discussions data to to more drive would And I competitive international the set actually acquisition factors given potentially your XX%? quarter and versus been of recent higher the growth bidding also on prompt mentioned of Ruth? unit you recent

Rick Cardenas

Hey, Danilo.

this them year for longer by or have the our year, already before by time started takes get the a the a time -- most a have to the almost construction today the COVID. than about think you to it pipeline to open open restaurant did little year restaurant started it of pipeline, you If because build

by started July, not probably if this it's to even this of open doesn't QX, year. Maybe doesn't year. open -- start by it's if end So it until hard it the

When our and committed Canada. a only U.S., incorporate company-owned but are franchise doesn't openings. be have we the only kind count -- franchise guide we've because talk that's that in we our model gross to wouldn't international, staying U.S., outside XX that in of about the So that's got we incorporated not U.S. not about why will of the unit in

that year be we So all going that opened ones as And franchised anything were forward well. of last outside U.S., open franchised. to our we the the likely restaurants all is

Danilo Gargiulo

Perfect. Thank you.

Rick Cardenas

Yeah.

Operator

you. Thank

Stanley. Morgan Our your next question. Brian the questions with come proceed of Harbour from Please line with

Brian Harbour

on I Yeah. comments of had aspirational there? dining of Thank you're just business of the of customer, dynamic lapping it's could any customer anything just seeing sales. like fine that you. some question about kind Is morning. versus different kind sets, provide about if the really type whether more customers Good you a different or a

Raj Vennam

retention Yeah, related all, to we of bit seeing quarters on still year What the a consistent actually saw in Brian. I'd at we function last say, first of dining. remarks, we of for prepared as a said fine fairly is pre-COVID three pullback little seeing we're think increase the wrapping that's a also sales. a are a on alcohol And ago. significant we the

they're consumers the last or as we're XX year. but just above we generally seeing demographics what is with speaking, pre-COVID, Now below below

to last XX-plus similar below And they're but whereas pre-COVID, is year. then still

So or a below that year where and are year-over-year. And income pull then below similarly, to the side, -- a above is lower they last on similar little still but last last the different last below whereas we're year, income to seeing there's seeing higher income dynamic but but year, year-over-year bit still covert. flattish younger -- back you're pre-COVID demographic pre

are those dining. So fine of can I some share insights the on

Brian Harbour

the most the is how you that year sounds of this any that through kind on play of inflation mid-single-digit recent expect Okay. just out? what or it labor kind pretty And in it there And going like do steady labor in it to line. of the slowing is be maybe then was Did on assumed or range. of to pace comment course you like kind was quarter, like

Raj Vennam

Yeah.

X%. than did inflation ticked And the at quarter, inflation X% was quarter. QX. tick down. a about QX. down so better also And thought -- meaningful points from labor prior for labor little wage a overall That to basis step actually that XXX Our to We bit in that's included a we down QX from were close --

with XXX mid-single-digit we the said basis we inflation. ended we go said, expect total Now we we to year we X.X% and next to about That’s that about as the as step as to so look why by down future, year. we points that labor talked inflation

Brian Harbour

you. Thank

Operator

Thank you.

Geiger come Our next of line your from questions. Dennis with Please UBS. the questions proceed with

Dennis Geiger

right of annually think margin spoken return But Thank anything just bps term. and the update it algorithm the there's on way think margin share on still? just total to XX how longer you've know to continued about curious if I long-term to XX gains is long-term late. new more you. Raj, bit any of of to bps a I'm curious you if shareholder considerations kind

Raj Vennam

way think year. about do think is starting from XX that are to we it fiscal We this Dennis. Yes, XX to where the

is change framework. to repurchase we So the target that's for for foreseeable that is a And the because still share made how we restated the us only our future. believe XX good XX that to to have we

Dennis Geiger

you. Thank across to-go the portfolio the extent. And just to on sales then some

any thoughts either you 'XX? Sort of to mix opportunities if where of sales you look we look And much. there, sit on kind could Thank latest now? what as like, very that growth

Raj Vennam

are to-go consistent where our so were actually pretty with in we sales Well, QX.

close that without So I we’re dissimilar on XX third-party had think which at to running not Olive that Garden is XX%, a quarter what doing to the And channels managing and experience better. while Cheddar still we’re into industry, we And other XX%, outperformance sales and we’re ago. at overall tapping actually, we’re not delivery. continue to kind to of see we growth versus that able still get the these and LongHorn

We on feel continued that. have like we execute to

we level before, are said make of would But teams with is we’ve our have possible sustain ago. a executing on than from this that And we’re years very grow focused here. at can expected As to sure the and couple it. happy higher highest we

Dennis Geiger

Raj. Thank you, Great.

Operator

you. Thank

line with Our come John from Please proceed of the Ivankoe with next your questions. questions JPMorgan.

John Ivankoe

I level actually a work. famously done customer Hi. you. have you at brand know Thank segmentation

about Analyst in talk that Day years as to many ago. used You

for be is the specifically, gotten I of to at So repayment press has least think asked responses Darden current, your about think, upcoming of that smart guess been population. obviously, there any student that how thought significant might -- that's September, some you've Can something cohort can you actually think through I change have coming using impact data be? you coming, you using And the explain it's and itself that? might that's you in or of kind of fairly that about what loans, the today, something potential

Rick Cardenas

them that still don't see want studies, Yeah. a necessarily do we thinking be headwind. use consumers' money them. We the do already consumer material it's John. for those and a all headwind, are for loan It material about a it do the and structure because being market into through but because Hey, externally to forecast And think segmentation very pockets, that be you our about out economic student time component it's GDP take a there, headwind. around but of we Any payments loan baked probably plan. the shouldn't be shouldn't it We will small September growth in, we talk repaid I yes, studies. time. guess, But else don't they'll everybody we student still start impact,

John Ivankoe

us triangulate by just of with terms in kind that's But I big I it? more the just saying, historically of help going to older. kind mean, as information Thank you you little you specific us Olive customer Garden bit of can And mean I base XX, what be cohort, whether some just that anything that there of percentage you. is Is know hey, of have like not affected you to there all. can give us have skewed it's XX kind is you. a

Rick Cardenas

Sure.

on And demographics still that or XX XX, the Raj bit consumer student below probably talked a in consumers We're our think little or in loan plus their ones which year. is ago. I our are range pre-COVID last below about period. the above pre-COVID XX repayment age the

they're think $XXX,XXX. you XX probably And some I'm plus kids. some it back, consumers we our still a above room are for come have to for still of about there's student unless paying population, high and doubting they're of that So percentage our that our paying of those back if loans their

So hopefully, repayment loan them wouldn’t student too much. impact a

John Ivankoe

Thank helpful. That’s you. Okay.

Rick Cardenas

Sure.

Operator

you. Thank

proceed Andrew questions. of BMO. Please line with your the from come Strelzik questions with next Our

Andrew Strelzik

taking question. Good Two Hey. the Thanks for me. for morning.

or is improving visibility to on commodity you the feel of the the inflation if I'm you one rate just duration is moderating into side. first is as the curious is cost have visibility improving food like which here? your outlook The

second on then unit And growth question the is side. the

that Thanks. just potentially talked permitting You green how bidding of that favorability side? curious Are shoots Or are the I'm terms about evolve. supply chain side in there there. some equipment. seeing on and you

Raj Vennam

Hey, Andrew. is This Raj.

We is the than actually side, that the So actually a better did we visibility commodity pretty on COVID. the think, probably have time, in year way ago. today similar have first used to years, we have, four I to we before do for coverage

I think we have basket have color, which half XX% closer the a – first as we pretty of about half, call pre-COVID. covered for coverage the the levels to total to much it to XX% talked again, have to used our we of in is, XX% and that we back back

more a than visibility So have feel we we lot today did definitely we like before.

we I bids last fact, peaked had we green it’s believe going better construction earlier with but to some the shoots. had signs and as with to we few think then stuff of still that side in do starts bids agencies in. talked starting they in action permitting all line in local continuing – in elevated, And think that. the Rick not that our and inflation on side, multiple we’ve see development coming the or the – But has are like were we’ve improvement. it’s delays of – about we budget some as utility still or some go better. coming few And connections far We some up. that see bids last There’s said, the

to there. So signs make just some see positive starting –

Andrew Strelzik

Great. very Thank much. you

Operator

you. Thank

next questions line James. proceed Brian with Vaccaro questions. with of the Raymond Our your come Please from

Brian Vaccaro

to the another through weekly I sales incremental wanted it but at brain highlighting share pandemic, versus the think took I morning. mid-XXs the the least seems lot strength are back think of pre-COVID uptick? this -- the know now just step I of a gained is Good the anything lens up driving circle brand through average LongHorn incremental worth levels. in volumes, which has that up you on Thanks. Hi. like at

Rick Cardenas

been they had well have They pre-COVID Yeah, pricing. every inflation, what has the to in Day, culture. and also off. by pre-COVID. investing quality quarter. executing That on few comment quality, but talks had and simplicity -- is record weekly keep that and And I Brian. Todd sales and the more above in positive And X.X% growth LongHorn had journey I years. team, in yes, about they've last want been and was his They've they're levels over continue Todd same-restaurant portions in this driven to for pay sales sales That's some traffic almost Mother's versus XX% QX. day,

in tell can't it's here. aren't there silver the doing. I sales team, your about you profitable drive So that execution, past in what growth. been silver bullet It's your that investing having product in bullets and talked we've any they've to investing same-restaurant about great And that's

Brian Vaccaro

you overlap bit or acquisition the also Could the brands customer other the your key or more And brand? right. All you worth segmentation think any wanted to are little fine between regarding other customer and your differences elaborate on the then dining versus a back on circle interestingly, Roots base work. highlighting I just Roots differences maybe

Rick Cardenas

Yeah, Brian.

see at looking deal, And consumer allowed other X right? and were days. would third-party for closed before talk customer me Ruth’s owned by data their than about a consumer them this customer. their see capital saying, not differences have. we we Let will couldn’t lot we’ve and of not competitors, and only between We I a data, believe were the we we whole – we preface there’s why data that the a growth overlap that to But still

primary their one of at the looking bit But to better. want we a start geography. understand to So little reasons data is it

XXX-ish other at look have they If each restaurants, and restaurants restaurants to in necessarily they you close they’re have those that restaurants Capital franchise markets that markets. lot the system, even Grille to have capital, in including – of markets in in in. And Capital not a restaurants has Grille even doesn’t in,

you years. a but Ruth kind for go we a ADBs occasions. good ADBs you us, And and I this – that’s add Capital it’s good at Where scenario for So bit And of on thing good we’ve And as as for Capital Chris, Capital little expect. a would to think isn’t there and but had learn thing much thing Grille, Grille, if to about overlap different want that would the for Grille. many then guests about may they go for routes occasion differences. that

you Capital little there. have don’t in Grille There’s Destin, a urban Chris, going in Birmingham, think Chris, we I Ruth geography, don’t finally, for Grille more to the bit restaurant example, Roots, We an a a Chris. is more, or mix in Florida. Capital – have little urban if Ruth core then And Ruth versus bit back where than have

there isn’t have much So there’s thought. would that as overlap you reasons as

Brian Vaccaro

great. That’s it right. you. I’ll All along. pass Thank

Operator

Thank you.

Our next Truist line come proceed with of questions Securities. Jake Bartlett from questions. the Please with your

Jake Bartlett

was for productivity. Thanks on question. Mine taking Great. the labor

so staffing improvements some would a to guess whole around I going up. my labor the turnover. of, levels, should that productivity lot. expect that is mentioned not but pre-COVID way have just I is I kind 'XX, going back labor question be productivity You turnover environment, in thought down, improving but think, you

get you're incremental In guess, your turnover not -- before of your already at much to was going why have I maybe mean, that's I so brands, terms benefit. benefited? not of you an bad

that to about productivity. If what and do could labor dynamics how talk labor you could couldn't the just or

Rick Cardenas

Yeah, as productivity you expect goes Jake. Yes, turnover already down, that gets would started that we've to see this better, and year.

our better. So our improving getting and productivity is is turnover

turnover the started loss like a to biggest of it. had the productivity So the from you to the gets it's turnover next had We've very big that actually highest we're moving XX is that's first the one And gradually not improvement going in the turnover days. we've year. us. places lower ever And for

have you So less you if -- loss turnover. XX-day don't productivity you less have

just And levels, don't last than above us know And our level month get the should lot to still closer productivity more that. so we've before that, enhancements. improve do, seen levels and even then pre-COVID But to we an month we'll that improvement if we're the in We're we a to were but pre-COVID turnover. last if turnovers. pre-COVID back before give we'll ever I continue month

Jake Bartlett

then couple on unit of mentioned you ago, a have gave I the kind And had guidance the your and range. of of for A towards XXXX. end higher moved Great. growth expectations you follow-up years

to higher X% we in the X% or think term? from it's the going still maybe the getting to is we kind end valid kind the middle into of to range should of but X% forward, Is going the right and are back of be range. range term, longer closer 'XX, lower that of the point longer of So

Rick Cardenas

Jake. Yeah,

range. get could get we to where be if anywhere need fast to we about, we still get get used might a in end not Our there It take be. the all to equipment great permits lot to a originally great come It slowed the would utilities if It COVID getting time as turn towards things as stuff down better down as near as us bit goal talked it used we that to can just them. than the permitting more get Raj The them. higher back way That's be than fast back. thought. we is would about, get that are Raj little development. of has we talked of those

as And better last more that's that in us. had Raj costs, a that good to we've come back mentioned getting about contracts level, out think what have for we we've we expected. construction few normal the bid than And sign a

growth, would back get framework. while organic to that also high the very just to end higher of And end And much, don't to we M&A So prime our that with is but will I this framework we framework the help that about includes remember, of would like talk us M&A. get work.

the the growth. And earlier And were year mid-range the within no framework, -- M&A the had five to we unit the probably thing five within shared it. our in year delta, of when impact is still today, we that framework our

is of our allocation. of is M&A that. So It part part capital

So we would M&A. get still high without to -- to the end but like

Jake Bartlett

Thank much. so Great. you

Operator

Thank you.

Wells questions. Our Please of your Fargo. next with questions Park come line from proceed with John the

John Parke

'XX, see pressure Good guys that we outliers expecting? any the there Hey. guess improvement into as either are you terms morning. about that as or you segments profitability in of think are I segment

Raj Vennam

fine think I we have quarter. as to that to talked that, ramp Well, fair the going about, it's in affect dining is first a tough

as our do. So a to year, we we expect bit get little our about but and plan all we kind push we how far think the better. what of to That's segments year-over-year, that's teams -- as

John Parke

in beef range And [indiscernible] assume you're Got Garden is Olive pricing seeing, so is then kind to think I inflation on that that and and below? it. I guess above fair pricing is just the the the LongHorn of side, find it

Raj Vennam

Yeah. assumption. fair That’s a

John Parke

you. Thank Okay.

Operator

Thank you.

line Our last questions. Gregory question from with your proceed Francfort the come of will with Guggenheim. Please

Gregory Francfort

I quick Hey. you. just follow-up have labor. Thank on two

much turnover, The is about break I that that to are curious a think going you're not X% first in hire is, new guys within today wage how a market question wage? people. as work you to the of expecting, a statutory that break talking for it And Thanks. guys hire that at it that's how pressure. higher out maybe in much you just easier -- there much is, I And inflation I'm you guess, then correlated that or about of new to going year? labor be it's you're somebody costs material a seen how maybe still as this have

Raj Vennam

Greg. Hey,

We as let treated by not a just So that and X%. mid-single X%. said me sure We it's I it's want did not digits, make start say to clarifying.

I that, X% range embeds think of but bit little to wage a assumes for actually plan north inflation. something our our closer guidance that

as regulatory there. normal that's I we the the is just year, stuff. the wage clarify far then merit And that, X% it's So think, impact, X.X% under that. then I about just have for X%, full minimum as maybe to just beyond what And increases and piece, other want to the

gotten the out-of-cycle doing the a wages as were are around ago. has six months we better, Now and, -- as adjustments comment far we a lot environment lot than the clearly, fewer question even doing

term, of in clearly things couple a is a those from a of, better getting than hiring for lot lot that quarters the perspective, positive better of I all So a where wages, would lack in science environment, there say, ago. starting

Rick Cardenas

if I just add that. can And one thing to

down, we were our many as that we about means as don’t coming think you we’re hiring people before. have turnover If

did before. hire we So as than we didn’t many have to people now

even so big don’t fact starting still the hire as as it’s for happen. wage not the And well. to but deal didn’t break break the wage, as have us helps the But that we is if a wage happen, people us, to many

Gregory Francfort

guys Appreciate Awesome. Thank it. for you, the perspective.

Operator

Thank you. back further now are hand call I over There questions no closing Kevin remarks. would Kalicak like to time. to this the for at

Kevin Kalicak

opens day. our call with September the for that That release to concludes in our call, XX, results again Thursday, we call like Thanks. to for first conference Thanks plan a to have before a you quarter market great follow. I’d on today’s participating today. and remind

Operator

Thank appreciate you. This does conclude participation. today's your teleconference. We

your at your disconnect may You lines Enjoy this day. rest time. the of

Darden Restaurants (DRI) 22 Jun 232023 Q4 Earnings call transcript