Red Lobster 2000 Annual Report Download - page 13

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To Our Shareholders, Employees and Guests:
Fiscal 2000 was our best year ever, with the strongest
results in our history. This terrific financial perform-
ance reflects continued progress toward our goal –
being the best company in casual dining, now and
for generations.
• Revenues increased 7% to $3.7 billion, driven by
strong same-restaurant sales growth at Red Lobster
and Olive Garden and continued expansion of
Bahama Breeze.
• Earnings after tax before an unusual non-operating
gain increased 28% to $173.1 million, our highest
level ever.
• Earnings per share on a diluted basis before the unusual
gain rose 36% to $1.31, a significant achievement
coming on top of the 43% prior year increase.
• Red Lobster had annual sales of $2.07 billion and its
average sales per restaurant were $3.2 million, record
performances in both categories. Red Lobster’ssame-
restaurant sales increased 7.6% for the year and were
positive in every quarter, completing 10 consecutive
quarters of comparable restaurant sales increases.
• Olive Garden’sannual sales were $1.58 billion
and its sales per restaurant averaged $3.4 million,
establishing Olive Garden records in both categories.
Olive Garden’ssame-restaurant sales increased 7.2%
for the year and were strongly positive every quarter.
It posted 23 consecutive quarters of positive compara-
ble restaurant sales.
• Bahama Breeze continued to be enthusiastically received by guests, opening eight more restaurants
in six new markets. Guests can now enjoy a “two-hour vacation in the islands” in any one of 14 different
Bahama Breeze restaurants in 11 markets.
• In September 1999, we introduced our latest internally developed restaurant concept, Smokey Bones
BBQ Sports Bar. This concept combines two features we believe are extremely promising – barbecue
and a relaxed sports bar experience – and is an exciting
addition to our portfolio. There are currently two restau-
rants, both located in Orlando, and we plan to extend
the test with another restaurant in Columbus, OH,
early in fiscal 2001.
• With our strong cash flow and balance sheet, we invested in growth while also repurchasing 11.5 million
shares, or $202 million, of Darden stock in fiscal 2000. We have repurchased 44.1 million shares of stock
since the program began in December 1995 and have authorization to purchase an additional 20.5 mil-
lion shares.
Our passion is to be the best in casual dining, now and for generations. Casual dining is a growth
industry and we are committed to capturing that growth opportunity. We believe we have the right
strategy and the right team to deliver significant growth in sales, earnings and shareholder value.
Our passion is to be the best in casual
dining, now and for generations.
Joe R. Lee
Chairman, Chief Executive Officer
Darden Restaurants
10 DARDEN RESTAURANTS 2000 ANNUAL REPORT
LETTER TO SHAREHOLDERS