Red Lobster 2002 Annual Report Download - page 15

Great Food and Beverage 12 Produce Great Results in 2002
That strategic framework is well understood throughout
the Company and it’s the reason for the strong progression of per-
formance improvement we’ve had to this point. Three strategic
imperatives – leadership development, culinary and beverage
excellence, and service and hospitality excellence – are at the core
of our framework. In addition, diversity and technology literacy
are the key enablers of our strategic success, reflecting our ongoing
belief that a well-developed organization-wide commitment to
these areas will facilitate meaningful advancements in each area
of strategic importance.
Leadership development is the lynchpin of our strategic efforts,
and we’ve made tremendous progress in this area. Much of what’s
been done recently involves expanding upon and enhancing initia-
tives started in prior years, like our enterprise-wide talent assess-
ment and development and succession planning process. We also
continue to develop new initiatives each year, and a great example
is the diversity learning experience provided to nearly all director-
level leaders in fiscal 2002. This program was modeled on the
intensive diversity learning experience completed by each officer
during the prior two years to nurture the development of diversity
literacy. And it reinforces the officers’ experience, since each plays
an important role in the learning experiences of our directors.
FINANCIAL STRENGTH AND STABILITY
We continue our journey to be the best with one very powerful
asset – we have the financial resources to fund our growth strategy,
in good times and bad. Our excellent cash flows and solid balance
sheet are reflected in the Company’s investment-grade credit ratings.
These provide us with flexible access to capital at a relatively
attractive cost. We intend to preserve this financial strength by
maintaining a balanced capital structure that has a prudent mix
of debt and equity, and by paying close attention to other key
credit ratios.
ENDURING VALUES
While we benefit from competing in an industry that has strong
long-term prospects and we have a terrific group of restaurant
companies, a great strategy and excellent financial strength, we
know we cannot be successful without a clear sense of who we
are. We understand and appreciate Darden’s core values, values
that have been forged over the 64-year heritage started by our
founder, Bill Darden. As we continue the journey toward becoming
the best casual dining company, we will look to these values for
guidance and know they will be especially critical when we’re
faced with unexpected opportunities or challenges.
As an organization, we value:
• Integrity and fairness. It all starts with integrity. We trust in
the integrity and fairness of each other to always do the right
thing, to be open, honest and forthright with ourselves and
others, to demonstrate courage, to solve without blame and
to follow through on all our commitments.
• Respect and caring. We reach out with respect and caring. We
have a genuine interest in the well being of others. We know
the importance of listening, the power of understanding and
the immeasurable value of support.
• Diversity. Even though we have a common vision, we embrace
and celebrate our individual differences. We are strengthened by
a diversity of cultures, perspectives, attitudes and ideas. We
honor each other’s heritage and uniqueness. Our power of
diversity makes a world of difference.
• Always learning – always teaching. We learn from others
as they learn from us. We learn. We teach. We grow.
• Being “of service.” Being of service is our pleasure. We treat
people as special and appreciated by giving of ourselves, doing
more than expected, anticipating needs and making a difference.
• Teamwork. Teamwork works. By trusting one another, we
bring together the best in all of us and go beyond the boundaries
of ordinary success.
• Excellence. We have a passion to set and pursue, with
innovation, courage and humility, ever-higher standards.
These values communicate the behaviors and attitudes
we cherish as we strive to deliver on Darden’s Core Purpose,
which is: “To nourish and delight everyone we serve.” That is
what motivates us to be the best.
TERRIFIC PEOPLE
“The greatest competitive edge our company has is the quality
of our employees, evidenced by the excellent job they do every
day.” Bill Darden, the founder of Darden Restaurants, recognized
that decades ago and it remains just as true today. I want to thank
our more than 133,000 employees for accepting the challenges
we’ve put before them. Everyone is fully committed to becoming
the best casual dining company now and for generations, and
we intend to get there by living our values each and every day
and nourishing and delighting everyone we serve.
Letter to Shareholders continued
Joe R. Lee
Chairman and Chief Executive Officer
NET EARNINGS
PER DILUTED SHARE
(before unusual non-operating items)
’00 ’01 ’02
$0.64
$0.87
$1.06
$1.29
’99
$0.45
’98