Red Lobster 2003 Annual Report Download - page 2

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Darden Restaurants, Inc. is the largest publicly traded casual dining company in the world, serving more than 300 million
meals a year at 1,271 restaurants in 49 states across the United States and in Canada. The Company, which operates four
distinct restaurant concepts, has annual sales of more than $4.6 billion. The flagship brands, Red Lobster®and Olive Garden®
,
are the market share leaders in their casual dining segments, making Darden the only company in the industry to operate
two restaurant companies each near or above $2 billion in sales. Bahama Breeze®and Smokey Bones®BBQ are Darden’s
emerging concepts, and Seasons 52SM is a new upscale casual test restaurant, all developed internally. Darden employs more
than 140,000 individuals and is based in Orlando, Florida. The Company trades on the New York Stock Exchange under
the symbol DRI.
Darden Restaurants
Fiscal Year Ended May 25, May 26, May 27,
(In millions, except per share amounts) 2003 2002 2001
Sales $ 4,655.0 $4,366.9 $ 3,992.4
Net Earnings $ 232.3 $ 237.8 $ 197.0
Net Earnings per Share:
Basic $ 1.36 $ 1.36 $ 1.10
Diluted $ 1.31 $ 1.30 $ 1.06
Dividends Paid per Share $ 0.080 $ 0.053 $ 0.053
Average Shares Outstanding:
Basic 170.3 174.7 179.6
Diluted 177.4 183.5 185.6
Business Description
Operating Company Overviews
2003Financial Highlights
Red Lobster
Founded in 1968, Red Lobster is the market share leader in the seafood segment
of casual dining. It has led this segment of the industry since its inception by
continually evolving with the casual dining consumer, achieving 22 consecutive
quarters of year-over-year same-restaurant sales increases.
Olive Garden
Olive Garden is a family of local restaurants and the market share leader in
the highly competitive Italian segment of casual dining. As a result of its suc-
cessful repositioning to remain relevant to today’s consumer, the more than
20-year-old company has posted record profits and 35 consecutive quarters
of year-over-year same-restaurant sales growth.
Bahama Breeze
Bahama Breeze has built an exciting brand based on its promise of a refreshing
island escape, featuring welcoming hospitality, innovative cuisine, and a tropical
atmosphere.
Smokey Bones
Smokey Bones BBQ, which began its national expansion in fiscal 2002, mixes
award-winning barbecue with mountain lodge comfort, warm friendly service,
and features sports viewing and other televised entertainment.
Drew Madsen
Senior Vice President and
President, Olive Garden
Number of
Restaurants 524
Total Sales $1.99 Billion
Average
Restaurant Sales $3.9 Million
Market Share of
Casual Dining Italian 31%
FY03 U.S. Same-Restaurant
Sales Growth 2.2% Clarence Otis, Jr.
Executive Vice President and
President, Smokey Bones
Number of
Restaurants 39
Total Sales $93 Million
Edna Morris
Senior Vice President and
President, Red Lobster
Number of
Restaurants 673
Total Sales $2.43 Billion
Average
Restaurant Sales $3.7 Million
Market Share of
Casual Dining Seafood 49%
FY03 U.S. Same-Restaurant
Sales Growth 2.7% Laurie B. Burns
Senior Vice President and
President, Bahama Breeze
Number of
Restaurants 34
Total Sales $138 Million
New Business Development
Blaine Sweatt, III
Executive Vice President and
President, New Business Development
Darden’s innovative New Business Development team created and
launched Olive Garden, Bahama Breeze and Smokey Bones BBQ.
In February 2003, the team opened Seasons 52, a new test restaurant
offering guests a casually sophisticated fresh grill and wine bar with
seasonally inspired, nutritionally balanced menus and an extensive
international wine list.