Red Lobster 2004 Annual Report Download - page 32

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Financial Review 2004
Management's Discussion and Analysis
of Financial Condition and Results of Operations
FORWARD-LOOKING STATEMENTS
Certain statements included in this report and other materials filed
or to be filed by us with the SEC (as well as information included
in oral or written statements made or to be made by us) may con-
tain statements that are forward-looking within the meaning of
Section 27Aof the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Words or phrases such as "believe," "plan," "will," "expect," "intend,"
"estimate," and "project," and similar expressions are intended to
identify forward-looking statements. All of these statements, and
any other statements in this report that are not historical facts, are
forward-looking. Examples of forward-looking statements include,
but are not limited to, projections regarding: our growth plans
and the number and type of expected new restaurant openings,-
same-restaurant sales growth for Red Lobster and Olive Garden,-
diluted net earnings per share growth in fiscal 2005,- and expecta-
tions regarding when Bahama Breeze and Smokey Bones will
become accretive to earnings. These forward-looking statements
are based on assumptions concerning important factors, risks, and
uncertainties that could significantly affect anticipated results in
the future and, accordingly, could cause the actual results to differ
materially from those expressed in the forward-looking statements.
These factors, risks, and uncertainties include, but are not limited to:
• the highly competitive nature of the restaurant industry,
especially pricing, service, location, personnel, and type and
quality of food,-
• economic, market, and other conditions, including a protracted
economic slowdown or worsening economy, industry-wide cost
pressures, public safety conditions (including ongoing concerns
about terrorism threats or the continuing conflict in Iraq), weak
consumer demand, changes in consumer preferences, demo-
graphic trends, weather conditions, construction costs, and the
cost and availability of borrowed funds,-
• the price and availability of food, labor, utilities, insurance and
media, and other costs, including seafood costs, employee ben-
efits, workers' compensation insurance, litigation costs, and the
general impact of inflation,-
• unfavorable publicity relating to food safety or other concerns,
including litigation alleging poor food quality, food-borne illness,
or personal injury,-
• the availability of desirable restaurant locations,-
• government regulations and litigation relating to federal and state
labor laws, zoning, land use, environmental matters, and liquor
licenses,- and
• growth plans, including real estate development and construc-
tion activities, the issuance and renewal of licenses and permits
for restaurant development, and the availability of funds to
finance growth.
32 Darden Restaurants