Red Lobster 2005 Annual Report Download - page 26

34 Darden Restaurants
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 intensely competitive nature of the restaurant
industry, especially pricing, service, location,
personnel and type and quality of food;
• economic and business factors, both specific to
the restaurant industry and generally, including
changes in consumer preferences, demographic
trends, weather conditions, a protracted economic
slowdown or worsening economy, industry-wide cost
pressures and public safety conditions, including
actual or threatened armed conflicts or terrorist attacks;
• the price and availability of food, ingredients and
utilities, including the general risk of inflation;
• labor and insurance costs, including increased labor
costs as a result of federal and state-mandated
increases in minimum wage rates and increased
insurance costs as a result of increases in our
current insurance premiums;
• increased advertising and marketing costs;
• higher-than-anticipated costs to open, close,
relocate or remodel restaurants;
• litigation by employees, consumers, suppliers,
shareholders or others, regardless of whether the
allegations made against us are valid or we are
ultimately found liable;
• unfavorable publicity relating to food safety or other
concerns;
• a lack of suitable new restaurant locations or a decline
in the quality of the locations of our current restaurants;
• federal, state and local regulation of our business,
including laws and regulations relating to our rela-
tionships with our employees, zoning, land use,
environmental matters and liquor licenses; and
• growth objectives, including lower-than-expected
sales and profitability of newly-opened restaurants,
our expansion of newer concepts that have not yet
proven their long-term viability, our ability to develop
new concepts, risks associated with growth through
acquisitions, and our ability to manage risks relating
to the opening of new restaurants, including real
estate development and construction activities, union
activities, the issuance and renewal of licenses and
permits, the availability of funds to finance growth and
our ability to hire and train qualified personnel.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Financial Review 2005