Red Lobster 2006 Annual Report Download - page 9
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Please find page 9 of the 2006 Red Lobster annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.meals that are lower in calories than comparable
restaurant meals. They also offer a wide selection
of premium wines, including many by the glass.
• Because of this year’s outstanding financial
results and our strong cash flow and balance
sheet, we spent $434 million during fiscal 2006
to repurchase 11.9 million shares of our common
stock. Since beginning our share repurchase
program in 1995, we have repurchased more
than 132.5 million shares of our common stock
for $2.25 billion. Recently, the Board of Directors
authorized an additional repurchase authoriza-
tion of 25.0 million shares, bringing total open
authorizations to 29.9 million shares.
These results are particularly satisfying when you
consider the challenging macro-economic environment
in which we operated in fiscal 2006. At Darden, we
have a proven approach to capture the exciting long-
term opportunity in casual dining – an approach that
combines great brand management, great people and
great operations. Our approach has served us well in
the past, and we are confident it will serve us well in
any economic environment.
We are intent on building a great company, one
that continues to create superior, top quartile S&P 500
shareholder value and that will last for generations.
To do so, in the near term we must continue to deliver
industry-leading performance at Olive Garden and
Red Lobster, strengthen Bahama Breeze’s business
model and change the brand positioning of Smokey
Bones so that it appeals to consumers for a broader
range of dining occasions. Achieving each of these
objectives will require brand management excellence,
restaurant operating excellence and outstanding
operating support across our Company.
This annual report provides further highlights about
our priorities for fiscal 2007, our long-term goals, our
financial resources and a final element that’s critical to
our near and long-term success – what we are doing
to ensure we’re a valued partner to the communities in
which we operate.
With two established and trusted brands in Red
Lobster and Olive Garden that – managed effectively –
can perform well in any environment; two emerging
brands in Bahama Breeze and Smokey Bones that –
despite the ups and downs inherent in venture efforts –
have great potential; an exciting new concept test
underway in Seasons 52; leading market share in our
industry; strong cash flows and financial position;
and most importantly, the best people in the industry,
we have what it takes to capture the exciting growth
opportunity that we and others see in casual dining.
To be the best in casual dining now and for generations,
we will continue to strengthen our very valuable exist-
ing capabilities while we add important new skills.
Thank you for being a shareholder and for your
confidence in our ability to make Darden a truly
great company.
Clarence Otis, Jr.
Chairman and Chief Executive Officer
Andrew H. Madsen
President and Chief Operating Officer
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Darden Restaurants 2006 Annual Report