Red Lobster 2008 Annual Report Download - page 4

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2008 FINANCIAL HIGHLIGHTS
Fiscal Year Ended
(In Millions, Except Per Share Amounts) May 25, 2008 May 27, 2007 May 28, 2006
Sales $ 6,626.5 $ 5,567.1 $ 5,353.6
Earnings from Continuing Operations $ 369.5 $ 377.1 $ 351.8
Earnings (Loss) from Discontinued Operations $ 7.7 $ (175.7) $ (13.6)
Net Earnings $ 377.2 $ 201.4 $ 338.2
Earnings per Share from Continuing Operations:
Basic $ 2.63 $ 2.63 $ 2.35
Diluted $ 2.55 $ 2.53 $ 2.24
Net Earnings per Share:
Basic $ 2.69 $ 1.40 $ 2.26
Diluted $ 2.60 $ 1.35 $ 2.16
Dividends Paid per Share $ 0.72 $ 0.46 $ 0.40
Average Shares Outstanding:
Basic 140.4 143.4 149.7
Diluted 145.1 148.8 156.9
FISCAL 2009 OUTLOOK
For Darden, fi scal 2009 will be a year of strategic continuity. Our
strategy and the strategic goals we established at the time of the
Darden leadership transition nearly four years ago remain the same.
We also continue to believe that successfully executing that strategy
involves transforming the Company. Changing the brand portfolio
to include LongHorn Steakhouse and The Capital Grille is the most
obvious step in that direction. And, continuing to integrate these
brands successfully so that we fully realize their potential is a priority.
Beyond integration, we are focused on the priorities that helped
prepare the organization operationally and culturally for the
acquisition and integration of new brands. These priorities center
on increasing collaboration across the Company in order to make
better use of our considerable brand-building expertise, increasing
the effi ciency and effectiveness of the brand support we provide and
enriching the professional and personal experience we offer our
employees – all of which complement and support the brand- specifi c
priorities of our operating companies.
These brand-specifi c priorities can be summarized as follows:
• Olive Garden – Continue new restaurant growth while maintaining
same-restaurant sales excellence and growth.
• Red Lobster – Solidify and broaden appeal in order to grow same-
restaurant guest counts and support new restaurant growth.
• LongHorn Steakhouse – Regain sustainable same-restaurant guest-
count growth while delivering value creating new restaurant growth
on a path to national penetration and the advantages that come with it.
• The Capital Grille – Regain guest-count momentum while developing
the organizational capacity to sustain elevated new restaurant growth
with excellence.
• Bahama Breeze – Deliver on the brand’s potential by enhancing
same-restaurant excellence while preparing for meaningful new
restaurant growth.
• Seasons 52 – Successfully transition from a developmental orienta-
tion and model to a proven concept geared to drive new restaurant
growth with excellence.
CONCLUSION
We are convinced that Darden’s success as a public company since
our spin-off from General Mills in 1995 and the enviable competitive
position we currently enjoy are the product of a strong collection of
brands, great brand building and great brand support, all resting on
a solid foundation that includes competitively superior leadership
and a supportive and motivating culture. We continue to believe,
however, that to achieve our ultimate aim of building a great com-
pany – one that is the best in our industry now and for generations –
meaningful change in each of these aspects of our organization is
essential. We are committed to the transformation that is required,
and we see the progress we made in fi scal 2008 as powerful evidence
of that commitment.
We believe our plan for fi scal 2009 reinforces and extends the
progress made to date in transforming the Company. And in doing
so, it puts Darden even more confi dently on the path to sustaining
strong profi table sales growth, becoming a special place and real-
izing our potential for greatness.
Thank you for being a shareholder and placing your trust in
our ability to build a great company that will perform strongly and
ethically for generations.
Clarence Otis, Jr.,
Chairman and Chief Executive Offi cer
Andrew H. Madsen,
President and Chief Operating Offi cer