Red Lobster 2010 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2010 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.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

LETTER TO SHAREHOLDERS
1982
The first Olive Garden opens on International
Drive in Orlando.
1990
The Capital Grille debuts at Union Station in
Providence, Rhode Island.
1995
Named for founder Bill Darden, Darden
Restaurants, Inc. is spun off from General
Mills as a publicly traded company on the
New York Stock Exchange.
1996
The first Bahama Breeze opens on
International Drive in Orlando.
2010 Financial Highlights
Fiscal Year Ended
(In Millions, Except Per Share Amounts) May 30, 2010 May 31, 2009 May 25, 2008
Sales $ 7,113.1฀ $฀7,217.5฀ $฀6,626.5
Earnings from Continuing Operations $ 407.0฀ $฀ 371.8฀ $฀ 369.5
Earnings (Loss) from Discontinued Operations $ (2.5)฀ $฀ 0.4฀ $฀ 7.7
Net Earnings $ 404.5฀ $฀ 372.2฀ $฀ 377.2
Earnings per Share from Continuing Operations:
Basic $ 2.92฀ $฀ 2.71฀ $฀ 2.63
Diluted $ 2.86฀ $฀ 2.65฀ $฀ 2.55
Net Earnings per Share:
Basic $ 2.90฀ $฀ 2.71฀ $฀ 2.69
Diluted $ 2.84฀ $฀ 2.65฀ $฀ 2.60
Dividends Paid per Share $ 1.00฀ $฀ 0.80฀ $฀ 0.72
Average Shares Outstanding:
Basic 139.3฀ ฀ 137.4฀ ฀ 140.4
Diluted 142.4 140.4 145.1
financial and operating measures. As we look forward, we
believe the strategic framework that is the foundation for our
strong performance remains as relevant as ever.
OUR LONG-TERM SALES AND
EARNINGS GROWTH TARGETS
Given the strength of the full-service restaurant industry, our
brand-building expertise and our brand support platform, the
long-term sales and earnings growth targets we established
for the Company five years ago continue to be appropriate.
Our goal is to sustain long-term annualized sales growth of
7฀percent฀to฀9฀percent฀and฀translate฀that฀into฀diluted฀net฀earn-
ings per share growth of 10 percent to 15 percent. This is the
opportunity effective multi-brand operators have in the full-
service restaurant industry over the long term. And we are
excited that, with the modest improvement in economic and
industry conditions that we and others expect, fiscal 2011
will be a year when we can return to our long-term range
for earnings growth and approach our long-term range for
sales growth.
Darden’s Next 15 Years –
Where You Can Expect Change
OUR EVOLVING BRANDS
Our portfolio of brands is different today than 15 years ago,
which฀reects฀several฀new฀brand฀launches,฀dispositions฀and฀
acquisitions along the way. While we do not know how the
portfolio will differ 15 years from now, we suspect it will indeed
be different. What we do know, though, is each of our current
brands is meaningfully different today than in 1995. And each
brand will be much different 15 years from now as each
continues to evolve to remain in sync with its guests’ changing
needs and expectations. Both Red Lobster’s brand refresh
initiative and LongHorn Steakhouse’s “roadhouse” to “ranch
house” transition are illustrative of this. In each case, there
have been meaningful changes in what and how we serve
our guests, with more changes to come – including an
acceleration in the physical remodeling of restaurants.
4 DARDEN RESTAURANTS, INC. | 2010 ANNUAL REPORT