Red Lobster 2013 Annual Report Download - page 17

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LongHorn is well positioned to become
a national brand with 600 to 800 res-
taurants generating $2 billion to $2.5
billion in annual sales. Today, with more
than 400 restaurants, average unit sales
volumes of $3.0 million and $1.2 billion
in annual sales, the brand is more than
halfway there. And LongHorn generates
enough cash to not only fund its own
expansion, but also reinvest in enhancing
its brand and sustainably growing
same-restaurant traffic. In fiscal 2014,
LongHorn will continue its journey
toward national penetration with
approximately 37 to 40 net new
unit openings.
With the recent additions of two popular
growth brands – Eddie V’s in luxury
seafood and Yard House in polished
casual dining – SRG is positioned to
make a significant contribution to
Darden’s annual sales and operating
profit growth. Each brand in the group
generates high average unit sales
volumes – $8.2 million at Yard House,
$7.0 million at The Capital Grille, $6.2
million at Seasons 52, $5.8 million at
Eddie V’s and $5.5 million at Bahama
Breeze – and collectively they produce
sufficient cash to fund nearly all the
group’s new restaurant growth. The
group has nearly doubled the number
of restaurants from 89 to 169 with the
addition of Eddie V’s and Yard House,
and plans to open 25 to 27 net new
restaurants in fiscal 2014.
With total sales of $986 million, SRG has
the potential to deliver 17 to 19 percent
total sales growth each year, driven by
same-restaurant sales growth of 2 to
4 percent and new restaurant growth of
15 percent. We anticipate that this level
of sales growth will contribute 35 to
40 percent of Darden’s total annual sales
growth in the future. In fiscal 2014, total
sales for the group are expected to exceed
$1.2 billion.
Seasons 52
Seasons 52’s seasonally inspired menu is
the foundation of an on-trend brand that
generates strong guest loyalty.
Eddie V’s
Eddie V’s features classic, fine dining
service in a contemporary and
vibrant atmosphere.
Bahama Breeze
Bahama Breeze is well-positioned
with strong Gen X, Millennial and
multicultural appeal.
With total sales of
$986 million, SRG has
the potential to deliver
17 to 19 percent
total sales growth
each year.
Darden Restaurants, Inc. 2013 Annual Report 13