Red Lobster 2013 Annual Report Download - page 9

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Andrew H. Madsen
President and Chief
Operating Officer
• Total sales growth from continuing
operations in fiscal 2013 reflected a
combined U.S. same-restaurant sales
decrease of 1.3 percent for Olive Garden,
Red Lobster and LongHorn Steakhouse;
a combined U.S. same-restaurant sales
increase of 2.1 percent for our Specialty
Restaurant Group, including The Capital
Grille®, Bahama Breeze® and Seasons 52®,
but excluding Eddie V’s and Yard House;
3.6 percent of growth compared to
fiscal 2012, due to the acquisition of
40 Yard House restaurants and four
additional Yard House openings; and
4.4 percent of growth due to the net
addition of 100 other new restaurants.
• Net earnings from continuing operations
were $412.6 million in fiscal 2013, a
13.4 percent decrease from net earnings
from continuing operations of $476.5
million in fiscal 2012. Diluted net earnings
per share from continuing operations
were $3.14 in fiscal 2013, a 12.3 percent
decrease from diluted net earnings
per share of $3.58 in fiscal 2012. In
fiscal 2013, costs associated with the
Yard House acquisition reduced net
earnings from continuing operations by
$12.3 million (on an after-tax basis) and
diluted net earnings per share by $0.09.
• Olive Garden’s total sales were $3.68
billion, up 2.9 percent from fiscal 2012.
This reflected average annual sales per
restaurant of $4.6 million, the addition
of 36 net new restaurants and a U.S.
same-restaurant sales decrease of
1.5 percent.
• Red Lobster’s total sales were $2.62
billion, a 1.7 percent decrease from fiscal
2012. This reflected average annual
sales per restaurant of $3.7 million, the
addition of one net new restaurant and
a U.S. same-restaurant sales decrease
of 2.2 percent.
• LongHorn Steakhouse’s total sales were
$1.23 billion, up 10.3 percent from fiscal
2012. This reflected average annual
sales per restaurant of $3.0 million, the
addition of 44 net new restaurants and
a U.S. same-restaurant sales increase
of 1.2 percent.
• The Specialty Restaurant Group’s total
sales were $986 million, a 58.3 percent
increase from fiscal 2012, and reflected
strong growth from our legacy brands
as well as the addition of Yard House.
Total sales increased 8.5 percent at
The Capital Grille to $332 million, based
on same-restaurant sales growth of
3.3 percent and the addition of three
new restaurants. Total sales increased
12.6 percent for Bahama Breeze to
$174 million, based on same-restaurant
sales growth of 0.2 percent and the
addition of three new restaurants.
Total sales increased 23.3 percent at
Seasons 52 to $158 million, based on
same-restaurant sales growth of
1.2 percent and the addition of eight
new restaurants. Total sales increased
84.4 percent at Eddie V’s to $65 million,
based on same-restaurant growth of
0.7 percent, the addition of one new
restaurant and approximately five months
of incremental sales compared to fiscal
2012 because our acquisition of Eddie V’s
occurred in November of fiscal 2012. In
addition, the acquisition of 40 Yard
House restaurants and opening of another
four Yard House restaurants following
Darden Restaurants, Inc. 2013 Annual Report 5