Red Lobster 2014 Annual Report Download - page 7

2014 Annual Report 5
2014 Financial Review
6 Management’s Discussion and Analysis of Financial Condition
and Results of Operations
20 Report of Management’s Responsibilities
20 Management’s Report on Internal Control Over
Financial Reporting
21 Report of Independent Registered Public Accounting Firm
on Internal Control Over Financial Reporting
22 Report of Independent Registered Public Accounting Firm
23 Consolidated Statements of Earnings
23 Consolidated Statements of Comprehensive Income
24 Consolidated Balance Sheets
25 Consolidated Statements of Changes in Stockholders’ Equity
26 Consolidated Statements of Cash Flows
27 Notes to Consolidated Financial Statements
55 Five-Year Financial Summary
IMPORTANT ADDITIONAL INFORMATION
The Company, its directors and certain of its executive officers are participants in the solicitation of proxies from stockholders in connection with the Company’s 2014
annual meeting of stockholders (the “Annual Meeting”). Information regarding the names and interests of such participants in the Company’s proxy solicitation is set
forth in the Company’s preliminary proxy statement, filed with the SEC on July 31, 2014, as amended, and the Company revocation solicitation statement, filed with
the SEC on April 1, 2014. Additional information can be found in the Company’s Annual Report on Form 10-K for the year ended May 25, 2014, filed with the SEC on
July 18, 2014. These documents are available free of charge at the SEC’s website at www.sec.gov.
The Company will be mailing a definitive proxy statement and proxy card to the stockholders entitled to vote at the Annual Meeting. WE URGE INVESTORS TO READ ANY
PROXY STATEMENT (INCLUDING ANY SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY MAY FILE WITH THE SEC CAREFULLY
AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders will be able to obtain, free of
charge, copies of any proxy statement and any other documents filed by the Company with the SEC in connection with the proxy solicitation at the SEC’s website at
www.sec.gov. In addition, copies will also be available at no charge at the Investors section of the Company’s website at http://investor.darden.com/investors/
investor-relations/default.aspx.
INFORMATION ABOUT FORWARD-LOOKING STATEMENTS
Forward-looking statements in this communication regarding our expected ability to retire outstanding debt, improve our credit metrics, improve sales and earnings
growth, reduce earnings volatility, maintain our dividend policy and buy back stock and execute on our brand renaissance program and all other statements that are
not historical facts, including without limitation statements concerning our future economic performance, plans or objectives and expectations regarding the sale of
Red Lobster, benefits to Darden and its shareholders from such sale and related matters, are made under the Safe Harbor provisions of the Private Securities Litigation
Reform Act of 1995. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such
statements to reflect events or circumstances arising after such date except as required by law. We wish to caution investors not to place undue reliance on any
such forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to materially differ from
those anticipated in the statements. The most significant of these uncertainties are described in Darden’s Form 10-K, Form 10-Q and Form 8-K reports (including all
amendments to those reports). These risks and uncertainties include the ability to achieve Darden’s strategic plan to enhance shareholder value, including realizing
the expected benefits from the sale of Red Lobster, actions of activist investors and the cost and disruption of responding to those actions, including any proxy contest
for the election of directors at our annual meeting, food safety and foodborne illness concerns, litigation, unfavorable publicity, risks relating to public policy changes and
federal, state and local regulation of our business including healthcare reform, labor and insurance costs, technology failures, failure to execute a business continuity
plan following a disaster, health concerns including virus outbreaks, intense competition, failure to drive sales growth, our plans to expand our smaller brands Bahama
Breeze, Seasons 52 and Eddie V’s, a lack of suitable new restaurant locations, higher-than-anticipated costs to open, close, relocate or remodel restaurants, a failure to
execute innovative marketing tactics and increased advertising and marketing costs, a failure to develop and recruit effective leaders, a failure to address cost pressures,
shortages or interruptions in the delivery of food and other products, adverse weather conditions and natural disasters, volatility in the market value of derivatives,
economic factors specific to the restaurant industry and general macroeconomic factors including unemployment and interest rates, disruptions in the financial markets,
risks of doing business with franchisees and vendors in foreign markets, failure to protect our service marks or other intellectual property, impairment in the carrying
value of our goodwill or other intangible assets, a failure of our internal controls over financial reporting, or changes in accounting standards, an inability or failure to
manage the accelerated impact of social media and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and
Exchange Commission.