EXHIBIT 99
CAUTIONARY STATEMENTS
UNDER THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
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EXHIBIT 99
CAUTIONARY STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
From time to time Darden Restaurants, Inc. (the "Company") and its
representatives may make written or oral forward-looking statements with respect
to the Company's future performance, plans and objectives, long-term goals,
forecasts of market trends and other matters. Such statements may be contained
in the Company's filings with the Securities and Exchange Commission, in the
Company's press releases, in other written communications, and in oral
statements made by or with the approval of an authorized officer of the Company.
The words or phrases "will likely result", "are expected to", "will continue",
"is anticipated", "estimate", "project" and similar expressions are intended to
identify such forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, as codified in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
as amended from time to time (the "Act").
In connection with the "safe harbor" provisions of the Act, the Company is
filing the following cautionary statements to identify important factors, risks
and uncertainties that could cause the Company's actual results to differ
materially from those projected in forward-looking statements made by, or on
behalf of, the Company. These cautionary statements are to be used as a
reference in connection with any such forward looking statements. The factors,
risks and uncertainties identified in these cautionary statements are in
addition to those contained in any other cautionary statements, written or oral,
which may be made or otherwise addressed in connection with a forward-looking
statement. Because of these factors, risks and uncertainties, the Company
cautions its audience against placing undue reliance on forward-looking
statements, which speak solely as of the date made. The Company specifically
declines to undertake any obligation to modify or revise any forward-looking
statement to take into account or otherwise reflect subsequent events or
circumstances arising after the date that the forward-looking statement was made
by, or on behalf of, the Company.
The following factors, risks and uncertainties, have affected, and may continue
to affect, the operating results of the Company and the environment within which
the Company conducts its business.
COMPETITION. The casual dining sector of the restaurant industry is intensely
competitive with respect to price, service, location, personnel, and type and
quality of food. The Company competes with national, regional and local
organizations primarily through the quality, variety and value perception of
food products offered. The number and location of restaurants, quality and
efficiency of service, attractiveness of facilities and effectiveness of
advertising and marketing programs are also important factors. The Company
anticipates that intense competition will continue in all of these areas.
ECONOMIC, MARKET AND OTHER CONDITIONS. The casual dining sector of the
restaurant industry is affected by changes in national, regional and local
economic conditions, consumer preferences and spending patterns, demographic
trends, consumer perceptions of food safety, weather, traffic patterns and the
type, number and location of competing restaurants. Factors such as inflation,
food costs, labor and benefit costs, legal claims, and the availability of
management and hourly employees also affect restaurant operations and
administrative expenses. The ability of the Company to undertake new restaurant
development, as well as improvements and additions to existing restaurants, is
affected by economic conditions, including interest rates, and government
policies impacting land and construction costs and the cost and availability of
borrowed funds.
CHANGES IN FOOD AND OTHER COSTS. The profitability of the Company is
significantly dependent on its ability to anticipate and react to changes in
food, labor, employee benefits and similar costs over which the Company has
little control. The Company is subject to the risk of possible shortages or
interruptions in supply caused by adverse weather or other conditions which
could adversely affect the availability and cost of such items. While in the
past management has generally been able to anticipate and react to changing
costs without a material adverse effect on profitability, there can be no
assurance that it will be able to do so in the future.
IMPORTANCE OF LOCATIONS. The success of the Company's restaurants is dependent
in substantial part on location. There can be no assurance that current
locations will continue to be attractive, as demographic patterns change.
Possible declines in neighborhoods where restaurants are located, or economic
conditions surrounding those neighborhoods, could result in reduced sales in
those locations.
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GOVERNMENT REGULATION. The Company is subject to various federal, state and
local laws affecting its business. The development and operation of restaurants
depend to a significant extent on the selection and acquisition of suitable
sites, which are subject to zoning, land use, environmental, traffic and other
regulations. Restaurant operations are also subject to licensing and regulation
by state and local departments relating to health, sanitation and safety
standards, federal and state labor laws (including applicable minimum wage
requirements, overtime, working and safety conditions, and citizenship
requirements), federal and state laws which prohibit discrimination and other
laws regulating the design and operation of facilities, such as the Americans
With Disabilities Act of 1990. The Company cannot predict the effect on its
operations of these laws and regulations or the future enactment of additional
legislation regulating these and other areas.
GROWTH PLANS. There can be no assurance that the Company will be able to achieve
its growth objectives or that new restaurants opened or acquired will be
profitable. The opening and success of restaurants depends on various factors,
including the identification and availability of suitable and economically
viable locations, sales levels at existing restaurants, the negotiation of
acceptable lease or purchase terms for new locations, permitting and regulatory
compliance, the ability to meet construction schedules, ability of the Company
to hire and train qualified management personnel, and general economic and
business conditions.
