EXHIBIT 99.1
Press Release dated September 19, 2000, of Darden Restaurants, Inc.
DARDEN RESTAURANTS REPORTS RECORD QUARTER SALES
AND EARNINGS PER SHARE
ORLANDO, FL - Darden Restaurants, Inc. today reported that continued robust
same-restaurant sales growth led to record quarterly sales of $1.02 billion for
the period ended August 27, 2000. Earnings per diluted share also reached a new
quarterly high of 46 cents, a 31.4 % increase from prior year.
"This quarter's results are a fantastic start to an exciting new phase of
growth for Darden," said Joe R. Lee, Chairman and Chief Executive Officer. "The
impressive same-restaurant sales trends at Red Lobster and Olive Garden reflect
our restaurant teams' terrific success focusing on operating excellence and
delivering outstanding dining experiences. Offering our guests consistently
great experiences is the key to our ongoing same-restaurant sales growth. And,
we intend to capture an even greater share of the growing casual dining business
by combining solid sales growth at existing restaurants with a meaningful
increase in the number of restaurants we operate. We believe continuing
opportunities for Red Lobster and Olive Garden, plus the excitement taking place
at Bahama Breeze and potential opportunity we see emerging at Smokey Bones BBQ,
mean the best is yet to come for Darden Restaurants."
Highlights for the quarter ended August 27, 2000, included the following:
o Earnings after tax in the first quarter were $56.9 million, or 46 cents
per diluted share, on sales of $1.02 billion. Last year, earnings after
tax were $47.3 million, or 35 cents per diluted share, on sales of
$929.4 million.
o Darden total sales of $1.02 billion for the quarter represent a strong
9.6% increase over prior year.
o Olive Garden led the Company with an impressive 8.7% increase in
same-restaurant sales for the quarter, making it the 24th consecutive
quarter of same-restaurant sales increases.
o Red Lobster reported its 11th consecutive quarter of same-restaurant
sales growth, continuing to outpace the casual dining industry with a
6.2% increase.
o Bahama Breeze and Smokey Bones BBQ each posted sales and restaurant level
earnings that exceeded the Company's expectations.
o The Company purchased 3.4 million shares of its common stock in the
quarter.
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Operating Highlights
OLIVE GARDEN'S first quarter sales of $436.1 million were 10.1% above prior
year, and same-restaurant sales grew 8.7% - an impressive increase coming on top
of the 8.1% increase in last year's first quarter. These strong sales were
driven by same-restaurant guest count growth, excellent response to a new menu
with delicious dishes from the Culinary Institute and Olive Garden restaurant in
Tuscany, higher wine sales and, importantly, sales from new restaurants that
feature Olive Garden's distinctive Tuscan Farmhouse design. The increased sales,
combined with lower labor, restaurant and selling, general and administrative
expenses as a percent of sales, generated a strong double-digit operating profit
increase and record quarterly profit.
We're proud of achieving the highest financial returns in our history and
really excited about the future growth potential of our family of local
restaurants" said Brad Blum, President of Olive Garden. "Our restaurant General
Managers and their teams are focused on delighting every guest with fresh,
simple and delicious Italian food, offering a variety of great wines and
providing extraordinary service. Olive Garden's passionate commitment to
excellence and to a genuine Italian dining experience gives us great confidence
that the best is yet to come."
RED LOBSTER'S first quarter sales of $556.8 million were 6.6% above prior
year with most of the growth produced by a 6.2% increase in same-restaurant
sales. This was well above estimated same-restaurant sales growth in the casual
dining category for the period and extended Red Lobster's string of comparable
sales gains to 11 consecutive quarters. The sales improvement was driven by both
increased same-restaurant traffic and menu mix changes as guests responded
favorably to new menu items with great new flavors and to successful promotional
offerings. Red Lobster saw a double-digit increase in operating profit for the
quarter due to the increased sales and lower labor and restaurant expenses as a
percent of sales.
"Our first quarter results are a wonderful sign that we are doing a better
and better job of delivering for our guests," said Dick Rivera, President of Red
Lobster. "Our crew is serious about providing our guests hospitality they can
taste and touch. Our vision remains the same - we want to be a world-class
company of seafood restaurants. We will stay focused on improving the knowledge
and skills of our crew, building our leadership capabilities and achieving even
greater consistency in our restaurants as we seek to become the best in casual
dining."
BAHAMA BREEZE operated 14 restaurants in 11 markets with exceptional sales
and traffic at each location. Seven new restaurants are under construction, and
a total of twelve are expected to open during fiscal 2001. The seven restaurants
under construction are in Oklahoma City, Miami, Lake Buena Vista (FL), Detroit,
Cincinnati, Dallas and Las Vegas.
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SMOKEY BONES BBQ delivered strong sales and guest satisfaction at the
initial two restaurants in Orlando. A third location opened on September 18,
2000 in Columbus, OH, and is the first test restaurant outside of Orlando. A
fourth restaurant is under construction in upstate New York. To date, all the
restaurants are conversions of previously closed Red Lobster and Olive Garden
locations, continuing Darden's strategy of using development of Smokey BBQ as an
opportunity to optimize the Company's existing real estate portfolio.
Other Actions
Darden continued its buyback of common stock, purchasing 3.4 million shares
in the first quarter. Cumulatively, since the initial authorization of its
repurchase program in December 1995, the Company has repurchased 47.4 million
shares from a total authorization of 64.6 million shares.
Darden Restaurants Inc., in Orlando, FL, owns and operates Red Lobster,
Olive Garden, Bahama Breeze and Smokey Bones BBQ restaurants.
Forward-looking statements in this news release, if any, are made under the
Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.
Certain important factors could cause results to differ materially from those
anticipated by the forward-looking statements, including the impact of changing
economic or business conditions, the impact of competition, the availability of
favorable credit and trade terms, the impact of changes in the cost or
availability of food and real estate, government regulation, construction costs,
weather conditions and other factors discussed from time to time in reports
filed by the Company with the Securities and Exchange Commission.
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DARDEN RESTAURANTS, INC.
NUMBER OF RESTAURANTS
8/29/1999 8/27/2000
617 Red Lobster USA 621
34 Red Lobster Canada 32
651 Total Red Lobster 653
459 Olive Garden USA 464
5 Olive Garden Canada 5
464 Total Olive Garden 469
6 Bahama Breeze 14
0 Smokey Bones BBQ 2
1,121 Total Restaurants 1,138
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