EXHIBIT 99
Press Release dated December 20, 2000, of Darden Restaurants, Inc.
DARDEN RESTAURANTS REPORTS RECORD SECOND QUARTER EARNINGS
PER DILUTED SHARE OF 24 CENTS, A 33% INCREASE OVER LAST YEAR
ORLANDO, FL -Darden Restaurants, Inc. today reported record earnings
per diluted share of 24 cents for its second quarter, which ended
November 26, 2000. This represents a 33% increase in earnings per
diluted share from prior year and the 14th consecutive period of
quarterly earnings growth above 15%. Sales for the second quarter were
$932.0 million, a 9.9% increase over prior year. These results were
driven by significant same-restaurant sales growth at Red Lobster and
Olive Garden. Last year, second quarter earnings per diluted share were
18 cents on sales of $848.2 million. "This was another fantastic
quarter," said Joe R. Lee, Chairman and Chief Executive Officer.
"We're excited about the favorable results at Red Lobster and Olive
Garden. We're also delighted with how well our emerging brands, Bahama
Breeze and Smokey Bones BBQ, continue to be received. Solid core
businesses and promising new concepts give us an excellent platform for
expansion. These strengths enable us to capitalize on the powerful
long-term growth trends in casual dining and respond well to any
near-term challenges."
Highlights for the quarter ended November 26, 2000, include the following:
o Earnings after tax in the second quarter were $29.5 million, or 24
cents per diluted share, on sales of $932.0 million. Last year,
earnings after tax were $24.5 million, or 18 cents per diluted share,
on sales of $848.2 million.
o Red Lobster led the Company with an 8.4% same-restaurant sales
increase in the quarter, its 12th consecutive quarter of
same-restaurant sales gains.
o Olive Garden reported its 25th consecutive quarter of same-restaurant
sales growth with a 7.2% increase.
o Bahama Breeze opened another restaurant, its 15th, during the quarter
and expects to open nine more restaurants this fiscal year.
o Smokey Bones BBQ opened two restaurants during the quarter, bringing
the total number in operation to four in three different markets.
o The Company purchased 1.1 million shares of its common stock in the
quarter.
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Operating Highlights
RED LOBSTER'S second quarter sales of $503.1 million were 8.9% above prior year,
due primarily to its 8.4% increase in same-restaurant sales - the 12th
consecutive quarter of same-restaurant sales growth for Red Lobster. Last year,
Red Lobster reported second quarter same-restaurant sales growth of 8.2%. This
year's sales improvement resulted from increased same-restaurant guest counts
and menu mix changes as guests responded favorably to exciting new items and the
successful "30-Shrimp for $10.99" promotional offering. With the increased sales
and lower labor and restaurant expenses as a percent of sales, Red Lobster
achieved strong double-digit operating profit growth for the quarter.
"The second quarter results reflect continued improvement in virtually every
aspect of our business," said Dick Rivera, President of Red Lobster. "We are
introducing appealing new menu items with great flavors, preparing everything we
offer more consistently and providing our guests with greater service excellence
that reflects `hospitality you can touch.' I am pleased with the progress we're
making toward our ultimate goal, which is to be the best in casual dining."
OLIVE GARDEN'S second quarter sales of $407.4 million were 8.4% above prior
year, propelled by its 7.2% same-restaurant sales increase for the quarter. This
is the 25th consecutive quarter of same-restaurant sales growth for Olive
Garden, and comes on top of a 6.8% increase last year. The continued sales
improvement reflects terrific acceptance of Olive Garden's new menu, a higher
check average due to menu mix and pricing, good response to proven promotions
like "Never Ending Pasta Bowl" and outstanding wine sales increases exceeding
20% growth. The increased sales, along with lower labor and restaurant expenses
as a percent of sales, combined to produce double-digit operating profit growth
and second quarter profits.
"We're proud of our results for the quarter," said Brad Blum, President of Olive
Garden. "They represent our team's progress in elevating critical elements of
the dining experience we provide. Our family of local restaurants continues to
get better and better at delighting every guest with a genuine Italian dining
experience that includes fresh, simple and delicious Italian food, great wines
and superior service. We are committed to excellence in everything we do, and to
making everyone feel welcome, special and appreciated."
BAHAMA BREEZE continued to produce impressive sales results during the quarter,
and opened one new restaurant in Oklahoma City, OK. Two additional restaurants
have opened since the end of the quarter - one on November 27 in Lake Buena
Vista (Orlando)and the other on December 18 in Pembroke Pines (Miami). At least
seven more openings are scheduled for this fiscal year. These new restaurants
are planned for Detroit (2), Cincinnati, Rochester, NY, Dallas, Las Vegas and
Phoenix.
"We have established a very appealing experience," said Gary Heckel, President
of Bahama Breeze, "one that is based on a serious passion for creating great
food from scratch, hand-crafted drinks and incredible service. We aim to provide
a memorable two-hour island vacation that leaves our guests with a burning
desire to return. Bahama Breeze is enjoying very strong revenues per restaurant
in a variety of markets. Sales at restaurants in major markets are
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annualizing to an average that's between $6.0 million and $6.5 million, and
restaurants in mid-size markets are annualizing to an average that's between
$4.5 million and $5.0 million."
SMOKEY BONES BBQ opened two more restaurants in the second quarter, bringing the
total number in operation to four. The two newest are located in Columbus, OH,
and Albany, NY, the first test markets outside of Orlando. "With the continued
strength of the initial two restaurants in Orlando and exceptional early success
of the Columbus and Albany restaurants, we are moving to the next test phase,"
said Joe Lee, Darden's Chairman and CEO. "We plan to open another five Smokey
Bones BBQ restaurants this fiscal year. Like the first four, these new openings
will be conversions of our own existing restaurant properties."
Other Actions
Darden continued its buyback of common stock, purchasing 1.1 million shares in
the second quarter. Cumulatively, since the initial authorization of its
repurchase program in December 1995, the Company has repurchased 48.6 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
11/28/99 11/26/00
618 Red Lobster USA 620
32 Red Lobster Canada 32
650 Total Red Lobster 652
458 Olive Garden USA 463
5 Olive Garden Canada 5
463 Total Olive Garden 468
8 Bahama Breeze 15
1 Smokey Bones BBQ 4
1,122 Total Restaurants 1,139
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