Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q1 FY2018 Earnings Presentation
15 slides from Darden Restaurants's earnings presentation, Sep 26, 2017
Slide 1: Earnings Call Fiscal 2018: Q1 Results
EARNINGS CALL FISCAL 2018: Q1 RESULTS September 26, 2017
Slide 2: Disclaimer/Non-GAAP Information
Disclaimer/Non-GAAP Information IMPORTANT NOTICE The following slides are part of a presentation by Darden Restaurants, Inc. (the "Company") and are intended to be viewed as part of that presentation (the "Presentation"). No representation is made that the Presentation is complete. Forward-looking s
Slide 3: Fiscal First Quarter Highlights
Fiscal First Quarter Highlights DARDEN SALES ($BN) SAME-RESTAURANT SALES GROWTH1 3.3% $1.94 1.7% 1.7% $1.61 $1.64 $1.85 $1.88 $1.79 $1.93 $1.71 0.9% FY16 FY17 FY16 FY17 FY16 FY17 FY17 FY18 Q2 Q3 Q4 Q1 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 DARDEN ADJUSTED EPS2 $1.21 $1.32 $1.10 $1.18 $0.88 $0.99 $0.54 $0.6
Slide 4: Fiscal First Quarter Highlights
Fiscal First Quarter Highlights 1.9% 2.6% -1.4% SAME-RESTAURANT SALES SAME-RESTAURANT SALES SAME-RESTAURANT SALES GROWTH GROWTH GROWTH +490 BPS +560 BPS +160 BPS SAME-RESTAURANT SALES SAME-RESTAURANT SALES SAME-RESTAURANT SALES INDUSTRY OUTPERFORMANCE1 INDUSTRY OUTPERFORMANCE1 INDUSTRY OUTPERFORMANC
Slide 5: Financial Discussion
JE DARDEN RESTAURANTS Financial Discussion
Slide 6: Fiscal First Quarter Highlights
Fiscal First Quarter Highlights 12.9% 1.7% SAME-RESTAURANT SALES $0.99 ADJUSTED DILUTED EPS FROM TOTAL SALES GROWTH GROWTH1 CONTINUING OPERATIONS2 12.5% ADJUSTED DILUTED EPS GROWTH ~$80 MILLION $100 MILLION VS LAST YEAR2 DIVIDENDS PAID SHARE REPURCHASES 1 Excludes Cheddar’s Scratch Kitchen 2 EPS val
Slide 7: Margin Analysis
Margin Analysis As Reported As Adjusted Q1 2018 Q1 2018 Q1 2018 vs. Q1 2017 (bps) ($ millions) ($ millions) % of Sales Favorable/(Unfavorable) Sales $1,936.1 $1,936.1 Food & Beverage $555.2 $555.2 28.7% 10 Restaurant Labor $624.2 $624.2 32.2% (40) Restaurant Expenses $342.9 $342.9 17.7% Flat Marketi
Slide 8: Fiscal First Quarter Segment Performance
Fiscal First Quarter Segment Performance Segment Sales ($ millions) Fine Dining Other $961 $990 $420 $386 $405 $253 $114 $122 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 Segment Profit Margin1 Fine Dining Other 19.4% 20.1% 17.7% 15.6% 15.7% 15.7% 15.7% 14.8% FY17 Q1 FY18 Q1 FY17
Slide 9: Fiscal 2018 Outlook
Fiscal 2018 Outlook Total Sales Growth 11.5% to 13.0% Same-Restaurant Sales Growth1 1.0% to 2.0% Adjusted Earnings per Diluted Share2 $4.38 to $4.50 (~127 million Weighted Average Diluted Shares Outstanding) 1 Same-restaurant sales exclude Cheddar’s Scratch Kitchen 2 EPS values adjusted for special
Slide 10: Thank you to our 175,000 Team Members!
Thank you to our 175,000 Team Members! 10
Slide 11: Additional Information
JE DARDEN RESTAURANTS Additional Information
Slide 12: Commodities Outlook – Second Quarter Fiscal 2018
Commodities Outlook – Second Quarter Fiscal 2018 Sep-Nov FY2018 Annual Spend by Category Coverage Outlook Low Single Digit Beef 19% 70% Deflation Low Single Digit Produce 13% 80% Inflation High Single Digit Dairy / Oil1 10% 55% Inflation Low Single Digit Seafood 10% 85% Inflation Wheat2 7% 95% Flat
Slide 13: Reported to Adjusted Earnings Reconciliations
Reported to Adjusted Earnings Reconciliations Fiscal 2017 Fiscal 2018 Q4 2017 Q1 2018 Earnings Income Diluted Earnings Income Diluted Before Tax Net Before Tax Net Income Expense Net Earnings Income Expense Net Earnings $ in millions, except EPS Tax (Benefit) Earnings Per Share Tax (Benefit) Earning
Slide 14: Reconciliation of Fiscal 2018 Annual Reported to Adjusted Earnings Outlook
Reconciliation of Fiscal 2018 Annual Reported to Adjusted Earnings Outlook Fiscal 2018 Reported diluted net earnings per share from continuing operations $4.30 to $4.44 Cheddar's integration expenses 0.13 0.10 Income tax expense (0.05) (0.04) Adjusted diluted net earnings per share from continuing o
Slide 15: Reported to Adjusted EBIT Margin and Earnings Reconciliations
Reported to Adjusted EBIT Margin and Earnings Reconciliations Quarter Ended Change (in millions) 8/27/2017 8/28/2016 (bps) Sales - as reported $ 1,936.1 $ 1,714.4 Earnings from continuing operations - as reported $ 121.3 $ 111.1 I nterest, net - as reported 15.0 9.9 I ncome taxes - as reported 38.2