Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q2 2022 Earnings Presentation
20 slides from Darden Restaurants's earnings presentation, Dec 17, 2021
Slide 1: Earnings Call: Fiscal 2022 Second Quarter Results
Earnings Call Fiscal 2022: Second Quarter Results December 17, 2021
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: A full-service restaurant company with Back-To-Basics philosophy
A full-service restaurant company with … 1 Be financially successful through great people consistently delivering outstanding Mission food, drinks and service in an inviting atmosphere making every guest loyal. 4 Significant Scale Extensive Data & Insights Rigorous Strategic Planning Results- Orient
Slide 4: Helping to Fight Hunger
Helping to Fight Hunger $2.5 Million Provided Trucks for 15 Food Banks 4
Slide 5: Thank You To Our Team Members
Thank You To Our Team Members 5
Slide 6: Our People
Our People Our Team Members | Results-Oriented Culture 6
Slide 7: Product: Our Supply Chain
Product Our Supply Chain | Significant Scale 7
Slide 8: To Go Sales Benefit From Digital Platform
To Go Sales Benefit From Digital Platform Digital Transactions 60% of Off-Premise Sales | 11% of Total Sales 8
Slide 9: Value-Creating New Restaurants
Value-Creating New Restaurants 12 New Restaurants | 11 States 9
Slide 10: Thank You To Our Team Members
Thank You To Our Team Members 10
Slide 11: Fiscal 2022 Second Quarter Financial Highlights
Fiscal 2022 Second Quarter Financial Highlights $2.3Billion 37.2% TOTAL SALES TOTAL SALES GROWTH 34.4% $1.48 SAME-RESTAURANT SALES DILUTED NET EPS FROM GROWTH CONTINUING OPERATIONS 11
Slide 12: Fiscal 2022 Second Quarter Financial Highlights
Fiscal 2022 Second Quarter Financial Highlights $143Million $266Million DIVIDENDS PAID SHARE REPURCHASES $335Million 1 EBITDA 1 A reconciliation Non-GAAP measures can be found in the Additional Information section of this presentation. 12
Slide 13: Margin Analysis
Margin Analysis Fiscal Q2 2022 ($ millions) % of Sales vs Q2 2020* (bps) Favorable/(Unfavorable) Sales $2,272.2 Food and Beverage $694.1 30.5 % (220) Restaurant Labor $744.8 32.8 % 90 Restaurant Expenses $385.0 16.9 % 130 Marketing Expenses $21.9 1.0 % 230 Restaurant-Level EBITDA $426.4 18.8 % 230 G
Slide 14: Second Quarter Segment Performance
Second Quarter Segment Performance 1 Fiscal 2022 vs. Fiscal 2020 to compare to Pre-COVID results Segment Sales ($ millions) Fine Dining Other 3% 5.2% 22. 6.6% $1,077 $547 $1,024 $447 8% $431 $459 21. $189 $155 FY20 Q2 FY22 Q2 FY20 Q2 FY22 Q2 FY20 Q2 FY22 Q2 FY20 Q2 FY22 Q2 2 Segment Profit Margin Fi
Slide 15: Updated Fiscal 2022 Annual Outlook
Updated Fiscal 2022 Annual Outlook SALES DEVELOPMENT MARGIN Total Sales Restaurant Openings Total Inflation: ~5.5% $9.55B to $9.7B 35 to 40 Commodities: 7% to 8% Labor: 6% to 6.5% Same-Restaurant Sales Capital Spending 2 Growth ~$425 million EBITDA 29% to 31% $1.55B to $1.6B Total Sales Growth vs. E
Slide 16: Question & Answer Session
J DARDEN RESTAURANTS Question & Answer Session
Slide 17: Additional Information
J DARDEN RESTAURANTS Additional Information
Slide 18: Commodities Outlook – Third & Fourth Quarter
Commodities Outlook – Third & Fourth Quarter December - May FY2022 Annual spend by category Coverage Outlook Beef 22% 25% High single digit inflation Produce 12% 80% Mid single digit inflation 1 Dairy / Oil 10% 55% High single digit inflation Seafood 9% 75% Low double digit inflation Chicken 8% 70%
Slide 19: EBITDA Reconciliations
EBITDA Reconciliations Q2 Fiscal 2022 EBITDA Reconciliation $ in millions Net Earnings $193 Interest, Net 17 Income Tax Expense 33 Depreciation and Amortization 92 EBITDA $335 Fiscal 2022 EBITDA Outlook Reconciliation $ in millions Net Earnings $955 to $990 Interest, Net 65 65 Income Tax Expense 154
Slide 20: Reconciliation of Adjusted Earnings
Reconciliation of Adjusted Earnings Q2 2020 ended 11/24/2019 Earnings Income Before Tax Income Expense Net $ in millions Sales Tax (Benefit) Earnings Sales - as reported $2,056.4 Reported Earnings from Continuing Operations $(6.2) $(31.6) $25.4 % of Sales (0.3)% (1.5)% 1.2 % 1 Adjustments 2 Pension