Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q1 2020 Earnings Presentation
16 slides from Darden Restaurants's earnings presentation, Sep 18, 2019
Slide 1: Earnings Call Fiscal 2020: Q1 Results
EARNINGS CALL FISCAL 2020: Q1 RESULTS September 19, 2019
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: Darden First Quarter Highlights
Darden First Quarter Highlights SALES ($B) SAME-RESTAURANT SALES GROWTH 2.8% 2.1% 1.6% $2.13 $2.25 $2.13 $2.23 $2.06 $2.13 $1.88 $1.97 0.9% FY18 FY19 FY18 FY19 FY18 FY19 FY19 FY20 Q2 Q3 Q4 Q1 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 ADJUSTED EPS1 $1.71 $1.80 $1.76 $1.39 $1.34 $1.38 $0.73 $0.92 FY18 FY19 FY18
Slide 4: First Quarter Brand Highlights
First Quarter Brand Highlights 3.6% 2.2% SAME-RESTAURANT SALES TOTAL SALES GROWTH GROWTH 9 ~340 BPS SAME-RESTAURANT SALES NET NEW RESTAURANTS INDUSTRY VS. LY OUTPERFORMANCE1 1 Industry excluding Darden brands, specifically Olive Garden and LongHorn Steakhouse. 4
Slide 5: First Quarter Brand Highlights
First Quarter Brand Highlights 4.6% 2.6% TOTAL SALES GROWTH SAME-RESTAURANT SALES GROWTH 8 ~380 BPS SAME-RESTAURANT SALES NET NEW RESTAURANTS INDUSTRY VS. LY OUTPERFORMANCE1 1 Industry excluding Darden brands, specifically Olive Garden and LongHorn Steakhouse. 5
Slide 6: First Quarter Brand Highlights
First Quarter Brand Highlights -2.0% -5.4% TOTAL SALES GROWTH SAME-RESTAURANT SALES 1 Industry excluding Darden brands, specifically Olive Garden and LongHorn Steakhouse. 6
Slide 7: Thank you to our 185,000 Team Members!
Thank you to our 185,000 Team Members! 7
Slide 8: Financial Discussion
JE DARDEN RESTAURANTS Financial Discussion
Slide 9: Darden First Quarter Highlights
Darden First Quarter Highlights 3.5% 0.9% SAME-RESTAURANT SALES $1.38 DILUTED NET EPS FROM TOTAL SALES GROWTH GROWTH CONTINUING OPERATIONS 3.0% DILUTED NET EPS GROWTH VS $108 MILLION $95 MILLION LAST YEAR DIVIDENDS PAID SHARE REPURCHASES 9
Slide 10: Margin Analysis
Margin Analysis Fiscal Q1 2020 vs. PY (bps) ($ millions) % of Sales Favorable/(Unfavorable) Sales $2,133.9 Food and Beverage $603.3 28.3% 0 Restaurant Labor $703.8 33.0% 0 Restaurant Expenses $372.4 17.5% (10) Marketing Expenses $68.7 3.2% 0 Restaurant-Level EBITDA $385.7 18.1% (10) General and Admi
Slide 11: First Quarter Restaurant Labor % of Sales
First Quarter Restaurant Labor % of Sales 1.3% 33.0% 0.7% 33.0% 0.5% 0.1% Fiscal 2020 Inflation Price Leverage Mix/Productivity Mark to Market Fiscal 2019 Green is a favorable variance to prior year, red is unfavorable Values may not foot due to rounding 11
Slide 12: First Quarter Segment Performance
First Quarter Segment Performance Segment Sales ($ millions) Fine Dining Other $1,052 $1,090 $430 $450 $449 $457 $130 $136 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 Segment Profit Margin1 Fine Dining Other 20.6% 21.0% 16.6% 16.5% 15.6% 14.9% 15.1% 14.1% FY19 Q1 FY20 Q1 FY19 Q1
Slide 13: Reaffirming Fiscal 2020 Financial Outlook
Reaffirming Fiscal 2020 Financial Outlook SALES MARGIN Total Sales Growth1 Total Inflation: ~2.5% 5.3% to 6.3% Commodities: 1% to 2% Labor: 3.5% to 4.5% Same-Restaurant Sales Growth Effective Tax Rate 1% to 2% 10% to 11% Restaurant Openings Lease Accounting EPS ~50 Gross, ~44 Net Impact -$0.05 Capit
Slide 14: Additional Information
JE DARDEN RESTAURANTS Additional Information
Slide 15: Second Quarter Commodities Outlook
Second Quarter Commodities Outlook Sep-Nov FY2020 Annual Spend by Category Coverage Outlook Beef 19% 80% Low Single Digit Inflation Produce 13% 75% Low Single Digit Inflation Dairy / Oil1 10% 35% Low Single Digit Inflation Seafood 10% 90% Low Single Digit Inflation Chicken 7% 90% Low Single Digit In
Slide 16: Reported to Adjusted Earnings Reconciliations
Reported to Adjusted Earnings Reconciliations Fiscal 2018 Q2 2018 Q3 2018 Q4 2018 Earnings Income Diluted Earnings Income Diluted Earnings Income Diluted Before Tax Net Before Tax Net Before Tax Net Income Expense Net Earnings Income Expense Net Earnings Income Expense Net Earnings $ in millions, ex