Slide 1: Earnings Call: Fiscal 2024 Second Quarter Results
Earnings Call Fiscal 2024: Second Quarter Results December 15, 2023
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 a complete description of t
Slide 3: Fiscal 2024 Second Quarter Financial Highlights
Fiscal 2024 Second Quarter Financial Highlights $2.7 Billion 9.7% $1.84 ADJUSTED DILUTED NET EPS TOTAL SALES TOTAL SALES GROWTH FROM CONTINUING 1 OPERATIONS 1 A reconciliation of Non-GAAP measures can be found in the Additional Information section of this presentation. 3
Slide 4: Back-To-Basics Operating Philosophy and Competitive Advantages
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 5: Brilliant with the Basics
Brilliant with the Basics x 04 4 * a “f f s ZEDARDEN | af RESTAURANTS CAPITAL|
Slide 6: Ranked #1 by consumers ...
Ranked #1 by consumers ... Overall Brand Fit & Loyalty Value Food Service Atmosphere Source: Technomic, Consumer Brand Metrics, 12 months ending Sept 2023. 6
Slide 7: $5 Billion Total Sales on a trailing 52-week basis
$5 Billion Total Sales on a trailing 52-week basis // Elevates Brand Equity // Simple to Execute // Not at a Deep Discount 7
Slide 8: Thanksgiving Day Sales Records
Thanksgiving Day Sales Records 8
Slide 9: Ruth's Chris integration progress
// Top Overall rating within Technomic industry tracking tool // Team moved into Darden’s support center // 21 restaurants transitioned to Darden Direct Distribution // People Management systems live by end of calendar year // Proprietary POS rollout by end of fiscal year 9
Slide 10: Team member recognition
Eros L. Olivia J. Zemmen Y. Son of Fernando L. Daughter of Ryan J. Son of Erishan B. (Olive Garden — Burbank, CA) (LongHorn Steakhouse — Peoria, IL) (Olive Garden — Burnsville, MN) 10
Slide 11: Thank You To Our Team Members
Thank You To Our Team Members 11
Slide 12: Fiscal 2024 Second Quarter Financial Highlights
Fiscal 2024 Second Quarter Financial Highlights $2.7 Billion $1.84 ADJUSTED DILUTED NET EPS TOTAL SALES FROM CONTINUING 1 OPERATIONS 2.8% 410 BPS SAME-RESTAURANT SALES INDUSTRY SAME-RESTAURANT 2 3 GROWTH SALES OUTPERFORMANCE 1 A reconciliation of Non-GAAP measures can be found in the Additional Info
Slide 13: Fiscal 2024 Second Quarter Financial Highlights
Fiscal 2024 Second Quarter Financial Highlights $403 Million $158 Million $181 Million 1 ADJUSTED EBITDA DIVIDENDS PAID SHARE REPURCHASES 1 A reconciliation of Non-GAAP measures can be found in the Additional Information section of this presentation. 13
Slide 14: Margin Analysis vs. Prior Year
Margin Analysis vs. Prior Year 1 As Reported As Adjusted Q2 2024 Q2 2024 Q2 2024 vs Q2 2023 (bps) ($ millions) ($ millions) % of Sales Favorable/(Unfavorable) Sales $2,727.3 $2,727.3 Food and Beverage $845.8 $845.8 31.0 % 190 Restaurant Labor $880.9 $880.9 32.3 % 20 Restaurant Expenses $450.4 $450.4
Slide 15: Second Quarter Segment Performance
1 Second Quarter Segment Performance Segment Sales ($ millions) Fine Dining Other 6.3% 7.1% $643 % $318 1.5% $1,177 $1,251 $601 57 .4 $507 $515 $202 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 2 Segment Profit Margin Fine Dining Other 21.0% 18.6% 19.3% 17.8% 17.4% 14.3% 12.9% 11.
Slide 16: Updating Fiscal 2024 Annual Outlook
Updating Fiscal 2024 Annual Outlook SALES DEVELOPMENT MARGIN Total Sales Restaurant Openings Total Inflation: 3.0% to 3.5% Approximately $11.5B 50 to 55 Commodities: ~2.0% Same-Restaurant Sales 1 Capital Spending Effective Tax Rate Growth Approximately $600MM 12.0% to 12.5% 2.5% to 3.0% Adjusted Dil
Slide 17: Question & Answer Session
J DARDEN RESTAURANTS Question & Answer Session
Slide 18: Additional Information
J DARDEN RESTAURANTS Additional Information
Slide 19: Back Half Commodities Outlook
Back Half Commodities Outlook December - May FY2024 Spend by category Coverage Outlook Beef 23% 55% High single digit inflation Produce 12% 85% Mid single digit inflation 1 Dairy / Oil 11% 60% Flat Seafood 9% 90% Mid single digit deflation Chicken 8% 90% Low single digit inflation 2 Wheat 7% 65% Fla
Slide 20: Reported to Adjusted Earnings Reconciliations
Reported to Adjusted Earnings Reconciliations Q2 2024 Earnings Diluted Net Before Income Tax Net Earnings Per $ in millions, except EPS Income Tax Expense Earnings Share Reported Earnings from Continuing Operations $ 241.4 $ 29.1 $ 212.3 $ 1.76 Ruth's Chris transaction and integration related costs:
Slide 21: Reported to Adjusted Earnings Reconciliations
Reported to Adjusted Earnings Reconciliations Q2 2024 $ in millions Reported Adjustment Adjusted Net Earnings From Continuing Operations $ 212.3 $ 9.6 $ 221.9 1 Interest, Net 37.1 (1.3) 35.8 Income Tax Expense 29.1 3.2 32.3 Depreciation and Amortization 112.5 — 112.5 EBITDA $ 391.0 $ 11.5 $ 402.5 1
Slide 22: Reported to Adjusted Earnings Outlook Reconciliation
Reported to Adjusted Earnings Outlook Reconciliation 2024 Reported diluted net earnings per share from continuing operations $ 8.38 to $ 8.53 Ruth's Chris transaction and integration related costs $ 0.45 $ 0.45 Income tax expense $ (0.08) $ (0.08) Adjusted diluted net earnings per share from continu