Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q3 2024 Earnings Presentation
22 slides from Darden Restaurants's earnings presentation, Mar 21, 2024
Slide 1: Earnings Call: Fiscal 2024 Third Quarter Results
Earnings Call Fiscal 2024: Third Quarter Results March 21, 2024
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 Third Quarter Financial Highlights
Fiscal 2024 Third Quarter Financial Highlights $3.0 Billion 6.8% $2.62 ADJUSTED DILUTED NET EPS TOTAL SALES TOTAL SALES GROWTH FROM CONTINUING OPERATIONS1 1 A reconciliation of Non-GAAP measures can be found in the Additional Information section of this presentation. 3
Slide 4: Back-To-Basics Mission and Competitive Advantages
A full-service restaurant company with … 1 Be financially successful through great people consistently delivering outstanding food, drinks and service in an inviting atmosphere making every guest loyal. Mission 4 Significant Scale Extensive Data & Insights Rigorous Strategic Planning Results- Orient
Slide 5: Brilliant with the Basics
Brilliant with the Basics EDARDEN | iis) Chedde Sa RESTAURANTS
Slide 6: Darden Brands #1 for Overall Experience
Darden Brands #1 for Overall Experience Casual Dining Polished Casual Fine Dining Source: Technomic, Consumer Brand Metrics, 12 months ending Dec 2023 6
Slide 7: Best Practices Awards Winners
Best Practices Awards Winners Source: Black Box Intelligence 7
Slide 8: People Management and Distribution Updates
// People Management systems migration complete // All restaurants transitioned to Darden Direct Distribution // Proprietary POS rollout will be complete by end of May // #1 in America's Favorite Chain Restaurants survey 8
Slide 9: Scholarship
SCHOLARSHIP ZEDARDEN | oe RESTAURANTS
Slide 10: Thank You To Our Team Members
Thank You To Our Team Members 10
Slide 11: Fiscal 2024 Third Quarter Financial Highlights
Fiscal 2024 Third Quarter Financial Highlights $3.0 Billion $2.62 ADJUSTED DILUTED NET EPS TOTAL SALES FROM CONTINUING OPERATIONS1 (1.0)% SAME-RESTAURANT SALES 320 BPS INDUSTRY SAME-RESTAURANT GROWTH2 SALES OUTPERFORMANCE3 1 A reconciliation of Non-GAAP measures can be found in the Additional Inform
Slide 12: Fiscal 2024 Third Quarter Financial Highlights
Fiscal 2024 Third Quarter Financial Highlights $512 Million $157 Million $33 Million ADJUSTED EBITDA1 DIVIDENDS PAID SHARE REPURCHASES 1 A reconciliation of Non-GAAP measures can be found in the Additional Information section of this presentation. 12
Slide 13: Margin Analysis vs. Prior Year
Margin Analysis vs. Prior Year As Reported As Adjusted1 Q3 2024 Q3 2024 Q3 2024 vs Q3 2023 (bps) ($ millions) ($ millions) % of Sales Favorable/(Unfavorable) Sales $2,974.8 $2,974.8 Food and Beverage $920.2 $920.2 30.9 % 90 Restaurant Labor $937.1 $937.1 31.5 % (10) Restaurant Expenses $471.9 $471.9
Slide 14: Third Quarter Segment Performance
Third Quarter Segment Performance1 Segment Sales ($ millions) Fine Dining Other Segment Profit Margin2 Fine Dining Other 1 From the date of acquisition forward, sales and profits from Ruth's Chris company-owned restaurants are included within the Fine Dining segment. Royalties from Ruth's Chris fran
Slide 15: Updating Fiscal 2024 Annual Outlook
Updating Fiscal 2024 Annual Outlook SALES DEVELOPMENT MARGIN Total Sales Restaurant Openings Total Inflation: ~3.0% Approximately $11.4 Billion 50 to 55 Commodities: ~1.5% Same-Restaurant Sales Capital Spending Effective Tax Rate Growth1 Approximately $600MM 12.0% to 12.5% 1.5% to 2.0% Adjusted Dilu
Slide 16: Implied Fourth Quarter Outlook
Implied Fourth Quarter Outlook Same Total Sales Adjusted Restaurant $2.95 to $2.99 Diluted EPS2 Billion Sales Growth1 $2.58 to $2.68 -0.5% to 1.0% 1 Will not include Ruth's Chris Steak House until they have been owned and operated by Darden for a 16-month period (Q2 Fiscal 2025). 2 A reconciliation
Slide 17: Preliminary Fiscal 2025 Outlook
Preliminary Fiscal 2025 Outlook New Restaurant Openings 45 to 50 Capital Spending $550 to $600 million New Restaurants $250 to $300 million Maintenance/Refresh/Tech/Other Approximately $300 million Effective Tax Rate Approximately 13% 17
Slide 18: Question & Answer Session
J DARDEN RESTAURANTS Question & Answer Session
Slide 19: Additional Information
J DARDEN RESTAURANTS Additional Information
Slide 20: Commodities Outlook – Fourth Quarter
Commodities Outlook – Fourth Quarter March - May FY2024 Spend by category Coverage Outlook Beef 23% 80% Mid single digit inflation Produce 12% 90% High single digit inflation Dairy / Oil1 10% 70% Mid single digit inflation Seafood 10% 85% Mid single digit deflation Chicken 8% 85% Low single digit in
Slide 21: Reported to Adjusted Earnings Reconciliations
Reported to Adjusted Earnings Reconciliations Q3 2024 Earnings Diluted Net Before Income Tax Net Earnings Per $ in millions, except EPS Income Tax Expense Earnings Share Reported Earnings from Continuing Operations $ 350.9 $ 37.5 $ 313.4 $ 2.60 Adjustments: Ruth's Chris Transaction and Integration R
Slide 22: Reported to Adjusted Earnings Outlook Reconciliation
Reported to Adjusted Earnings Outlook Reconciliation 2024 Reported diluted net earnings per share from continuing operations $ 8.45 to $ 8.55 Ruth's Chris transaction and integration related costs $ 0.45 $ 0.45 Income tax expense $ (0.10) $ (0.10) Adjusted diluted net earnings per share from continu