Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q4 2024 Earnings Presentation
30 slides from Darden Restaurants's earnings presentation, Jun 20, 2024
Slide 1: Earnings Call: Fiscal 2024 Fourth Quarter Results
Earnings Call Fiscal 2024: Fourth Quarter Results June 20, 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 Financial Highlights
Fiscal 2024 Financial Highlights $11.4 Billion $8.88 ADJUSTED DILUTED NET EPS TOTAL SALES FROM CONTINUING OPERATIONS1 53 NEW RESTAURANTS 78 ACQUIRED RUTH'S CHRIS (39 NET NEW) RESTAURANTS2 1 A reconciliation of Non-GAAP measures can be found in the Additional Information section of this presentation.
Slide 4: A full-service restaurant company with Back-To-Basics
A full-service restaurant company with … 1 Mission Be financially successful through great people consistently delivering outstanding food, drinks and service in an inviting atmosphere making every guest loyal. 4 Competitive Significant Scale Extensive Data & Insights Rigorous Strategic Planning Res
Slide 5: Fiscal 2024 Total Shareholder Return
Fiscal 2024 Total Shareholder Return Framework FY24 (Over Time) New Restaurant Growth1 2% - 3% 7.0% Same-Restaurant Sales2 1% - 3% 1.6% EBIT Margin Expansion 10-30 bps 50bps Business Performance (EAT Growth) 7% - 10% 9.1% Dividend Payout Ratio 50% - 60% 59% Share Repurchases ($MM) $300 - $500 $454 R
Slide 6: Darden restaurant brands
A i —— VJ STEAKHOUSE LONGHORN STEAK MASTER —— SERIES —— 2024 MARDEN RESTAURANTS
Slide 7: Brilliant With The Basics
Brilliant With The Basics XX DARDEN | RESTAURANTS
Slide 8: Ranked #1 by consumers
Ranked #1 by consumers ... Food Service Atmosphere Overall Brand Fit & Loyalty Source: Technomic, Consumer Brand Metrics, 12 months ending March 2024. 8
Slide 9: Ruth's Chris integration achievements
// Successfully integrated all company-owned restaurants // Acquired single franchise location in Destin, FL // On-boarded 5,000 new team members // Zero turnover among nine Directors of Operations // Achieved expected synergies // Accretion of $0.10 for FY2024 // Ruth’s Chris named America’s Favori
Slide 10: A full-service restaurant company with Back-To-Basics
A full-service restaurant company with … 1 Mission Be financially successful through great people consistently delivering outstanding food, drinks and service in an inviting atmosphere making every guest loyal. 4 Competitive Significant Scale Extensive Data & Insights Rigorous Strategic Planning Res
Slide 11: Organizational Changes
Organizational Changes er) Todd Burrowes Laura Williamson John Martin President, Business President, LongHom President, Specialty Development Steakhouse Restaurant Group 4 NY, \ Marc Braun Brad Smith Rik Jenkins Bryan Clements Falon Farrell Mark Cooper svP President, President President President Pr
Slide 12: Fiscal 2024 Fourth Quarter Financial Highlights
Fiscal 2024 Fourth Quarter Financial Highlights $3.0 Billion 6.8% 0.0% SAME-RESTAURANT SALES TOTAL SALES TOTAL SALES GROWTH GROWTH1 $523 Million $2.65 $254 Million ADJUSTED DILUTED NET EPS ADJUSTED EBITDA2 FROM CONTINUING CASH RETURN3 OPERATIONS2 1 Will not include Ruth's Chris Steak House until the
Slide 13: Margin Analysis vs. Prior Year
Margin Analysis vs. Prior Year As Reported As Adjusted1 Q4 2024 Q4 2024 Q4 2024 vs Q4 2023 (bps) ($ millions) ($ millions) % of Sales Favorable/(Unfavorable) Sales $2,957.3 $2,957.3 Food and Beverage $906.9 $906.9 30.7 % 20 Restaurant Labor $926.0 $926.0 31.3 % 10 Restaurant Expenses $467.7 $467.7 1
Slide 14: Fourth Quarter Segment Performance
Fourth Quarter Segment Performance1 Fiscal 2024 vs. Prior Year Segment Sales ($ 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. Roya
Slide 15: Fiscal 2024 Financial Highlights
Fiscal 2024 Financial Highlights 1.6% SAME-RESTAURANT SALES $1.8 Billion $1.1Billion Adjusted EBITDA2 CASH RETURN3 GROWTH1 1 Will not include Ruth's Chris Steak House until they have been owned and operated by Darden for a 16-month period (Q2 Fiscal 2025). 2 A reconciliation of Non-GAAP measures can
Slide 16: Margin Analysis vs. Prior Year
Margin Analysis vs. Prior Year As Reported As Adjusted1 Fiscal 2024 Fiscal 2024 Fiscal 2024 vs Fiscal 2023 (bps) ($ millions) ($ millions) % of Sales Favorable/(Unfavorable) Sales $11,390.0 $11,390.0 Food and Beverage $3,523.9 $3,523.9 30.9 % 110 Restaurant Labor $3,619.3 $3,619.3 31.8 % 10 Restaura
Slide 17: Achieved Long-Term Framework TSR Over Past Five Years
Achieved Long-Term Framework TSR Over Past Five Years FY19 - FY24 Framework FY24 Annualized (Over Time) Return1 New Restaurant Growth2 2% - 3% 7.0% 2.9% Same-Restaurant Sales3 1% - 3% 1.6% 3.1% EBIT Margin Expansion 10-30 bps 50bps 40bps Business Performance (EAT Growth) 7% - 10% 9.1% 8.0% Dividend
Slide 18: Strong Model Generates Durable Cash Flows
Strong Model Generates Durable Cash Flows Adjusted EBITDA1 from Continuing Operations ($ in millions) CapEx $452 $460 $255 $377 $565 $601 Adjusted 2.6x 1.7x 4.1x 4.1x 2.8x 3.0x EBITDA1 / CapEx Dividend $374 $325 $204 $565 $590 $628 Adjusted 2.2x 3.1x 2.4x 1.8x 1.8x 1.9x Debt / EBITDAR1 1 A reconcili
Slide 19: Fiscal 2025 Annual Outlook
Fiscal 2025 Annual Outlook SALES DEVELOPMENT MARGIN Total Sales Restaurant Openings Total Inflation: ~3.0% $11.8B to $11.9B 45 to 50 Commodities: ~2.0% Same-Restaurant Sales Capital Spending Effective Tax Rate Growth1 $550 to $600 million approximately 13.0% 1.0% to 2.0% Diluted Net Earnings per Sha
Slide 20: Our Guests, Our Team Members, Our Communities
Our Guests Our Team Members Our Communities 20
Slide 21: Thank You To Our Team Members
Thank You To Our Team Members 21
Slide 22: Question & Answer Session
J DARDEN RESTAURANTS Question & Answer Session
Slide 23: Additional Information
J DARDEN RESTAURANTS Additional Information
Slide 24: Commodities Outlook – First Half
Commodities Outlook – First Half June - November FY2025 Spend by category Coverage Outlook Beef 24% 65% Mid single digit inflation Produce 12% 85% Low single digit inflation Dairy / Oil1 11% 50% Low single digit inflation Seafood 9% 80% Low single digit deflation Chicken 8% 100% Mid single digit def
Slide 25: Portfolio of Differentiated and Iconic Brands
Portfolio of Differentiated and Iconic Brands Total Average Annual Restaurants3 Sales1 Restaurant Sales2 $5.1 B $5.6 M 920 $2.8 B $4.9 M 575 $848 M $9.7 M 88 $752 M $4.1 M 181 $582 M $9.1 M 66 $442 M $5.9 M 80 $304 M $6.9 M 44 $268 M $8.9 M 30 $240 M $5.7 M 43 1 Twelve months ending May 26, 2024. 2
Slide 26: Reported to Adjusted Earnings Reconciliations
Reported to Adjusted Earnings Reconciliations Q4 2024 Fiscal 2024 Earnings Income Diluted Earnings Diluted Before Tax Net Before Income Net Income Expense Net Earnings Income Tax Net Earnings $ in millions, except EPS Tax (Benefit) Earnings Per Share Tax Expense Earnings Per Share Reported Earnings
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reported to Adjusted Earnings Reconciliations1 Fiscal 2019 Earnings Income Before Tax Income Expense Net $ in millions, except EPS Tax (Benefit) Earnings Diluted EPS Reported Earnings from Continuing Operations $ 782.3 $ 63.7 $ 718.6 $ 5.73 Adjustments: Asset Impairments2 $
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA Reconciliation1 $ in millions 5/26/2019 5/31/2020 5/30/2021 5/29/2022 5/28/2023 5/26/2024 Sales $8,510.4 $7,806.9 $7,196.1 $9,630.0 $10,487.8 $11,390.0 Net Earnings (Loss) from Continuing Operations $718.6 $(49.2) $632.4 $954.7 $983.5 $1,030.5 Interest, Net 5
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations 1 See slide 18 for non-GAAP figure presented. 2 In April 2018, our Benefits Plans Committee approved the termination of our primary non-contributory defined benefit pension plan. In fiscal 2020, the benefit obligations to plan participants was settled, resulting in a pension
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Total Debt Reconciliation1 $ in millions 5/26/2019 5/31/2020 5/30/2021 5/29/2022 5/28/2023 5/26/2024 Short-term debt — $270.0 — — — 86.8 Capital lease obligation $84.0 — — — — — Long-term debt, excluding unamortized discount and issuance costs $939.1 $939.1 $939.1 $