Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q2 FY2018 Earnings Presentation
15 slides from Darden Restaurants's earnings presentation, Dec 19, 2017
Slide 1: Earnings Call Fiscal 2018: Q2 Results
EARNINGS CALL FISCAL 2018: Q2 RESULTS December 19, 2017
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: Fiscal Second Quarter Highlights
Fiscal Second Quarter Highlights DARDEN SALES ($B) SAME-RESTAURANT SALES GROWTH1 3.3% 3.1% $1.94 1.7% $1.85 $1.88 $1.79 $1.93 $1.71 $1.64 $1.88 0.9% FY16 FY17 FY16 FY17 FY17 FY18 FY17 FY18 Q3 Q4 Q1 Q2 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 DARDEN ADJUSTED EPS2 $1.21 $1.32 $1.10 $1.18 $0.88 $0.99 $0.64 $0.7
Slide 4: Fiscal Second Quarter Highlights
Fiscal Second Quarter Highlights 3.0% 3.8% SAME-RESTAURANT SALES SAME-RESTAURANT SALES GROWTH GROWTH +400 BPS +480 BPS SAME-RESTAURANT SALES SAME-RESTAURANT SALES INDUSTRY OUTPERFORMANCE1 INDUSTRY OUTPERFORMANCE1 1 Industry excluding Darden brands. 4
Slide 5: Thank you to our 175,000 Team Members!
Thank you to our 175,000 Team Members! 5
Slide 6: Financial Discussion
JE DARDEN RESTAURANTS Financial Discussion
Slide 7: Fiscal Second Quarter Highlights
Fiscal Second Quarter Highlights 14.6% 3.1% SAME-RESTAURANT SALES $0.73 ADJUSTED DILUTED EPS FROM TOTAL SALES GROWTH GROWTH1 CONTINUING OPERATIONS2 14.1% ADJUSTED DILUTED EPS GROWTH $78 MILLION $89 MILLION VS LAST YEAR2 DIVIDENDS PAID SHARE REPURCHASES 1 Excludes Cheddar’s Scratch Kitchen 2 EPS valu
Slide 8: Margin Analysis
Margin Analysis As Reported As Adjusted Q2 2018 Q2 2018 Q2 2018 vs. Q2 2017 (bps) ($ millions) ($ millions) % of Sales Favorable/(Unfavorable) Sales $1,881.5 $1,881.5 Food & Beverage $542.9 $542.9 28.9% 20 Restaurant Labor $622.4 $622.4 33.1% (30) Restaurant Expenses $351.5 $351.5 18.7% (10) Marketi
Slide 9: Fiscal Second Quarter Segment Performance
Fiscal Second Quarter Segment Performance Segment Sales ($ millions) Fine Dining Other $915 $952 $402 $365 $388 $129 $141 $234 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Q2 Segment Profit Margin1 Fine Dining Other 19.3% 17.6% 18.2% 16.8% 15.6% 14.4% 14.8% 12.8% FY17 Q2 FY18 Q2 FY17
Slide 10: Fiscal 2018 Outlook Update
Fiscal 2018 Outlook Update Current Prior (12/19/17) (9/26/17) Same-restaurant sales growth1 Approx. 2% 1.0% to 2.0% New restaurant openings Approx. 40 35 to 40 Total sales growth Approx. 13% 11.5% to 13.0% Effective Tax Rate Approx. 25% Approx. 26% Adjusted earnings per diluted share2 $4.45 to $4.53
Slide 11: Additional Information
JE DARDEN RESTAURANTS Additional Information
Slide 12: Commodities Outlook – Back Half Fiscal 2018
Commodities Outlook – Back Half Fiscal 2018 Dec-May FY2018 Annual Spend by Category Coverage Outlook Low Single Digit Beef 19% 55% Deflation Low Single Digit Produce 13% 80% Inflation Dairy / Oil1 10% 20% Mid Single Digit Inflation Seafood 10% 85% Flat Wheat2 7% 100% Flat Chicken 6% 70% Flat Non-Per
Slide 13: Reported to Adjusted Earnings Reconciliations
Reported to Adjusted Earnings Reconciliations Fiscal 2017 Fiscal 2018 Q4 2017 Q1 2018 Q2 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
Slide 14: Reconciliation of Fiscal 2018 Annual Reported to Adjusted Earnings Outlook
Reconciliation of Fiscal 2018 Annual Reported to Adjusted Earnings Outlook Fiscal 2018 Outlook Current (12/19/17) Prior (9/26/17) Reported diluted net earnings per share from continuing operations $4.37 to $4.47 $4.30 to $4.44 Cheddar's integration expenses 0.13 0.10 0.13 0.10 Income tax expense fro
Slide 15: Reported to Adjusted EBIT Margin and Earnings Reconciliations
Reported to Adjusted EBIT Margin and Earnings Reconciliations Quarter Ended Change (in millions) 11/26/2017 11/27/2016 (bps) Sales - as reported $ 1,881.5 $ 1,642.5 Earnings from continuing operations - as reported $ 88.6 $ 79.7 I nterest, net - as reported 15.5 9.5 I ncome taxes - as reported 24.8