Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q3 2020 Earnings Presentation
13 slides from Darden Restaurants's earnings presentation, Mar 19, 2020
Slide 1: Earnings Call Fiscal 2020: Q3 Results
EARNINGS CALL FISCAL 2020: Q3 RESULTS March 19, 2020
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 Third Quarter Highlights
Darden Third Quarter Highlights 4.5% 2.3% SAME-RESTAURANT SALES $1.90 DILUTED NET EPS FROM TOTAL SALES GROWTH GROWTH CONTINUING OPERATIONS 5.6% DILUTED NET EPS GROWTH VS $107 MILLION $69MILLION LAST YEAR DIVIDENDS PAID SHARE REPURCHASES 3
Slide 4: Fourth Quarter Weekly Same-Restaurant Sales by Segment
Fourth Quarter Weekly Same-Restaurant Sales by Segment Week 1 Week 2 Week 3 Darden 3.0% -0.2% -20.6% Olive Garden 3.1% -0.1% -18.7% LongHorn Steakhouse 4.6% 3.1% -15.9% Fine Dining 2.1% -4.0% -27.7% Other Business 1.2% -2.8% -27.5% 4
Slide 5: Additional Information
JE DARDEN RESTAURANTS Additional Information
Slide 6: Darden Third Quarter Highlights
Darden Third Quarter Highlights SALES ($B) SAME-RESTAURANT SALES GROWTH 2.3% 2.0% 1.6% $2.13 $2.23 $2.06 $2.13 $2.25 $2.35 $1.97 $2.06 0.9% FY18 FY19 FY19 FY20 FY19 FY20 FY19 FY20 Q4 Q1 Q2 Q3 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 ADJUSTED EPS1 $1.76 $1.80 $1.90 $1.39 $1.34 $1.38 $1.12 $0.92 FY18 FY19 FY19
Slide 7: Third Quarter Brand Highlights
Third Quarter Brand Highlights 3.5% 2.1% TOTAL SALES GROWTH SAME-RESTAURANT SALES GROWTH 10 ~240 BPS SAME-RESTAURANT SALES NET NEW RESTAURANTS INDUSTRY VS. LY OUTPERFORMANCE1 1 Industry excluding Darden brands, specifically Olive Garden and LongHorn Steakhouse. 7
Slide 8: Third Quarter Brand Highlights
Third Quarter Brand Highlights 5.7% 3.9% TOTAL SALES GROWTH SAME-RESTAURANT SALES GROWTH 10 ~420 BPS SAME-RESTAURANT SALES NET NEW RESTAURANTS INDUSTRY VS. LY OUTPERFORMANCE1 1 Industry excluding Darden brands, specifically Olive Garden and LongHorn Steakhouse. 8
Slide 9: Third Quarter Brand Highlights
Third Quarter Brand Highlights 4.9% -1.6% TOTAL SALES GROWTH SAME-RESTAURANT SALES GROWTH +8 POINTS +5 POINTS MANAGER TURNOVER IMPROVEMENT IN OVERALL IMPROVEMENT GUEST SATISFACTION 9
Slide 10: Margin Analysis
Margin Analysis Fiscal Q3 2020 vs. PY* (bps) ($ millions) % of Sales Favorable/(Unfavorable) Sales $2,346.5 Food and beverage $658.0 28.0% 40 Restaurant labor $753.8 32.1% (50) Restaurant expenses $396.7 16.9% 0 Marketing expenses $71.6 3.1% (30) Restaurant-level EBITDA $466.4 19.9% (40) General and
Slide 11: Third Quarter Segment Performance
Third Quarter Segment Performance Segment Sales ($ millions) Fine Dining Other $1,130 $1,169 $483 $511 $459 $478 $175 $188 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 FY19 Q3 FY20 Q3 Segment Profit Margin1 Fine Dining Other 24.9% 24.8% 21.7% 21.1% 20.5% 20.1% 15.1% 14.5% FY19 Q3 FY20 Q3 FY19 Q3
Slide 12: Commodities Outlook – Q4 Fiscal 2020
Commodities Outlook – Q4 Fiscal 2020 Mar-May FY2020 Annual Spend by Category Coverage Outlook Beef 19% 90% Low Single Digit Inflation Produce 13% 95% Low Single Digit Inflation Dairy / Oil1 10% 15% Low Single Digit Inflation Seafood 10% 95% Flat Chicken 7% 100% Low Single Digit Inflation Wheat2 7% 9
Slide 13: Reported to Adjusted Earnings Reconciliations
Reported to Adjusted Earnings Reconciliations Fiscal 2018 Fiscal 2019 Q4 2018 Q4 2019 Earnings Income Diluted Earnings Income Diluted Before Tax Net Before Tax Net Income Expense Net Earnings Income Expense Net Earnings $ in millions, except EPS Tax (Benefit) Earnings Per Share $ in millions, except