Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q1 2024 Earnings Presentation
23 slides from Darden Restaurants's earnings presentation, Sep 21, 2023
Slide 1: Earnings Call: Fiscal 2024 First Quarter Results
Earnings Call Fiscal 2024: First Quarter Results September 21, 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 First Quarter Financial Highlights
Fiscal 2024 First Quarter Financial Highlights $2.7 Billion 11.6% $1.78 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: Full-service restaurant company: Back-To-Basics
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: Building Unique Cultures
Building Unique Cultures GRILL > MASTER LEGENDS aye XDARDEN | QS < RESTAURANTS
Slide 6: General Manager/Managing Partner Conferences
General Manager/Managing Partner Conferences 6
Slide 7: Building Iconic Brands
Building Iconic Brands Elevates Brand Equity | Simple to Execute | Not at a Deep Discount 7
Slide 8: Ruth's Chris Integration Update
Ruth’s Chris Integration Update // Preserve team member experience and unique culture // Maintain and strengthen the guest experience // Successfully migrate Ruth’s Chris onto Darden's platform 8
Slide 9: 113 Million+ Meals Donated Since 2003
113 Million+ Meals 10 Additional Trucks Added for Donated Since 2003 Feeding America’s Food Banks 9
Slide 10: Thank You To Our Team Members
Thank You To Our Team Members 10
Slide 11: Fiscal 2024 First Quarter Financial Highlights
Fiscal 2024 First Quarter Financial Highlights $2.7 Billion $1.78 ADJUSTED DILUTED NET EPS TOTAL SALES FROM CONTINUING 1 OPERATIONS 5.0% 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 Infor
Slide 12: Fiscal 2024 First Quarter Financial Highlights
Fiscal 2024 First Quarter Financial Highlights $388 Million $159 Million $143 Million 1 ADJUSTED EBITDA DIVIDENDS PAID SHARE REPURCHASES 1 A reconciliation of Non-GAAP measures can be found in the Additional Information section of this presentation. 12
Slide 13: Margin Analysis vs. Prior Year
Margin Analysis vs. Prior Year 1 As Reported As Adjusted Q1 2024 Q1 2024 Q1 2024 vs Q1 2023 (bps) ($ millions) ($ millions) % of Sales Favorable/(Unfavorable) Sales $2,730.6 $2,730.6 Food and Beverage $851.0 $851.0 31.2 % 130 Restaurant Labor $875.3 $875.3 32.1 % 40 Restaurant Expenses $446.6 $446.6
Slide 14: First Quarter Segment Performance
1 First Quarter Segment Performance Segment Sales ($ millions) Fine Dining Other 8.6% $1,228 8% $274 $527 6.1% $559 $1,131 10. % $670 .1 $605 49 $183 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 2 Segment Profit Margin Fine Dining Other 21.4% 19.1% 17.5% 15.2% 16.4% 15.1% 14.5% 13
Slide 15: Fine Dining Traffic Retention vs. Pre-COVID
1 Fine Dining Traffic Retention vs. Pre-COVID 107% 108% 107% 105% 102% 102% 101% 100% 95% FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 vs. FY20 Q1 vs. FY20 Q2 vs. FY20 Q3 vs. FY19 Q4 vs. FY20 Q1 vs. FY20 Q2 vs. FY20 Q3 vs. FY19 Q4 vs. FY20 Q1 1 Traffic represents average n
Slide 16: First Quarter Segment Performance
1 First Quarter Segment Performance Segment Sales ($ millions) Fine Dining Other 8.6% $1,228 8% $274 $527 6.1% $559 $1,131 10. % $670 .1 $605 49 $183 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 2 Segment Profit Margin Fine Dining Other 21.4% 19.1% 17.5% 15.2% 16.4% 15.1% 14.5% 13
Slide 17: Ruth's Chris Synergies and Other Cost Savings
Ruth's Chris Synergies and Other Cost Savings Approximate Annual Run Rate ($ millions) Previous Current Synergies and Other Cost Savings $20 $35 Guest and Team Member Investments — (10) Net Synergies $20 $25 Net Synergies in Fiscal 2024 $5-$10 ~$12 17
Slide 18: Question & Answer Session
J DARDEN RESTAURANTS Question & Answer Session
Slide 19: Additional Information
J DARDEN RESTAURANTS Additional Information
Slide 20: Reiterating Fiscal 2024 Annual Outlook
Reiterating Fiscal 2024 Annual Outlook SALES DEVELOPMENT MARGIN Total Sales Restaurant Openings Total Inflation: 3% to 4% $11.5B to $11.6B Approximately 50 Commodities: ~2.5% Same-Restaurant Sales Capital Spending Effective Tax Rate Growth $550 to $600 million 12% to 12.5% 2.5% to 3.5% Adjusted Earn
Slide 21: Commodities Outlook – Second & Third Quarter
Commodities Outlook – Second & Third Quarter September - February FY2024 Spend by category Coverage Outlook Beef 22% 50% Low double digit inflation Produce 12% 85% Mid single digit inflation 1 Dairy / Oil 11% 40% Low single digit deflation Seafood 9% 75% Mid single digit deflation Chicken 9% 65% Low
Slide 22: Reported to Adjusted Earnings Reconciliations
Reported to Adjusted Earnings Reconciliations Q1 2024 Earnings Income Diluted Before Tax Net Income Expense Net Earnings $ in millions, except EPS Tax (Benefit) Earnings Per Share Reported Earnings from Continuing Operations $ 223.2 $ 28.4 $ 194.8 $ 1.60 Adjustments: Ruth's Chris transaction and int
Slide 23: Reported to Adjusted Earnings Outlook Reconciliation
Reported to Adjusted Earnings Outlook Reconciliation 2024 Reported diluted net earnings per share from continuing operations $ 8.18 to $ 8.48 Ruth's Chris transaction and integration related expenses $ 0.45 $ 0.45 Income tax expense $ (0.08) $ (0.08) Adjusted diluted net earnings per share from cont