Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q4 2021 Earnings Presentation
23 slides from Darden Restaurants's earnings presentation, Jun 24, 2021
Slide 1: Earnings Call: Fiscal 2021 Fourth Quarter Results
EARNINGS CALL FISCAL 2021: FOURTH QUARTER RESULTS JUNE 24, 2021
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: Sizing the Restaurant Industry
Sizing the Restaurant Industry ($ in billions) $28 $23 $222 $194 $189 $166 Fine Dining Casual Dining $48 $39 $57 Midscale $56 Fast Casual QSR $238 $232 FY19 FY20 Source: Technomic, twelve months ended 5/26/2019 and 5/30/2020, respectively 3
Slide 4: Strategic Investments
Strategic Investments Food Quality Team Members Technology 4
Slide 5: Thank You To Our Team Members
Thank You To Our Team Members 5
Slide 6: Brilliant With The Basics
Brilliant With The Basics 6 J DARDEN.
Slide 7: Off-Premise Sales Remain Strong
Off-Premise Sales Remain Strong 7
Slide 8: Value-Creating New Restaurants
Value-Creating New Restaurants 8
Slide 9: The Strength Of Our Platform
The Strength Of Our Platform 4 Significant Scale Extensive Data & Insights Rigorous Strategic Planning Results- Oriented Culture COMPETITIVE ADVANTAGES Our Supply Chain Our People 9
Slide 10: Fiscal 2021 Fourth Quarter Financial Highlights
Fiscal 2021 Fourth Quarter Financial Highlights $2.3BILLION TOTAL SALES 79.5% TOTAL SALES GROWTH 90.4% $2.03 ADJUSTED DILUTED NET EPS FROM SAME-RESTAURANT SALES GROWTH CONTINUING OPERATIONS1 1 A reconciliation of Non-GAAP measures can be found in the Additional Information section of this presentati
Slide 11: Business Update
Business Update Same-Restaurant Sales Compared to Fiscal 20191 Fiscal Period March April May Q4 Darden (4.1)% 1.1% 2.4% (0.5)% Olive Garden (4.9)% 0.3% 1.0% (1.5)% LongHorn Steakhouse 9.9% 16.0% 15.5% 13.5% Fine Dining (13.8)% (11.9)% (5.4)% (10.6)% Other Business (14.3)% (8.2)% (4.9)% (9.4)% Averag
Slide 12: Margin Analysis
Margin Analysis As Reported As Adjusted Q4 2021 Q4 2021 Q4 2021 vs. Q4 2019 (bps) ($ millions) ($ millions) % of Sales Favorable/(Unfavorable) Sales $2,279.2 $2,279.2 Food and Beverage $663.1 $663.1 29.1% (90) Restaurant Labor $690.7 $690.7 30.3% 190 Restaurant Expenses $386.0 $386.0 16.9% 10 Market
Slide 13: Fourth Quarter Segment Performance
Fourth Quarter Segment Performance Fiscal 2021 vs. Fiscal 2019 to compare to Pre-COVID results1 Segment Sales ($ millions) Fine Dining Other $1,107 $1,104 $572 $484 $483 $452 $155 $151 FY19 Q4 FY21 Q4 FY19 Q4 FY21 Q4 FY19 Q4 FY21 Q4 FY19 Q4 FY21 Q4 Segment Profit Margin2 Fine Dining Other 25.5% 21.0
Slide 14: Strong Cash Flow
Strong Cash Flow Fiscal 2021 Free Cash Flow $ in millions 2021 Net cash provided by operating activities of continuing operations $1,193.5 Less: Purchases of land, buildings and equipment (254.9) Less: Purchases of capitalized software and other assets (15.4) Free Cash Flow $923.2 Free Cash Flow = N
Slide 15: Dividend Declared Exceeding Pre-COVID Levels
Dividend Declared Exceeding Pre-COVID Levels DARDEN QUARTERLY DIVIDEND 25% Increase $1.10 $0.88 $0.88 $0.37 $0.30 $0.00 $0.00 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Note: Month dividend declared 15
Slide 16: Fiscal 2022 Annual Outlook
Fiscal 2022 Annual Outlook SALES DEVELOPMENT MARGIN Total Sales Restaurant Openings Total Inflation: ~3% $9.2B to $9.5B 35 to 40 Commodities: 2% to 3% Labor: 4.0% to 4.5% Same-Restaurant Sales Capital Spending Growth $375 to $425 million EBITDA2 25% to 29% $1.50B to $1.59B Total Sales Growth vs. Eff
Slide 17: Question & Answer Session
Question & Answer Session 7 J DARDEN.
Slide 18: Additional Information
J. DARDEN RESTAURANTS Additional Information
Slide 19: Commodities Outlook – First Half Fiscal 2022
Commodities Outlook – First Half Fiscal 2022 June - November FY2022 Annual spend by category Coverage Outlook Beef 22% 75% Flat Produce 12% 90% Low single digit inflation Dairy / Oil1 10% 75% High single digit inflation Seafood 9% 85% High single digit inflation Chicken 8% 85% Mid single digit infla
Slide 20: Fiscal Q4 Reported to Adjusted Earnings (Loss) Reconciliation
Fiscal Q4 Reported to Adjusted Earnings (Loss) Reconciliation Q4 2021 Q4 2020 Earnings Diluted Earnings Diluted (Loss) Income Net (Loss) Income Net Before Tax Net Earnings Before Tax Net Earnings Income Expense Earnings (Loss) Per Income Expense Earnings (Loss) Per $ in millions, except per share am
Slide 21: Annual Reported to Adjusted Earnings (Loss) Reconciliation
Annual Reported to Adjusted Earnings (Loss) Reconciliation 2021 2020 Diluted Diluted Earnings Net Earnings Net (Loss) Income Earnings (Loss) Income Earnings Before Tax Net (Loss) Before Tax Net (Loss) Income Expense Earnings Per Income Expense Earnings Per $ in millions, except per share amounts Tax
Slide 22: EBITDA Reconciliations
EBITDA Reconciliations Q4 Fiscal 2021 EBITDA Reconciliation $ in millions Net Earnings $369 Interest, Net 17 Income tax expense (benefit) (63) Depreciation and amortization 89 EBITDA $412 Fiscal 2022 EBITDA Outlook Reconciliation $ in millions Net Earnings $916 to $980 Interest, Net 65 65 Income tax
Slide 23: Reported to Adjusted EBIT Margin and Earnings Reconciliations
Reported to Adjusted EBIT Margin and Earnings Reconciliations (in millions) Q4 2019 Sales - as reported $ 2,229.1 Earnings from continuing operations - as reported $ 208.7 Interest, net - as reported 11.9 Income tax expense - as reported 9.2 EBIT from continuing operations $ 229.8 EBIT Margin from c