Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q1 2022 Earnings Presentation
19 slides from Darden Restaurants's earnings presentation, Sep 23, 2021
Slide 1: Earnings Call: Fiscal 2022 First Quarter Results
Earnings Call Fiscal 2022: First Quarter Results September 23, 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: A full-service restaurant company with competitive advantages
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 4: Value-Creating New Restaurants
Value-Creating New Restaurants 4
Slide 5: Thank You To Our Team Members
Thank You To Our Team Members 5
Slide 6: Benefiting From Our Digital Platform
Benefiting From Our Digital Platform 6
Slide 7: First Quarter Off-Premise Sales
First Quarter Off-Premise Sales 27% 15% Of Total Sales Were Off-Premise Of Total Sales Were Off-Premise 60% of Total Off-Premise Sales were Digital Transactions 7
Slide 8: Our People
Our People Our Team Members | Results-Oriented Culture 8
Slide 9: Product
Product Our Supply Chain | Significant Scale 9
Slide 10: Fiscal 2022 First Quarter Financial Highlights
Fiscal 2022 First Quarter Financial Highlights $2.3Billion 51.0% TOTAL SALES TOTAL SALES GROWTH 47.5% $1.76 SAME-RESTAURANT SALES DILUTED NET EPS FROM GROWTH CONTINUING OPERATIONS 10
Slide 11: Fiscal 2022 First Quarter Financial Highlights
Fiscal 2022 First Quarter Financial Highlights $144Million $186Million DIVIDENDS PAID SHARE REPURCHASES $370Million 1 EBITDA 1 A reconciliation Non-GAAP measures can be found in the Additional Information section of this presentation. 11
Slide 12: Margin Analysis
Margin Analysis Fiscal Q1 2022 ($ millions) % of Sales vs Q1 2020 (bps) Favorable/(Unfavorable) Sales $2,306.0 Food and Beverage $685.4 29.7 % (150) Restaurant Labor $736.0 31.9 % 110 Restaurant Expenses $378.1 16.4 % 110 Marketing Expenses $23.9 1.0 % 220 Restaurant-Level EBITDA $482.6 20.9 % 290 G
Slide 13: First Quarter Normalized Effective Tax Rate of 13.7%
First Quarter Normalized Effective Tax Rate of 13.7% EBT Taxes Tax Rate Reported $265.0 $33.3 12.6 % Mark to Market $5.3 $3.6 Normalized $270.3 $36.9 13.7 % 13
Slide 14: First Quarter Segment Performance
First Quarter Segment Performance 1 Fiscal 2022 vs. Fiscal 2020 to compare to Pre-COVID results Segment Sales ($ millions) Fine Dining Other 0.0% 0% 26. $567 4.9% $1,090 $1,090 $450 24. 0% $457 $480 $169 $136 FY20 Q1 FY22 Q1 FY20 Q1 FY22 Q1 FY20 Q1 FY22 Q1 FY20 Q1 FY22 Q1 2 Segment Profit Margin Fin
Slide 15: Increased Fiscal 2022 Annual Outlook
Increased Fiscal 2022 Annual Outlook SALES DEVELOPMENT MARGIN Total Sales Restaurant Openings Total Inflation: ~4% $9.4B to $9.6B 35 to 40 Commodities: 4% to 4.5% Labor: 5% to 5.5% Same-Restaurant Sales Capital Spending 2 Growth $375 to $425 million EBITDA 27% to 30% $1.54B to $1.60B Total Sales Gro
Slide 16: Question & Answer Session
Question & Answer Session 16 J. DARDEN
Slide 17: Additional Information
Y DARDEN RESTAURANTS Additional Information
Slide 18: Commodities Outlook – Second & Third Quarter
Commodities Outlook – Second & Third Quarter September - February FY2022 Annual spend by category Coverage Outlook Beef 22% 60% High single digit inflation Produce 12% 90% Low single digit inflation 1 Dairy / Oil 10% 70% High single digit inflation Seafood 9% 80% High single digit inflation Chicken
Slide 19: EBITDA Reconciliations
EBITDA Reconciliations Q1 Fiscal 2022 EBITDA Reconciliation $ in millions Net Earnings $232 Interest, Net 16 Income Tax Expense 33 Depreciation and Amortization 89 EBITDA $370 Fiscal 2022 EBITDA Outlook Reconciliation $ in millions Net Earnings $950 to $995 Interest, Net 65 65 Income Tax Expense 150