Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Q3 2022 Earnings Presentation
21 slides from Darden Restaurants's earnings presentation, Mar 24, 2022
Slide 1: Earnings Call: Fiscal 2022 Third Quarter Results
Earnings Call Fiscal 2022: Third Quarter Results March 24, 2022
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: Omicron Negatively Impacted January Sales
Omicron Negatively Impacted January Sales February sales recovered *Pre-COVID comparisons shown vs. FY20. Q2 and December adjusted for Thanksgiving shift from wk 27 in FY20 to wk 26 in FY22. 3
Slide 4: A full-service restaurant company with Back-To-Basics
A full-service restaurant company with … 1 Be financially successful through great people consistently delivering outstanding food, drinks and service in an inviting atmosphere making every guest loyal. Mission 4 Significant Scale Extensive Data & Insights Rigorous Strategic Planning Results- Orient
Slide 5: Our People
Our People J. DARDEN
Slide 6: Product
Product J. DARDEN
Slide 7: To Go Sales Benefit From Digital Platform
To Go Sales Benefit From Digital Platform Digital Transactions 63% of Off-Premise Sales | 12% of Total Sales 7
Slide 8: Thank You To Our Team Members
Thank You To Our Team Members 8
Slide 9: Omicron Negatively Impacted January Sales
Omicron Negatively Impacted January Sales February sales recovered *Pre-COVID comparisons shown vs. FY20. Q2 and December adjusted for Thanksgiving shift from wk 27 in FY20 to wk 26 in FY22. 9
Slide 10: Fiscal 2022 Third Quarter Financial Highlights
Fiscal 2022 Third Quarter Financial Highlights $2.4Billion TOTAL SALES 41.3% TOTAL SALES GROWTH 38.1% $1.93 SAME-RESTAURANT SALES DILUTED NET EPS FROM GROWTH CONTINUING OPERATIONS 10
Slide 11: Fiscal 2022 Third Quarter Financial Highlights
Fiscal 2022 Third Quarter Financial Highlights $141Million $382Million DIVIDENDS PAID SHARE REPURCHASES $395Million EBITDA1 1 A reconciliation of Non-GAAP measures can be found in the Additional Information section of this presentation. 11
Slide 12: Margin Analysis
Margin Analysis Fiscal Q3 2022 ($ millions) % of Sales vs Q3 2020* (bps) Favorable/(Unfavorable) Sales $2,448.9 Food and Beverage $752.7 30.7 % (270) Restaurant Labor $798.7 32.6 % (50) Restaurant Expenses $395.7 16.2 % 80 Marketing Expenses $27.2 1.1 % 190 Restaurant-Level EBITDA $474.6 19.4 % (50)
Slide 13: Third Quarter Segment Performance
Third Quarter Segment Performance Fiscal 2022 vs. Fiscal 2020 to compare to Pre-COVID results1 Segment Sales ($ millions) Fine Dining Other Segment Profit Margin2 Fine Dining Other 1 Comparison to fiscal 2020 due to impact of pandemic on fiscal 2021. 2 Segment profit margin calculated as (sales less
Slide 14: Updated Fiscal 2022 Annual Outlook
Updated Fiscal 2022 Annual Outlook SALES DEVELOPMENT MARGIN Total Sales Restaurant Openings Total Inflation: ~6% $9.55B to $9.62B ~35 Commodities: ~9% Labor: 6% to 6.5% Same-Restaurant Sales Capital Spending Growth ~$425 million EBITDA2 29% to 30% $1.53B to $1.55B Total Sales Growth vs. Effective Ta
Slide 15: Preliminary Fiscal 2023 Outlook
Preliminary Fiscal 2023 Outlook New Restaurants Approximately 60 Capital Expenditures $500 to $550 million New Restaurants $300 to $325 million Maintenance/Refresh/Tech/Other $200 to $225 million Effective Tax Rate Approximately 14% 15
Slide 16: Thank You
J. DARDEN RESTAURANTS
Slide 17: Question & Answer Session
J DARDEN RESTAURANTS Question & Answer Session
Slide 18: Additional Information
J DARDEN RESTAURANTS Additional Information
Slide 19: Commodities Outlook – Fourth Quarter
Commodities Outlook – Fourth Quarter March - May FY2022 Annual spend by category Coverage Outlook Beef 22% 95% Low double digit inflation Produce 12% 85% Mid single digit inflation Dairy / Oil1 10% 65% High single digit inflation Seafood 9% 90% Low double digit inflation Low to mid double digit Chic
Slide 20: EBITDA Reconciliations
EBITDA Reconciliations Q3 Fiscal 2022 EBITDA Reconciliation $ in millions Net Earnings $248 Interest, Net 18 Income Tax Expense 35 Depreciation and Amortization 94 EBITDA $395 Fiscal 2022 EBITDA Outlook Reconciliation $ in millions Sales $9,550 $9,620 Net Earnings $940 to $961 68,000,0 Interest, Net
Slide 21: EBITDA Reconciliations
EBITDA Reconciliations Pre-COVID EBITDA Margin $ in millions Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Total Sales $2,229 $2,134 $2,056 $2,347 $8,766 Net Earnings 208 171 25 232 636 Interest, Net 12 11 13 13 49 Income Tax Expense 9 19 (32) 32 28 Depreciation and Amortization 88 86 88 88 350 EBITDA $317 $287 $