Darden Restaurants, Inc. · NYSE:DRI
Darden Restaurants — Merger or Acquisition (July 2024)
14 slides from Darden Restaurants's merger presentation, Jul 18, 2024
Slide 1: Chuy's Holdings Acquisition
Chuy’s Holdings Acquisition July 18, 2024 1
Slide 2: Disclaimer/Non-GAAP information
Disclaimer/Non-GAAP information IMPORTANT NOTICE The following slides are part of a presentation by Darden Restaurants, Inc. (“Darden”), 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 Darde
Slide 3: Strategic Portfolio Fit
Strategic Portfolio Fit CRITERIA // Full-service dining Casual dining brand with a differentiated offering that is the full-service leader in the Mexican category // Healthy brand with strong Strong business model and attractive unit economics guest appeal with high guest loyalty // Can grow faster
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: Chuy's Strengthens Our Winning Strategy
Chuy’s Strengthens Our Winning Strategy // Strengthens our Four Competitive Advantages • Significant Scale • Extensive Data & Insights • Rigorous Strategic Planning • Results-Oriented Culture // Shares similar Back-to-Basics Operating Philosophy and Passion for our People // Complements our Portfoli
Slide 6: The Acquisition of Chuy's Allows Us to Enter the Fast-Growing Full-Service Mexican Category
The Acquisition of Chuy’s Allows Us to Enter the Fast-Growing Full-Service Mexican Category With the Market Leader Mexican Cuisine Is One Of the Fastest Growing Categories 1… …And Chuy’s Is the Largest Casual Dining Player 1 Year-over-Year Sales % Change 2023 Sales of Top Five Mexican Full-Service R
Slide 7: Significant Opportunity for Additional Unit Growth Across Existing and New Markets
Significant Opportunity for Additional Unit Growth Across Existing and New Markets 1011 Total Company-Owned Restaurants 4 66 4 3 3 6 1 6 5 5 4 8 3 8 3 4 4 4 1 1 2 2 2 2 1 44 1 44 8 8 1 Includes restaurant openings and closures subsequent to Chuy’s 2024 Q1 10-Q filing. 7
Slide 8: Chuy's: A Tex-Mex Original
Chuy’s: A Tex-Mex Original 8
Slide 9: Attractive Deal Terms
Attractive Deal Terms // Price of $37.50 per share // All-cash transaction with enterprise value of approximately $605 million // Purchase multiple of 10.3x LTM March 2024 Transaction Adjusted EBITDA1 and 8.2x inclusive of run-rate synergies // Expected to close in later half of Darden’s fiscal seco
Slide 10: Chuy's At-A-Glance
Chuy’s At-A-Glance Attractive Restaurant Economics at Scale $451 Million 101 Total Adjusted Sales1 Company Owned Restaurants2 $19 $4.5 Million Average Check Average Unit Volume ~20% $59 Million Restaurant-Level EBITDA1 Transaction Adjusted EBITDA1 Note: All financials quoted are Trailing Twelve Mont
Slide 11: Strong Expected Financial Impact
Strong Expected Financial Impact // Expected net run-rate pre-tax synergies of approximately $15 million by the end of fiscal 2026 • Savings of 4% to 5% of sales in prior acquisitions // Expected to be neutral impact to adjusted net earnings per share in fiscal 2025 excluding acquisition and integra
Slide 12: Question & Answer Session
Question & Answer Session 14
Slide 13: Additional Information
Additional Information 15
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation 52 Weeks Ended 52 Weeks Ended Thirteen Weeks Ended ($ Millions) March 31, 2024 December 31, 2023 March 31, 2024 March 26, 2023 Net Income $30.2 $31.5 $6.9 $8.2 Interest income, net (3.1) (3.3) (0.6) (0.8) Income tax expense 5.3 5.4 0.8 0.9 Depreciation and amortization expens
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