Florida | 59-3305930 | |
(State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits. |
Exhibit Number | Description | |
99 | News release dated March 23, 2012, entitled “Darden Restaurants Reports Third Quarter Diluted Net Earnings Per Share Of $1.25; Declares A Quarterly Dividend Of 43 Cents Per Share." |
DARDEN RESTAURANTS, INC. | |
By: | /s/ C. Bradford Richmond |
C. Bradford Richmond | |
Senior Vice President and Chief Financial Officer |
Exhibit Number | Description of Exhibit | |
99 | News release dated March 23, 2012, entitled “Darden Restaurants Reports Third Quarter Diluted Net Earnings Per Share Of $1.25; Declares A Quarterly Dividend Of 43 Cents Per Share." |
NEWS/INFORMATION | ||
Corporate Relations | ||
P.O. Box 695011 | ||
Orlando, FL 32869-5011 |
FOR RELEASE | Contacts: | |
March 23, 2012 | (Analysts) Matthew Stroud | (407) 245-6458 |
7:00 AM ET | (Media) Rich Jeffers | (407) 245-4189 |
• | Third quarter diluted net earnings per share from continuing operations were $1.25, a 16% increase from the $1.08 diluted net earnings per share in the third quarter of last year. Net earnings from continuing operations in this year's third quarter were $164.1 million, which compares to net earnings from continuing operations of $151.7 million in the third quarter last year. |
• | Third quarter total sales from continuing operations were $2.16 billion, a 9.3% increase from the $1.98 billion generated in the third quarter of last year. The increase reflects (1) combined same-restaurant sales growth of 4.1% for Red Lobster, Olive Garden and LongHorn Steakhouse, which exceeds an estimated 2.6% increase for the Knapp-Track™ benchmark of U.S. same-restaurant sales excluding Darden; (2) same-restaurant sales growth of 5.8% for the Company's Specialty Restaurant Group; and (3) the addition of 11 Eddie V's restaurants and operation of another 80 net new restaurants compared to the third quarter last year. In the third quarter, U.S. same-restaurant sales increased 6.7% at LongHorn Steakhouse, 6.0% at Red Lobster and 2.0% at Olive Garden. |
• | During the third quarter, Darden purchased 1.8 million shares of its common stock. |
• | Darden's Board of Directors declared a quarterly dividend of 43 cents per share. |
Olive Garden | December | January | February | |||
Same-Restaurant Sales | 0.1 | % | 2.0 | % | 4.3 | % |
Same-Restaurant Traffic | 0.5 | % | 2.5 | % | 2.2 | % |
Pricing | 1.7 | % | 2.0 | % | 2.8 | % |
Menu-mix | -2.1 | % | -2.5 | % | -0.6 | % |
Red Lobster | December | January | February | |||
Same-Restaurant Sales | 5.0 | % | 4.5 | % | 8.4 | % |
Same-Restaurant Traffic | -0.7 | % | 1.7 | % | 3.0 | % |
Pricing | 2.8 | % | 2.9 | % | 2.7 | % |
Menu-mix | 2.8 | % | -0.1 | % | 2.6 | % |
LongHorn Steakhouse | December | January | February | |||
Same-Restaurant Sales | 9.8 | % | 5.6 | % | 4.2 | % |
Same-Restaurant Traffic | 9.5 | % | 6.5 | % | 5.2 | % |
Pricing | 2.3 | % | 2.3 | % | 2.2 | % |
Menu-mix | -2.0 | % | -3.2 | % | -3.3 | % |
02/26/12 | 02/27/11 | |||||
675 | Red Lobster USA | 666 | ||||
27 | Red Lobster Canada | 28 | ||||
702 | Total Red Lobster | 694 | ||||
770 | Olive Garden USA | 737 | ||||
6 | Olive Garden Canada | 6 | ||||
776 | Total Olive Garden | 743 | ||||
374 | LongHorn Steakhouse | 347 | ||||
45 | The Capital Grille | 44 | ||||
28 | Bahama Breeze | 25 | ||||
21 | Seasons 52 | 15 | ||||
11 | Eddie V's | — | ||||
2 | Other | — | ||||
1,959 | Total Restaurants | 1,868 |
Three Months Ended | Nine Months Ended | ||||||||||||||
2/26/2012 | 2/27/2011 | 2/26/2012 | 2/27/2011 | ||||||||||||
Sales | $ | 2,159.7 | $ | 1,976.8 | $ | 5,933.2 | $ | 5,509.8 | |||||||
Costs and expenses: | |||||||||||||||
Cost of sales: | |||||||||||||||
Food and beverage | 661.7 | 571.3 | 1,828.5 | 1,573.5 | |||||||||||
Restaurant labor | 657.2 | 621.2 | 1,864.6 | 1,771.9 | |||||||||||
Restaurant expenses | 308.4 | 285.9 | 901.2 | 839.9 | |||||||||||
Total cost of sales (1) | $ | 1,627.3 | $ | 1,478.4 | $ | 4,594.3 | $ | 4,185.3 | |||||||
Selling, general and administrative | 198.0 | 194.8 | 568.3 | 555.9 | |||||||||||
Depreciation and amortization | 88.9 | 80.5 | 258.8 | 235.2 | |||||||||||
Interest, net | 27.7 | 24.0 | 74.5 | 72.1 | |||||||||||
Total costs and expenses | $ | 1,941.9 | $ | 1,777.7 | $ | 5,495.9 | $ | 5,048.5 | |||||||
Earnings before income taxes | 217.8 | 199.1 | 437.3 | 461.3 | |||||||||||
Income taxes | (53.7 | ) | (47.4 | ) | (112.3 | ) | (120.5 | ) | |||||||
Earnings from continuing operations | $ | 164.1 | $ | 151.7 | $ | 325.0 | $ | 340.8 | |||||||
Losses from discontinued operations, net of tax benefit of $0.0, $0.3, $0.4 and $1.2, respectively | — | (0.5 | ) | (0.7 | ) | (2.0 | ) | ||||||||
Net earnings | $ | 164.1 | $ | 151.2 | $ | 324.3 | $ | 338.8 | |||||||
Basic net earnings per share: | |||||||||||||||
Earnings from continuing operations | $ | 1.28 | $ | 1.11 | $ | 2.49 | $ | 2.48 | |||||||
Losses from discontinued operations | — | — | (0.01 | ) | (0.02 | ) | |||||||||
Net earnings | $ | 1.28 | $ | 1.11 | $ | 2.48 | $ | 2.46 | |||||||
Diluted net earnings per share: | |||||||||||||||
Earnings from continuing operations | $ | 1.25 | $ | 1.08 | $ | 2.43 | $ | 2.42 | |||||||
Losses from discontinued operations | — | — | (0.01 | ) | (0.02 | ) | |||||||||
Net earnings | $ | 1.25 | $ | 1.08 | $ | 2.42 | $ | 2.40 | |||||||
Average number of common shares outstanding: | |||||||||||||||
Basic | 128.0 | 136.4 | 130.7 | 137.5 | |||||||||||
Diluted | 130.9 | 140.0 | 133.8 | 141.0 | |||||||||||
(1) Excludes restaurant depreciation and amortization as follows: | $ | 83.2 | $ | 74.5 | $ | 242.2 | $ | 219.0 |
2/26/2012 | 5/29/2011 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 88.5 | $ | 70.5 | |||
Receivables, net | 55.5 | 65.4 | |||||
Inventories | 453.6 | 300.1 | |||||
Prepaid income taxes | 13.2 | 5.2 | |||||
Prepaid expenses and other current assets | 69.0 | 77.0 | |||||
Deferred income taxes | 125.5 | 145.6 | |||||
Total current assets | $ | 805.3 | $ | 663.8 | |||
Land, buildings and equipment, net | 3,882.9 | 3,622.0 | |||||
Goodwill | 539.2 | 517.1 | |||||
Trademarks | 464.8 | 454.0 | |||||
Other assets | 235.2 | 209.7 | |||||
Total assets | $ | 5,927.4 | $ | 5,466.6 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 294.1 | $ | 251.3 | |||
Short-term debt | 287.7 | 185.5 | |||||
Accrued payroll | 158.6 | 167.1 | |||||
Accrued income taxes | 1.4 | 9.3 | |||||
Other accrued taxes | 72.0 | 64.3 | |||||
Unearned revenues | 267.3 | 200.0 | |||||
Current portion of long-term debt | 349.9 | — | |||||
Other current liabilities | 467.3 | 409.3 | |||||
Total current liabilities | $ | 1,898.3 | $ | 1,286.8 | |||
Long-term debt, less current portion | 1,452.8 | 1,407.3 | |||||
Deferred income taxes | 329.1 | 345.4 | |||||
Deferred rent | 199.6 | 186.2 | |||||
Obligations under capital leases, net of current installments | 54.8 | 56.0 | |||||
Other liabilities | 216.5 | 248.7 | |||||
Total liabilities | $ | 4,151.1 | $ | 3,530.4 | |||
Stockholders’ equity: | |||||||
Common stock and surplus | $ | 2,483.7 | $ | 2,408.8 | |||
Retained earnings | 3,077.2 | 2,921.9 | |||||
Treasury stock | (3,679.2 | ) | (3,325.3 | ) | |||
Accumulated other comprehensive income (loss) | (97.5 | ) | (59.8 | ) | |||
Unearned compensation | (7.9 | ) | (9.4 | ) | |||
Total stockholders’ equity | $ | 1,776.3 | $ | 1,936.2 | |||
Total liabilities and stockholders’ equity | $ | 5,927.4 | $ | 5,466.6 |
Nine Months Ended | |||||||
2/26/2012 | 2/27/2011 | ||||||
Cash flows—operating activities | |||||||
Net earnings | $ | 324.3 | $ | 338.8 | |||
Losses from discontinued operations, net of tax benefit | 0.7 | 2.0 | |||||
Adjustments to reconcile net earnings from continuing operations to cash flows: | |||||||
Depreciation and amortization | 258.8 | 235.2 | |||||
Stock-based compensation expense | 41.3 | 48.7 | |||||
Change in current assets and liabilities and other, net | (74.6 | ) | 38.0 | ||||
Net cash provided by operating activities of continuing operations | $ | 550.5 | $ | 662.7 | |||
Cash flows—investing activities | |||||||
Purchases of land, buildings and equipment | (483.4 | ) | (390.1 | ) | |||
Proceeds from disposal of land, buildings and equipment | 3.3 | 5.8 | |||||
Cash used in business acquisitions, net of cash acquired | (58.6 | ) | — | ||||
Increase in other assets | (21.1 | ) | (6.2 | ) | |||
Net cash used in investing activities of continuing operations | $ | (559.8 | ) | $ | (390.5 | ) | |
Cash flows—financing activities | |||||||
Proceeds from issuance of common stock | 45.1 | 49.9 | |||||
Income tax benefits credited to equity | 12.0 | 12.7 | |||||
Dividends paid | (168.6 | ) | (132.0 | ) | |||
Purchases of treasury stock | (357.0 | ) | (275.9 | ) | |||
ESOP note receivable repayment | 1.5 | 1.5 | |||||
Proceeds from issuance of short-term debt, net | 102.2 | 64.0 | |||||
Repayment of long-term debt | (1.5 | ) | (151.5 | ) | |||
Principal payments on capital leases | (1.2 | ) | (1.0 | ) | |||
Proceeds from issuance of long-term debt | 400.0 | — | |||||
Payment of debt issuance costs | (5.1 | ) | — | ||||
Net cash provided by (used in) financing activities of continuing operations | $ | 27.4 | $ | (432.3 | ) | ||
Cash flows—discontinued operations | |||||||
Net cash used in operating activities of discontinued operations | (0.4 | ) | (2.1 | ) | |||
Net cash provided by investing activities of discontinued operations | 0.3 | 3.1 | |||||
Net cash (used in) provided by discontinued operations | $ | (0.1 | ) | $ | 1.0 | ||
Increase (decrease) in cash and cash equivalents | 18.0 | (159.1 | ) | ||||
Cash and cash equivalents - beginning of period | 70.5 | 248.8 | |||||
Cash and cash equivalents - end of period | $ | 88.5 | $ | 89.7 |
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