I dont know.. I figured it will pop after earnings and maybe I can pick it up or 13.50 or so after the profit taking. Earnings were great:
Comparable Sales Gains At Olive Garden And Red Lobster Lead To Solid
Third Quarter Earnings At Darden
ORLANDO, Fla., March 26 /PRNewswire/ -- Darden Restaurants (NYSE: DRI - news) today announces strong comparable
restaurant sales at Olive Garden and Red Lobster fueled an increase in third quarter earnings and sales at Darden Restaurants.
The Company today reported that earnings after tax rose 89 percent to $29.8 million during the quarter, or 20 cents per diluted
share.
''Improving performance by our restaurant teams and mild winter weather led to strong comparable restaurant sales and good
traffic trends,'' said Joe R. Lee, Chairman and Chief Executive Officer.
''We're pleased with the solid third quarter performance and believe our constant focus on great food and great service --
being brilliant with the basics -- will keep us America's choice for Italian and Seafood casual dining.''
Highlights for the quarter ended February 22, 1998 included:
Earnings after tax in the third quarter were $29.8 million, or 20 cents per basic share on $811.3 million in sales. This
compares to earnings after tax of $15.7 million, or 10 cents per diluted share on sales of $800.8 million in the prior year.
The Olive Garden posted a 9.1% comparable restaurant sales gain in the third quarter making this the fourteenth
consecutive quarter of comparable restaurant sales gains and the second consecutive quarter of 9% plus comparable
restaurant sales gains.
Red Lobster recorded a 2.8% comparable restaurant sales gain in the third quarter, the highest comparable sales gain at
Red Lobster in over three years.
Bahama Breeze continued to demonstrate impressive results, with additional restaurants under development.
The Company purchased 3.2 million shares of common stock in the third quarter proceeding with its previously
announced share buyback programs.
Operating Highlights
THE OLIVE GARDEN'S comparable restaurant sales gain of 9.1% led the casual dining industry (as measured by
Knapp-Track) in the third quarter and marks the fourteenth consecutive quarter of comparable restaurant sales increases. Total
sales were $341.0 million, up over 5% from last year despite 24 fewer restaurants at the end of the quarter. Operating profits
increased substantially over last year as a result of comparable restaurant sales and traffic gains.
''I am very pleased with our third quarter results,'' said Brad Blum, President of Olive Garden. ''The 9.1% comparable
restaurant sales gain matches our second quarter performance while operating profits were up over prior year. I'm very proud
of the team as they continue to focus on guest satisfaction, providing great food, attentive service and a high quality overall
dining experience. That is the benchmark of how we measure ourselves.''
RED LOBSTER'S sales on a comparable restaurant basis were up 2.8%. This represents the best comparable sales
performance at Red Lobster in over three years. Sales of $467.3 million, with 42 fewer restaurants at the end of the quarter,
were approximately 2% below prior year. Margins improved due to lower food and beverage costs, reduced labor and
restaurant expense and lower, more efficient media spending.
''Our performance this quarter reflects the progress we are making in offering remarkable dining experiences,'' said Dick
Rivera, President of Red Lobster. ''Our restaurant teams are working hard to meet our goal of satisfying the high expectations
of our guests each day in each of our restaurants and I think our guests recognize that.''
BAHAMA BREEZE continued to produce strong sales in the third quarter. A third restaurant located in Memphis, TN is
expected to open this spring. Several sites are currently under development and the company is exploring additional sites
throughout the Eastern U.S.
Other Actions
In other action, the Board of Directors elected Odie C. Donald a director. Mr. Donald is Group President - Customer
Operations for BellSouth Telecommunications, in Atlanta. Prior to his current assignment Mr. Donald was President of
BellSouth Mobility, Inc. ''We welcome Odie Donald to our board,'' said Lee. ''He is a proven leader in the delivery of
customer services and will be a tremendous asset to Darden Restaurants.''
The Company continued its buyback of common stock in the open market, purchasing 3.2 million shares in the third quarter.
The Board of Directors declared the regular 4 cents per share semi-annual dividend payable May 1, 1998 to shareholders of
record April 10, 1998.
Darden Restaurants Inc., headquartered in Orlando, Florida, owns and operates Red Lobster, The Olive Garden and Bahama
Breeze restaurants with annual sales of $3.2 billion.
DARDEN RESTAURANTS, INC.
NUMBER OF RESTAURANTS
05/25/97 02/22/98 02/23/97
652 Red Lobster USA 649 674
51 Red Lobster Canada 35 52
703 Total Red Lobster 684 726
461 The Olive Garden USA 460 473
16 The Olive Garden Canada 5 16
477 Total Olive Garden 465 489
2 Bahama Breeze 2 1
1,182 Total Restaurants 1,151 1,216
DARDEN RESTAURANTS, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
22-Feb-98 25-May-97
ASSETS
Current Assets:
Cash and cash
equivalents $35,679 $25,490
Receivables 27,363 16,333
Refundable income
taxes, net 4,550 16,968
Inventories 176,276 132,241
Net assets held for 50,618 47,471
disposal
Prepaid expenses and
other current assets 13,048 14,709
Deferred income taxes 79,963 84,157
Total Current Assets $387,497 $337,369
Land, Buildings and 1,500,552 1,533,272
Equipment
Other Assets 95,105 93,081
Total Assets $1,983,154 $1,963,722
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $138,989 $113,087
Short-term debt 33,500 43,400
Current portion of
long-term debt 5 5
Accrued payroll 68,535 58,312
Other accrued taxes 21,907 22,180
Other current liabilities 256,910 243,596
Total Current
Liabilities $519,846 $480,580
Long-term Debt 310,871 313,187
Deferred Income Taxes 73,731 70,118
Other Liabilities 19,007 18,624
Total Liabilities $923,455 $882,509
Stockholders' Equity:
Common stock and
surplus $1,277,633 $1,268,656
Retained earnings
(deficit) 13,985 (41,706)
Treasury stock (156,102) (69,184)
Cumulative foreign
currency adjustment (11,129) (10,037)
Unearned compensation (64,688) (66,516)
Total Stockholders
Equity $1,059,699 $1,081,213
Total Liabilities and
Stockholders' Equity $1,983,154 $1,963,722
DARDEN RESTAURANTS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In Thousands, Except per Share Data)
(Unaudited)
13 Weeks Ended 39 Weeks Ended
02/22/98 02/23/97 02/22/98 02/23/97
Sales $811,261 $800,846 $2,365,855 $2,355,158
Costs and Expenses:
Cost of sales:
Food and beverages 269,164 277,824 776,973 803,621
Restaurant labor 263,382 258,555 775,328 757,763
Restaurant expenses 113,065 116,908 353,750 360,090
Total Cost
of Sales 645,611 653,287 1,906,051 1,921,474
Selling, general and
administration 83,269 85,245 256,886 277,636
Depreciation and
amortization 32,074 35,067 95,159 105,170
Interest, net 5,079 5,634 14,495 16,191
Total Costs
and Expenses 766,033 779,233 2,272,591 2,320,471
Earnings Before Income
Taxes 45,228 21,613 93,264 34,687
Income Taxes (15,470) (5,890) (31,568) (9,660)
Net Earnings $29,758 $15,723 $61,696 $25,027
Net Earnings per Share,
Basic and Diluted $0.20 $0.10 $0.41 $0.16
Average Number Common
Shares Outstanding:
Basic 148,100 154,200 150,300 156,500
Diluted 151,300 154,900 152,200 157,400
DARDEN RESTAURANTS, INC.
THIRD QUARTER FY 1998 FINANCIAL HIGHLIGHTS
(In Millions, Except Per Share Data)
13 WEEKS ENDED 39 WEEKS ENDED
02/22/98 02/23/97 02/22/98 02/23/97
Sales $811.3 $800.8 $2,365.9 $2,355.2
Net Earnings 29.8 15.7 61.7 25.0
Net Earnings per Share,
Basic and Diluted $0.20 $0.10 $0.41 $0.16
Average Number of Common
Shares Outstanding:
Basic 148.1 154.2 150.3 156.5
Diluted 151.3 154.9 152.2 157.4 |
