2011 Shareholders' Meeting v4 FINAL[1]

8/3/2019 2011 Shareholders' Meeting v4 FINAL[1]

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September 22, 2011

2011 Shareholders Meeting


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Forward-Looking StatementForward-looking statements in this presentation regarding our expected earnings per share growth,sales growth and all other statements that are not historical facts, including without limitation

statements concerning our future economic performance, plans or objectives, are made under the SafeHarbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking

statements speak only as of the date on which such statements are made, and we undertake no

obligation to update such statements to reflect events or circumstances arising after such date. Wewish to caution investors not to place undue reliance on any such forward-looking statements. By

their nature, forward-looking statements involve risks and uncertainties that could cause actual results

to materially differ from those anticipated in the statements. The most significant of these uncertainties

are described in Darden's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments tothose reports). These risks and uncertainties include food safety and food-borne illness concerns,

litigation, unfavorable publicity, federal, state and local regulation of our business including health care

reform, labor and insurance costs, technology failures, failure to execute a business continuity plan

following a disaster, health concerns including virus outbreaks, the intensely competitive nature of therestaurant industry, factors impacting our ability to drive sales growth, the impact of the indebtednesswe incurred in the RARE acquisition, our plans to expand our newer brands like Bahama Breeze and

Seasons 52, a lack of suitable new restaurant locations, higher-than-anticipated costs to open, close or

remodel restaurants, increased advertising and marketing costs, a failure to develop and recruiteffective leaders, the price and availability of key food products and utilities, shortages or interruptions

in the delivery of food and other products, volatility in the market value of derivatives, generalmacroeconomic factors including unemployment and interest rates, severe weather conditions,

disruptions in the financial markets, risks of doing business with franchisees and vendors in foreignmarkets, failure to protect our service marks or other intellectual property, a possible impairment in

the carrying value of our goodwill or other intangible assets, a failure of our internal controls over

financial reporting, or changes in accounting standards, and other factors and uncertainties discussed

from time to time in reports filed by Darden with the Securities and Exchange Commission.


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Reconciliation of Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with

U.S. generally accepted accounting principles ("GAAP"), this presentationcontains non-GAAP financial measures. The non-GAAP financialmeasures should not be considered a substitute for, or superior to,financial measures calculated in accordance with GAAP, however, theyare provided as management believes they are helpful in evaluating theCompany. The non-GAAP financial measures may be calculated

differently from, and therefore may not be comparable to, similarly titledmeasures used by other companies. Please refer to www.darden.com forreconciliation of the non-GAAP measures provided herein to thecomparable GAAP measures.


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Our Compelling Opportunity


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Our Objective

A Winning Organization Financially

Competitively superior sales and earnings growth

A top quartile total shareholder return

A Special Place to Be Where people can fulfill their professional & personal dreams

A Company That Matters

That has Fortune 100 Impact

BUILDING A GREAT COMPANY


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Fiscal 2011 Highlights


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Strong Performance

Total Sales $7.5B +$387M(+5.4%)

Operating Profit $741M +$104M(+16.3%)

Earnings Per Share $3.41 +$0.55(+19.2%)

Competitively Superior Results in Our Industry: 0.7 percentage points better same-restaurant sales results

4 percentage points higher new restaurant sales growth

Growth

FISCAL 2011 RESULTS


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Capping a Strong Decade

0%

50%

100%

2006 2007 2008 2009 2010 2011

Ten Year Percentile Ranking at Each Fiscal Year-End

75%

TOTAL SHAREHOLDER RETURN vs. S&P 500

Median

Top Quartile


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A Strong Culture

3.00

3.25

3.50

3.75

4.00

4.25

4.50

4.75

5.00

Operations TeamMembers

OperationsManagement

Support Center

FY07 FY09 FY10 FY11

FY10

IndustryBenchmark

HIGH EMPLOYEE ENGAGEMENT

HighlyEngaged

Engaged


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A Strong Culture

In service industries, employees actions with consumers transform

a companys brand aspirationsinto a customer-experienced brand.

Professor Leonard L. Berry

REWARDING CONFIRMATION


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Our Long-Term Opportunity


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Our Opportunity

THROUGH FISCAL 2016

+$3B to +$4B of Revenues

+1 Point to +2 Points of EBIT Margin

+$2.00 to +$3.50 of EPS


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Seizing the Opportunity


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Taking an Expansive Growth Perspective

Acquisition

Incubation

NewBrands

New Formats(Synergy)

New Markets(Intl)

New Channels(Airports, Campus)

Existing Brands

Non-Traditional

Growth Opportunities

Same-Restaurant Guest Count Growth Strengthen Our Core

Expand Our Core

New Unit Growth

Existing Brands TraditionalGrowth Opportunities


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Acquisition

Incubation

NewBrands

New Formats(Synergy)

New Markets(Intl)

New Channels(Airports, Campus)

Existing Brands

Non-Traditional

Growth Opportunities

Same-Restaurant Guest Count Growth Strengthen Our Core

Expand Our Core

New Unit Growth

Existing Brands TraditionalGrowth Opportunities

Taking an Expansive Growth Perspective

Long-Term Opportunity through Fiscal 2016: +$3B to +$4B of revenues (7% to 9% sales CAGR)

+$2.00 to $3.50 of EPS (10% to 15% CAGR)

Capture Non-Traditional Opportunities Focus of the Business Development Group

Synergy restaurant launch

International expansion

Maximize Traditional Opportunities Have a strong foundation

Added new Enterprise Marketing and Operationsorganizations to elevate focus on longer lead timeopportunities


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Growth Drivers

FISCAL 2011 TO FISCAL 2016


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Strong Brands


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Potential Revenue Growth

FY 2011 FY 2016

$3.5B

$4.9B(7% CAGR)

+$700M Same-Restaurant Growth

+$700M New Restaurant Growth



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FY 2011 FY 2016

$2.5B

$3.1B(4.5% CAGR)




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FY 2011 FY 2016

$984M

$1.9B(14.5% CAGR)





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FY 2011 FY 2016

$502M

$1.2B(18.5% CAGR)





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FY 2011 FY 2016

1,894

2,415(5% CAGR)

Average Annual Unit Growth of +80 to +115

Potential Total Unit Growth


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Cost-Effective Support


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Cost-Effective Platform

Supply Chain $21M

Sustainability $18M

Facilities Management $4M

Restaurant Labor $8M

$51M of Savings Realized(Cumulative)



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Cost-Effective Platform

Supply Chain $20M to $25M

Sustainability $10M to $12M

Facilities Management $10M to $15MRestaurant Labor $35M to $40M

$75M to $92M of AdditionalSavings Estimated

(Cumulative)



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Winning Culture


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Winning Culture

PROFESSIONAL GROWTH CREATED: FISCAL 2011 TO FISCAL 2016

Promotions to RestaurantGeneral Manager / Managing Partner

Promotions to Restaurants Manager

Net New Employees


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Winning Culture

A COMPANY THAT MATTERS

Lower Calories in 10 Years

Less Sodium in 10 Years

Less Water Usage in 5 Years

Less Energy Usage in 5 Years


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Winning Culture

Signature initiative that builds on our industry and companys

long time roles as opportunity engines

Partners: College SummitBoys & Girls Clubs of America

UNCFHispanic College Fund

Helping young people understand and access the wide rangeof education and training opportunities available beyond high

school



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Winning Culture

Donating to hungry neighbors wholesome surplus food thatwould otherwise be discarded

Partners: Feeding AmericaFood Donation Connectionmore

than 1,200 local charities across the nation

Over 48 million pounds of food worth over $480 million in valuecontributed the last 8 years



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A Company Thats MoreValuableand Valued


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FY 2011 FY 2016

$7.5B

$11.5B(9% CAGR)

Dardens Potential Revenue Growth

$10.5B(7% CAGR)


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Dardens Potential Operating Margin (EBIT)


FY 2011 FY 2016

9.9%

12.0%(+40 bps/year)

$10.9%(+20 bps/year)


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Dardens Potential EPS Growth


FY 2011 FY 2016

$3.41

$6.86(15% CAGR)

$5.49(10% CAGR)


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Dardens Potential Operating Cash Flow


FY 2011 FY 2016

$895M

$1.5B(11% CAGR)

$1.2B(6% CAGR)


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Our Opportunity

THROUGH FISCAL 2016

+$3B to +$4B of Revenues

+1 Point to +2 Points of EBIT Margin

+$2.00 to +$3.50 of EPS


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Our Opportunity

THROUGH FISCAL 2016

Make an Even Bigger Difference for


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Fiscal 2012 Outlook


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Expecting Continued Solid Performance

Total Sales +$485M to +$560M +6.5% to +7.5%Growth

Diluted Net +$0.41 to +$0.51 +12% to +15%EPS Growth

with higher confidence at this point in the yearin the low end of the diluted net EPS growth range

FISCAL 2012 OUTLOOK


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Documents

2011 Shareholders' Meeting v4 FINAL[1]