Darden Restaurants Reports Fourth Quarter and Annual Diluted Net Earnings Per Share; Announces Quarterly Dividend of 20 Cents Per Share; Discusses Fiscal 2009 Financial Outlook
ORLANDO, Fla., June 24, 2008 /PRNewswire-FirstCall via COMTEX News Network
Darden Restaurants, Inc. (NYSE: DRI) today reported sales and diluted net earnings per share for the fourth quarter and fiscal year ended May 25, 2008. In the fourth quarter, diluted net earnings per share from continuing operations increased 7% to 72 cents, versus 67 cents in the prior year. The Company estimates that integration costs and purchase accounting adjustments related to the October 2007 acquisition of RARE Hospitality International, Inc. (RARE) reduced diluted net earnings per share by approximately six cents in the fourth quarter. Excluding the estimated integration costs and purchase accounting adjustments of approximately six cents, net earnings from continuing operations were 78 cents per diluted share.
For the fiscal year, diluted net earnings per share from continuing operations increased 1% to $2.55 from $2.53 in the prior year. The Company estimates that integration costs and purchase accounting adjustments related to the acquisition of RARE reduced diluted net earnings per share by approximately 19 cents in the fiscal year. Excluding the estimated integration costs and purchase accounting adjustments of approximately 19 cents, net earnings from continuing operations were $2.74 per diluted share.
Fourth quarter sales from continuing operations were $1.83 billion, compared to $1.46 billion reported in the prior year, a 25% increase. Fiscal 2008 sales from continuing operations were $6.63 billion, which is a 19% increase from the prior year's sales from continuing operations of $5.57 billion. These increases reflect sales from the LongHorn Steakhouse and The Capital Grille brands as part of the RARE acquisition as well as meaningful new and same-restaurant sales growth at Olive Garden.
Darden reported fourth quarter diluted net earnings per share including discontinued operations of $0.71, compared to diluted net losses per share of $0.38 for the same period last year. Fiscal 2008 diluted net earnings per share including discontinued operations were $2.60, compared to $1.35 in the prior year.
Other Actions
Darden's Board of Directors declared a quarterly cash dividend of 20 cents per share on the Company's outstanding common stock. The dividend is payable on August 1, 2008 to shareholders of record at the close of business on July 10, 2008. Previously, the Company paid a quarterly dividend of 18 cents per share. Based on the 20 cent quarterly dividend declaration, the Company's indicated annual dividend is 80 cents per share, an increase of more than 11%.
Darden continued the buyback of its common stock, purchasing 201,525 shares in the fourth quarter. In fiscal 2008, the Company spent $159 million purchasing 5.0 million shares. Since commencing its repurchase program in December 1995, the Company has purchased almost 147 million shares for $2.78 billion under authorizations totaling 162.4 million shares. The Company's current expectation is that it will repurchase approximately $200 million to $225 million of its common stock in fiscal 2009.
Fiscal 2009 Financial Outlook
Darden announced that it expects combined U.S. same-restaurant sales growth in fiscal 2009 of approximately 2% for Red Lobster, Olive Garden and LongHorn Steakhouse, and that it expects to open approximately 75 to 80 net new restaurants in fiscal 2009. As a result, the Company expects total sales growth of between 14% and 15% in fiscal 2009, compared to reported sales from continuing operations of $6.63 billion in fiscal 2008. This total sales growth includes the two percentage point impact of the 53rd week in fiscal 2009; excluding the 53rd week, the expected total sales growth would be approximately 12% to 13%.
The Company also announced that it anticipates reported diluted net earnings per share growth from continuing operations of 14% to 15% in fiscal 2009, which includes the impact of the 53rd week. This compares to reported diluted net earnings per share from continuing operations of $2.55 in fiscal 2008. The additional week is expected to contribute approximately two percentage points, or $0.05, of growth in fiscal 2009
Excluding the estimated integration costs and purchase accounting adjustments of approximately 19 cents in fiscal 2008, net earnings from continuing operations were $2.74 per diluted share. In fiscal 2009, these costs and adjustments are estimated to be approximately 6 to 7 cents per diluted share. Excluding the impact of these costs and adjustments for both fiscal 2008 and fiscal 2009, the Company expects diluted net earnings per share growth of 9% to 10% on a 53-week basis and 7% to 8% on a 52-week basis.
Darden Restaurants, Inc., (NYSE: DRI) headquartered in Orlando, Fla., is the world's largest company-owned and operated full-service restaurant company with almost $6.7 billion in annual sales and approximately 180,000 employees. The Company owns and operates over 1,700 restaurants including Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille, Bahama Breeze and Seasons 52.
ORLANDO, Fla., June 24, 2008 /PRNewswire-FirstCall via COMTEX News Network
Darden Restaurants, Inc. (NYSE: DRI) today reported sales and diluted net earnings per share for the fourth quarter and fiscal year ended May 25, 2008. In the fourth quarter, diluted net earnings per share from continuing operations increased 7% to 72 cents, versus 67 cents in the prior year. The Company estimates that integration costs and purchase accounting adjustments related to the October 2007 acquisition of RARE Hospitality International, Inc. (RARE) reduced diluted net earnings per share by approximately six cents in the fourth quarter. Excluding the estimated integration costs and purchase accounting adjustments of approximately six cents, net earnings from continuing operations were 78 cents per diluted share.
For the fiscal year, diluted net earnings per share from continuing operations increased 1% to $2.55 from $2.53 in the prior year. The Company estimates that integration costs and purchase accounting adjustments related to the acquisition of RARE reduced diluted net earnings per share by approximately 19 cents in the fiscal year. Excluding the estimated integration costs and purchase accounting adjustments of approximately 19 cents, net earnings from continuing operations were $2.74 per diluted share.
Fourth quarter sales from continuing operations were $1.83 billion, compared to $1.46 billion reported in the prior year, a 25% increase. Fiscal 2008 sales from continuing operations were $6.63 billion, which is a 19% increase from the prior year's sales from continuing operations of $5.57 billion. These increases reflect sales from the LongHorn Steakhouse and The Capital Grille brands as part of the RARE acquisition as well as meaningful new and same-restaurant sales growth at Olive Garden.
Darden reported fourth quarter diluted net earnings per share including discontinued operations of $0.71, compared to diluted net losses per share of $0.38 for the same period last year. Fiscal 2008 diluted net earnings per share including discontinued operations were $2.60, compared to $1.35 in the prior year.
Other Actions
Darden's Board of Directors declared a quarterly cash dividend of 20 cents per share on the Company's outstanding common stock. The dividend is payable on August 1, 2008 to shareholders of record at the close of business on July 10, 2008. Previously, the Company paid a quarterly dividend of 18 cents per share. Based on the 20 cent quarterly dividend declaration, the Company's indicated annual dividend is 80 cents per share, an increase of more than 11%.
Darden continued the buyback of its common stock, purchasing 201,525 shares in the fourth quarter. In fiscal 2008, the Company spent $159 million purchasing 5.0 million shares. Since commencing its repurchase program in December 1995, the Company has purchased almost 147 million shares for $2.78 billion under authorizations totaling 162.4 million shares. The Company's current expectation is that it will repurchase approximately $200 million to $225 million of its common stock in fiscal 2009.
Fiscal 2009 Financial Outlook
Darden announced that it expects combined U.S. same-restaurant sales growth in fiscal 2009 of approximately 2% for Red Lobster, Olive Garden and LongHorn Steakhouse, and that it expects to open approximately 75 to 80 net new restaurants in fiscal 2009. As a result, the Company expects total sales growth of between 14% and 15% in fiscal 2009, compared to reported sales from continuing operations of $6.63 billion in fiscal 2008. This total sales growth includes the two percentage point impact of the 53rd week in fiscal 2009; excluding the 53rd week, the expected total sales growth would be approximately 12% to 13%.
The Company also announced that it anticipates reported diluted net earnings per share growth from continuing operations of 14% to 15% in fiscal 2009, which includes the impact of the 53rd week. This compares to reported diluted net earnings per share from continuing operations of $2.55 in fiscal 2008. The additional week is expected to contribute approximately two percentage points, or $0.05, of growth in fiscal 2009
Excluding the estimated integration costs and purchase accounting adjustments of approximately 19 cents in fiscal 2008, net earnings from continuing operations were $2.74 per diluted share. In fiscal 2009, these costs and adjustments are estimated to be approximately 6 to 7 cents per diluted share. Excluding the impact of these costs and adjustments for both fiscal 2008 and fiscal 2009, the Company expects diluted net earnings per share growth of 9% to 10% on a 53-week basis and 7% to 8% on a 52-week basis.
Darden Restaurants, Inc., (NYSE: DRI) headquartered in Orlando, Fla., is the world's largest company-owned and operated full-service restaurant company with almost $6.7 billion in annual sales and approximately 180,000 employees. The Company owns and operates over 1,700 restaurants including Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille, Bahama Breeze and Seasons 52.
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