Darden Restaurants Inc.

Overview Key strengths Key risks Largest casual dining restaurant operator in the U.S., with a portfolio of well-recognized brands generating total system sales approaching $10 billion Operates in the highly competitive, discretionary casual and fine dining restaurant industry Significant scale and leading restaurant productivity Elevated commodity costs and wage pressure will weigh on operating margins Moderate financial policy and stable cash flow generation which support consistent credit metrics. Increasingly uncertain environment as inflationary pressures dent consumer confidence and discretionary income Customer demand for Darden?s restaurants remains robust, with the company recently reporting positive same-restaurant sales across its brands. Same-restaurant sales accelerated during the company?s fiscal fourth quarter in contrast to the casual dining restaurant industry?s deceleration. In our view, Darden?s

...Consistent execution, scale advantages and brand diversification are contributing to Darden's solid operating performance. Customer demand for Darden's restaurants remains robust, with the company recently reporting positive same-restaurant sales across its brands. Same-restaurant sales accelerated during the company's fiscal fourth quarter in contrast to the casual dining restaurant industry's deceleration. In our view, Darden's investments in food quality, portions, and off-premise capabilities have...

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