Darden Restaurants Inc.

Overview Key strengths Key risks Largest casual dining restaurant operator in the U.S., with a robust portfolio of well-recognized brands. Operates in the highly competitive, discretionary casual and fine dining restaurant industry, which is defined by changing consumer preferences. Significant scale and purchasing power. Inflationary pressures on costs and consumer spending threatens demand and margin. Moderate financial policy and stable cash flow generation support consistent credit metrics. Customer demand has been better than the industry despite continued inflationary trends, which supported positive same-restaurant sales across its largest brands, Olive Garden and Longhorn Steakhouse. Total sales for fiscal 2024 (ended May 26, 2024) increased 8.6% to $11.4 billion, driven by a 1.6% increase in same-restaurant sales and the addition of 37

...Darden Restaurant Inc.'s consistent execution, scale advantages, and brand diversity contribute to its continued solid operating performance, recording sales of nearly $11.4 billion in fiscal 2024. Customer demand has been better than the industry despite continued inflationary trends, which supported positive same-restaurant sales across its largest brands, Olive Garden and Longhorn Steakhouse. Total sales for fiscal 2024 (ended May 26, 2024) increased 8.6% to $11.4 billion, driven by a 1.6% increase in same-restaurant sales and the addition of 37 new units and 80 company-owned Ruth's Chris restaurants. Same-restaurant sales and traffic outperformed the industry by 300 basis points (bps) in fiscal 2024, despite overall contraction by 1.4% and 4.7%, respectively. Despite weakening consumer demand, the easing of commodity and labor inflation drove solid profit growth in 2024. Darden's investments in its food quality, portions, pricing, and off-premises capabilities have strengthened its...

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