The ratings on Darden Restaurants Inc. reflect the company's relatively good position in the casual dining industry, financial conservatism demonstrated by its solid cash flow protection measures, and strong balance sheet. Darden is the largest full-service, casual dining restaurant company in the U.S., operating 660 Red Lobster, 480 Olive Garden, 23 Bahama Breeze, and 10 Smokey Bones BBQ restaurants. The company's operating performance has materially improved over the past four years as a result of successful reinvestments in its core businesses. Darden's business suffered significantly in 1996 and 1997 because of competitive incursions and execution problems at its restaurants. The company responded by slowing growth; improving the food, service, and atmosphere at its units; and closing underperforming restaurants. These initiatives
