f2411ff7ad6810064472facb00265f43124a68d4d323dd462d6147f18a29ff9f

DRI is a company that operates full-service dining establishments across North America, primarily in the U.S., managing several well-known restaurant brands **[0000940944-24-000035_dri-20240526.htm:95]**. The company offers a diverse range of dining experiences through its various brands, selling food and beverages without reliance on any major customers **[0000940944-24-000035_dri-20240526.htm:6]**. DRI organizes its operations into four main segments, each contributing to its overall business strategy and revenue generation **[0000940944-24-000055_dri-20240825.htm:7]**.

1. **Olive Garden** - Offers Italian cuisine with a focus on fresh ingredients and quality, significantly contributing to the company's revenue **[0000940944-24-000035_dri-20240526.htm:6]**.
2. **LongHorn Steakhouse** - Known for its steak and American West-inspired atmosphere, playing a major role in revenue generation **[0000940944-24-000035_dri-20240526.htm:6]**.
3. **Fine Dining** - Includes premium brands such as Ruth’s Chris, The Capital Grille, and Eddie V’s, providing upscale dining experiences **[0000940944-24-000035_dri-20240526.htm:6]**.
4. **Other Business** - Encompasses a variety of dining experiences with brands like Cheddar’s Scratch Kitchen, Yard House, Seasons 52, Bahama Breeze, and The Capital Burger **[0000940944-24-000035_dri-20240526.htm:6]**.

5fa5fde5c13652239110dbc0ebd74408314e68c05b53298b479a3b8beb4f4980

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

ac9057bdcdd719d410ebc72c5af8290d8cc85f8ba57da5c1dbb775bfe003f983

| Segment / Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 |
|-------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Olive Garden (in millions) | **$1,209.1**  **[0000940944-24-000044_exhibit991-q1fy25.htm:0]**  | **$1,277.5**  **[0000940944-24-000026_exhibit991-q4fy24.htm:0]**  | **$1,310.2**  **[0000940944-24-000011_exhibit991-q3fy24.htm:0]**  | **$1,251.4**  **[0000940944-23-000071_exhibit991-q2fy24.htm:0]**  | **$1,227.9**  **[0000940944-23-000053_dri-20230827.htm:17]**  | **$1,269.2**  **[0000940944-23-000031_exhibit991-q4fy23.htm:0]**  | **$1,301.2**  **[0000940944-23-000012_exhibit991-q3fy23.htm:0]**  | **$1,176.7**  **[0000940944-22-000077_exhibit991-q2fy23.htm:0]**  |
| LongHorn Steakhouse (in millions) | **$713.5**  **[0000940944-24-000044_exhibit991-q1fy25.htm:0]**  | **$762.7**  **[0000940944-24-000026_exhibit991-q4fy24.htm:0]**  | **$730.7**  **[0000940944-24-000011_exhibit991-q3fy24.htm:0]**  | **$643.0**  **[0000940944-23-000071_exhibit991-q2fy24.htm:0]**  | **$669.8**  **[0000940944-23-000053_dri-20230827.htm:17]**  | **$711.7**  **[0000940944-23-000031_exhibit991-q4fy23.htm:0]**  | **$695.5**  **[0000940944-23-000012_exhibit991-q3fy23.htm:0]**  | **$600.5**  **[0000940944-22-000077_exhibit991-q2fy23.htm:0]**  |
| Fine Dining (in millions) | **$278.9**  **[0000940944-24-000044_exhibit991-q1fy25.htm:0]**  | **$327.1**  **[0000940944-24-000026_exhibit991-q4fy24.htm:0]**  | **$372.9**  **[0000940944-24-000011_exhibit991-q3fy24.htm:0]**  | **$318.0**  **[0000940944-23-000071_exhibit991-q2fy24.htm:0]**  | **$273.5**  **[0000940944-23-000053_dri-20230827.htm:17]**  | **$209.8**  **[0000940944-23-000031_exhibit991-q4fy23.htm:0]**  | **$235.6**  **[0000940944-23-000012_exhibit991-q3fy23.htm:0]**  | **$202.0**  **[0000940944-22-000077_exhibit991-q2fy23.htm:0]**  |
| Other Business (in millions) | **$555.5**  **[0000940944-24-000044_exhibit991-q1fy25.htm:0]**  | **$590.0**  **[0000940944-24-000026_exhibit991-q4fy24.htm:0]**  | **$561.0**  **[0000940944-24-000011_exhibit991-q3fy24.htm:0]**  | **$514.9**  **[0000940944-23-000071_exhibit991-q2fy24.htm:0]**  | **$559.4**  **[0000940944-23-000053_dri-20230827.htm:17]**  | **$578.3**  **[0000940944-23-000031_exhibit991-q4fy23.htm:0]**  | **$553.9**  **[0000940944-23-000012_exhibit991-q3fy23.htm:0]**  | **$507.3**  **[0000940944-22-000077_exhibit991-q2fy23.htm:0]**  |
| Total Sales (in millions) | **$2,757.0**  **[0000940944-24-000044_exhibit991-q1fy25.htm:0]**  | **$2,957.3**  **[0000940944-24-000026_exhibit991-q4fy24.htm:0]**  | **$2,974.8**  **[0000940944-24-000011_exhibit991-q3fy24.htm:0]**  | **$2,727.3**  **[0000940944-23-000071_exhibit991-q2fy24.htm:0]**  | **$2,730.6**  **[0000940944-23-000041_exhibit991-q1fy24.htm:0]**  | **$2,769.0**  **[0000940944-23-000031_exhibit991-q4fy23.htm:0]**  | **$2,786.2**  **[0000940944-23-000012_exhibit991-q3fy23.htm:0]**  | **$2,486.5**  **[0000940944-22-000077_exhibit991-q2fy23.htm:0]**  |

ae20d4a86f9bfcb0e2ea4886b316773dd3da5667ac69c880e2b3f33bbc85a77a

253e5ac09cf6abbff982b634b08c6e63a6242f1a951226397e74c52c17575549

1. Given that you fell short of your expectations for the first quarter, can you elaborate on the specific factors that led to this underperformance and what corrective actions you're implementing to address them?
2. With your focus on improving speed of service to meet the faster-paced needs of today's consumers, what specific operational changes are you making to accelerate service without compromising the guest experience, and how will you measure success in this area?
3. Considering that many brands source a significant portion of their delivery sales from third-party marketplaces, why have you decided against offering Olive Garden on Uber's marketplace platform, and how do you plan to drive sufficient incremental sales through your first-party delivery to offset potential missed opportunities?
4. In light of the challenges faced in the Fine Dining segment and decreased visits from aspirational consumers, what strategies are you employing to reinvigorate growth without diluting your brand, and how do you plan to attract new customers while retaining your discerning frequent diners?
5. Despite spending below historical levels on marketing for Olive Garden, particularly in price-point advertising, why are you hesitant to increase marketing spend to apply more pressure on competitors, and how do you balance cost savings with the potential for driving incremental traffic through increased advertising investment?

5015d1e206d6f38a5f22fc101fff52be2508b8e7f15d5ed7f5ba9ef55d768cd0

### Q1 2025 Earnings Call
- **Issued Period**: Q1 2025
- **Guided Period**: FY 2025
- **Guidance**:
  - **Earnings Growth**: **6% to 8%**  **[DRI_3401867_21]** .
  - **General and Administrative (G&A) Expenses**: **$450 million** for the year, with **$125 million** in Q1 and **$105 to $110 million** per quarter thereafter  **[DRI_3401867_40]** .
  - **Pricing**: **2.5% to 3%** for fiscal 2025  **[DRI_3401867_25]** .
  - **Commodity Inflation**: Approximately **2%** for the full year  **[DRI_3401867_25]** .
  - **Labor Costs**: Labor inflation around **4%**  **[DRI_3401867_33]** .
  - **Chuy's Acquisition**: Expected to be neutral to adjusted earnings per share, excluding transaction and integration-related expenses  **[DRI_3401867_6]** .

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  - **Total Sales**: **$11.8 billion to $11.9 billion**  **[DRI_3392604_5]** .
  - **Same-Restaurant Sales Growth**: **1% to 2%**  **[DRI_3392604_5]** .
  - **New Restaurants**: **45 to 50** new restaurants  **[DRI_3392604_5]** .
  - **Capital Spending**: **$550 million to $600 million**  **[DRI_3392604_5]** .
  - **Total Inflation**: Approximately **3%**, including commodities inflation of **2%** and labor inflation of **4%**  **[DRI_3392604_5]** .
  - **Annual Effective Tax Rate**: Approximately **13%**  **[DRI_3392604_5]** .
  - **Diluted Average Shares Outstanding**: Approximately **119 million**  **[DRI_3392604_5]** .
  - **Diluted Net Earnings Per Share**: **$9.40 to $9.60**  **[DRI_3392604_5]** .
  - **Quarterly Dividend**: **7% increase** to **$1.40 per share**, implying an annual dividend of **$5.60**  **[DRI_3392604_5]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024 and FY 2025
- **Guidance for FY 2024**:
  - **Total Sales**: Approximately **$11.4 billion**.
  - **Same-Restaurant Sales Growth**: **1.5% to 2%**.
  - **New Restaurants**: **50 to 55** new restaurants.
  - **Capital Spending**: Approximately **$600 million**.
  - **Total Inflation**: Approximately **3%**, including commodities inflation of **1.5%**.
  - **Annual Effective Tax Rate**: **12% to 12.5%**.
  - **Diluted Average Shares Outstanding**: Approximately **121 million**.
  - **Adjusted Diluted Net Earnings Per Share**: **$8.80 to $8.90**, excluding **$55 million** of pretax transaction and integration-related costs.
- **Guidance for Q4 2024**:
  - **Sales**: **$2.95 billion to $2.99 billion**.
  - **Same-Restaurant Sales**: Between **negative 0.5% and positive 1%**.
  - **Adjusted Diluted Net Earnings Per Share**: Between **$2.58 and $2.68**.
- **Guidance for FY 2025**:
  - **New Restaurants**: **45 to 50** new restaurants.
  - **Capital Spending for New Restaurants**: **$250 million to $300 million**.
  - **Capital Spending for Maintenance, Refresh, and Technology**: Approximately **$300 million**.
  - **Effective Tax Rate**: Approximately **13%**  **[DRI_3378700_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  - **Total Sales**: Approximately **$11.5 billion**  **[DRI_3369512_4]** .
  - **Same-Restaurant Sales Growth**: **2.5% to 3%**  **[DRI_3369512_4]** .
  - **New Restaurants**: **50 to 55** new restaurants  **[DRI_3369512_4]** .
  - **Capital Spending**: Approximately **$600 million**  **[DRI_3369512_4]** .
  - **Total Inflation**: **3% to 3.5%**, including commodities inflation of **2%**  **[DRI_3369512_4]** .
  - **Annual Effective Tax Rate**: **12% to 12.5%**  **[DRI_3369512_4]** .
  - **Diluted Average Shares Outstanding**: Approximately **121 million**  **[DRI_3369512_4]** .
  - **Adjusted Diluted Net Earnings Per Share**: **$8.75 to $8.90**, excluding **$55 million** of pretax transaction and integration-related costs  **[DRI_3369512_4]** .
  - **EPS Growth Rate**: Third quarter growth rate expected to be similar to the first quarter, and the fourth quarter to have the lowest EPS growth rate for the year  **[DRI_3369512_4]** .
  - **Pricing and Inflation**: Pricing and inflation expected to be relatively equal in the third quarter, with pricing significantly below inflation in the fourth quarter  **[DRI_3369512_4]** .

0f0ca84e2a066f592fbb7f2656544934b03ccaa10d51490d6d6786edd4eb219a

ad7585c5e7745b53a644e77b683a70e71f9275193d1e6e9817f13ba6cf6102c5

| Name                  | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Ricardo Cardenas      | President and Chief Executive Officer                                    | May 2022         | Ricardo Cardenas has been the President and CEO since May 2022. He previously served as President and COO from January 2021 to May 2022, and as SVP, CFO from March 2016 to January 2021. He joined Darden in 1984 and has held various roles, including VP of Finance for Olive Garden  **[0000950170-24-090429_dri-20240801.htm:22]** **[0000950170-24-090429_dri-20240801.htm:18]** **[0001193125-23-204713_d402317ddef14a.htm:22]** .                                      |
| Rajesh Vennam         | Senior Vice President, Chief Financial Officer                           | December 2022    | Rajesh Vennam has been the SVP, CFO since December 2022. He was previously SVP, CFO and Treasurer from January 2021 to December 2022, and held other finance roles since joining Darden in 2003  **[0000950170-24-090429_dri-20240801.htm:20]** **[0001193125-23-204713_d402317ddef14a.htm:20]** .                                                                                                                                  |
| Matthew R. Broad      | Senior Vice President, General Counsel, Chief Compliance Officer, and Corporate Secretary | 2015             | Matthew R. Broad has served in his current role since 2015. Before joining Darden, he was EVP, General Counsel, and Chief Compliance Officer for OfficeMax from 2004 to 2013  **[0000950170-24-090429_dri-20240801.htm:18]** **[0001193125-23-204713_d402317ddef14a.htm:18]** .                                                                                                               |
| Todd A. Burrowes      | President of Business Development                                        | May 2024         | Todd A. Burrowes became President of Business Development in May 2024 after serving as President of LongHorn Steakhouse from 2015 to 2024. He rejoined Darden in 2002 and has held various leadership roles  **[0000950170-24-090429_dri-20240801.htm:18]** **[DRI_3392604_2]** .                                                                                |
| Susan M. Connelly     | Senior Vice President, Chief Communications and Public Affairs Officer   | 2019             | Susan M. Connelly has been in her current role since 2019. She joined Darden in 2007 and has held various positions, including VP, Government Relations  **[0000950170-24-090429_dri-20240801.htm:18]** **[0001193125-23-204713_d402317ddef14a.htm:18]** .                                                                                                                                   |
| Laura Williamson      | President of LongHorn Steakhouse                                         | May 2024         | Laura Williamson has been President of LongHorn Steakhouse since May 2024. She previously served as SVP of Finance for Olive Garden and LongHorn Steakhouse  **[0000950170-24-090429_dri-20240801.htm:20]** **[DRI_3392604_2]** .                                                                                                                                |
| Daniel J. Kiernan     | President, Olive Garden                                                  | 2018             | Daniel J. Kiernan has been President of Olive Garden since 2018. He joined Olive Garden in 1992 and has held various roles, including EVP of Operations  **[0000950170-24-090429_dri-20240801.htm:19]** **[0001193125-23-204713_d402317ddef14a.htm:19]** **[0001193125-23-146109_d480797dex99a1a.htm:106]** .                                                                                                                                 |
| Sarah H. King         | Senior Vice President, Chief People and Diversity Officer                | May 2021         | Sarah H. King has been in her current role since May 2021. She joined Darden in 2017 as SVP, Chief Human Resources Officer after 19 years with Wyndham Worldwide Corporation  **[0000950170-24-090429_dri-20240801.htm:19]** **[0001193125-23-204713_d402317ddef14a.htm:19]** .                                                                                                               |
| John W. Madonna       | Senior Vice President, Corporate Controller                              | 2016             | John W. Madonna has been SVP, Corporate Controller since 2016. He joined Darden in 2005 and has held various roles, including Director in Corporate Reporting  **[0000950170-24-090429_dri-20240801.htm:19]** **[0001193125-23-204713_d402317ddef14a.htm:19]** **[0001193125-23-146109_d480797dex99a1a.htm:106]** **[0001193125-23-146109_d480797dex99a1a.htm:103]** .                                                                                                                       |
| M. John Martin        | President, Specialty Restaurant Group                                    | August 2020      | M. John Martin has been President of the Specialty Restaurant Group since August 2020. He joined The Capital Grille in 1990 and has held several leadership roles  **[0000950170-24-090429_dri-20240801.htm:19]** **[0001193125-23-204713_d402317ddef14a.htm:19]** .                                                                                                                         |
| Douglas J. Milanes    | Senior Vice President, Chief Supply Chain Officer                        | 2015             | Douglas J. Milanes has served as SVP, Chief Supply Chain Officer since 2015. He previously held positions at Pfizer Inc.  **[0000950170-24-090429_dri-20240801.htm:19]** **[0001193125-23-204713_d402317ddef14a.htm:19]** .                                                                                                                                                                  |
| Daryl Kenningham      | Board Member                                                             | December 9, 2024 | Daryl Kenningham was appointed as a Board Member on December 9, 2024. He serves on the Audit and Compensation Committees and is also the President and CEO of Group 1 Automotive  **[0000940944-24-000072_darylkenninghamboardseat-f.htm:0]** **[0000940944-24-000072_dri-20241209.htm:1]** .                                                                                                         |

1ca5e30c8bdda664fe98c9156d209c4dead3ba2b00bdbf966c7da836d19daf0a

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | **March 20, 2024**  **[0000940944-24-000055_dri-20240825.htm:33]**  |
| End Date/Duration        | No expiration date  **[0000940944-24-000055_dri-20240825.htm:33]**  |
| Total additional amount  | **$1 billion**  **[0000940944-24-000055_dri-20240825.htm:33]**  |
| Remaining authorization amount | **$743.0 million**  **[0000940944-24-000055_dri-20240825.htm:33]**  |
| Details                  | The program allows repurchases up to $1 billion of outstanding common stock, with no expiration date. Repurchases are subject to market conditions and can be made in open market or private transactions. The program can be discontinued at any time at the discretion of the Board of Directors.  **[0000940944-24-000055_dri-20240825.htm:33]**  |

54ffc79b11956d4c13448144addafeb8f8d3ae4a539624b1bd6e9ebac757fdd8

**Annual guidance for FY 2025:**
- **G&A Expenses**: $470 million  **[DRI_3411944_18]**  (raised from $450 million  **[DRI_3401867_40]** )  
- **Commodity inflation**: ~1%  **[DRI_3411944_4]**  (lowered from 2%  **[DRI_3401867_25]** )  
- **Total Sales**: $12.1 billion  **[DRI_3411944_4]**  (no prior guidance)  
- **Same-Restaurant Sales Growth**: 1.5%  **[DRI_3411944_4]**  (no prior guidance)  
- **New Restaurant Openings**: 50 to 55  **[DRI_3411944_4]**  (no prior guidance)  
- **Capital Spending**: $650 million  **[DRI_3411944_4]**  (no prior guidance)  
- **Total Inflation**: 2.5%  **[DRI_3411944_4]**  (no prior guidance)  
- **Annual Effective Tax Rate**: 12.5%  **[DRI_3411944_4]**  (no prior guidance)  
- **Diluted Average Shares Outstanding**: 118 million  **[DRI_3411944_4]**  (no prior guidance)  
- **Adjusted Diluted Net Earnings Per Share (EPS)**: $9.40 to $9.60  **[DRI_3411944_4]**  (no prior guidance)  
- **Run-Rate Synergies from Chuy's Acquisition**: $17 million  **[DRI_3411944_4]**  (no prior guidance)  
- **Interest Expense**: $47 million per quarter  **[DRI_3411944_18]**  (no prior guidance)  
- **Depreciation & Amortization**: up 10 to 20 basis points  **[DRI_3411944_18]**  (no prior guidance)  

1f11a105278a671caaf437f7334687b370c68de42cfae33ce1500eafa3e08e43

Olive Garden

Red Lobster

LongHorn Steakhouse

Fine Dining

- The Capital Grille, Bahama Breeze, Seasons 52, Eddie V's, and Yard House

Other Business

Total Revenue

a6a964b509dfe9b2bf110504f7338f35dcbbfb888b283dec759847cf997bbc49

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 1996  **[0000940944-24-000035_dri-20240526.htm:76]**    | Present  | Current auditor   |
```

ebe91b1341d73bc40530545904fb2da50e0790b6a10edf2ab883e9637cd41891

f9fa6e252a68803ffd8375709719de17766a3147ce3889f9c2048c6027de8c9d

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $2,890.0 million, up **+6% YoY** (from $2,727.3 million)  **[0000940944-24-000005_dri-20231126.htm:10]** **[0000940944-25-000003_dri-20241124.htm:11]**   
- LongHorn Steakhouse: $710.1 million, up **+10% YoY** (from $643.0 million)  **[0000940944-24-000005_dri-20231126.htm:10]** **[0000940944-25-000003_dri-20241124.htm:11]**   
- Other Business: $581.4 million, up **+13% YoY** (from $514.9 million)  **[0000940944-24-000005_dri-20231126.htm:10]** **[0000940944-25-000003_dri-20241124.htm:11]**   
- SG&A: $144.1 million, up **+25% YoY** (from $114.8 million)  **[0000940944-24-000005_dri-20231126.htm:19]** **[0000940944-24-000005_dri-20231126.htm:1]** **[0000940944-25-000003_dri-20241124.htm:21]** **[0000940944-25-000003_dri-20241124.htm:1]**   
- D&A: $127.7 million, up **+14% YoY** (from $112.5 million)  **[0000940944-24-000005_dri-20231126.htm:19]** **[0000940944-24-000005_dri-20231126.htm:1]** **[0000940944-25-000003_dri-20241124.htm:21]** **[0000940944-25-000003_dri-20241124.htm:1]**   

4772e1d52502b338a2a7390db11995aef40e85f82b7ec6f52604171306239438

1. **Sales Outlook and Guidance**  
   **Q:** What's your sales outlook and drivers for fiscal '25?  
   **A:** We expect **1% to 2% same-restaurant sales growth** for the full year, with underlying traffic trends gradually improving throughout the year \[0\]. This outlook considers expected weakening GDP growth and the cycling of prior-year weaknesses \[0\]. There's a shift in Thanksgiving from Q2 to Q3, impacting quarterly sales by **80 to 100 basis points** \[0\]. Despite more variability around our sales guidance, we have higher confidence in our earnings outlook \[0\].

2. **Pricing Strategy**  
   **Q:** How are you approaching pricing in fiscal '25?  
   **A:** We'll keep pricing modest, expecting it to be in line with inflation at **2.5% to 3%** \[1\]. Over the last 5 years, we've underpriced compared to the overall CPI and industry, having priced only **20%** compared to **23%** CPI and **28%** for full-service restaurants \[1\]. This strategy gives us flexibility to continue keeping prices low \[1\].

3. **Olive Garden Performance and Marketing**  
   **Q:** How will you address Olive Garden's weak comps?  
   **A:** We're focusing on profitable sales growth, not buying sales through discounting, even with competitors increasing discounting \[2\]. We'll slightly increase marketing spend by a couple of tenths in fiscal '25 \[2\]. We're highlighting Olive Garden's everyday value with promotions like **Create Your Own Pasta at $12.99** with unlimited first course \[6\]. We'll continue menu innovation and leverage digital marketing \[6\].

4. **Consumer Environment Impact**  
   **Q:** What are you seeing across income segments?  
   **A:** The softness is mostly among consumers below the median household income of **$75,000**, more pronounced below **$50,000** \[3\]. These impacts are greater in our Fine Dining brands \[3\]. However, guests aren't managing their checks like in prior quarters \[3\].

5. **Margins and Cost Management**  
   **Q:** Despite low pricing, how are food margins better?  
   **A:** Although pricing was **2.5%**, below the **3%** inflation, our teams managed costs effectively \[12\]. In a slow growth environment, costs improve, and controllable expenses come in better \[12\]. This reflects our ability to manage through different cycles \[12\].

6. **Inflation and Input Costs**  
   **Q:** What's your inflation outlook for 2025?  
   **A:** We expect total commodity inflation around **2%**, with beef in mid-single digits and low single-digit deflation in chicken \[10\]. Labor inflation is expected to be around **4%**, with hourly wage inflation close to **4%** \[10\]. Other restaurant expenses are projected at **2.5% to 3%**, leading to overall inflation close to **3%** \[10\].

7. **Guidance Confidence and Variability**  
   **Q:** How confident are you in your guidance?  
   **A:** While there's more variability around our sales guidance due to economic conditions, we have higher confidence in our earnings outlook \[0\]. If sales are weaker, inflation should improve, and our teams can manage costs effectively to meet earnings targets \[15\].

8. **Ruth's Chris Acquisition Strategy**  
   **Q:** Are you considering more franchise acquisitions like Ruth's?  
   **A:** The acquisition of the Ruth's Chris franchisee was opportunistic \[7\]. We value our franchise partners and will continue as is \[7\]. This doesn't indicate a change in strategy \[7\].

9. **Consumer Check Behavior**  
   **Q:** Why aren't guests managing checks as before?  
   **A:** We're seeing significant improvement; the sales mix was flat at Olive Garden and LongHorn, with no negative mix \[4\]. In Fine Dining, negative mix has moderated from **200 basis points** to **80-90 basis points** \[4\]. Guests aren't managing their checks as much as they used to \[4\].

10. **Advertising Value Proposition**  
    **Q:** Can you better highlight your value in advertising?  
    **A:** Yes, we're promoting offers like **Create Your Own Pasta at $12.99** on TV \[9\]. Olive Garden offers great everyday value, and we aim to highlight that instead of discounting \[9\].

598c3d29a15f972acbfde8dfcfbfdf5e2dacdca473e7ea50da5f8524942f7ab4

| Year | Amount Due (in millions) | Debt Type               | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|-----------------------------|-----------------------|------------------------------------------------------------------------------------|
| 2027     | $500.0 **[0000940944-25-000003_dri-20241124.htm:30]**               | 3.850% Senior Notes         | 3.850 **[0000940944-25-000003_dri-20241124.htm:30]**         | 18.9% = (500.0 / 2,645.2) * 100 **[0000940944-25-000003_dri-20241124.htm:19]** **[0000940944-25-000003_dri-20241124.htm:2]** **[0000940944-25-000003_dri-20241124.htm:30]**                           |
| 2027     | $400.0 **[0000940944-25-000003_dri-20241124.htm:30]**               | 4.350% Senior Notes         | 4.350 **[0000940944-25-000003_dri-20241124.htm:30]**         | 15.1% = (400.0 / 2,645.2) * 100 **[0000940944-25-000003_dri-20241124.htm:19]** **[0000940944-25-000003_dri-20241124.htm:2]** **[0000940944-25-000003_dri-20241124.htm:30]**                           |
| 2029     | $350.0 **[0000940944-25-000003_dri-20241124.htm:30]**               | 4.550% Senior Notes         | 4.550 **[0000940944-25-000003_dri-20241124.htm:30]**         | 13.2% = (350.0 / 2,645.2) * 100 **[0000940944-25-000003_dri-20241124.htm:19]** **[0000940944-25-000003_dri-20241124.htm:2]** **[0000940944-25-000003_dri-20241124.htm:30]**                           |
| 2033     | $500.0 **[0000940944-25-000003_dri-20241124.htm:30]**               | 6.300% Senior Notes         | 6.300 **[0000940944-25-000003_dri-20241124.htm:30]**         | 18.9% = (500.0 / 2,645.2) * 100 **[0000940944-25-000003_dri-20241124.htm:19]** **[0000940944-25-000003_dri-20241124.htm:2]** **[0000940944-25-000003_dri-20241124.htm:30]**                           |
| 2035     | $96.3 **[0000940944-25-000003_dri-20241124.htm:30]**                | 6.000% Senior Notes         | 6.000 **[0000940944-25-000003_dri-20241124.htm:30]**         | 3.6% = (96.3 / 2,645.2) * 100 **[0000940944-25-000003_dri-20241124.htm:19]** **[0000940944-25-000003_dri-20241124.htm:2]** **[0000940944-25-000003_dri-20241124.htm:30]**                             |
| 2037     | $42.8 **[0000940944-25-000003_dri-20241124.htm:30]**                | 6.800% Senior Notes         | 6.800 **[0000940944-25-000003_dri-20241124.htm:30]**         | 1.6% = (42.8 / 2,645.2) * 100 **[0000940944-25-000003_dri-20241124.htm:19]** **[0000940944-25-000003_dri-20241124.htm:2]** **[0000940944-25-000003_dri-20241124.htm:30]**                             |
| 2048     | $300.0 **[0000940944-25-000003_dri-20241124.htm:30]**               | 4.550% Senior Notes         | 4.550 **[0000940944-25-000003_dri-20241124.htm:30]**         | 11.3% = (300.0 / 2,645.2) * 100 **[0000940944-25-000003_dri-20241124.htm:19]** **[0000940944-25-000003_dri-20241124.htm:2]** **[0000940944-25-000003_dri-20241124.htm:30]**                           |
| N/A      | $275.2 **[0000940944-25-000003_dri-20241124.htm:2]**               | Short-Term Debt             | N/A                  | 10.4% = (275.2 / 2,645.2) * 100 **[0000940944-25-000003_dri-20241124.htm:19]** **[0000940944-25-000003_dri-20241124.htm:2]**                                   |

1f68af0f4756bb931928be786dce16f29f1e9e92cb400c88312e9d9e9b801585

45710e89bfe3a3534df47b357eb997fbb4f6b422e3dc719b7fd54526124ea68d

89f4736d6b15b8fe3810de6acc414120077390837d11c483ce3d005b5ef6ab94

1. **Lower-Income Consumer Impact**  
   **Q:** How is the pullback of low-income consumers affecting you?  
   **A:** We observed that transactions from households with incomes below **$75,000** were significantly lower than last year.  **[DRI_3378700_5]**  Conversely, transactions from households above **$150,000** were higher.  **[DRI_3378700_5]**  This shift was most pronounced in our Fine Dining segment.  **[DRI_3378700_5]**  We are now back to our pre-COVID mix across all income groups, which we feel confident operating within.  **[DRI_3378700_5]** **[DRI_3378700_7]** 

2. **Margin Management and Outlook**  
   **Q:** What's driving margin improvement, and will it continue?  
   **A:** Margin improvement this year was due to inflation coming in better than expected for both commodities and labor, combined with strong cost management and improved productivity.  **[DRI_3378700_6]**  We also improved waste and benefited from a favorable mix.  **[DRI_3378700_6]**  Looking ahead, we'll share more details in June, but we'll continue using our long-term framework as a guide.  **[DRI_3378700_6]** **[DRI_3378700_8]** 

3. **Pricing Strategy Amid Inflation**  
   **Q:** Will you continue underpricing inflation?  
   **A:** Yes, our strategy is to price below inflation over time.  **[DRI_3378700_13]**  In Q4, we expect overall inflation in the mid-3% range and plan to price at **2% to 2.5%**, underpricing inflation by **100 to 150 basis points**.  **[DRI_3378700_8]**  We've taken less pricing than competitors over the last four years, giving us room to adjust if needed.  **[DRI_3378700_13]** 

4. **Unit Growth Expectations**  
   **Q:** Why are next year's planned openings lower?  
   **A:** Our new restaurant projection is within our long-term framework but lower than we'd like due to higher construction costs and longer development timelines.  **[DRI_3378700_12]**  We're willing to slow down to achieve better long-term results.  **[DRI_3378700_12]**  We added **77** restaurants this year through the acquisition of Ruth's Chris.  **[DRI_3378700_12]** 

5. **Managing in a Tougher Environment**  
   **Q:** How will you respond if conditions worsen?  
   **A:** We'll stick to our strategy and not resort to heavy discounting.  **[DRI_3378700_13]**  We have tactics within our strategy to address challenges without becoming promotional.  **[DRI_3378700_13]**  We're focusing on execution, offering great food, service, and atmosphere to increase frequency with our core guests.  **[DRI_3378700_13]** 

6. **Maintaining Brand Visibility**  
   **Q:** How do you keep brands top of mind amid increased marketing by others?  
   **A:** Olive Garden remained in the top three in share of voice, even with our current spending levels.  **[DRI_3378700_11]**  We utilize our eClub and digital initiatives to engage consumers.  **[DRI_3378700_11]**  Most importantly, we rely on guest recommendations, focusing on delivering exceptional experiences.  **[DRI_3378700_11]** 

7. **Regional Sales Differences**  
   **Q:** Are you seeing sales differences across regions?  
   **A:** We continue to see softness in **Texas** and **California**.  **[DRI_3378700_27]**  Florida was slightly weaker but not significantly.  **[DRI_3378700_27]**  Weather impacts in Q3 disproportionately affected Texas and California.  **[DRI_3378700_27]** 

8. **Off-Premise Performance**  
   **Q:** How did off-premise sales perform?  
   **A:** Off-premise sales as a percentage were slightly below last year but remained stable.  **[DRI_3378700_10]**  Olive Garden's off-premise was around **26%**, and LongHorn's was around **13%**.  **[DRI_3378700_10]**  Our focus on execution has helped maintain stability in this channel.  **[DRI_3378700_10]** 

9. **Menu Innovation**  
   **Q:** Any plans for menu innovation at Olive Garden and LongHorn?  
   **A:** Yes, we're balancing innovation with improving existing items.  **[DRI_3378700_26]**  LongHorn, for example, has successfully introduced lamb.  **[DRI_3378700_26]**  We aim to offer new items without overwhelming guests or moving back to short-term promotions.  **[DRI_3378700_26]** 

10. **Industry Capacity Trends**  
    **Q:** What's your view on industry capacity and closures?  
    **A:** The industry is still down about **10%** in capacity since COVID.  **[DRI_3378700_18]**  In the last 9–12 months, there have been more closures than openings.  **[DRI_3378700_18]**  Challenges like increased regulation and higher financing costs make it hard to open new restaurants.  **[DRI_3378700_18]** 

cca12f3de2eac2434c69a43eafcde7f3c5882a08f683518538bc9b1ce27269d4

- **Darden Restaurants continues to outperform the industry, achieving a traffic and sales gap of approximately 1,000 basis points over two years by keeping price increases below inflation and offering great everyday value, which helps build traffic and market share.**  **[DRI_3378700_17]**
- **LongHorn Steakhouse is excelling due to superior execution, investment in quality, and offering a better value equation, demonstrating resilience in a challenging operating environment and providing insights that can benefit other brands in the portfolio.**  **[DRI_3378700_20]**
- **Effective cost management and productivity improvements have enabled Darden to maintain its earnings guidance despite lowering sales expectations, showcasing strong operational efficiency and financial resilience.**  **[DRI_3378700_28]**

c4d93713496f2bdb0fde8ba8365a9c15bba831a9f014b4d9de3b335384f34bf9

- **Lower-income consumers are reducing their spending**, leading to **much lower transactions from households with incomes below $75,000** compared to last year. **At every brand, transactions fell from incomes below $50,000**, indicating a pullback that could negatively impact sales.  **[DRI_3378700_16]** **[DRI_3378700_5]**
- The company **lowered its sales expectations** for the fiscal year due to a **broader market weakness** and **softened sales trends**, especially in February. This suggests potential challenges in achieving revenue growth targets.  **[DRI_3378700_28]** **[DRI_3378700_14]**
- **Industry-wide negative traffic trends** are present, with **every category in the industry experiencing negative traffic in the quarter**. Additionally, competitors are **increasing their marketing spend**, which may put pressure on Darden's market share if they do not respond accordingly.  **[DRI_3378700_11]** **[DRI_3378700_14]**

70834d4caa31af20155fdc8553ac0a48739f31e6ed94fe2917f8ab62a964fca2

1. **Uber Partnership with Olive Garden**  
   **Q:** How will the Uber partnership impact Olive Garden?  
   **A:** Darden has entered a **2-year exclusive partnership with Uber** to provide first-party delivery for Olive Garden, expecting **incremental growth over time**.  **[DRI_3401867_7]**  Estimates from Uber are "pretty big," but Darden isn't assuming that in guidance  **[DRI_3401867_7]** ,.  **[DRI_3401867_12]**  They may expand delivery to other brands after ensuring the system works well.  **[DRI_3401867_9]**  The partnership is fully integrated into their system  **[DRI_3401867_7]** , with delivery being cost-neutral as the **delivery fee is paid by the guest**.  **[DRI_3401867_17]**  They do not plan to advertise on Uber Eats but will leverage their **17 million guest eClub** to promote delivery.  **[DRI_3401867_11]** 

2. **Sales Trends and July Weakness**  
   **Q:** What's driving the improvement in sales since July?  
   **A:** July saw unexpected weakness due to factors like **storms, international travel, political volatility, and a COVID uptick**.  **[DRI_3401867_15]**  However, sales picked up in August and September  **[DRI_3401867_15]** ,.  **[DRI_3401867_8]**  All brands are performing better, and this improvement is included in their guidance  **[DRI_3401867_8]** ,.  **[DRI_3401867_15]** 

3. **Olive Garden Promotional Strategy**  
   **Q:** Will Olive Garden increase promotions or discounts?  
   **A:** Olive Garden is shifting marketing to highlight value, adding more price points, and bringing back fan favorites like **Never Ending Pasta Bowl**  **[DRI_3401867_8]** ,.  **[DRI_3401867_16]**  They may introduce limited-time offers but will not return to deep discount promotions.  **[DRI_3401867_16]**  Promotions will be simple to execute and strengthen competitive advantages.  **[DRI_3401867_16]** 

4. **Margin Outlook and Inflation**  
   **Q:** How are margins affected by sales and inflation?  
   **A:** Margins at Olive Garden were impacted by a **negative 3% same-restaurant sales** decline, leading to deleverage.  **[DRI_3401867_20]**  July's unexpected sales drop made cost adjustments challenging.  **[DRI_3401867_20]**  Commodity inflation is better than expected, with full-year inflation around **2%**.  **[DRI_3401867_25]**  Pricing is expected to be in the range of **2.5% to 3%** per quarter.  **[DRI_3401867_25]** 

5. **Speed of Service Initiatives**  
   **Q:** How will you improve speed without rushing guests?  
   **A:** Darden plans to speed up the dining experience to meet guests' need for faster service without making them feel rushed.  **[DRI_3401867_10]**  They will focus on operations, valuing guests' time, and capturing occasions where guests have less time.  **[DRI_3401867_10]**  This initiative requires some investment in technology but isn't expected to significantly increase staffing costs.  **[DRI_3401867_12]** 

6. **Differences Between Olive Garden and LongHorn**  
   **Q:** Why is LongHorn outperforming Olive Garden?  
   **A:** LongHorn benefits from being in the steak category, with guests trading down from fine dining and preferring steak due to high grocery prices.  **[DRI_3401867_18]**  Olive Garden has seen a slight decline in first-time guests but isn't losing them to competitors offering deep discounts.  **[DRI_3401867_18]**  They're focusing on highlighting their value proposition to attract new and infrequent users.  **[DRI_3401867_18]** 

7. **Decision Against Uber Eats Marketplace**  
   **Q:** Why not offer Olive Garden on Uber Eats marketplace?  
   **A:** The additional sales would need to offset the current **$1 billion in to-go sales** without fees.  **[DRI_3401867_19]**  Darden believes most guests come directly to their website and that their own marketing and technology make the marketplace unnecessary.  **[DRI_3401867_19]**  They may consider marketplace options in the future.  **[DRI_3401867_19]** 

8. **Fine Dining Segment Challenges**  
   **Q:** What's causing challenges in the Fine Dining segment?  
   **A:** Fine Dining is experiencing softness due to consumers spending elsewhere, especially over summer months.  **[DRI_3401867_14]**  Suburban markets perform better than urban ones.  **[DRI_3401867_14]**  Darden expects gradual improvement but has no exact timing.  **[DRI_3401867_14]**  They're introducing offerings like **wagyu and wine** at Capital Grille but remain cautious about altering the brand.  **[DRI_3401867_34]** 

9. **Delivery Fees and Guest Costs**  
   **Q:** What delivery fees will guests pay?  
   **A:** Guests will pay a delivery fee of around **$5 plus 5%** of the order.  **[DRI_3401867_17]**  On a typical Olive Garden order, delivery would cost about **$7**, excluding tip.  **[DRI_3401867_17]**  This structure makes delivery cost-neutral to Darden.  **[DRI_3401867_17]** 

10. **Earnings Growth and Guidance**  
    **Q:** What's the outlook for earnings growth?  
    **A:** Darden expects earnings growth in the **mid- to high single digits** over the next three quarters.  **[DRI_3401867_21]**  All known factors, including the Uber partnership, are included in the guidance.  **[DRI_3401867_12]** 

11. **Commitment to Menu Simplification**  
    **Q:** Is menu simplification reversing with new items?  
    **A:** Darden remains committed to menu simplification.  **[DRI_3401867_24]**  New items fill menu gaps without adding complexity or new SKUs; when items are added, others are removed.  **[DRI_3401867_24]** 

12. **Labor Costs and Staffing**  
    **Q:** How are labor costs affecting margins?  
    **A:** Labor costs are stable, with hourly wages up around **4%**, comparable to pre-COVID levels.  **[DRI_3401867_33]**  Applicant flow is high, and they feel positive about the labor situation.  **[DRI_3401867_33]** 

13. **Traffic and Pricing Trends**  
    **Q:** What are the traffic and pricing trends?  
    **A:** Olive Garden had pricing of **1.9%** and negative traffic around **mid-5%**.  **[DRI_3401867_23]**  LongHorn had positive traffic of **0.7%** with check growth of **3%**.  **[DRI_3401867_23]** 

14. **Never Ending Pasta Bowl Performance**  
    **Q:** How is Never Ending Pasta Bowl performing?  
    **A:** Preference for Never Ending Pasta Bowl is up slightly, with more guests opting for add-ons like proteins.  **[DRI_3401867_35]**  Approximately **60% to 65%** of guests add protein, higher than last year.  **[DRI_3401867_42]**  They anticipate it may wear off toward the end but believe it's better than not offering it.  **[DRI_3401867_37]** 

0fbef8930727af48caa37f770f7bf2659312f0a7331f10c6c1e5632b667ad8ab

- Darden Restaurants is effectively managing labor costs, with labor inflation around **4%** and higher applicant flow, indicating strong labor availability and efficient cost control.  **[DRI_3401867_33]**
- Olive Garden maintains industry-leading segment profit margins of **20.6%**, which is hundreds of basis points ahead of competitors, demonstrating the strength of its business model despite sales challenges.  **[DRI_3401867_20]**
- The company is innovating to meet customer needs by enhancing delivery options through a partnership with Uber, focusing on speed of service improvements, and strategic menu innovations without adding complexity, all of which could drive future sales growth.  **[DRI_3401867_11]** **[DRI_3401867_10]** **[DRI_3401867_24]**

e87714fc19e40bbaa5f45585722d6768588efa19c505fd792dc9b20d32559feb

- **Darden Restaurants maintains a strong balance sheet with leverage below their target range**, providing flexibility for growth opportunities.  **[DRI_3392604_41]**
- **LongHorn Steakhouse showed strong Q4 performance with positive traffic growth and same-restaurant sales up 4%**, indicating robust consumer demand.  **[DRI_3392604_37]**
- **Olive Garden has improved value ratings and reached record levels of guest satisfaction**, strengthening its competitive position.  **[DRI_3392604_23]**

2003c9c2a311f123c5f930762a8df1ec96e98b628452e53121f1330f81701623

- **Olive Garden's Never Ending Pasta promotion outperformed expectations**, with **record consumers opting for protein add-ons and record refills**, demonstrating strong guest engagement and value perception.  **[DRI_3411944_21]**
- Darden Restaurants' **underlying traffic trends improved across all brands**, even after adjusting for holiday shifts and weather impacts, indicating **resilience and positive momentum** in customer demand.  **[DRI_3411944_24]**
- The acquisition of **Chuy's added approximately 5 units to unit growth guidance**, showcasing Darden's strategic expansion opportunities and strengthening their portfolio.  **[DRI_3411944_11]**

663afbce6401851c9dec7bdfb4a6effe57e82030a254f60ce9af44f7757ac488

- *1. Reintroduction of menu items may signal reversal of menu simplification efforts, potentially increasing operational complexity and costs.** For example, Olive Garden is adding back two menu items removed during COVID, which could complicate operations despite the company's commitment to simplicity.  **[DRI_3401867_24]**
- *2. Darden acknowledges their service times are not meeting guest expectations and improvements will take time, indicating challenges adapting to changing consumer needs for faster service.** Ricardo Cardenas stated that they need to speed up experiences without making guests feel rushed, but this will take a while.  **[DRI_3401867_10]**
- *3. Potential margin pressures due to limited pricing increases and upcoming commodity cost headwinds, particularly in chicken.** Despite better-than-expected commodity inflation, Darden expects some risk in the back half due to expiring chicken contracts, while maintaining pricing increases of only 2.5%-3%.  **[DRI_3401867_25]**

79c467d25fd131941bbd264975db4923287d7b3da13dc7e429d8f95eddb03ddc

- **Fine Dining segment experienced a same-restaurant sales decrease of approximately 3.8%**, even after adjusting for the Thanksgiving shift and hurricanes. This indicates ongoing weakness in this segment. Additionally, higher-end brands may be impacted by **GLP-1 drugs**, potentially affecting future performance.  **[DRI_3411944_4]** **[DRI_3411944_14]**
- **General and Administrative (G&A) expenses are expected to increase to approximately $470 million**, up from the previously guided $450 million, due to the Chuy's acquisition. This increase may impact overall profitability.  **[DRI_3411944_18]**
- The company anticipates **increased inflation in commodities**, particularly **beef, chicken, and seafood**, in the back half of the fiscal year. These categories are turning inflationary in low single digits, which could **pressure margins** if not offset by pricing or cost efficiencies.  **[DRI_3411944_20]**

cb4906164b49a9ddbb76b2aaf6523f5d53b1be2b0274e08e385139a680c70ebd

1. **Fiscal '25 Comp Guidance**  
   **Q:** Why tighten comp guidance to 1.5% with two quarters left?  
   **A:** Darden tightened its fiscal '25 same-restaurant sales guidance to **approximately 1.5%** due to increased confidence in sales trends, incorporating underlying multiyear trends and actions planned for the second half. This suggests Olive Garden and LongHorn are expected to be above that level, given the brand mix.  **[DRI_3411944_12]** **[DRI_3411944_13]** 

2. **Total Inflation & Margins**  
   **Q:** What's the outlook for total inflation and margins in 2025?  
   **A:** Total inflation is expected to be **approximately 2.5%** for fiscal 2025, with food and beverage costs increasing in the back half due to beef, chicken, and seafood turning inflationary. Labor inflation remains in the high **3%** range, and margins are expected to be impacted accordingly, particularly in **Q4**.  **[DRI_3411944_20]** 

3. **CapEx Increase & Unit Growth**  
   **Q:** Why did CapEx guidance step up significantly?  
   **A:** The CapEx increase is primarily due to the inclusion of Chuy's with **five additional openings**, and investments to build the pipeline for next fiscal year, aiming for higher unit growth. Maintenance CapEx remains around **$300 million** annually.  **[DRI_3411944_11]** **[DRI_3411944_31]** 

4. **Labor Efficiencies**  
   **Q:** How are you addressing rising labor costs and efficiencies?  
   **A:** Labor costs have grown less than wage inflation due to significant improvements in turnover, reaching historic low levels. Continuous improvements in service steps and process streamlining are ongoing to drive efficiencies while enhancing guest experience.  **[DRI_3411944_36]** **[DRI_3411944_34]** 

5. **Uber Eats Partnership Impact**  
   **Q:** Is Uber Eats partnership impacting guidance and sales?  
   **A:** The impact from the Uber Eats partnership is currently minimal, with delivery sales at about **1.5%** of sales across pilot restaurants. No significant incremental sales from Uber are included in fiscal year guidance. The rollout is expected to complete by the end of **Q3**, with marketing efforts planned thereafter.  **[DRI_3411944_10]** **[DRI_3411944_20]** **[DRI_3411944_28]** 

6. **Beef Inflation Outlook**  
   **Q:** What's the outlook on beef inflation and supply coverage?  
   **A:** Beef prices are up significantly year-over-year due to retailer promotions. Darden expects seasonal dips in early 2025 to provide opportunities for further coverage. Currently, **40%** of beef needs are covered at low single-digit inflation, and supply chain strategies have kept costs below market levels.  **[DRI_3411944_18]** **[DRI_3411944_17]** 

7. **Cheddar's Growth Prospects**  
   **Q:** Is Cheddar's ready for faster unit growth?  
   **A:** Cheddar's operational improvements and successful new prototypes have increased confidence in expanding the brand. Plans are underway to build the pipeline for greater unit growth, aiming toward the higher end of Darden's framework.  **[DRI_3411944_15]** **[DRI_3411944_17]** 

8. **Fine Dining & GLP-1 Impact**  
   **Q:** Are GLP-1 drugs affecting Fine Dining performance?  
   **A:** Fine Dining brands have seen softer growth, possibly impacted by GLP-1 usage, which is about **6%** of the population. Consumers earning less than **$50,000** are pulling back on Fine Dining visits, affecting traffic.  **[DRI_3411944_14]** 

9. **Olive Garden Marketing Spend**  
   **Q:** Is reduced advertising spend impacting Olive Garden's sales?  
   **A:** Olive Garden's advertising spend is down by **25–30%**, not half as previously suggested. The company remains flexible with marketing, increasing spend when appropriate, and plans to adjust advertising strategies based on promotions and competitive dynamics.  **[DRI_3411944_5]** **[DRI_3411944_6]** 

10. **LongHorn's Strong Performance**  
    **Q:** What's driving LongHorn's continued strong sales?  
    **A:** LongHorn's focus on quality and experience, including investments in food quality and operational execution, is driving its strong performance. The brand reported a **7.5%** same-restaurant sales increase, with positive traffic and mix contributions. Marketing spend has decreased significantly, relying on brand strength over promotions.  **[DRI_3411944_9]** 

11. **Never Ending Pasta Bowl Results**  
    **Q:** How did the Never Ending Pasta Bowl promotion perform?  
    **A:** The promotion exceeded expectations with record refills and upsells on protein add-ons. It drove strong weeks when run against no prior promotion and maintained guest interest without wear-out. Positive mix contributed to Olive Garden's same-restaurant sales growth.  **[DRI_3411944_8]** **[DRI_3411944_19]** 

12. **Consumer Trends & Trade-down**  
    **Q:** Are you seeing consumers trade down among your brands?  
    **A:** There is some evidence of consumers trading down from Fine Dining to Casual Dining, possibly benefiting brands like LongHorn. Improvement in visits from guests earning **$50,000 to $100,000** indicates a healthier middle-class consumer segment returning to casual dining experiences.  **[DRI_3411944_14]** **[DRI_3411944_15]** 

8321b6423a424af28955b24bdc71b05b34ff95086151688ff86de8fb9cb95c44

- **Weakness among lower-income consumers:** Darden is experiencing declining transactions from households with incomes below the median household income of **$75,000**, with more pronounced declines among consumers below **$50,000**. These impacts are greater in their Fine Dining brands, resulting in negative same-restaurant sales.  **[DRI_3392604_10]**
- **Soft performance at Olive Garden:** Olive Garden has had **weak comparable sales over the past couple of quarters** and some **share loss**. Despite this, Darden plans only minimal increases in marketing and promotions, even as competitors increase discounting activities, which may impact their ability to drive traffic and sales.  **[DRI_3392604_9]**
- **Increasing competitive pressures:** The competitive environment is intensifying with competitors increasing discounting and promotional activities. Darden's strategy to avoid deep discounting may result in further **loss of market share** if consumers choose competitors' discounted offerings.  **[DRI_3392604_26]**

94c121f236ab07c2292b11aca64797adf6ba0a1b12583821097977c54d9fd3cd

Darden Restaurants Inc (DRI)

Financials