Darden Restaurants, Inc. is a full-service restaurant company that owns and operates 2,031 restaurants in the United States and Canada. The company's core business model centers around providing a diverse range of dining experiences through its various brands, including Olive Garden, LongHorn Steakhouse, and Ruth's Chris Steak House. Darden's primary revenue streams are derived from food and beverage sales within these restaurants. The company aims to leverage its scale, insights, and experience to protect the uniqueness and competitive advantages of each brand. Darden's restaurants are primarily located in the U.S., with a smaller presence in Canada. The company competes with national and regional chains, as well as locally-owned restaurants. The competitive landscape includes factors such as food quality, price, service, location, and the effectiveness of advertising and marketing.

• Employees: 191,105 (as of May 26, 2024)
• Geographic Footprint: United States and Canada
• Headquarters: Orlando, Florida
• Founded: March 1995
• Number of locations/facilities: 2,031 company-owned and operated restaurants, 146 franchised restaurants, and 4 restaurants under contractual agreements (as of May 26, 2024)
• Revenue: $11.39 billion (FY2024)
• Key Subsidiaries/Brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, Ruth's Chris Steak House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood, The Capital Burger

• CEO: Ricardo Cardenas
• CFO: Rajesh Vennam
• Other Key Executives: John W. Madonna (Senior Vice President, Corporate Controller)

Executive leadership has an average of over 19 years of experience with Darden, while restaurant General Managers and Managing Partners have an average of 14 years of experience with the company.

• Annual Revenue: $11.39 billion (FY2024)
• Net Income: $1.03 billion (FY2024)
• Total Assets: $11.32 billion (as of May 26, 2024)
• Employees: 191,105 (as of May 26, 2024)
• Key Financial Highlights: Total sales increased 8.6% year-over-year, and diluted net earnings per share from continuing operations increased 6.6% year-over-year.

Darden's main product categories include a variety of food and beverage offerings across its different restaurant brands.

• Olive Garden: Italian cuisine featuring fresh ingredients, imported Italian wines, and a broad menu with options ranging from $11.50 to $21.50 for dinner entrees.
• LongHorn Steakhouse: Steakhouse cuisine with signature fresh steaks, chicken, salmon, shrimp, ribs, pork chops, and burgers, with dinner entrees ranging from $13.50 to $39.00.
• Cheddar's Scratch Kitchen: Casual dining menu featuring modern classics and American favorites cooked from scratch, with dinner entrees ranging from $10.00 to $23.00.
• Yard House: Full-service restaurant known for great food, classic rock, and over 100 draft beer offerings, with lunch and dinner entrees ranging from $10.00 to $51.00.
• Ruth's Chris Steak House: Fine dining steakhouse featuring high-quality USDA Prime and Choice grade steaks and other premium offerings, with dinner entrees ranging from $40.00 to $85.00.
• The Capital Grille: Fine dining restaurant featuring dry-aged steaks, an award-winning wine list, and personalized service, with dinner entrees ranging from $38.00 to $95.00.
• Seasons 52: Fresh grill and wine bar offering a seasonally changing menu with all items under 595 calories, with lunch and dinner entrees ranging from $13.00 to $49.50.
• Bahama Breeze: Caribbean-inspired fresh seafood, chicken, and steaks, as well as handcrafted tropical cocktails, with lunch and dinner entrees ranging from $9.00 to $29.00.
• Eddie V's Prime Seafood: Fine dining restaurant featuring seasonal seafood and prime steaks, with dinner entrees ranging from $40.00 to $114.00.
• The Capital Burger: Full-service restaurant concept featuring luxe burgers, sandwiches, and appetizers, with lunch and dinner entrees ranging from $18.00 to $42.00.

Darden's operations are divided into four reportable segments based on size, economic characteristics, and sub-segment of full-service dining:

• Olive Garden: Largest full-service dining Italian restaurant operator in the United States.
• LongHorn Steakhouse: Full-service steakhouse restaurant brand with locations primarily in the eastern United States.
• Fine Dining: Includes Ruth's Chris, The Capital Grille and Eddie V's.
• Other Business: Includes Cheddar's Scratch Kitchen, Yard House, Bahama Breeze, Seasons 52, The Capital Burger and ongoing royalties and other fees from franchise operations and contractually managed locations.

External sales are primarily from food and beverage sales. There were no material transactions among reportable segments.

Darden's strategy focuses on being a capable operator of strong multi-unit brands, with a focus on strengthening core operational fundamentals, providing outstanding guest experiences, and enabling each brand to reach its full potential. Key strategic initiatives include:

• Culinary Innovation: Emphasizing culinary innovation, attentive service, engaging atmosphere, and integrated marketing.
• Data-Driven Insights: Leveraging data-driven insights to deliver customized one-to-one customer relationship marketing.
• Brand Management: Utilizing the company's scale, insights, and experience to protect the uniqueness and competitive advantages of each brand.
• Restaurant Operations Excellence: Focusing on restaurant operations excellence, brand management, supply chain, talent management, and information technology.
• Expansion: Continuing to expand all restaurant brands, with actual openings dependent on various factors including the ability to recruit and train personnel, locate appropriate sites, and obtain necessary permits.

Darden aims to achieve its commitments to all stakeholders by operating its restaurants with a sense of urgency.

Darden operates in the intensely competitive full-service dining sector of the restaurant industry. Key market trends affecting the business include changes in consumer tastes, national and local economic conditions, demographic trends, traffic patterns, and the type, number, and location of competing restaurants. Darden competes with national and regional chains and locally-owned restaurants. The company also faces competition from fast casual and quick-service restaurants and home delivery services. The company's market position is influenced by factors such as food quality, price, service, restaurant location, brand, and the effectiveness of advertising and marketing. Darden's market share information is not explicitly provided in the filing.

• Key Competitors: National and regional restaurant chains and locally-owned restaurants.
• Industry Trends: Changes in consumer tastes, national and local economic conditions, demographic trends, traffic patterns, and the type, number and location of competing restaurants.

• Inflation and Macroeconomic Risks: Rising costs for commodities, labor, health care, and utilities could compress margins and adversely affect sales. Economic factors such as unemployment, energy prices, and interest rates may impact consumer behavior.
• Human Capital Risks: The inability to hire, train, reward, and retain restaurant team members and maintain adequate staffing may impact the company's ability to achieve its objectives. A failure to recruit, develop, and retain effective leaders could impact strategic direction.
• Health and Safety Risks: Health concerns arising from food-related pandemics, outbreaks of flu, viruses, or other diseases may have an adverse effect on the business. A failure to maintain food safety may also negatively impact operations.
• Information Technology and Cybersecurity Risks: Reliance on information technology and insufficient guest or employee facing technology or a failure to maintain a secure cyber network could harm the ability to operate. Increased costs to comply with privacy and data protection laws may also be incurred.
• Acquisition and Integration Risks: The failure to complete the acquisition of Chuy's Holdings in a timely fashion, or at all, may adversely affect the business and stock price. The inability to successfully integrate the Chuy's operations could harm the ability to achieve expected benefits.