Second Quarter 2021 Financial Highlights, Comparisons to Second Quarter Last Year

Total sales of $1.66 billion, a decrease of 19.4% driven by negative blended same-restaurant sales of 20.6% and partially offset by the addition of 19 net new restaurants

Same-restaurant sales by segment (Thanksgiving Day shifted to the last week of our second fiscal quarter this year from the first week of our third fiscal quarter last year):

	
		
			 
			
			(19.9)% for Olive Garden
			
			 
			
			(31.0)% for Fine Dining
			
		
		
			 
			
			(11.1)% for LongHorn Steakhouse
			
			 
			
			(28.6)% for Other Business

Reported diluted net earnings per share from continuing operations were $0.74 as compared to last year's reported diluted net earnings per share of $0.21 and last year's adjusted diluted net earnings per share of $1.12*

Reported net earnings from continuing operations of $97 million

EBITDA of $206 million*

* See the "Non-GAAP Information" below for more details

"I was pleased with our ability to once again deliver strong profitability in an unpredictable sales environment," said CEO Gene Lee. "Our restaurant teams continue to demonstrate remarkable flexibility and resilience, while executing at a high level and serving our guests safely. We continue to view this environment as a rare opportunity to meaningfully transform our business for long-term growth. Our brands made additional strides to invest in and strengthen their businesses to ensure they emerge even stronger and better positioned to grow share."

Segment Performance Segment profit represents sales, less costs for food and beverage, restaurant labor, restaurant expenses and marketing expenses. Segment profit excludes non-cash real estate related expenses.

	
		
			 
			 
			
			Q2 Sales
			
			 
			 
			 
			
			Q2 Segment Profit
			
			 
			 
		
		
			
			($ in millions)
			
			 
			
			2021
			
			 
			
			2020
			
			 
			
			% Change
			
			 
			
			2021
			
			 
			
			2020
			
			 
			
			% Change
			
		
		
			
			Consolidated Darden
			
			 
			
			$1,656.5$2,056.4
			
			 
			
			(19.4)
			
			
			%
			
			 
			 
			 
			 
			 
			 
		
		
			
			Olive Garden
			
			 
			
			$829.5$1,023.6
			
			 
			
			(19.0)
			
			
			%
			
			 
			
			$175.1$190.3
			
			 
			
			(8.0)
			
			
			%
			
		
		
			
			LongHorn Steakhouse$407.4$447.3
			
			 
			
			(8.9)
			
			
			%
			
			 
			
			$66.3$71.9
			
			 
			
			(7.8)
			
			
			%
			
		
		
			
			Fine Dining
			
			 
			
			$108.1$154.8
			
			 
			
			(30.2)
			
			
			%
			
			 
			
			$20.3$30.4
			
			 
			
			(33.2)
			
			
			%
			
		
		
			
			Other Business
			
			 
			
			$311.5$430.7
			
			 
			
			(27.7)
			
			
			%
			
			 
			
			$39.3$47.7
			
			 
			
			(17.6)
			
			
			%
			
		
		
			 
			 
			
			YTD Sales
			
			 
			 
			 
			
			YTD Segment Profit
			
			 
			 
		
		
			
			($ in millions)
			
			 
			
			2021
			
			 
			
			2020
			
			 
			
			% Change
			
			 
			
			2021
			
			 
			
			2020
			
			 
			
			% Change
			
		
		
			
			Consolidated Darden
			
			 
			
			$3,183.9$4,190.3
			
			 
			
			(24.0)
			
			
			%
			
			 
			 
			 
			 
			 
			 
		
		
			
			Olive Garden
			
			 
			
			$1,617.7$2,113.8
			
			 
			
			(23.5)
			
			
			%
			
			 
			
			$348.9$419.2
			
			 
			
			(16.8)
			
			
			%
			
		
		
			
			LongHorn Steakhouse$784.1$897.5
			
			 
			
			(12.6)
			
			
			%
			
			 
			
			$123.3$146.4
			
			 
			
			(15.8)
			
			
			%
			
		
		
			
			Fine Dining
			
			 
			
			$191.2$291.1
			
			 
			
			(34.3)
			
			
			%
			
			 
			
			$30.2$50.7
			
			 
			
			(40.4)
			
			
			%
			
		
		
			
			Other Business
			
			 
			
			$590.9$887.9
			
			 
			
			(33.4)
			
			
			%
			
			 
			
			$75.0$112.1
			
			 
			
			(33.1)
			
			
			%
			
		
	

Business Update Comparable calendar* same-restaurant sales performance for Darden, Olive Garden and LongHorn Steakhouse for the weeks listed below are as follows:

	
		
			
			Weeks Ended
			
			
			11/8/2011/15/2011/22/2011/29/2012/6/2012/13/20
			
		
		
			
			Darden
			
			
			(23.4)
			
			
			%
			
			
			(23.3)
			
			
			%
			
			
			(29.1)
			
			
			%
			
			
			(34.0)
			
			
			%
			
			
			(33.4)
			
			
			%
			
			
			(36.9)
			
			
			%
			
		
		
			
			Olive Garden
			
			
			(21.9)
			
			
			%
			
			
			(22.5)
			
			
			%
			
			
			(27.3)
			
			
			%
			
			
			(34.9)
			
			
			%
			
			
			(31.1)
			
			
			%
			
			
			(32.6)
			
			
			%
			
		
		
			
			LongHorn Steakhouse
			
			
			(12.0)
			
			
			%
			
			
			(12.1)
			
			
			%
			
			
			(18.5)
			
			
			%
			
			
			(22.9)
			
			
			%
			
			
			(19.5)
			
			
			%
			
			
			(23.3)
			
			
			%
			
		
	

* Comparable calendar reflects same-restaurant growth for the weeks ended November 8, 2020 through December 13, 2020 compared to weeks ended November 10, 2019 through December 15, 2019

Percentage of restaurants open with at least limited dining room capacity for the entire week:





	
		
			
			Weeks Ended
			
			
			11/8/2011/15/2011/22/2011/29/2012/6/2012/13/20
			
		
		
			
			Darden
			
			
			92.0
			
			
			%
			
			
			91.7
			
			
			%
			
			
			80.9
			
			
			%
			
			
			79.7
			
			
			%
			
			
			79.7
			
			
			%
			
			
			75.4
			
			
			%
			
		
		
			 
			 
			 
			 
			 
			 
			 
			 
			 
			 
			 
			 
			 
		
	





Sales for Olive Garden and LongHorn Steakhouse restaurants open with at least limited dining room capacity for the entire week, including To Go sales, for the weeks ended November 8, 2020 through December 13, 2020, are as follows:





	
		
			
			Weeks Ended
			
			
			11/8/2011/15/2011/22/2011/29/2012/6/2012/13/20
			
		
		
			
			Olive Garden
			
			 
			 
			 
			 
			 
			 
		
		
			
			Total Sales per Restaurant
			
			
			$75,492$77,098$71,495$59,282$75,851$80,740
			
		
		
			
			To Go Sales as % of Total
			
			
			34.4
			
			
			%
			
			
			34.8
			
			
			%
			
			
			36.4
			
			
			%
			
			
			34.0
			
			
			%
			
			
			36.6
			
			
			%
			
			
			36.8
			
			
			%
			
		
		
			
			Comparable Calendar* Same-Restaurant Sales %
			
			
			(19.1)
			
			
			%
			
			
			(19.7)
			
			
			%
			
			
			(19.8)
			
			
			%
			
			
			(25.6)
			
			
			%
			
			
			(21.8)
			
			
			%
			
			
			(23.3)
			
			
			%
			
		
		
			
			# of Restaurants
			
			
			792
			
			
			789
			
			
			668
			
			
			652
			
			
			648
			
			
			612
			
		
		
			 
			 
			 
			 
			 
			 
			 
		
		
			
			LongHorn Steakhouse
			
			 
			 
			 
			 
			 
			 
		
		
			
			Total Sales per Restaurant
			
			
			$62,447$63,179$58,541$46,544$60,195$63,448
			
		
		
			
			To Go Sales as % of Total
			
			
			21.8
			
			
			%
			
			
			22.1
			
			
			%
			
			
			23.6
			
			
			%
			
			
			21.5
			
			
			%
			
			
			23.6
			
			
			%
			
			
			23.5
			
			
			%
			
		
		
			
			Comparable Calendar* Same-Restaurant Sales %
			
			
			(10.5)
			
			
			%
			
			
			(10.6)
			
			
			%
			
			
			(15.3)
			
			
			%
			
			
			(18.2)
			
			
			%
			
			
			(14.7)
			
			
			%
			
			
			(17.4)
			
			
			%
			
		
		
			
			# of Restaurants
			
			
			498
			
			
			498
			
			
			470
			
			
			468
			
			
			467
			
			
			436
			
		
	

* Comparable calendar reflects same-restaurant growth for the weeks ended November 8, 2020 through December 13, 2020 compared to weeks ended November 10, 2019 through December 15, 2019

Dividend Declared Darden's Board of Directors declared a quarterly cash dividend of $0.37 per share on the Company's outstanding common stock. The dividend is payable on February 1, 2021 to shareholders of record at the close of business on January 8, 2021.

Fiscal 2021 Third Quarter Financial Outlook Based on recent performance trends, uncertainty surrounding further capacity limits and dining room closures, and the duration of these impacts we are providing a broad range of expectations for third quarter performance.

Total sales between 65% to 70% of prior year

EBITDA of $170 to $210 million*

Diluted net earnings per share from continuing operations of $0.50 to $0.75

Approximately 132 million weighted average diluted shares outstanding

*See the "Non-GAAP Information" below for more details

The Company is reiterating its full year outlook for 35-40 net new restaurants and total capital spending of $250 to $300 million.

• Darden Restaurants, Inc.