Slides
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Fiscal 2027: First Quarter Results September 24, 2026 Supplemental Materials
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22 IMPORTANT NOTICE The following slides are part of a presentation by Darden Restaurants, Inc. (the "Company") and are intended to be viewed as part of that presentation (the "Presentation"). No representation is made that the Presentation is a complete description of the Company's performance, financial condition or outlook. Forward-looking statements in this communication regarding our expected earnings performance and all other statements that are not historical facts, including without limitation statements concerning our future economic performance, are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified by the use of forward-looking terminology, including the terms “may,” “will,” “expect,” “intend,” "focus," “anticipate,” “continue,” “could,” “estimate,” “project,” “believe,” “plan,” “outlook,” "seek," or similar expressions. Any forward-looking statements speak only as of the date on which such statements are first made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. We wish to caution investors not to place undue reliance on any such forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to materially differ from those anticipated in the statements. The most significant of these uncertainties are described in Darden's Form 10-K, Form 10-Q, and Form 8-K reports. These risks and uncertainties include: a failure to address cost pressures and a failure to effectively deliver cost management activities and achieve some economies of scale in purchasing, certain economic and business factors, and their impacts on the restaurant industry, and other general macroeconomic factors including unemployment, energy prices, tariffs and interest rates, the inability to hire, train, reward, and retain restaurant team members and determine and maintain adequate staffing, a failure to recruit, develop, and retain effective leaders or the loss or shortage of personnel with key capacities and skills that could impact our strategic direction, increased labor and insurance costs, health concerns arising from food-related pandemics, outbreaks of flu, viruses, or other diseases, food safety and food-borne illness concerns, insufficient guest or employee facing technology or a failure to maintain a continuous and secure cyber network, compliance with privacy and data protection laws and risks of failures or breaches of our data protection systems, risks relating to public policy changes and federal, state, and local regulation of our business, intense competition, changing consumer preferences, an inability or failure to recognize, respond to and effectively manage the accelerated impact of social media, a failure to identify and execute innovative marketing and guest relationship tactics, ineffective or improper use of other marketing initiatives, and increased advertising and marketing costs, climate change, adverse weather conditions, and natural disasters, long-term and non-cancelable property leases, inability or failure to execute a business continuity plan following a major natural disaster, shortages, delays, or interruptions in the delivery of food and other products and services from our third-party vendors and suppliers, failure to drive profitable sales growth, a lack of availability of suitable locations for new restaurants or a decline in the quality of locations of our current restaurants, higher-than-anticipated costs associated with the opening of new restaurants or with the closing, relocating, or remodeling of existing restaurants, risks associated with doing business with franchisees, licensees, and vendors in foreign markets, volatility in the market value of derivatives, volatility in the U.S. equity markets affecting our ability to efficiently hedge exposures, failure to protect our intellectual property, our reporting on environmental, social, and governance matters or our sustainability ratings, litigation, unfavorable publicity or failure to respond effectively to adverse publicity, disruptions in the financial and credit markets, impairment of the carrying value of our goodwill or other intangible assets, changes in tax laws or unanticipated tax liabilities, failure of our internal controls over financial reporting and future changes in accounting standards, and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission. The information in this communication includes financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”), such as adjusted diluted net earnings per share from continuing operations and EBITDA. The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. The Company believes that the presentation of certain non-GAAP measures provides useful supplemental information that is essential to a proper understanding of the operating results of the Company’s businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are included under “Non-GAAP Information” in this presentation. Disclaimer/Non-GAAP Information
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3 Full-service restaurant company with a winning strategy Strong commitment to disciplined capital stewardship Clear roadmap to grow our portfolio of iconic brands C a t e g o r y O u t p e r f o r m a n c e │ History of Industry leading margins and traffic S t r o n g , C o n s i s t e n t R e t u r n │ Long track record of delivering 10-15% Total Shareholder Return1 U n i q u e P l a t f o r m A d v a n t a g e s │ Supply chain and technology stack enable the portfolio of brands to deliver stronger performance than they could independently B r o a d P o r t f o l i o │ Spanning numerous segments and demographics to capture greater share of dining occasions D i f f e r e n t i a t e d B r a n d s │ Clear, unique value propositions give each brand a competitive edge and strategic focus T w o D o m i n a n t B r a n d s │ Focused on durable traffic growth and increasing unit growth at Olive Garden and LongHorn Steakhouse H i g h - P o t e n t i a l G r o w t h B r a n d s │ Ability to grow units faster at Yard House, Cheddar’s & Chuy’s2 B a l a n c e d B r a n d s │ Capitalizing on growth opportunities as category leaders D u r a b l e F r e e C a s h F l o w │ Thoughtfully deploying excess cash flow S t r a t e g i c C a p i t a l A l l o c a t i o n │ 4-5% cash returns to shareholders, balanced across dividends (targeted payout ratio of 50- 60%) & opportunistic share repurchases3 S t r o n g B a l a n c e S h e e t │ Committed to a healthy investment grade, with a long-term leverage target of 2–2.5x adjusted Debt/EBITDAR4 R i g o r o u s P o r t f o l i o M a n a g e m e n t │ Allocating dollars, talent & time based on clear portfolio roles Performance-Driven Leadership: Best-in-Class Operations • Deeply Experienced Management Team • Incentives Aligned with Shareholders 1 Based on the Company’s performance over its 31-year history as a public company for any 10 fiscal year period when considering Darden’s stock appreciation plus dividend yield. 2 As compared to the Company’s Long-Term Framework for New Restaurant growth. 3 As set forth in the Company’s Long-Term Framework. 4 Adjusted Debt = funded debt + 6x minimum annual leases + guarantees; Adjusted EBITDAR = EBITDA + minimum annual lease addback. Certain statements made on this page contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Legal Reform Act of 1995. For more information, please refer to the “Disclaimer” page at the beginning of this presentation or the Safe Harbor Notice posted to the Governance page of the Investors section of our website at darden.com. 3
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Be financially successful through great people consistently delivering outstanding food, drinks and service in an inviting atmosphere making every guest loyal. Culinary Innovation & Execution Attentive Service Engaging Atmosphere Enabled by Our People “The greatest edge we have on our competitors is the quality of our employees reflected each day in the job they do.” ― B i l l D a r d e n Significant Scale Extensive Data & Insights Rigorous Strategic Planning Quality of Our Employees 4
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55 Annual Target (Over Time) New Restaurant Growth 3% - 4% Same-Restaurant Sales 1.5% - 3.5% EAT Margin Expansion 0 - 20 bps Business Performance (EAT Growth) 6% - 10% Dividend Payout Ratio 50% - 60% Share Repurchase 1% - 2.5% Return of Cash 4% - 5% Total Shareholder Return 10% - 15%(EPS Growth + Dividend Yield)
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6 Calculated as Darden's stock appreciation plus dividend yield. Each 10-fiscal year period ending May. 17% 17% 24% 14% 11% 14% 12% 10% 14% 11% 10% 11% 12% 16% 18% 11% 16% 14% 17% 16% 17% 15% 1995- 2005 1996- 2006 1997- 2007 1998- 2008 1999- 2009 2000- 2010 2001- 2011 2002- 2012 2003- 2013 2004- 2014 2005- 2015 2006- 2016 2007- 2017 2008- 2018 2009- 2019 2010- 2020 2011- 2021 2012- 2022 2013- 2023 2014- 2024 2015- 2025 2016- 2026 Ten-Year Average Annual Total Shareholder Return Never Below 10% for Any 10-Fiscal Year Period as a Public Company
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Financial Results
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88 3.2% COMPARABLE CALENDAR SAME-RESTAURANT SALES GROWTH1 $3.2 Billion TOTAL SALES 5.1% TOTAL SALES GROWTH $2.05 DILUTED NET EPS FROM CONTINUING OPERATIONS Fiscal 2027 First Quarter Financial Highlights $464 Million EBITDA2 $406 Million CASH RETURN3 1 Quarter same-restaurant sales is a 13-week metric based on the comparable calendar and excludes the impact of Bahama Breeze as all locations are expected to be closed or converted to other brands by Q4 fiscal 2027. See slide 16 for calculation dates. 2 A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation. 3 Includes cash dividends paid and repurchases of common stock, inclusive of 1% excise tax incurred on net repurchases, resulting from the Inflation Reduction Act of 2022.
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99 Q1 2027 ($ millions) % of Sales vs PY1 (bps) Favorable/(Unfavorable) Sales $3,200.3 Food and Beverage $984.9 30.8 % (30) Restaurant Labor $1,028.9 32.2 % 30 Restaurant Expenses $530.5 16.6 % — Marketing Expenses $53.1 1.7 % — Restaurant-Level EBITDA $602.9 18.8 % 0 Pre-opening Costs $8.5 0.3 % (10) General and Administrative Expenses $134.8 4.2 % — Depreciation and Amortization $144.2 4.5 % (10) Impairment and Disposal of Assets, Net $(3.9) (0.1) % 10 Operating Income $319.3 10.0 % 0 Interest Expense $50.3 1.6 % (10) Earnings Before Income Tax $269.0 8.4 % (10) Income Tax Expense $34.7 1.1 % (20) Note: Effective Tax Rate 12.9% Earnings From Continuing Operations $234.3 7.3 % (30) Margin Analysis vs. Prior Year Note: Continuing operations, values may not foot due to rounding. 1 Compared to first quarter fiscal 2026 adjusted performance. A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation.
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10 FY26 Q1 FY27 Q1 705$681 10 $287 $304 FY26 Q1 FY27 Q1 $776 $861 FY26 Q1 FY27 Q1 $1,301 $1,330 FY26 Q1 FY27 Q1 First Quarter Segment Performance 2.2% Segment Sales ($ millions) Segment Profit Margin1 10.9% 6.2% 3.6% Fine Dining Other Business 1 Segment profit margin calculated as (sales less costs of food & beverage, restaurant labor, restaurant expenses and marketing expenses) / sales. 20.6% 20.4% FY26 Q1 FY27 Q1 17.4% 18.0% FY26 Q1 FY27 Q1 13.5% 13.0% FY26 Q1 FY27 Q1 16.1% 15.8% FY26 Q1 FY27 Q1 Fine Dining Other Business
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11 MARGIN Total Inflation approximately 3.0% Commodities: approx. 3.0% EBITDA2 $2.26 billion to $2.29 billion Effective Tax Rate approximately 13.5% 11 Reaffirm Fiscal 2027 Annual Outlook SALES Total Sales $13.6 billion to $13.75 billion Same-Restaurant Sales Growth1 2.5% to 3.5% DEVELOPMENT Restaurant Openings 75 to 80 Capital Spending approximately $875 million Diluted Net Earnings per Share $11.10 to $11.35 (Approximately 114 million Weighted Average Diluted Shares Outstanding) 1 Annual same-restaurant sales is a 52-week metric based on the fiscal calendar and excludes the impact of Bahama Breeze as all locations are expected to be closed or converted to other brands by Q4 fiscal 2027. 2 A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation.
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1212 September - February FY2027 Spend by category Coverage Outlook Beef 29% 65% Low single digit inflation Dairy / Oil1 12% 65% Low single digit inflation Produce 12% 80% Low single digit inflation Seafood 8% 85% Mid single digit inflation Chicken 8% 100% Flat Wheat2 6% 75% Low single digit inflation Non-Perishable / Other 25% 45% Low single digit inflation Weighted average coverage 100% 65% Commodities Outlook - Second and Third Quarter 1 Includes cheese, cream, butter, and shortening. 2 Includes breadsticks and pasta.
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Non-GAAP Information
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1414 Q1 Reported to Adjusted Earnings Reconciliations Q1 2027 Q1 2026 $ in millions, except EPS Earnings Before Income Tax Income Tax Expense Net Earnings Diluted Net Earnings Per Share Earnings Before Income Tax Income Tax Expense Net Earnings Diluted Net Earnings Per Share Reported Earnings from Continuing Operations $ 269.0 $ 34.7 $ 234.3 $ 2.05 $ 293.8 $ 35.9 $ 257.9 $ 2.19 Chuy's transaction and integration related costs — — — — 3.6 0.9 2.7 0.02 Closed restaurants1 — — — — 3.1 0.8 2.3 0.02 Gain on Olive Garden Canada sale — — — — (42.0) (10.5) (31.5) (0.26) Adjusted Earnings from Continuing Operations $ 269.0 $ 34.7 $ 234.3 $ 2.05 $ 258.5 $ 27.1 $ 231.4 $ 1.97 Interest 50.3 45.4 Adjusted Income Tax 34.7 27.1 Adjusted Operating Income $ 319.3 $ 303.9 Depreciation and Amortization 144.2 135.1 Adjusted EBITDA $ 463.5 $ 439.0 1 Costs related to the closure of 22 underperforming restaurants that were permanently closed during the fourth quarter of fiscal 2025
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15 Fiscal 2027 EBITDA Outlook Reconciliation1 Net Earnings from Continuing Operations $1.26 billion to $1.29 billion Interest, Net $0.21 billion $0.20 billion Income Tax Expense $0.19 billion $0.20 billion Depreciation and Amortization $0.60 billion $0.60 billion EBITDA $2.26 billion to $2.29 billion 1 See slide 11 for non-GAAP figure presented.
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1616 Same-Restaurant Sales Calculation Dates Fiscal Calendar Basis Comparable Calendar Basis Q1 June 1, 2026 - August 30, 2026 June 1, 2026 - August 30, 2026 vs. vs. May 26, 2025 - August 24, 2025 June 2, 2025 - August 31, 2025 Q2 August 31, 2026 - November 29, 2026 August 31, 2026 - November 29, 2026 vs. vs. August 25, 2025 - November 23, 2025 September 1, 2025 - November 30, 2025 Q3 November 30, 2026 - February 28, 2027 November 30, 2026 - February 28, 2027 vs. vs. November 24, 2025 - February 22, 2026 December 1, 2025 - March 1, 2026 Q4 March 1, 2027 - May 30, 2027 March 1, 2027 - May 30, 2027 vs. vs. February 23, 2026 - May 24, 2026 March 2, 2026 - May 31, 2026 Fiscal and Comparable Calendar Dates