2013 Annual Report - Investor Relations - Darden Restaurants

Bahama BreezeBahama Breeze is well-positionedwith strong Gen X, Millennial andmulticultural appeal.With total sales of$986 million, SRG hasthe potential to deliver17 to 19 percenttotal sales growtheach year.LongHorn is well positioned to becomea national brand with 600 to 800 restaurantsgenerating $2 billion to $2.5billion in annual sales. Today, with morethan 400 restaurants, average unit salesvolumes of $3.0 million and $1.2 billionin annual sales, the brand is more thanhalfway there. And LongHorn generatesenough cash to not only fund its ownexpansion, but also reinvest in enhancingits brand and sustainably growingsame-restaurant traffic. In fiscal 2014,LongHorn will continue its journeytoward national penetration withapproximately 37 to 40 net newunit openings.With the recent additions of two populargrowth brands – Eddie V’s in luxuryseafood and Yard House in polishedcasual dining – SRG is positioned tomake a significant contribution toDarden’s annual sales and operatingprofit growth. Each brand in the groupgenerates high average unit salesvolumes – $8.2 million at Yard House,$7.0 million at The Capital Grille, $6.2million at Seasons 52, $5.8 million atEddie V’s and $5.5 million at BahamaBreeze – and collectively they producesufficient cash to fund nearly all thegroup’s new restaurant growth. Thegroup has nearly doubled the numberof restaurants from 89 to 169 with theaddition of Eddie V’s and Yard House,and plans to open 25 to 27 net newrestaurants in fiscal 2014.With total sales of $986 million, SRG hasthe potential to deliver 17 to 19 percenttotal sales growth each year, driven bysame-restaurant sales growth of 2 to4 percent and new restaurant growth of15 percent. We anticipate that this levelof sales growth will contribute 35 to40 percent of Darden’s total annual salesgrowth in the future. In fiscal 2014, totalsales for the group are expected to exceed$1.2 billion.Eddie V’sEddie V’s features classic, fine diningservice in a contemporary andvibrant atmosphere.Seasons 52Seasons 52’s seasonally inspired menu isthe foundation of an on-trend brand thatgenerates strong guest loyalty.Darden Restaurants, Inc. 2013 Annual Report 13