ready willing - Darden Restaurants

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A Letter from Clarence Otis Jr.readyandwillingto deliverDarden Restaurants was built on a rich heritage of being of service to others –guests and employees alike. And even during challenging economic times,we continue to lead by example. As our company has grown, our opportunitiesto make a difference in the quality of life in the communities where we live andwork have also increased, and we have risen to the challenge. The key is anuncompromising focus on doing what is right.New opportunities, such as a focused effort to help young people gain access topost-secondary education and increasing our sustainability efforts, have ascendedto the forefront. Meanwhile, we continue the programs we have long championedthat promote diversity, respect, fairness and inclusiveness – core to our foundingvalues as a company.Our commitment to our values and to doing the right thing drives how we operateevery aspect of our business. We think you will find that our service philosophyextends well beyond the walls of our restaurants. As we look ahead, we pledgeto enhance our service to others by continuing to grow as a profitable company,an employer of choice and an actively involved corporate citizen.I invite you to take a look at our 2010 community service report and the impactwe made in the communities we touched and join us as we continue to lead incommunities across the country by giving back.an uncompromising focuson doing what isright2 / A L E T T E R F R O M C L A R E N C E O T I S J R .

contentsDarden Community Service ReportEXECUTIVE SUMMARY ..................................................................4DARDEN FOUNDATION PARTNERS .................................................5FOUNDATION BOARD OF TRUSTEES ...........................................15OUR RESTAURANTS ..................................................................16OUR CORE VALUES ...................................................................17INDEPENDENT AUDITORS’ REPORT ............................................18FOUNDATION FINANCIALS ........................................................19T A B L E O F C O N T E N T S / 3

eadyandwillingto serveExecutive SummaryFrom its roots in 1968, Darden Restaurantscommitted to delivering genuine serviceto others and is recognized for a culture thatrewards caring for and responding to people.That defines service to us.One of our core values, “Being of service,”is a concept that began 40 years ago withour founder, Bill Darden. The DardenRestaurants, Inc. Foundation works tocontinually bring to life this spirit of servicethrough its philanthropic support of charitableorganizations across the country. We carryout this mission by focusing our philanthropicefforts on these key program areas:ACCESS TO POST-SECONDARY EDUCATIONOur education initiatives, including oursignature platform Recipe for Success SM ,support organizations that positivelyimpact the educational prospects ofunderserved youth, ages 14 to 18, byproviding them with access to theinformation and tools they need topursue their dreams of higher education.GOOD NEIGHBOR GRANTSGood Neighbor grants support arts,cultural and social services programs andorganizations based in Central Florida.PRESERVATION OF NATURAL RESOURCESWe support organizations whose missionis to protect wildlife, restore and preserveecosystems and teach environmentalsustainability.service: [serv•ice]noun – an act of helpfulactivity, aid.Our Recipe for Success education initiative,started in 2009, has expanded to includepartnerships with College Summit, Boys &Girls Clubs of America, Hispanic CollegeFund and the United Negro College Fund.Our work in environmental sustainabilityhas led us to partner with the EvergladesFoundation to help protect and restoreAmerica’s Everglades, one of the world’sunique natural ecosystems, and to ensurefresh water and a thriving ecosystem in theFlorida Bay for many years to come. GoodNeighbor grants have allowed us to continueto champion the arts, cultural and socialservices organizations and programs wehave long supported here in Central Florida.And we’ve embarked on new initiatives likeour membership in the American Red CrossAnnual Disaster Giving Program, whichenables the Red Cross to be preparedbefore disaster strikes by providing a reliablefunding base for relief services, resulting inimmediate response to those affected.As a restaurant company, it’s impossible toignore the reality of the need for food. Nearly37 million Americans – including 14 millionchildren – are at risk of hunger. In fiscal year2010, our restaurants contributed 8.8 millionpounds of cooked food to local food banksacross the United States through the DardenHarvest food donation program.Our 2010 report showcases some of ourkey partners but only touches the surfaceof the breadth and depth of our commitmentto giving back. More than 1,800 restaurantsand 180,000 employees strong, we’re proudof our legacy of service and stand readyand willing to continue to serve in thecommunities where we live and work.DRI Foundationhas funded over$52 million1995since4 / E X E C U T I V E S U M M A R Y

To thousands of young men and women, this actmeans the path of knowledge is open to all thathave the determination to walk it. It means a wayto deeper personal fulfillment, greater personalproductivity, and increased personal reward. Thisbill . . . means that a high school senior anywhere inthis great land of ours can apply to any college orany university in any of the 50 States and not beturned away because his family is poor.— Lyndon Baines Johnson, 1965,upon signing the Higher Education Act into lawreadyandwillingto partnerRecipe for SuccessFor generations of Americans, a high schooldiploma provided a valuable educationand a ticket to the American dream. A highschool graduate had the opportunity to geta steady job that paid enough to support afamily and launch a career. But now, a highschool diploma is no longer enough. Thereare millions of young adults – especiallylow-income young adults – who haveboth the ability and desire to continue theireducation past high school. However, theyare stalled by limited access to affordable,quality options and competing demands fortheir time and energy.Currently, income level and race/ethnicity canbe a bigger determinant of college accessand success than academic preparation.The students who are least served by ourhigher education system – low-income,African-American and Hispanic – are alsothe fastest growing U.S. populations. Thenumber of students from all backgrounds whoattend college has increased, but significantenrollment gaps for African-American andHispanic students and for students from lowincomefamilies have not been reduced.Darden Restaurants, Inc. Foundation's "call toaction" is to help address this systemic issueas part of our Recipe for Success initiative.Recipe for Success is designed to enable andempower youth to pave their own path tosuccess by providing them access to the toolsand information necessary to navigate theprocess of post-secondary education. Recipefor Success will support and honor youthworking toward their individual goals whileinspiring others to follow in their footsteps.D A R D E N F O U N D A T I O N P A R T N E R S / 5

eadyandwillingto climbCollege SummitCollege Summit is a nationalnon-profit organization that isimproving the college-going rate oflow-income students. Currently in180 partner high schools and serving25,900 students in 12 states, thisorganization trains principals, teachers,and the most influential “Peer Leaders”to help students embark on the pathto higher education. On average,participants at College Summit schoolsare improving college enrollment ratesby 18%. This past school year, 79% ofparticipating seniors submitted at leastone college application, a leadingindicator of enrollment. As a result ofpreparing low-income College Summitstudents for college, their retention incollege from freshman to sophomoreyear is on par with students from allincome levels, and Peer Leaderretention actually exceeds the nationalaverage for all students.The Darden Restaurants, Inc.Foundation has expanded andstrengthened College Summit’sprogram offerings while also celebratingand supporting the efforts of thegroup’s Peer Leaders and Alumni.Peer Leaders are carefully selectedlow-income students from the risingsenior class of College Summit partnerschools who are trained at summerworkshops to use their social networksto help ignite a college-going culture intheir schools. Alumni of the program,now enrolled in college, serve asexamples of success when they returnto workshops and visit schools toprovide knowledge and practical tipson applying to college and what toexpect on campus.Through the Darden Restaurants, Inc.Foundation Recipe for Success SMinitiative, College Summit is committedto empowering youth to pave theirown path to success – both in workingtoward achieving their individual goalsas well as inspiring others to follow intheir footsteps. Darden Restaurants, Inc.Foundation and College Summit arechanging lives by helping successfullylaunch low-income students towardcollege and career success. Thepartnership is developing tomorrow’sleaders by helping promising studentsrealize their college dreams today.Examples of SuccessAfter participation in College Summit, students atpartner schools have increased college enrollmentrates by 18% on average.6 / R E C I P E F O R S U C C E S S P R O G R A M S

BGCA ishelping morethan4kids in Clubsacross theU.S. reachtheir potentialmillionBoys & Girls Clubs of America’s (BGCA)mission is to enable all young people,especially those with the greatest need,to reach their full potential as productive,caring, responsible citizens. Clubs do thisdaily by providing young people withone-on-one relationships with caring adultprofessionals, life-enhancing programs andcharacter development experiences.BGCA and the Darden Restaurants, Inc.Foundation partnered together to enhanceand strengthen BGCA’s premier program,Youth of the Year (YOY). Recognizing Clubmembers ages 14 to18, YOY encouragesacademic excellence, increases participationin Club and community service projects,and focuses youth on pursuing highereducation. From annual competitionsat the local Club level through state,regional and national competitions,YOY celebrates youth for their contributionsto family, school, community and Club.By acknowledging those who take fulladvantage of its programs and services,BGCA is providing a path that encouragesyoung people to excel.BGCA partnered with the DardenRestaurants, Inc. Foundation in an effort toincrease college enrollment by offering aRecipe for Success workshop at thestate-level YOY competition. This highlyinteractive, personalized workshop assistedstate YOY competitors in exploringpotential career paths and areas of study;gave them tools and resources for academicplanning; and helped them to developfinancial management skills and researchtips for scholarship funding sources. Atake-home “Darden tool-kit” enabledparticipants to explore these subject areasin even more detail. As an additionalincentive, students who took the necessarysteps to pursue a post-secondary educationwere then eligible for financial scholarships,which were given to juniors and seniors whohad been accepted into a post-secondarycollege, university, technical, culinary orother accredited education institution.Scholarships were also available to freshmenand sophomores to help defray the costs ofpreparing for post-secondary education(e.g., SAT exam fees, college visits, etc.)Darden’s investment in a partnership withBGCA will impact not only those state YOYfinalists who participated in the workshopcurriculum, but also their peers in all Clubswithin that state. Through the inspiringworkshops, take-home tool-kit, and theincentive of post-secondary educationalscholarships, the word has spread quicklythrough the Clubs. Many Youth of theYear winners who attend college are thefirst in their families to do so. With theopportunities and resources Darden’sfunding has provided, younger childrenlearn from their older siblings about theopportunities and resources that await themat the Boys & Girls Clubs. In essence, theDarden Restaurants Foundation programhas helped to create a cultural shift withinBoys & Girls Clubs across the countrytoward a college-bound culture.readyandwillingto succeedBoys & Girls Clubs of AmericaR E C I P E F O R S U C C E S S P R O G R A M S / 7

eadyandwillingto enrichThe mission and vision of UNCF andDarden Restaurants, Inc. Foundation’sRecipe for Success SM initiative areintrinsically linked. Both are aimed atenabling and empowering minority youthto pave their own path to success byproviding access to resources that enablethem to attain their dream of pursuing apost-secondary education.As the nation’s largest and most effectiveminority education assistance organization,UNCF has been an engine of minorityeducational achievement for over sixdecades. The organization is dedicated tobuilding a robust and nationally recognizedpipeline of under-represented studentsand supporting them in becoming highlyqualified college graduates. In addition,UNCF works to ensure that its network of39 member institutions is a respectedmodel of best practice in moving studentsto and through college.Among UNCF’s strongest supporters,Darden helps the organization close thegap on college access for low-incomeminority students via the UNCF DardenHigher Education Scholarships.During the first three years of the UNCF-Darden partnership, the Darden Foundationprovided “last dollar” scholarships, basedon unmet financial needs, to 31 hospitalitymanagement students attending Bethune-Cookman University, Edward WatersCollege and Florida Memorial University.In addition to investing in students atHistorically Black Colleges and Universities(HBCUs), Darden has also supported theinstitutions themselves, as they identifyminority students with potential, enrollthem in college and support them throughgraduation.Because of support from partners likeDarden, UNCF member institutions –who confer 9,000 bachelor’s degreesannually – are able to keep tuitionapproximately 26% lower than othercomparable schools. That’s important,because over 90% of students at UNCFmemberinstitutions require some form offinancial aid. Approximately 84% ofstudents at UNCF-member colleges comefrom families with low to moderate incomes.As UNCF celebrates its 67th year with anunparalleled record of graduating over350,000 young men and women from its39 member HBCUs, they acknowledge thatwithout the strong support and partnershipof friends like Darden, they would not beable to remind students of color that“a mind is a terrible thing to waste.”over350,000graduatesUNCF8 / R E C I P E F O R S U C C E S S P R O G R A M S

eadyandwillingto mentorHispanic College FundFounded in 1993, the Hispanic CollegeFund is a non-profit organizationbased in Washington, D.C., with amission to develop the next generationof Hispanic professionals. The Fund hasprovided educational, scholarship andmentoring programs to studentsthroughout the United States and PuertoRico, establishing a pipeline of talentedand career-driven Hispanics.The Hispanic College Fund pipelinebegins with the Hispanic Youth Institute.Through the assistance of the DardenFoundation, the Fund helps “at-promise”students graduate from college, pursuea professional career, and give back totheir communities. It also works to breakdown both real and perceived barriers tocollege access by inspiring studentswith confidence and hope – and thenproviding tools and resources to helpthem along their college pathway. In thisendeavor, Darden employees help toinspire students by serving as mentorsand role models across the country.The Hispanic Youth Institute alignswith the information access andnavigation and academic readinesspriorities of the Darden Foundation’sRecipe for Success initiative. The DardenFoundation and the Hispanic CollegeFund help students who may nototherwise realize their potential tosucceed by providing them with yearroundaccess to tools and resources,while encouraging them to achieveindividual goals and “send the elevatorback down” to help their peers succeed.In 2010, the Hispanic College Fundserved over 1,000 students in eightregions across the country. This year,70% of students are on free and reducedlunch, while 56% will be the first in theirfamily to attend college. Historically,90% of alumni who are of college ageare enrolled in college. The CollegeBoard recognized the Hispanic CollegeFund’s Hispanic Youth Institute this yearfor program innovation.The Hispanic College Fund and Dardencontinue to provide these alumni withfinancial and emotional support asthey enter into college – giving themthe opportunity to apply and competefor scholarships. Working together, theHispanic College Fund, the DardenFoundation and Darden Restaurants’employees help to achieve thecommon goal of empowering studentsto succeed.Confidence and HopeMore than 1/2 of students participating in HCF programswill be the first person in their family to go to college.R E C I P E F O R S U C C E S S P R O G R A M S / 9

eadyandwillingto empowerThe Able TrustWith a focus on vocationalrehabilitation, The Able Trustsupports a variety of projects, includingon-the-job coaching, supportedemployment, job-skills training, jobdevelopment, employer outreach, ADAfacility compliance, skills evaluation andprograms leading to employment.For every dollar invested in vocationalrehabilitation, 13 to 26 dollars are infusedinto the economy.In 2010, Darden Restaurants was agenerous sponsor of two key leadershipdevelopmentprograms for Floridastudents with disabilities: the HighSchool/High Tech (HS/HT) programand the Youth Leadership Forum.The HS/HT program is designed toteach students how to overcome theirdisabilities, learn what they need for theircareer choices, and move on to collegeor employment. Now in its 12th year, theprogram has served nearly 2,000 studentsin 37 counties and 105 high schoolsthroughout the state, including theCentral Florida tri-county area. TheHS/HT program has significantly reducedthe drop-out rate for students withdisabilities. During the past school year,it was just 1% – far lower than any studentgroup in the state of Florida. Amongprogram participants (all grades), 169secured summer employment – and65% of those who graduated this yearwent on to post-secondary education oremployment, with the balance taking afifth year to complete school or electinga post-secondary work experience inthe form of learning internships. Thedisability diversity is extensive amongthese students: 6% have autism spectrumdisorder; 6% are hearing impaired;56% have learning, speech or languagedisabilities; 5% have orthopedic issues;1% are blind; 10% have intellectual oremotional disturbances; 6% are ADHD;and 10% have a variety of other disabilities.The Youth Leadership Forum selects highschool juniors and seniors from aroundthe state to participate in an intensefour-day leadership and educationalforum with others who have disabilities.Students learn about each other, explorecareer options and develop their ownpersonal advancement plan for the nextyear. This year, with the help of donorslike Darden, The Able Trust hosted nearly70 students at no cost to them or theirparents. Participants left the forum witha far better idea of their many optionsand a renewed belief in themselves andtheir future.Striking a BalanceMore than 80% of Florida High School/High Techprogram graduates have enrolled in post-secondaryeducation or training.1 0 / R E C I P E F O R S U C C E S S P R O G R A M S

47%of the membersof householdsserved bySecond HarvestarechildrenIt’s the ultimate paradox of an affluentsociety. Each year, some 14 billion poundsof food are sent to landfills in America.Meanwhile, nearly 37 million Americans(including 14 million children) are at risk ofhunger. Darden, like most restaurantcompanies, grappled for years with theproblem of food waste – struggling with theuncomfortable dilemma ofthrowing away food that wasperfectly good and safe toeat, yet, for a varietyof reasons, couldn’tbe sold to guests.That’s why Darden was so pleased to partnerwith the Food Donation Connection, anational network that works with restaurantsand other food service companies todistribute high-quality, prepared foods tohunger-relief organizations across the UnitedStates. A pilot program that began in 2003grew into a companywide effort the followingyear and became known as the DardenHarvest program. In fiscal 2010, Darden’s1,800 restaurants donated 8.8 million poundsof food through the Darden Harvest programto local food banks throughout the country.One of the recipient food banks is SecondHarvest Food Bank of Central Floridalocated in Orlando, Florida. Since 1983,Second Harvest has remained faithful to itsmission to fight hunger. By helping to closethe gap between the community’s needfor donated food and the amount of foodavailable, it is a mission that toucheshundreds of thousands of lives each year.Over the past 27 years, more than 243million pounds of food and grocery itemshave reached needy people in CentralFlorida through the work of the Food Bank.The Food Bank’s Food Rescue Programpartners with the Darden Harvest program.Refrigerated trucks pick up prepared fooditems from various Darden restaurants anddeliver them to non-profit agencies servingonsite meals for needy people. During theirlast fiscal year ending June 30, 2010, morethan 182,000 pounds of food were donatedto the Food Bank by Darden’s Harvestprogram. That translates to more than242,000 meals for Central Floridiansneeding their help.In addition, the Darden RestaurantsFoundation provides support for SecondHarvest’s Hi-Five Food Pack Program. TheHi-Five Food Pack Program serves chronicallyhungry children by providing them withtake home food packs. The packs containnutritious, easy-to-open, shelf-stable foodsand are distributed to children at elementaryschools. The program provides nutritiousfood for the children to eat when school isnot in session – Saturday and Sunday. Theprogram was piloted in October 2006 at twoschools and has grown to 14 schools as oflast year. During the 2008-09 academic year,25,745 nutritious Hi-Five food packs weresent home with hungry children. Theprogram name comes from the positivefeeling of giving a “high five,” as well asthe recommended “five servings a day”of fruits and vegetables. The Hi-Five FoodPack Program is reaching low-incomechildren in Central Florida in SecondHarvest’s efforts to end childhood hunger.readyandwillingto nourishSecond Harvest Food Bank of Central FloridaG O O D N E I G H B O R G R A N T S / 1 1

eadyandwillingto helpThe mission of the American Red Cross isto provide relief to victims of disasterand help people, prevent, prepare for andrespond to emergencies. Each year, theAmerican Red Cross provides basic needssuch as feeding, sheltering, health servicesand distribution of recovery items to victimsof over 70,000 disasters.In 2009, Darden Restaurants joined theAmerican Red Cross Annual Disaster GivingProgram (ADGP), an elite membershipprogram for corporate disaster reliefsupporters. The generosity of ADGPmembers is what enables the Red Crossto be prepared before disaster strikes byproviding a reliable funding base for reliefservices, resulting in immediate responseto those affected, regardless of cost.This important milestone, however, is notDarden’s first or only involvement withthe American Red Cross. For many years,Darden has supported the AmericanRed Cross of Central Florida – and in2010 designated funding from its ADGPmembership to support this local chapterand provided in-kind donations to theorganization’s Valentine’s Rendezvous Gala.In addition to financial support, Darden isleveraging its resources from more than1,800 local restaurants and the talent of its180,000 employees across the nation, whowill engage in an effort to provide in-kindfood donations to the Red Cross duringtimes of disaster. Darden Restaurants and itsbrands have a long tradition of communityservice – and through their support of theAnnual Disaster Giving Program, they cancontinue to ensure that the American RedCross can be on the scene of a disasterat a moment's notice here in America oraround the globe.70,000respondingdisastersto overeach yearRed Cross1 2 / G O O D N E I G H B O R G R A N T S

eadyandwillingto inspireOrlando Ballet S.T.E.P.S.Darden Restaurants Foundationhas been a long-time supporterof the Orlando Ballet and has playeda key role in helping the organizationachieve its mission to entertain,educate and enrich the cultural growthof Florida through the highest qualityof dance.Through its award-winning school,the Orlando Ballet has establishedS.T.E.P.S. (Scholarship Training forthe Enrichment of Primary Students) –a unique program aimed at reachingat-risk children through ballet andgiving them an opportunity to learnabout performance art. Targeted toyouth who may not normally havethe chance to learn about dance andcreative expression, including ballet,S.T.E.P.S. is designed as a positiveafter-school activity and has beenshown to limit at-risk related behavior.Modeled after a similar award-winningprogram developed by New York’sDance Theatre of Harlem, S.T.E.P.S.has reached more than 1,000 studentswith the goal of producing diversedancers in the industry.By lending support to the OrlandoBallet, Darden helps the organizationcontinue to pursue its missionand create new opportunitiesfor individuals to learn aboutperformance art.Uplift and EducateSince its inception in 1992, the S.T.E.P.S. programhas served over 1,000inner-city childrenfrom Orange and Seminole counties.G O O D N E I G H B O R G R A N T S / 1 3

eadyandwillingto protectEverglades FoundationThe Everglades Foundation and theDarden Restaurants, Inc. Foundationhave formed a unique partnershipcommitted to ensuring clean waterin Florida.The Everglades Foundation is dedicatedto protecting and restoring America’sEverglades, which provides economic,recreational and life-sustaining benefitsto the millions of people who dependon its future health. Through theadvancement of scientifically sound andachievable solutions, the Foundationseeks to reverse the natural damageinflicted on the ecosystem and providepolicymakers and the public with credibleresources to help guide decision-makingon complex restoration issues.Darden – whose headquarters inOrlando are located within minutes of theheadwaters of the Everglades ecosystem,a 16-county hydrologic region that ishome to more than six million people –has embraced sustainability efforts withinits corporate business model.Acknowledging its commitment to theconservation and sustainable use ofwater as one of the cornerstones ofits environmental initiatives, Dardenrecognizes that in Florida, populationgrowth coupled with rapid urbanization,changing lifestyles and economicdevelopment has led to a decline inthe quality and quantity of the state’sfreshwater supply. The company’sleadership and investment in the localcommunity, through support for theEverglades Foundation, embodies theobjective of “thinking globally andacting locally.”Darden has sponsored an EvergladesFoundation project to develop acomplete and fully analyzed plan torestore Florida Bay, a critical estuary thatserves as habitat for fish, Americancrocodiles, birds, manatees andother wildlife. Part of the Evergladesecosystem, Florida Bay encompassesthe southern end of Everglades NationalPark. This estuary offers recreational andcommercial fishing, as well as tourismopportunities that provide livelihoods forresidents of the Upper Florida Keys.Darden and the Everglades Foundationare proud of this partnership that willensure fresh water and a thrivingecosystem in Florida Bay.A Unique PartnershipOnce spread out over 8 million acres, the Everglades ecosystemreaches from the Kissimmee River to Lake Okeechobeewhere waters from the lake slowly moved south towardFlorida Bay completing the Everglades ecosystem.1 4 / G O O D N E I G H B O R G R A N T S

Foundation Board of TrusteesreadyandwillingCLARENCE OTIS JR.Chairman/PresidentROBERT S. McADAMTrustee/Vice PresidentBRADFORD C. RICHMONDTreasurerPAULA J. SHIVESTrustee/SecretaryMARY DARDENTrusteeDOUGLAS H. GREENTrusteeVALERIE L. INSIGNARESTrusteeANDREW H. MADSENTrusteeto serveANGELA C. WOODSAssistant Treasurer/Assistant SecretaryWILLIAM R. WHITE IIIAssistant SecretaryF O U N D A T I O N B O A R D O F T R U S T E E S / 1 5

our restaurantsRed LobsterRed Lobster has been the market leader in casual dining seafood since the first restaurant opened in 1968.It is an American icon that helped change the nation’s dining habits. Red Lobster introduced guests to fresh,creative dishes that quickly became favorites. Though Red Lobster has updated its atmosphere and its menu,and expanded to nearly 700 restaurants in the United States and Canada, its passion remains unchanged.Red Lobster continues to offer a “refreshing seafood dining experience,” broadening the appeal of the brandand positioning the business for future restaurant growth.Olive GardenOlive Garden helped define the Italian segment of casual dining when it opened in 1982, and today is theworld’s largest full-service Italian restaurant concept, outpacing the industry in sales. Olive Garden serves fresh,simple, delicious Italian food to more than 3.3 million guests every week, inspired by its own Culinary Institute inTuscany. Olive Garden is driven by its promise to provide 100 percent guest delight, which is reflected in its advertisingtagline, “When you’re here, you’re family.”LongHorn SteakhouseLongHorn Steakhouse is one of the newest members of the Darden family, added with our acquisition of RAREHospitality, Inc. in the fall of 2007. It is a stand-out in the casual dining steakhouse category, emphasizing highquality,moderately priced food and attentive, personalized service in its over 300 Western-USA inspired locations.We are proud to have this outstanding brand and its leadership team behind enhancing our growth prospects.The Capital GrilleThe Capital Grille, like LongHorn Steakhouse, joined Darden with our acquisition of RARE Hospitality, Inc. It is aguest favorite in the premium steakhouse category, with one of the highest average unit volumes and return oninvested capital in the industry. Nationally acclaimed for dry aging steaks on the premises, The Capital Grille alsofeatures an award-winning wine list, a comfortable club-like atmosphere and premier private dining.Bahama BreezeBahama Breeze brings guests the feeling of a Caribbean escape, offering the food, drink and atmosphereyou find in the islands. Since opening the first restaurant in 1996, the brand has popularized many Caribbeaninspiredfoods in the United States. Its menu features fresh seafood, distinctive chicken dishes and flame-grilledsteaks, as well as refreshing, hand-crafted tropical drinks.Seasons 52Seasons 52, with its seasonally inspired menus and notable wine selection, is known for its flavorful and nutritiousmeals served in a casually sophisticated setting. The menu changes with the seasons, and fresh products arefeatured 52 weeks a year. Seasons 52 uses natural cooking techniques to give food exceptional taste with fewercalories, and its expertly selected wine list includes about 140 selections. Since opening in Orlando in 2003,Seasons 52 has consistently earned acclaim for all five of its Florida locations. It has since expanded outside ofFlorida to Georgia, New Jersey, Illinois and California.1 6 / O U R R E S T A U R A N T S

Our Core Purpose:To nourish and delight everyone we serve.Our Core Values:Even though Darden employs terrific people, operates outstanding restaurant companies,follows a clear strategy, and enjoys industry leading financial performance, we know wecannot reach our full potential without an unmistakable sense of who we are. That’s whywe understand and appreciate our core values, which were forged over our 40-year history.As always, we will look to these values for guidance and know they will be especially criticalwhen we’re faced with unexpected opportunities or challenges.As An Organization, We Value:INTEGRITY AND FAIRNESSIt all starts with integrity. We trust in theintegrity and fairness of each other toalways do the right thing, to be open,honest and forthright with ourselves andothers, to demonstrate courage, to solvewithout blame and to follow through onall our commitments.RESPECT AND CARINGWe reach out with respect and caring.We have a genuine interest in the wellbeingof others. We know the importanceof listening, the power of understandingand the immeasurable value of support.DIVERSITYEven though we have a common vision,we embrace and celebrate our individualdifferences. We are strengthened by adiversity of cultures, perspectives, attitudes,and ideas. We honor each other’s heritageand uniqueness. Our power of diversitymakes a world of difference.ALWAYS LEARNING – ALWAYS TEACHINGWe learn from others as they learn from us.We learn. We teach. We grow.BEING “OF SERVICE”Being of service is our pleasure. We treatpeople as special and appreciated by givingof ourselves, doing more than expected,anticipating needs and making a difference.TEAMWORKTeamwork works. By trusting one another,we bring together the best in all ofus and go beyond the boundaries ofordinary success.EXCELLENCEWe have a passion to set and to pursue,with innovation, courage and humility,ever higher standards.readyandwillingto serveO U R C O R E V A L U E S / 1 7

Independent Auditors’ Reportreadyandwillingto serveBoard of TrusteesDarden Restaurants, Inc. Foundation:We have audited the accompanying statements of financial position of DardenRestaurants, Inc. Foundation (the Foundation) as of May 31, 2010 and 2009, andthe related statements of activities and cash flows for the years then ended.These financial statements are the responsibility of the Foundation’s management.Our responsibility is to express an opinion on these financial statements based onour audits.We conducted our audits in accordance with auditing standards generallyaccepted in the United States of America. Those standards require that we planand perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes consideration ofinternal control over financial reporting as a basis for designing audit proceduresthat are appropriate in the circumstances, but not for the purpose of expressingan opinion on the effectiveness of the Foundation’s internal control over financialreporting. Accordingly, we express no such opinion. An audit also includesexamining, on a test basis, evidence supporting the amounts and disclosures inthe financial statements, assessing the accounting principles used and significantestimates made by management, as well as evaluating the overall financialstatement presentation. We believe that our audits provide a reasonable basis forour opinion.In our opinion, the financial statements referred to above present fairly, in allmaterial respects, the financial position of the Foundation as of May 31, 2010 and2009, and the changes in its net assets and its cash flows for the years then endedin conformity with U.S. generally accepted accounting principles.August 23, 2010Certified Public Accountants1 8 / I N D E P E N D E N T A U D I T O R S ’ R E P O R T

2009/2010 Financial StatementsStatements of Financial PositionMay 31, 2010 and 2009 2010 2009AssetsCash and cash equivalents $ 7,226,334 4,144,402Contributions receivable –– 6,000,000Investments, at fair value(cost – $1,488,666 in 2010 and $3,827,167 in 2009) 1,179,621 3,045,875Total Assets $ 8,405,955 13,190,277Liabilities and Net AssetsDue to sponsor $ 2,900 11,900Grants, payable, net 2,484,747 3,599,229Total liabilities 2,487,647 3,611,129Unrestricted net assets 5,918,308 9,579,148Total liabilities and net assets $ 8,405,955 13,190,277See accompanying notes to financial statements.Statements of ActivitiesMay 31, 2010 and 2009 2010 2009Support and revenuesContributions $ –– 7,200,000Interest income 13,712 83,128Investment gain (loss), net 377,481 (678,240)Total support and revenues, net 391,193 6,604,888ExpensesProgram grants:Arts and culture 642,519 1,015,392Diversity 150,000 ––Education 1,691,206 2,252,815Good neighbor 765,308 ––Preservation causes 70,000 272,000Recipe for success 40,000 ––Social and health 95,000 1,042,250Sustainability 375,000 ––Other 220,000 305,000Total program grants 4,049,033 4,887,457Administrative expenses –– ––Federal excise taxes 3,000 11,450Total expenses 4,052,033 4,898,907Changes in net assets (3,660,840) 1,705,981Unrestricted net assets, beginning of year 9,579,148 7,873,167Unrestricted net assets, end of year $ 5,918,308 9,579,148See accompanying notes to financial statements.F O U N D A T I O N F I N A N C I A L S / 1 9

2009/2010 Financial StatementsStatements of Cash FlowsMay 31, 2010 and 2009 2010 2009Cash flows from operating activitiesChange in net assets $ (3,660,840) 1,705,981Adjustments to reconcile change in net assets to net cash providedby operating activities:Net realized and unrealized (gain) loss on investments (377,481) 678,240Dividends received from investments 101,369 119,769Changes in assets and liabilities:Due to sponsor (9,000) (38,100)Contributions receivable 6,000,000 3,423,000Grants payable (1,114,482) (1,069,687)Net cash provided by operating activities 939,566 4,819,203Cash flows from investing activitiesProceeds from sale of investments 2,347,734 3,338,563Purchases of investments (205,368) (4,024,770)Net cash provided by (used in) investing activities 2,142,366 (686,207)Net increase in cash and cash equivalents 3,081,932 4,132,996Cash and cash equivalents, beginning of year 4,144,402 11,406Cash and cash equivalents, end of year 7,226,334 4,144,402See accompanying notes to financial statements.2 0 / F O U N D A T I O N F I N A N C I A L S

2009/2010 Financial StatementsDarden Restaurants, Inc. FoundationNotes to Financial StatementsMay 31, 2010 and 2009(1) Summary of Significant Accounting Policies(a) Organization and PurposeDarden Restaurants, Inc. Foundation (the Foundation) is a private nonprofit corporation. The Foundationwas organized to administer charitable funds for the benefit of communities. The Foundation’s sponsor isDarden Restaurants, Inc.The Foundation is a private nonprofit corporation described in Section 501(c)(3) of the Internal RevenueCode (the Code), and is exempt from federal income taxes on related income pursuant to Section 509(a)of the Code, and is also exempt from state income taxes. The Foundation is subject to a maximum 2%federal excise tax on net investment income. The Code requires the Foundation to make certain minimumdistributions in accordance with a specified formula. At May 31, 2010 and 2009, the Foundation was incompliance with those requirements.Beginning in fiscal 2010, program grant classifications were restructured to reflect the current givingthemes of the Foundation. Fiscal 2009 grants are classified according to the grant categorization that was inplace at the time these grants were made, and have not been reclassified on the accompanying Statementsof Activities.(b)(c)(d)(e)(f)(g)Basis of PresentationThe Foundation presents its financial statements in three classes of net assets based on the existence orabsence of externally (donor) imposed restrictions. These classes of net assets are unrestricted, temporarilyrestricted, and permanently restricted. The net assets of the Foundation and changes therein have beenclassified and reported as unrestricted net assets since the net assets are not subject to donor imposedstipulations and are intended to support current period activities of the Foundation.Cash and Cash EquivalentsThe Foundation considers all highly liquid investments with an original maturity of three months or lesswhen purchased to be cash equivalents.Contributions Received and Contributions MadeContributions received and contributions made are recognized as unrestricted support and expense,respectively, when the gift is unconditionally made to the donee. During 2010 and 2009, all contributionsreceived and contributions made by the Foundation were unconditional.InvestmentsInvestments are in marketable securities and are reported at their estimated fair value. Realized and unrealizedgains and losses are included in investment (loss) gain, net, in the accompanying statements of activities.Gains or losses from the sale of investments are determined using the specific identification method.Use of EstimatesThe preparation of financial statements, in conformity with accounting principles generally accepted in theUnited States of America, requires management to make estimates and assumptions that affect the reportedamounts of assets and liabilities at the date of the financial statements and the reported amounts of supportand revenue and expenses during the reporting period. Actual results could differ from those estimates.Application of New Accounting StandardsIn May 2009, the Financial Accounting Standards Board (FASB) issued SFAS No. 165, Subsequent Events,which has been incorporated into the Subsequent Events Topic of the FASB Accounting StandardsCodification (ASC), within Subtopic 855-10. Subtopic 855-10 establishes general standards of accounting forand disclosing events that occur after the balance sheet date but before financial statements are issued or areavailable to be issued. This guidance is effective for interim and annual periods ending after June 15, 2009,which required that we adopt these provisions during fiscal 2010. See Note 9 for disclosure of the datethrough which subsequent events were reviewed.F O U N D A T I O N F I N A N C I A L S / 2 1

2009/2010 Financial StatementsIn January 2010, the FASB issued Accounting Standards Update (ASU) 2010-06, Fair Value Measurementsand Disclosures (Topic 820), Improving Disclosures about Fair Value Measurements, which required additionaldisclosure of significant transfers in and out of instruments categorized as Level 1 and 2 in the fair valuehierarchy. This update also clarified existing disclosure requirements by defining the level of disaggregation ofinstruments into classes as well as additional disclosure around the valuation techniques and inputs used tomeasure fair value. This update is effective for interim and annual reporting periods beginning after December15, 2009, which require us to adopt this update during fiscal 2011. We do not currently anticipate that fulladoption in fiscal 2011 will materially impact our results of operations or financial position.Other accounting standards that have been issued by the FASB or other standards-setting bodies that do notrequire adoption until a future date are not expected to have a material impact on the financial statementsupon adoption.(2) ContributionsContributions receivable of $6,000,000 at May 31, 2009, represents amounts due from the Foundation’ssponsor. Receipts of payment of contributions receivable from the Foundation’s sponsor were received within12 months of the fiscal year end.Contributions revenue of $7,200,000 for the year ended May 31, 2009, represents unconditional gifts made bythe Foundation’s sponsor.(3) InvestmentsThe amortized cost and fair value of investments at May 31, 2010 and 2009 are summarized as follows:Net unrealizedCost Fair value (losses) gains2010Mutual Fund – Domestic Equity $ 1,099,631 860,126 (239,505)Mutual Fund – International Equity 194,398 242,166 47,768Mutual Fund – Reserve Primary Fund 194,637 77,329 (117,308)Total $ 1,488,666 1,179,621 (309,045)2009Mutual Fund – Intermediate-Term Treasury $ 1,263,160 1,265,018 1,858Mutual Fund – Domestic Equity 1,841,584 1,101,942 (739,642)Mutual Fund – International Equity 155,985 229,785 73,800Mutual Fund – Reserve Primary Fund 566,438 449,130 (117,308)Total $ 3,827,167 3,045,875 (781,292)(4) Fair Value MeasurementIn September 2006, the FASB issued SFAS No. 157, Fair Value Measurements, which has been codified intothe Fair Value Measurements and Disclosures Topic (Topic 820) of the FASB ASC. Topic 820 defines fair value,establishes a framework for measuring fair value and enhances disclosures about fair value measurementsrequired under other accounting pronouncements, but does not change existing guidance as to whether ornot an instrument is carried at fair value. For financial assets and liabilities, Topic 820 is effective for fiscal yearsbeginning after November 15, 2007, which required us to adopt these provisions in fiscal 2009. For nonfinancialassets and liabilities, Topic 820 is effective for fiscal years beginning after November 15, 2008, which required usto adopt these provisions in fiscal 2010. The adoption of these provisions of Topic 820 did not have a significantimpact on our consolidated financial statements.The fair values of cash equivalents, contributions receivable, and due to sponsor approximate their carryingamounts due to their short duration. Grants payable are recorded at the present value of future cash flows,which approximates fair value.2 2 / F O U N D A T I O N F I N A N C I A L S

2009/2010 Financial StatementsThe following table summarizes the fair values of financial instruments measured at fair value on a recurringbasis at May 31, 2010:Quoted prices SignificantFair value in active other Significantof assets, markets for observable unobservableat May 31, identical assets inputs inputs2010 (Level 1) (Level 2) (Level 3)Marketable securities (1) $ 1,179,621 1,102,292 77,329 ––(1) The fair value of marketable securities is based on the closing market prices of the investments whenapplicable, or, alternatively, valuations utilizing market data and other observable inputs, inclusive of therisk of nonperformance.(5) Due to SponsorDue to sponsor of $2,900 and $11,900 at May 31, 2010 and 2009, respectively, represents federal excise taxespaid by the sponsor on behalf of the Foundation.(6) Grants PayableGrants payable of $2,484,747 and $3,599,229 at May 31, 2010 and 2009, respectively, represent approvedgrants for future payments to various organizations. Grants payable at May 31, 2010 are scheduled to be paidas follows:In one year of less $ 1,000,000Between one year and five years 1,500,0002,500,000Less unamortized discount at 0.77% (15,253)Grants payable, net $ 2,484,747(7) Administrative ExpensesSubstantially all the facilities, personnel and operating costs of the Foundation are provided by DardenRestaurants, Inc. at no charge.(8) Related-Party TransactionsThe Foundation provides numerous grants to various organizations in which the Foundation’s sponsor’s officers,employees, and retirees are involved as noncompensated volunteers of community based boards of trustees ofsuch organizations.(9) Subsequent EventsThere have been no subsequent events through the issuance of these financial statements on August 23, 2010.F O U N D A T I O N F I N A N C I A L S / 2 3

W W W . D A R D E N . C O MDARDEN RESTAURANTS, INC.1000 DARDEN CENTER DRIVEORLANDO, FL 32837