Darden Restaurants(US:DRI)2024-07-19 20:20Financial Performance - Olive Garden's average check per person during fiscal 2024 was approximately $23.00, with alcoholic beverages accounting for 5.0% of sales[22]. - LongHorn Steakhouse's average check per person during fiscal 2024 was approximately $27.50, with alcoholic beverages accounting for 8.6% of sales[24]. - Cheddar's Scratch Kitchen's average check per person during fiscal 2024 was approximately $18.50, with alcoholic beverages accounting for 7.6% of sales[26]. - Yard House's average check per person during fiscal 2024 was approximately $35.00, with alcoholic beverages accounting for 31.3% of sales[28]. - Ruth's Chris's average check per person during fiscal 2024 was approximately $101.00, with alcoholic beverages accounting for 19.9% of sales[30]. - The Capital Grille's average check per person during fiscal 2024 was approximately $101.50, with alcoholic beverages accounting for 26.2% of sales[32]. - Seasons 52's average check per person during fiscal 2024 was approximately $51.00, with alcoholic beverages accounting for 22.7% of sales[34]. - Bahama Breeze's average check per person during fiscal 2024 was approximately $33.50, with alcoholic beverages accounting for 21.0% of sales[36]. - Eddie V's average check per person during fiscal 2024 was approximately $120.50, with alcoholic beverages accounting for 28.1% of sales[38]. - The total sales from continuing operations for fiscal 2024 reached $11,390.0 million, reflecting growth from previous years[42]. - During fiscal 2024, 11.0% of total sales were attributed to alcoholic beverages, highlighting the importance of compliance with licensing regulations[90]. Restaurant Operations - The company plans to continue expanding its restaurant brands, but the actual number of openings for fiscal 2025 will depend on various factors such as recruitment and site selection[47]. - The average time to construct and open a new restaurant is approximately 250 days after site acquisition and permits are obtained[48]. - The company operates 2,031 restaurants in the United States and Canada, with 85 franchised restaurants in the U.S. and 61 internationally as of May 26, 2024[83][84]. Workforce and Team Members - The total number of team members (hourly and salaried) is 191,105, with 180,207 being hourly team members; 58% of hourly team members are female and 56% belong to racial or ethnic minority groups[67]. - In fiscal 2024, 65% of participants in the restaurant Manager In Training program were internal promotions, and 100% of new General Managers or Managing Partners were also internal promotions[68]. - The average hourly wage for team members across all brands in fiscal 2024 exceeded $23 per hour, significantly above the minimum wage of $12 per hour[70]. - Darden's consolidated turnover rate for hourly team members during fiscal 2024 was 80%, which is one of the lowest rates in the restaurant industry[75]. Technology and Innovation - The company is focused on implementing new technology platforms to enhance digital engagement with guests and improve marketing and analytics capabilities[64]. - The company has invested in technology-enabled business solutions to enhance operational efficiencies and guest service across its restaurant brands[76]. - The company utilizes a strategic information systems planning process to prioritize projects based on various business advantage criteria[79]. - The company has implemented a robust cybersecurity framework, conducting regular audits and training for team members to protect sensitive data[78][79]. - The company maintains a disaster recovery plan to guard against business interruptions, including off-site data storage and annual testing[76]. Sustainability and Community Engagement - The company reported a total of 818,117 metric tons CO2e in greenhouse gas emissions for fiscal year ended May 26, 2024, with an average of 400 metric tons CO2e per restaurant[102]. - The company focuses on sustainability metrics, including energy and water conservation, and has accelerated the reporting cycle for environmental metrics to align with financial results[101]. - The company has established an Animal Welfare Policy and an Animal Welfare Council to ensure high standards of care for farm animals in its supply chain[104]. - The Darden Foundation awarded approximately $4.3 million in grants during fiscal 2024 to support community service initiatives[107]. - In fiscal 2024, the Foundation awarded a $2.0 million grant to fund 10 additional refrigerated box trucks for Feeding America, bringing total contributions to $18.3 million since 2010[108]. - Darden contributed approximately 5.4 million pounds of food in fiscal 2024, equivalent to over 4.5 million meals provided to communities in need[109]. - The Foundation donated an additional $500,000 to Boys & Girls Clubs of America in fiscal 2024 to support diversity and anti-discrimination programming[110]. - A contribution of $250,000 was made to support the National Restaurant Association Educational Foundation's ProStart program in fiscal 2024[111]. - The Foundation provided $500,000 to the American Red Cross in fiscal 2024 as part of its Annual Disaster Giving Program[112]. - In fiscal 2024, 102 children or dependents of Darden team members received scholarships worth $3,000 each through the Next Course Scholarship program[113]. Financial Risks - The company is exposed to potential losses of approximately $60.3 million in future net earnings from changes in equity forwards and commodity instruments over one year[265]. - The fair value of long-term fixed-rate debt averaged $1.37 billion as of May 26, 2024, with a potential value at risk of approximately $105.5 million from interest rate changes over one year[265].