Financial Data and Key Metrics Changes - The company reported total sales of $3 billion, which is 10% higher than last year, driven by same restaurant sales growth of 4.7% and the acquisition of 103 Chuy's restaurants [16][17] - Adjusted diluted net earnings per share from continuing operations were $1.97, a 12.6% increase compared to last year [17] - Adjusted EBITDA reached $439 million, with a return of $358 million to shareholders through dividends and share repurchases [17][18] Business Line Data and Key Metrics Changes - Olive Garden's same restaurant sales grew by 5.9%, supported by culinary innovations and effective marketing strategies [6][20] - LongHorn Steakhouse achieved same restaurant sales growth of 5.5%, maintaining a strong focus on quality and operational consistency [9][21] - The fine dining segment experienced slightly negative same restaurant sales, but Ruth's Chris Steak House's limited-time offer drove positive comps [12][21] Market Data and Key Metrics Changes - The average same restaurant sales for the casual dining industry grew by 5%, with guest counts increasing by 2.6% [5] - Darden's same restaurant sales were in the top quartile of the industry, outperforming the industry benchmark by 90 basis points [16][20] Company Strategy and Development Direction - The company continues to leverage its competitive advantages, including significant scale and extensive data insights, to drive long-term growth [6][14] - A focus on affordability and menu innovation is evident, with Olive Garden testing lighter portion sizes to attract more guests [9][41] - The company plans to open approximately 65 new restaurants, reflecting confidence in its development pipeline [23][70] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the consumer spending environment, noting that casual dining is gaining traction due to perceived value [56][41] - The company anticipates total sales growth for the year to be between 7.5% and 8.5%, with same restaurant sales growth of 2.5% to 3.5% [23][72] - Management acknowledged challenges with beef costs but remains confident in navigating through these pressures while maintaining pricing discipline [27][58] Other Important Information - The company is actively involved in philanthropic efforts, including supporting Feeding America with refrigerated trucks to meet food assistance demands [15] - The acquisition of Chuy's restaurants is expected to enhance the company's growth trajectory and market presence [16][22] Q&A Session Summary Question: Can you discuss the visibility on food cost outcomes? - Management indicated that coverage for beef is currently at 25% for the next six months, with significant price increases observed, particularly in tenders and ribeyes [27] Question: What are the early indications of the new portion sizes at Olive Garden? - Management believes the new portion sizes may dilute checks slightly but could drive traffic in the long run, with early indications showing increased frequency [29] Question: How did the affordability pivot and UberDirect impact costs? - Management noted that the segment profit margin at Olive Garden was only down 10 basis points, indicating strong business model resilience despite cost pressures [32] Question: What is the outlook for casual dining performance? - Management believes the strong performance in casual dining is due to lower pricing compared to other segments, with guests valuing the dining experience [40] Question: How is the company addressing the beef cost situation? - Management is monitoring beef prices closely and does not believe current high prices are sustainable, indicating a potential for price adjustments if necessary [27][90]