Financial Data and Key Metrics Changes - The company reported total sales of $3 billion, a 10% increase compared to the previous year, driven by same restaurant sales growth of 4.7% and the acquisition of 103 Chuy's restaurants [15][16] - Adjusted diluted net earnings per share from continuing operations were $1.97, reflecting a 12.6% increase year-over-year [16] - Adjusted EBITDA reached $439 million, with a return of $358 million to shareholders through dividends and share repurchases [16][18] Business Line Data and Key Metrics Changes - Olive Garden's same restaurant sales grew by 5.9%, supported by successful marketing initiatives and first-party delivery growth [5][19] - LongHorn Steakhouse achieved same restaurant sales growth of 5.5%, maintaining a strong focus on quality and operational consistency [8][20] - The fine dining segment experienced slightly negative same restaurant sales, but Ruth's Chris Steak House's limited-time offer helped mitigate challenges [11][20] Market Data and Key Metrics Changes - The casual dining industry saw average same restaurant sales growth of 5% and guest counts up by 2.6% [4] - Olive Garden's sales momentum continued, outperforming the industry benchmark by 90 basis points [19] - The other business segment, including Yard House and Cheddar's, reported a 22.5% increase in sales, driven by the acquisition of Chuy's and positive same restaurant sales of 3.3% [21] Company Strategy and Development Direction - The company aims to leverage its competitive advantages, including significant scale and extensive data insights, to drive long-term growth [5][12] - A focus on affordability and menu innovation is evident, with Olive Garden testing lighter portion sizes to attract more guests [8][39] - The company plans to open approximately 65 new restaurants in fiscal 2026, reflecting confidence in its development pipeline [22][80] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the consumer spending environment, noting strong retail sales and a positive outlook for the casual dining segment [58] - The company raised its total sales growth guidance for the year to 7.5% to 8.5%, while tightening the range for same restaurant sales growth to 2.5% to 3.5% [22] - Management acknowledged challenges with beef costs but remains confident in navigating through higher costs while maintaining pricing discipline [26][60] Other Important Information - The company is actively involved in philanthropic efforts, including supporting Feeding America with refrigerated trucks for food banks [14] - The acquisition of eight Olive Garden locations in Canada was completed, with plans to open 30 more locations over the next decade [12] 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 expected to be unsustainable [26] Question: What are the early indications of the new portion sizes at Olive Garden? - Early indications suggest a potential traffic driver, although it may slightly dilute check averages [28] Question: Can you provide a breakdown of LongHorn's comp split between traffic and ticket? - LongHorn's traffic was up 3.2%, with same restaurant sales of 5.5%, indicating a check increase of 2.3% [45] Question: How is the delivery business performing? - Delivery accounted for 5% of Olive Garden's sales in the first quarter, exiting at 4%, still 40% above pre-promotion levels [85] Question: What is the company's strategy regarding beef prices? - Management believes recent beef price spikes are not sustainable and plans to adjust pricing accordingly [26][92]