darden restaurants inc (DRI) Key Developments
Darden Restaurants, Inc. Appoints Todd A. Burrowes as President of Longhorn Steakhouse, Effective July 28, 2015
Jul 27 15
On July 27, 2015, Darden Restaurants, Inc. announced that Todd A. Burrowes has been appointed as President of LongHorn Steakhouse, effective July 28, 2015. Mr. Burrowes will be rejoining the company after serving as President, Ruby Tuesday Concept and Chief Operations Officer of Ruby Tuesday, Inc., since June 2013.
Darden Restaurants, Inc. Announces Executive Changes
Jul 8 15
Darden Restaurants, Inc. announced the appointment of Jeffrey Davis as its Senior Vice President and Chief Financial Officer, effective July 16, 2015. In this role, Davis assumes responsibility for the financial functions of the company, including finance and accounting, corporate reporting, corporate tax, treasury and investor relations, as well as internal audit, supply chain, and real estate and development. He will report to Darden CEO Gene Lee. Most recently, Davis served as Executive Vice President and Chief Financial Officer for the Walmart U.S. segment of Walmart Stores, Inc. He joined Walmart in 2006 as Vice President of Finance for the Walmart U.S. specialty division. He held additional roles of increasing importance, including Executive Vice President and Treasurer for Walmart Stores, Inc. Davis will succeed Brad Richmond, who will be moving into an advisory role to assist with the transition. As previously announced, Richmond will be leaving Darden at the end of the month after 32 years of service.
Darden Restaurants, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended May 31, 2015; Provides Earnings Guidance for the Fiscal Year 2016; Plans to Open 18 to 22 Restaurants in the Fiscal Year 2016
Jun 23 15
Darden Restaurants, Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended May 31, 2015. For the quarter, the company’s sales were $1,878.3 million compared to $1,650.1 million a year ago. Operating income was $150.5 million compared to $69.5 million a year ago. Earnings before income taxes were $126.5 million compared to $33.9 million a year ago. Earnings from continuing operations were $118.1 million compared to $48.4 million a year ago. Net earnings were $105.3 million compared to $86.5 million a year ago. Earnings from continuing operations per diluted share were $0.92 compared to $0.36 a year ago. Net earnings per diluted share were $0.82 compared to $0.65 a year ago. Adjusted earnings from continuing operations per diluted share were $1.08 compared to $0.54 a year ago.
For the year, the company’s sales were $6,764.0 million compared to $6,285.6 million a year ago. Operating income was $367.6 million compared to $308.9 million a year ago. Earnings before income taxes were $175.3 million compared to $174.6 million a year ago. Earnings from continuing operations were $196.4 million compared to $83.2 million a year ago. Net earnings were $709.5 million compared to $286.2 million a year ago. Earnings from continuing operations per diluted share were $1.51 compared to $1.38 a year ago. Net earnings per diluted share were $5.47 compared to $2.15 a year ago. Loss from discontinued operations, net of tax was $513.1 million compared to $103.0 million a year ago. Net cash provided by operating activities of continuing operations was $874.3 million compared to $555.4 million a year ago. Cash used in purchases of land, buildings and equipment was $296.5 million compared to $414.8 million a year ago. Adjusted earnings from continuing operations per diluted share were $2.63 compared to $1.71 a year ago.
The company provided earnings guidance for the full year 2016. For the year, the company expects same-restaurant sales growth of 2.0% to 2.5%, adjusted earnings per diluted share growth were approximately 20% to 25%, resulting in adjusted earnings per diluted share of $3.05 to $3.20, annual tax rate of 21% to 24% and total capital spending of $230 million to $255 million.
The company expects new unit openings of 18 to 22 restaurants in the fiscal year 2016.
Darden Restaurants To Sell Properties
Jun 23 15
Darden Restaurants, Inc. (NYSE:DRI) is seeking to separate a portion of the real estate assets. The separation would be achieved through a combination of selected sale leaseback transactions and the transfer of a portion of its remaining real estate assets to a new real estate investment trust that will be separated by a spin-off, split-off or similar transaction, resulting in the REIT becoming an independent, publicly-traded company. Darden will transfer approximately 430 of its owned restaurant properties to the REIT. In addition, Darden has been marketing selected properties for individual sale leasebacks and expects to close most of these transactions by the end of August. In addition, Darden is seeking to sell and lease back its Orlando Restaurant Support Center property and buildings under a long-term contract with multiple renewal options. After receiving proceeds from the completion of the strategic real estate plan, the Company expects to retire approximately $1 billion of its debt over time. JPMorgan Chase & Co. (NYSE:JPM) and Moelis & Company (NYSE:MC) acted as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor to Darden Restaurants.
Darden Restaurants, Inc. Declares Regular Quarterly Dividend, Payable on August 3, 2015
Jun 18 15
The board of directors of Darden Restaurants, Inc. declared a regular quarterly cash dividend of $0.55 per share on the company's outstanding common stock. The dividend is payable on August 3, 2015 to shareholders of record at the close of business on July 10, 2015.