Darden Restaurants Inc Stock

Darden Restaurants, Inc. operates as a full-service restaurant company.

The company owns and operates restaurants through subsidiaries in the United States and Canada under the Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s Prime Seafood, and The Capital Burger trademarks. The company also has restaurants operated by independent third parties pursuant to area development and franchise agreements.

On June 14, 2023, the company completed its acquisition of Ruth’s Hospitality Group, Inc., a Delaware corporation (Ruth’s). Ruth’s is the owner, operator and franchisor of restaurants under the Ruth’s Chris Steak House trademark.

Segments

The company manages its restaurant brands in North America as operating segments. The brands operate principally in the U.S. within full-service dining.

The company has four reportable segments: Olive Garden, LongHorn Steakhouse, Fine Dining (which, as of May 28, 2023 (fiscal 2023), included The Capital Grille and Eddie V’s) and Other Business (which includes Cheddar’s Scratch Kitchen, Yard House, Bahama Breeze, Seasons 52, The Capital Burger and results from the company’s franchise operations). External sales are derived principally from food and beverage sales, the company does not rely on any major customers as a source of sales and the customers and long-lived assets of the company’s reportable segments are predominantly in the U.S

Restaurant Brands

Olive Garden

Olive Garden is an internally-developed brand and is the largest full-service dining Italian restaurant operator in the United States. Olive Garden offers a variety of Italian foods featuring fresh ingredients presented simply with a focus on flavor and quality, and a broad selection of imported Italian wines.

LongHorn Steakhouse

LongHorn Steakhouse is a full-service steakhouse restaurant brand with locations primarily in the eastern United States, operating in an atmosphere inspired by the American West. LongHorn Steakhouse restaurants feature a variety of menu items, including signature fresh steaks and chicken, as well as salmon, shrimp, ribs, pork chops and burgers.

Cheddar’s Scratch Kitchen

Cheddar’s Scratch Kitchen is a full-service restaurant brand operating primarily in Texas and throughout the southern, mid-western and mid-Atlantic regions of the United States. The casual dining menu features modern classics and American favorites cooked from scratch.

Yard House

Yard House is a full-service restaurant brand operating in metropolitan areas across the United States and is known for great food, classic rock and over 100 draft beer offerings. The American menu includes more than 100 chef driven items with a wide range of appetizers, snacks, burgers and steaks, street tacos, salads, sandwiches and a generous selection of vegetarian dishes.

The Capital Grille

The Capital Grille is a fine dining restaurant brand with locations primarily in major metropolitan cities in the United States featuring relaxed elegance and style. Nationally acclaimed for dry aging steaks on the premises, the restaurants feature an award-winning wine list offering over 350 selections, personalized service, a comfortable club-like atmosphere, and premiere private dining rooms.

Seasons 52

Seasons 52 is an internally-developed full-service restaurant brand with a casually sophisticated, fresh grill and wine bar that offers a seasonally changing menu with all items under 595 calories. The menu includes an international collection of wines, featuring 52 wines available by the glass, along with exceptional signature handcrafted cocktails.

Bahama Breeze

Bahama Breeze is an internally-developed full-service restaurant brand operating primarily in the eastern United States that offers guests the feeling of a Caribbean escape, with food, drinks and atmosphere found in the islands. The menu features distinctive, Caribbean-inspired fresh seafood, chicken and steaks, as well as handcrafted tropical cocktails.

Eddie V’s

Eddie V’s is a fine dining restaurant brand with locations in major metropolitan cities in the United States, with a sophisticated and contemporary ambiance, featuring live music trios nightly in the V Lounge. Dishes are artistically prepared and feature an ever-changing array of seasonal seafood, along with critically acclaimed prime steaks, hand cut and broiled to perfection. The atmosphere provides an alluring dining experience reminiscent of a modern day Gatsby, infusing an indulgent experience with an irresistible vibe.

The Capital Burger

The Capital Burger is an internally created, development-stage full-service restaurant concept with locations primarily in major metropolitan cities in the United States that offers guests a luxe burger experience. The menu features burgers made with a proprietary beef blend, sandwiches and appetizers. It is a bar-centric concept offering local craft beers, a unique wine list and spiked shakes. Multiple items take from the parentage of The Capital Grille, like the signature Stoli Doli, a pineapple-infused martini.

Purchasing and Distribution

The company’s purchasing staff sources, negotiates and purchases food and supplies from more than 1,500 suppliers whose products originate in more than 35 countries.

The company has entered into long-term agreements with multiple third-party national distribution companies to deliver food and supplies to the company’s restaurants. Under these arrangements the company maintains ownership of the food and supplies inventory through the company’s subsidiary, Darden Direct Distribution, Inc. (Darden Direct).

Advertising and Marketing

Integrated marketing is a key element of the company’s strategy, and its scale enables the company to be a leading advertiser in the full-service dining segment of the restaurant industry. Olive Garden leverages the efficiency of national advertising, on both traditional and streaming television, supplemented with additional targeted digital media investments. LongHorn Steakhouse uses digital advertising to build engagement and loyalty by market. Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s and The Capital Burger do not use television advertising, but rely on local and digital marketing. The company’s restaurants appeal to a broad spectrum of consumers and the company uses advertising and marketing to build awareness and strengthen the company’s brands’ relevance. The company also relies on outdoor billboard and email advertising, as well as radio, digital coupons, search engine marketing and social media, such as Facebook and Instagram, as appropriate, to attract, engage and retain the company’s guests.

Trademarks and Service Marks

The company regards its Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s Prime Seafood, The Capital Burger, Ruth’s Chris Steak House, Darden and Darden Restaurants service marks, and other service marks and trademarks related to the company’s restaurant businesses, as having significant value and as being important to the company’s marketing efforts.

Franchises, Joint Ventures and New Business Development

The company has area development, franchise and/or license agreements in place with unaffiliated operators to develop and operate Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, The Capital Grille and Bahama Breeze restaurants in the following regions: the United States (including Puerto Rico and Guam), Mexico, Central and South America (Brazil, Costa Rica, Ecuador, El Salvador and Panama), the Philippines, Aruba, and Saudi Arabia.

The company licenses the sales and distribution of several items, including Olive Garden salad dressings, salad croutons and seasoning through various channels, including wholesale distribution chains and major grocery chains.

Seasonality

The company’s sales volumes have historically fluctuated seasonally. Typically, the company’s average sales per restaurant are highest in the winter and spring, followed by the summer, and lowest in the fall.

Government Regulation

The company’s facilities must comply with the applicable requirements of the Americans with Disabilities Act of 1990 (ADA) and related state accessibility statutes.

As a merchant and service provider of point-of-sale services, the company is also subject to the Payment Card Industry Data Security Standard issued by the Payment Card Industry Council (PCI DSS).

The company is subject to anti-corruption laws in the United States and in the international jurisdictions where the company do business, including the Foreign Corrupt Practices Act.

History

Darden Restaurants, Inc. was founded in 1968. The company, a Florida corporation, was incorporated in 1995.