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PARTICIPANTS
. Matthew Stroud, Darden Restaurants Inc, VP - IR . Clarence Otis, Darden Restaurants Inc, Chairman, CEO . Brad Richmond, Darden Restaurants Inc, SVP, CFO . Drew Madsen, Darden Restaurants Inc, President, COO . Gene Lee, Darden Restaurants Inc, President - Specialty Restaurant Group . David Palmer, UBS, Analyst . Michael Kelter, Goldman Sachs, Analyst . David Tarantino, Robert W. Baird & Company, Inc., Analyst . Joe Buckley, BofA Merrill Lynch, Analyst . Jeff Omohundro, Wells Fargo Securities, LLC, Analyst . Todd Duvick, BofA Merrill Lynch, Analyst . Brad Ludington, KeyBanc Capital Markets, Analyst . Matthew DiFrisco, Lazard Capital Markets, Analyst . John Glass, Morgan Stanley, Analyst . John Dravenstott, KeyBanc Capital Markets, Analyst . John Ivankoe, JPMorgan Chase & Co., Analyst
OVERVIEW
DRI reported 2Q12 total net sales from continuing operations of $1.83b. Expects FY12 total sales growth of positive 6-7%.
FINANCIAL DATA
A. Key Data From Call 1. 2Q12 total sales from continuing operations = $1.83b. 2. 2Q12 total sales growth from continuing operations = 6.1%. 3. FY12 total sales growth guidance = positive 6-7%.
PRESENTATION SUMMARY
S1. Annotation (M.S.) 1. Upcoming Events: 1. Plans to: 1. Release 3Q12 earnings and same-restaurant sales for fiscal Dec., Jan., and Feb. 2012 on 03/23/12 before market opens. 2. Hold FY12 Analyst and Institutional Investor Meeting on 02/24/12 in New York City.
S2. 2Q12 Business Review (C.O.) 1. Olive Garden Performance: 1. Co. is not afraid to make changes. 2. Believes willingness to change is one big reason why Co. has enjoyed success over time. 3. Demonstrated that Co. is prepared to change when things are not working well. 1. Can see that in multi-year effort to: 1. Refresh Red Lobster brand. 2. Address extended period of inconsistent results. 2. Sees it in work Co. is doing in response to negative traffic trends to more crisply articulate LongHorn's brand positioning and then to incorporate that positioning into every [guest] point from menu offerings and menu design to advertising to the look and feel of restaurants. 4. Prepared to do something that's much harder. 1. Prepared to change when things are working well. 2. Seen in multifaceted effort to transform support platform that's already more cost-effective than most in industry. 3. A move to be...