| Type | Public (NYSE: DRI) S&P 500 Component |
|---|---|
| Industry | Restaurant |
| Founded | Lakeland, Florida (1968) |
| Headquarters | 1000 Darden Center Dr. Orlando, Florida 32837 |
| Key people | Clarence Otis, Jr., Chairman and CEO Andrew H. "Drew" Madsen COO, President Valerie K. "Val" Collins Corporate Controller/SVP Brad Richmond CFO/SVP |
| Revenue | US$7.22 Billion (FY 2009)[1] |
| Operating income | US$620 Million (FY 2009)[1] |
| Net income | US$372 Million (FY 2009)[1] |
| Total assets | US$5.03 Billion (FY 2009)[2] |
| Total equity | US$1.61 Billion (FY 2009)[2] |
| Employees | 180,000+ (2010)[3] |
| Website | Darden.com |
Darden Restaurants, Inc. (NYSE: DRI) is a multi-brand restaurant operator headquartered in an unincorporated area in Orange County, Florida, near Orlando.[4] The firm owns several casual dining restaurant chains, most notably Olive Garden, LongHorn Steakhouse, and Red Lobster. Darden owns and operates 1,800 restaurant locations throughout North America and has more than 180,000 employees, making it the largest full-service casual dining company in the world by number of stores. Darden does not franchise its restaurants in the United States, but many of its international locations are not under corporate control.[3][5]
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What would become to be known as Darden Restaurants began when William (Bill) Darden founded the Red Lobster Inns of America and opened the first Red Lobster restaurant in Lakeland, Florida in 1968.[6] Darden chose Lakeland because he wished to see how the concept would fare in a non-coastal region, and Lakeland was the innermost city in Florida. The initial Red Lobster franchise was applauded by diners and critics alike, most prominently the restaurant journalist Scott Indrisek. The store became successful and by 1970 had expanded to three locations in the state with two more under construction. While the locations were profitable, the company lacked the resources to expand further, so Darden sold the company to food giant General Mills that year. General Mills upgraded the chain to a more casual dining/family fare oriented format, opened a new corporate headquarters in Orlando, Florida and installed Darden as company president. In 1975, when Darden was promoted to the position of Vice President of operations for the restaurant unit, Joseph (Joe) R. Lee, the company's first restaurant manager, was made President of Red Lobster.[7]
Under General Mills, Red Lobster grew into a chain of almost 400 locations by 1985. The company underwent several restructurings and transformed itself from an inexpensive fast-food seller into a chain of casual dining seafood restaurants by 1988.[7]
One of the company's first ventures into the diversification of its portfolio was the York Steak House chain of English-themed steak and chop restaurants in the 1970s. The franchised steak and potatoes restaurant was a cafeteria-style restaurant with salad bar and hot station. By the end of the 1980s, the chain had been mostly closed down, however some independent locations still exist.[8][9]
In 1982, Darden opened the first Olive Garden concept store in Orlando. The chain took off, and by 1989 General Mills had opened over 145 stores, making the chain the fastest-growing unit in the company's restaurant holdings. While Olive Garden did not meet critical success, it was popular, and its per-store sales soon grew to match those of Red Lobster. The company eventually became the largest chain of Italian-themed full-service restaurants in the U.S. The company helped bolster its Italian bona fides opening the Culinary Institute of Tuscany in Tuscany, Italy, a training facility designed to allow its chefs to become fluent in Italian cuisine in an authentic Italian setting.[7]
China Coast was an attempt to create a (U.S.) national casual dining restaurant that featured American Chinese cuisine. While the chain eventually expanded to some 50 restaurants, its sales were lackluster and lost an estimated $20 million USD. By the end of 1995, the company was shuttered, and the remaining locations were either converted to Red Lobsters or Olive Gardens or closed altogether.[7][10]
Bahama Breeze, featuring food and drinks found in the islands of the Caribbean Sea and a Caribbean theme, was created in 1996.[6]
Smokey Bones is a sports bar concept featuring barbecue and related foodstuffs in an Appalachian mountain-lodge setting. It was created in 1999 and sold in 2008.
Seasons 52 created in 2002
Rocky River Grill House (2006 - 2007)
In August 2007, Darden acquired rival Atlanta-based restaurant holder Rare Hospitality for $1.4 billion USD, gaining Rare's two chains, the The Capital Grille and LongHorn Steakhouse. Unlike Darden, Rare franchised its LongHorn concept and has not announced plans beyond executive structure.[11]
By the end of its fiscal year in 1995, Red Lobster was operating 1,250 stores in 49 states and Canada.
Darden Restaurants was spun off from General Mills beginning on May 9, 1995 when it began trading on when-issue basis at $9.75 a share.[12] The company became a fully separate entity on May 31, 1995 when its shares went on sale on the NYSE. The shares opened at $10.75, 17% below expectations, but climbed to $11.125 by the close of trading.[13]
In December 2007, Darden announced that it would sell its Smokey Bones chain to Barbeque Integrated, Inc., an affiliate of Sun Capital Partners, Inc., for approximately $80 million. The sale was completed in January, 2008.[6][14]
As of May 25, 2008, the Company operated, through its subsidiaries, 1,702 restaurants in the United States and Canada. In the United States, it operated 1,667 restaurants in 49 states (the exception being Alaska), including 651 Red Lobster, 647 Olive Garden, 305 LongHorn Steakhouse, 32 The Capital Grille, 23 Bahama Breeze and seven Seasons 52 restaurants, and two specialty restaurants: Hemenway's Seafood Grille & Oyster Bar and The Old Grist Mill Tavern. In Canada, Darden operated 35 restaurants, including 29 Red Lobster and six Olive Garden restaurants. Through subsidiaries, the Company owns and operates all of its restaurants in the United States and Canada, except three restaurants, which are located in Central Florida and are owned by joint ventures managed by Darden. On October 1, 2007, Darden acquired RARE Hospitality International, Inc. Hemenway's Seafood Grille & Oyster Bar was sold in July 2009.[15]
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