This year Darden expects to open approximately 35 to 40 net new restaurants, 35 of them Olive Garden units. Approximately 40 net new Olive Gardens are planned for 2008.
"Olive Garden is focused on accelerating growth. We've developed three new Tuscan prototypes and identified sites," said Drew Madsen, president and COO.
With its repositioning effort well underway, Red Lobster expansion is planned in fiscal 2009, Madsen added. Bahama Breeze's "significant progress" will allow it to begin growing again, with plans to open one new store in 2009, and further expansion planned. The company also will open about three new Seasons 52 restaurants over the next two years, and convert several of its struggling Smokey Bones restaurants to the test Rocky River Grillhouse format to stabilize that brand.
For the quarter, net earnings were $106.4 million compared with net earnings of $105.3 million last year. Sales increased 4.7% to $1.54 billion, driven primarily by same-restaurant sales growth at Red Lobster and Olive Garden and new restaurant growth at Olive Garden.
Darden Restaurants owns and operates over 1,450 Red Lobster, Olive Garden, Bahama Breeze, Smokey Bones and Seasons 52 restaurants.
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