Table of Contents Our Strategic Building Blocks 2004 Financial Highlights Operating Company Overviews Letter to Shareholders Leadership Defined    Inspiration    Motivation    Trust    Passion    Vision    Innovation Corporate Responsibility Financial Review 2004 Shareholder Information Board of Directors Corporate Officers
OPERATING COMPANY OVERVIEWS Red Lobster A pioneering concept that helped reshape the dining habits of a nation, Red Lobster has been the market leader in the seafood casual dining segment since 1968. Today, Red Lobster has 649 restaurants in the United States and 31 in Canada. Red Lobster's fiscal 2004 sales were $2.4 billion and average annual sales per restaurant were $3.6 million (on a 52-week basis). Olive Garden Olive Garden is the largest casual, full-service Italian restaurant company in the world, with 537 restaurants in 47 states and six in Canada. Now in its 21st year, Olive Garden has posted 39 consecutive quarters of U.S. same-restaurant sales growth, and sales totaled $2.2 billion in fiscal 2004, with average annual sales per restaurant of $4.1 million (on a 52-week basis). Bahama Breeze Now in its ninth year, Bahama Breeze offers guests a refreshing escape from the ordinary with its unique combination of Caribbean-inspired cuisine, tropical drinks, upbeat atmosphere, and live music. Bahama Breeze had sales of $176 million in fiscal 2004, and now operates 32 restaurants in 19 states, with average annual sales per restaurant of $5.2 million (on a 52-week basis). Smokey Bones Barbeque & Grill Combining two of America's favorite pastimes – barbeque and sports – Smokey Bones Barbeque & Grill is Darden's fastest-growing concept. Since its debut in 1999, Smokey Bones has aggressively expanded to 69 restaurants in 18 states as of the end of fiscal 2004. Sales nearly doubled in fiscal 2004 to $174 million, with average annual sales per restaurant of $3.2 million (on a 52-week basis). New Business Development With the development of Olive Garden, Bahama Breeze and Smokey Bones, our New Business team has an impressive track record of creating exciting casual dining concepts. In 2003, the team's newest creation, Seasons 52, opened in Orlando, Florida. Now in its test phase, Seasons 52 is a casually sophisticated fresh grill and wine bar with seasonally inspired, nutritionally balanced menus and an extensive international wine list.