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   Management’s Discussion and Analysis...   Report of Management Responsibilities   Report of Independent Registered...   Consolidated Statements of Earnings   Consolidated Balance Sheets   Consolidated Statements of Changes...   Consolidated Statements of Cash Flows   Notes to Consolidated Financial Statements   Five-Year Financial Summary Shareholder Information Board of Directors Corporate Officers
Financial Review 2004 Five-Year Financial Summary   May 30, May 25, May 26, May 27, May 28, (In thousands, except per share data) 2004 (1) 2003 2002 2001 2000 Operating Results Sales    $ 5,003,355         $ 4,654,971         $ 4,366,911         $ 3,992,419         $ 3,675,461      Costs and expenses:    Cost of sales:       Food and beverage   1,526,875     1,449,162     1,384,481     1,302,926     1,199,709         Restaurant labor   1,601,258     1,485,046     1,373,416     1,261,837     1,181,156         Restaurant expenses   767,584     703,554     628,701     559,670     510,727   Total cost of sales, excluding restaurant    depreciation and amortization(2) $ 3,895,717   $ 3,637,762   $ 3,386,598   $ 3,124,433   $ 2,891,592   Selling, general, and administrative   472,109     431,722     417,158     389,240     363,041   Depreciation and amortization   210,004     191,218     165,829     146,864     130,464   Interest, net   43,659     42,597     36,585     30,664     22,388   Asset impairment and restructuring    charges (credits), net   41,868     3,924     (2,568 )   –     (5,931 ) Total costs and expenses $ 4,663,357   $ 4,307,223   $ 4,003,602   $ 3,691,201   $ 3,401,554   Earnings before income taxes   339,998     347,748     363,309     301,218     273,907   Income taxes   108,536     115,488     125,521     104,218     97,202   Net earnings $ 231,462   $ 232,260   $ 237,788   $ 197,000   $ 176,705   Net earnings per share:       Basic $ 1.42   $ 1.36   $ 1.36   $ 1.10   $ 0.92         Diluted $ 1.36   $ 1.31   $ 1.30   $ 1.06   $ 0.89   Average number of common shares    outstanding, net of shares held in Treasury:        Basic   163,500     170,300     174,700     179,600     192,800         Diluted   169,700     177,400     183,500     185,600     197,800   Financial Position Total assets $ 2,780,348   $ 2,664,633   $ 2,529,736   $ 2,216,534   $ 1,969,555   Land, buildings, and equipment   2,250,616     2,157,132     1,926,947     1,779,515     1,578,541   Working capital (deficit)   (337,174 )   (314,280 )   (157,662 )   (226,116 )   (316,427 ) Long-term debt   653,349     658,086     662,506     520,574     306,586   Stockholders' equity   1,245,770     1,196,191     1,128,877     1,033,318     958,602   Stockholders' equity per outstanding share   7.86     7.25     6.56     5.87     5.23   Other Statistics Cash flow from operations $ 525,411   $ 508,635   $ 508,101   $ 420,570   $ 342,626   Capital expenditures   354,326     423,273     318,392     355,139     268,946   Dividends paid   12,984     13,501     9,225     9,458     10,134   Dividends paid per share   0.080     0.080     0.053     0.053     0.053   Advertising expense   210,989     200,020     184,163     177,998     165,590   Stock price:    High   25.60     27.83     29.767     19.660     15.375      Low   17.80     16.46     15.400     10.292     8.292      Close $ 22.50   $ 18.35   $ 25.030   $ 19.267   $ 12.583   Number of employees   141,300     140,700     133,200     128,900     122,300   Number of restaurants   1,325     1,271     1,211     1,168     1,139   (1) Fiscal year 2004 consisted of 53 weeks while all other fiscal years consisted of 52 weeks. (2) Total cost of sales, excluding restaurant depreciation and amortization of $195,486, $177,127, $155,837, $138,229, and $123,477, respectively.