Darden Restaurants
2006 Annual Report
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Q & A: What Shareholders Have Been Asking (continued)


What are your plans for adding new restaurant brands going forward?

Our strategy is to be a multi-brand growth company, and we are not limited to the brands we have today. As consumer tastes evolve, we stay relevant and grow by meeting new demand through new brands. Seasons 52, the new concept we are testing, reflects these dynamics. Its focus on fresh, nutritious cuisine is in tune with more health-conscious consumers.
 
What is the timeline for developing and testing new concepts?
Our development process is very deliberate, and there is a long lead time from research to launch. As a result, our timeline is highly elastic, meaning that we take whatever time is needed to properly develop a brand and align it with a business model that works. We expect Seasons 52, for example, to complete its current testing phase in fiscal 2007. Then we will begin research to identify other new concept ideas.
 
How does a potential acquisition fit into your growth strategy?
We continue to be interested in acquiring casual dining restaurant concepts with durable consumer appeal, where Darden’s strengths in brand management and restaurant operations can add value, and which have significant growth ahead of them. Whether internal development, acquisition, or some combination of these approaches to growth proves most fruitful, we will continue to have the discipline to avoid pursuing too many ideas at any given time.
 

“Our strategy is to be a
multibrand growth company,
and we are not limited to the
brands we have today.”

 
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