Table of Contents Strategic Framework 2003 Financial Highlights Operating Company Overviews Great Expectations   Ambience   Service   Attentiveness   Knowledge   Friendliness   Cleanliness Letter To Shareholders Operating Highlights   Red Lobster   Olive Garden   Bahama Breeze   Smokey Bones BBQ New Business Opportunities Financial Review 2003 Corporate Responsibility Board of Directors Corporate Officers Shareholders Information
Red Lobster Founded in 1968, Red Lobster is the market share leader in the seafood segment of casual dining. It has led this segment of the industry since its inception by continually evolving with the casual dining consumer, achieving 22 consecutive quarters of year-over-year same-restaurant sales increases.            Olive Garden Olive Garden is a family of local restaurants and the market share leader in the highly competitive Italian segment of casual dining. As a result of its successful repositioning to remain relevant to today’s consumer, the more than 20-year-old company has posted record profits and 35 consecutive quarters of year-over-year same-restaurant sales growth. Edna Morris Senior Vice President and President, Red Lobster Number of Restaurants 673 Total Sales $2.43 Billion Average Restaurant Sales $3.7 Million Market Share of Casual Dining Seafood 49% FY03 U.S. Same-Restaurant Sales Growth 2.7% Drew Madsen Senior Vice President and President, Olive Garden Number of Restaurants 524 Total Sales $1.99 Billion Average Restaurant Sales $3.9 Million Market Share of Casual Dining Italian 31% FY03 U.S. Same-Restaurant Sales Growth 2.2% Bahama Breeze Bahama Breeze has built an exciting brand based on its promise of a refreshing island escape, featuring welcoming hospitality, innovative cuisine, and a tropical atmosphere. Smokey Bones Smokey Bones BBQ, which began its national expansion in fiscal 2002, mixes award-winning barbecue with mountain lodge comfort, warm friendly service, and features sports viewing and other televised entertainment. Laurie B. Burns Senior Vice President and President, Bahama Breeze Number of Restaurants 34 Total Sales $138 Million Clarence Otis, Jr. Executive Vice President and President, Smokey Bones Number of Restaurants 39 Total Sales $93 Million Darden’s innovative New Business Development team created and launched Olive Garden, Bahama Breeze and Smokey Bones BBQ. In February 2003, the team opened Seasons 52, a new test restaurant offering guests a casually sophisticated fresh grill and wine bar with seasonally inspired, nutritionally balanced menus and an extensive international wine list. Blaine Sweatt, III Executive Vice President and President, New Business Development