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
We Have Focused Priorities for Fiscal 2004 It is important for us to rebuild sales and traffic growth and affirm Darden's historical leadership position in the casual dining industry. With this aim, our priorities for fiscal 2004 are to: Rebuild sales and profit growth momentum at Red Lobster. Continue to grow sales and earnings at Olive Garden. Prepare Bahama Breeze for future growth. Sustain excellence at Smokey Bones and expand aggressively. Continue our test of Seasons 52 and research new concepts. Use process improvement as a platform to balance cost management with investment spending.     These priorities are straightforward, yet challenging. I know we have the necessary tools and talented teams to achieve each of them. We Are Well Positioned for Growth Darden has a unique combination of strengths that positions us well for future growth. First and foremost, as Bill Darden used to say, our greatest competitive edge is our employees — the more than 140,000 people in our Company who are committed to nourishing and delighting everyone we serve. We are also the only company in casual dining with two top-tier restaurant businesses that each generate about $2 billion in sales. And we complement them with two exciting emerging companies, each of which we believe is capable of achieving future sales of $500 million or more.     We are proud to serve more than 300 million meals a year, which gives us one of the largest — and still growing — consumer bases in casual dining. That base, along with our considerable leadership and financial resources, provides us with an excellent platform for growing our Company and achieving our driving ambition to be the best in casual dining, now and for generations. Joe R. Lee Chairman and Chief Executive Officer Core Purpose and Core Values CORE PURPOSE: To nourish and delight everyone we serve. CORE VALUES: Integrity and fairness. It all starts with integrity. We trust in the integrity and fairness of each other to always do the right thing, to be open, honest and forthright with ourselves and others, to demonstrate courage, to solve without blame and to follow through on all our commitments. Respect and caring. We reach out with respect and caring. We have a genuine interest in the well being of others. We know the importance of listening, the power of understanding and the immeasurable value of support. Diversity. Even though we have a common vision, we embrace and celebrate our individual differences. We are strengthened by a diversity of cultures, perspectives, attitudes, and ideas. We honor each other's heritage and uniqueness. Our power of diversity makes a world of difference. Always learning/always teaching. We learn from others as they learn from us. We learn. We teach. We grow. Being "of service." Being of service is our pleasure. We treat people as special and appreciated by giving of ourselves, doing more than expected, anticipating needs, and making a difference. Teamwork. Teamwork works. By trusting one another, we bring together the best in all of us and go beyond the boundaries of ordinary success. Excellence. We have a passion to set and pursue, with innovation, courage and humility, ever higher standards.