Fiscal 2009 was clearly a tumultuous time in both the global and domestic economies and in the full-service dining industry. As difficult as the year’s developments were, we believe they confirm that Darden is on the right strategic path. In the Q&A that follows, we outline why that’s the case and how – despite the challenges – we continued to invest in our Company’s future. We’re especially proud that, as we invested for our long-term success, Darden was also able to deliver financial results from continuing operations for fiscal 2009 that once again outpaced the industry.

• Sales from continuing operations increased 8.9 percent to $7.22 billion for fiscal 2009, which reflects inclusion of LongHorn Steakhouse and The Capital Grille for the full year, as well as new restaurant growth at each brand, the effect of an additional operating week in fiscal 2009 and same-restaurant sales growth at Olive Garden.
• Net earnings from continuing operations for fiscal 2009 were $371.8 million, a 0.6 percent increase from the $369.5 million earned in fiscal 2008. Diluted net earnings per share from continuing operations for fiscal 2009 were $2.65, a 3.9 percent increase from the $2.55 earned in fiscal 2008. Acquisition and integration costs and purchase accounting adjustments related to the October 2007 acquisition of RARE Hospitality (RARE) reduced diluted net earnings per share from continuing operations by approximately 10 and 19 cents in fiscal 2009 and 2008, respectively.
• Excluding acquisition and integration costs and purchase accounting adjustments related to the RARE acquisition, diluted net earnings per share from continuing operations were $2.75 in fiscal 2009, an increase of 0.4 percent compared to the $2.74 earned in fiscal 2008 on the same basis. The additional operating week in fiscal 2009 contributed approximately six cents of diluted net earnings per share for the year.
• In fiscal 2009, net earnings from discontinued operations were $0.4 million, and diluted net earnings per share from discontinued operations were $0.00, related primarily to Smokey Bones Barbeque & Grill, which was sold in January 2008. This compares to net earnings and diluted net earnings per share from discontinued operations of $7.7 million and $0.05, respectively, in fiscal 2008. When results from discontinued and continuing operations are combined, our diluted net earnings per share were $2.65 and $2.60 in fiscal 2009 and 2008, respectively.
• Combined U.S. same-restaurant sales for Olive Garden, Red Lobster and LongHorn Steakhouse declined 1.4 percent in fiscal 2009, which reflects the year’s challenging operating environment. This is, however, more than four percentage points favorable to the 5.6 percent decline for the Knapp-Track™ benchmark of U.S. same-restaurant sales excluding Darden. U.S. samerestaurant sales increased 0.3 percent at Olive Garden and decreased 2.2 percent and 5.6 percent at Red Lobster and LongHorn Steakhouse, respectively.
• We continued the buyback of Darden common stock in fiscal 2009, spending $144.9 million to repurchase 5.1 million shares. Since beginning our share repurchase program in 1995, we have repurchased approximately 152 million shares of our common stock for more than $2.9 billion.