This summary is based on the fourth quarter fiscal 2008 earnings call conducted Darden Restaurants Inc. (DRI: chart) on June 25, 2008.

Management:

Chairman, CEO: Clarence Otis
CFO: Brad Richmond
President, COO and Director: Andrew H Madsen
President, Specialty Restaurant Group: Gene Lee
IR: Matthew Stroud

Key Investor Issues:

- Fiscal 2008 sales from continuing operations increased 19% to $6.63 billion.
- Full year EPS from continuing operations rose 1% to $2.55 from $2.53 in 2007.
- The company repurchased 5 million shares during the year for $159 million.

Full Year Highlights:

- The net earnings from continuing operations were $369.5 million on sales of $6.63 billion.
- In 2007, the net earnings from continuing operations were $377.1 million on sales of $5.57 billion.
- The portion of full year sales increase attributable to the addition of LongHorn Steakhouse and The Capital Grille is $745 million.

Fourth-Quarter Financial Highlights:

The company estimates that integration costs and purchase accounting adjustments related to the October 2007 acquisition of RARE Hospitality International Inc. negatively impacted EPS.

- The diluted net EPS were reduced by about 6 cents in the quarter as a result of the transaction.
- Excluding the estimated integration costs and purchase accounting adjustments of about 6 cents, net earnings from continuing operations were 78 cents per share.
- The company estimates that integration costs and purchase accounting adjustments related to the acquisition of RARE reduced diluted net EPS by about 19 cents during 2007.
- Excluding the estimated integration costs and purchase accounting adjustments of approximately 19 cents, the net earnings from continuing operations were $2.74 per share.

The restaurant operator reported Q4 diluted EPS including discontinued operations of 71 cents.

- This compares with net losses per share of 38 cents for the same period last year.
- The full year 2008 diluted net EPS including the discontinued operations were $2.60 versus $1.35 in the prior year.

The company purchased 201,525 shares of its common stock during the quarter.

- This brings the total number of shares repurchased during the year to more than 5 million.
- Since the start of the repurchase program in December 1995, the company purchased about 147 million shares for $2.78 billion under authorizations totaling 162.4 million shares.

- The company’s Board of Directors declared a quarterly dividend of 20 cents per share.
- This represents an 11% increase from the previous quarterly dividend.
- The dividend is payable on August 1, 2008 to shareholders of record at the close of business on July 10, 2008.

The company will hold the Annual Meeting of Shareholders in September 12, 2008.

- The meeting will be held at the Hyatt Regency Orlando International Airport in Orlando, FL.
- The record date for shareholders entitled to vote at the Annual Meeting is July 21, 2008.

Operating Highlights:

Olive Garden:

- The Q4 sales increased 11% to $798 million.
- The U.S. same-restaurant sales increased 5.8% and the quarter marks the 55th consecutive quarter of same-restaurant sales growth.
- On a percentage basis, the company’s increased food and beverage expenses and restaurant labor expenses were offset by lower restaurant expenses.
- The quarterly operating profit rose due to higher sales.
- The unit had record total sales and operating profit for the full year.
- The total sales were $3.07 billion, a 10% increase from last year and average annual sales per restaurant were $4.9 million.
- The U.S. same-restaurant sales increased 4.9% for the fiscal year.