Darden Restaurants, Inc.

Q1 performance largely in-line; sales growth driven by comps + units; EPS up - Reported Q1 total sales: $3.2B (+5.1% YoY) from positive same-restaurant sales growth (+3.2% on a comparable calendar basis) plus 53 net new restaurants. - Diluted EPS (continuing ops): $2.05 (+4.1% YoY); EBITDA $464M. - Shareholder returns: $406M via $184M dividends + $222M share repurchases. - Segment highlights: LongHorn +6.8% comp, Olive Garden +1% comp, Fine Dining +1% comp, Other Business +4.5% comp (with Yard House +10% comp).

Headwinds were real (World Cup + lettuce concerns + menu mix), but trends improved through the quarter - World Cup impact: +180 bps to Yard House comps but -80 bps net to Darden consolidated comps; impact was front-loaded, with traffic improving sequentially and accelerating into September. - Olive Garden specific headwinds: -150 to -200 bps guest count pressure from World Cup + heightened consumer lettuce concerns, plus ~-50 bps mix headwind from lighter portion section. - Surprisingly positive: despite lettuce concerns and planned marketing changes, Darden said operational fundamentals and guest satisfaction stayed at/near record highs.

Olive Garden (key opportunity) — value strategy + NEPB momentum; lunch is a medium-term focus - Olive Garden comp was +1%; company emphasized discipline and adaptability when external lettuce concerns broadened. - Never-Ending Pasta Bowl (NEPB) started in Q2: - 10,000 Pasta Passes sold out immediately - ~3 million devices logged in for the Pasta Pass sale - Early results: better than expected initially; buy-ups are higher than before - New offerings aiding the story: Spicy Alfredo Sauce + Crispy Shrimp Fritta; importantly, they did not raise the protein buy-up price ($4.99 unlimited proteins). - Lunch opportunity: management said weekday lunch traffic has underperformed (longer-term) vs other dayparts; planned lunch marketing/value activation in the current quarter (with testing of a new lunch platform). Timing of marketing pivot due to lettuce concerns is a notable “execution risk” area.