Policy Presentation Zach Bach, A.J. Buono,

Jacob Kopinetz, Samantha Picciott, Nicole Taylor, Robert Zappaterrini

DARDEN RESTAURANTS,

INC.

Zach Bach, AJ Buono,Jake Kopinetz, Samantha Picciott,Nicole Taylor, Robert Zappaterrini

STRATEGIC MENU

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Brands:

“Be financially successful through great people consistently delivering outstanding food, drinks and service in an inviting atmosphere, making

every guest loyal!”

Mission:

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Overview:Sales by Segment

Olive Garden

LongHorn Steakhouse

Yard House

The Capital Grille

Bahama Breeze

Season’s 52

Eddie V’s

56.03%

22.84%

6.95%

5.96%

3.09%

1.43%

3.53%

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Overview:Sales by Segment

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Strengths Weaknesses

-Poor Waste Management

-Lack of Focus onSmaller Brands-Bahama Breeze

-Diversified Restaurant Mix

-Large Operational Network

-Dietary Approved Menu

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Opportunities Threats

-More Efficient Technology Available

-Favorable Growth Trends

-Intense Competition

-Economic Trends In Consumer Spending

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SITUATION ANALYSIS:KEY FINANCIALS

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First Course:Overview

Bahama Breeze Divestiture

Stagnant Historical and Future Projected Growth for Bahama Breeze

Bahama Breeze Sales Growth

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First Course:Objective

Sell Bahama Breeze: $335.5 million

Focus on Long-Term Stability

Focus on Darden’s current growing brands

Pay off long term debtNote 8: 2035 $150 Million

Prevent future negative sales of the brandSell Bahama Breeze:

$283.5 million

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First Course:Financials

Bahama Breeze Divestiture:Purchase Value: $283.5 Million

Sales Value: $209 Million

PP&E Value: $74.5 Million

Selling Price Net of Tax: $208 Million

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First Course:Pro Forma

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Second Course:Overview

CREATING AN EXPERIENCE BASED ON:

“GRAB YOUR FRIENDS,

WE’LL HAVE THE BEER”

Yard HouseAdvertising

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Second Course:Objective

Increase Yard House Marketing Expense:

$9.76 Million

31% Increase in Advertising Spend

Focusing on the Specific Market Segment of Millennial Males

Increase Brand Loyalty and Brand Recall

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Second Course:Implementation

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Second Course:Implementation

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Second Course:Implementation

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FISCALYEAR

SALES INCREASE

2016 12%2017 10%2018 8%2019 6%2020 6%

An increase in spending on advertising will drive an increase in revenue for

Yard House Restaurants

Second Course:Financials

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Second Course:Pro Forma

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COURSE TWO:OverviewThird Course:Overview

Inventory Optimization

28 ½ Blue Whales

10 MILLION POUNDS OF AVOIDABLE FOOD WASTE

ANNUALLY

125 Tractor Trailers 22 Statues of Liberty

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Third Course:Objective

5.5 million implementation cost

$$$ Annual subscription cost

Integrate additional POS system:

SyrusDecrease Cost of Goods Sold

Increase Bottom Line

Third Course:Objective

$5.5 Million Initial Investment

Decrease Food Cost

Increase Darden’s Bottom Line

Implementation of Additional POS Software

Forecast Inventory

Minimizes Over Purchasing

Supply Chain Management

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Third Course:Financials

Initial Cost: $5,487,200Year 2: $2,797,200Year 3: $2,833,200Year 4: $2,869,200Year 5: $2,905,200

*Initial Cost accounts for one-time training, implementation, and consulting fees

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Third Course:Pro Forma

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Dessert:

BOTTOM LINE BY 2020:With Strategies:$720.9 Million

Without Strategies:$530.8 MillionDifference:

$190.1 MillionPercent Change:

35.81%

TOP LINE BY 2020:With Strategies: $9,696.8 Million

Without Strategies: $9,563.3 Million

Difference: $133.5 Million

Percent Change: 1.4%

LONG TERM OBJECTIVES:Continue to lower Long-Term

Debt Obligations

Focus our remaining brands to continue strong

growth

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Dessert:Combined Projected Pro Forma

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Policy Presentation Zach Bach, A.J. Buono,

Jacob Kopinetz, Samantha Picciott, Nicole Taylor, Robert Zappaterrini

DARDEN RESTAURANTS,

INC.

BILL

QUESTIONS?

Thank You! Please Come Again.30

Situation Analysis $20

Divestiture of Bahama Breeze $20

Yard House Advertising Plan $10

Inventory Optimization System $30

TIP

TOTAL PROJECT

Appendix

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International Expansion Same Brand Sales Growth Advertising Plan Inventory Optimization

Brand Restructuring Disposable Personal Income Olive Garden Rebrand Inventory Optimization NPV

Free Cash Flows Bahama Breeze Key Assumptions Yard House Persona Common Size - Combined

Additional Four Locations Bahama Breeze Divestiture Yard House Maps Common Size - Divest

Distribution Centers Bahama Breeze Divestiture (Excel) Yard House Key Assumptions Common Size – YH

Entrée/Ticket Price Red Lobster Yard House Advertising Plan Common Size – Inv Op

Stores in United States Yard House Effect on Net Earnings Yard House Media Schedule Common Size - Base

Sales Key Figures Yard House Marketing and Media Yard House Social Media

International Expansion

Darden has not had consistent success with international operations

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Brand RestructuringBAHAMA BREEZE: 8000

YARD HOUSE: 12,652

REJECTED: On basis of not having enough square footage for Yard House

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Free Cash Flows

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Avoid Additional Four Locations

Initial Investment -$37,158,960

CF1 $2,452,378

CF2 $4,091,729

CF3 $6,491,641

CF4 $7,207,842

CF5 $7,941,618

WACC 3.08%

NPV -$11,793,858

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Distribution CenterConkillin, New York

Anover Park, Illinois

Westborough, Massachusetts

Farmingdale, New York

Oakwood, Ohio

Savage, Maryland

Arlington, Tennessee

Worcester, Massachussets

Orlando, Florida

Terrell, Texas

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Entrée/ Ticket Price by Restaurant

  Olive

Garden

LongHorn

Steakhouse

The Capital

Grille

Bahama

Breeze

Yard

House

Eddie

V’s

Seasons

52

Lunch $7-15 $7-15 $12-39 $7-21 $7-32 N/A $8-31

Dinner $10-20 $12-25 $16-59 $9-30 $7-32 $18-61 $11-31

Average $17 $20 $75 $45 $31 $90 $26

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Stores in the United States  Olive

Garden

LongHorn

Steakhouse

The Capital

Grille

Bahama

Breeze

Yard

House

Eddie

V’s

Seasons

52

Stores 846 480 54 36 59 16 43

Franchised 20 13 1 0 0 0 0

2015 2014 2013

Olive Garden 846 837 828LongHorn Steakhouse 480 464 430Yard House 59 52 44The Capital Grille 54 54 49Bahama Breeze 36 37 33Seasons 52 43 38 31Eddie V’s 16 15 12

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Sale Key Figures2015 2014 2013

Sales (Millions)

$6,764.0 $6,285.6 $5,921.0

2015 2014 2013

Olive Garden 56.03% 57.96% 62.23%

LongHorn Steakhouse

22.84% 22.02% 20.79%

Yard House 6.95% 6.66% 4.36%

The Capital Grille

5.96% 5.78% 5.60%

Bahama Breeze

3.09% 3.21% 2.93%

Seasons 52 3.53% 3.12% 2.67%

Eddie V’s 1.43% 1.25% 1.10%

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Same Brand Sales Growth

  2016 2017 2018 2019 2020Olive Garden 2% 2% 2% 2% 2%LongHorn Steakhouse 12% 12% 12% 12% 12%Yard House 18% 16% 14% 12% 10%The Capital Grille 10% 10% 10% 10% 10%Bahama Breeze 4% 4% 4% 4% 4%Seasons 52 20% 20% 20% 20% 20%Eddie V’s 22% 22% 22% 22% 22%

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Disposable Personal Income CalculationCredibility Weighted Forecast

Disposable Personal Income Yearly Increases

2016 - .24%

2017 - .22%

2018 - .21%

2019 - .21%

2020 - .21%

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Disposable Personal Income Calculation (contd.)

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BAHAMA BREEZE BACKUP SLIDES

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Bahama Breeze Key AssumptionsBB Sales $209 million Followed treatment for Red Lobster DisposalBB PP&E Valuation $54.6 million BB’s Portion of Darden’s PP&E

BB Land-Only Leases 16 Portion of Total Restaurants

Ground and Building Leases 2 Portion of Total Restaurants

Space/In-Line/Other Leases 5 Portion of Total Restaurants

Owned Sites 13 Portion of Total Restaurants

BB Food/Beverage Expense $69.5 million Portion of Total Sales

BB Restaurant Labor Expense $69.9 million Portion of Total Sales

BB Restaurant Expenses $37 million Portion of Total Sales

BB Marketing Expenses $0.4 million Darden Marketing Plan - Red Books

BB Depreciation Expense $52 million Straight-line depreciation

Interest Expense from Note 8 $18.6 million $150 million note at 6% interest due in 2035

Red Lobster % of Sales 85.77% Darden 10-K (2014)

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Bahama Breeze Divestiture

Bahama Breeze Divestiture (Sales)

BB Sales $209,000,000

Tax Rate 26.63%

BB Sales, net of Tax $153,340,000$208 million

(after tax)Bahama Breeze Divestiture (PP&E)

BB PP&E, net depreciation $74,450,000

Tax Rate 26.63%

BB PP&E, net of Tax $54,620,000

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Red LobsterRed Lobster Divestiture (Sales)

Restaurant Sales $2.46 billion

RL Sale Price $2.11 billion

% of Sales 85.77%

Red Lobster Sales Info

2013 $2.62 billion

2012 $2.67 billion

2011 $2.52 billion

2010 $2.49 billion

2009 $2.62 billion

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PROPERTY, PLANT, EQUIPMENT, AND SALES VALUATION OF BAHAMA BREEZE

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YARD HOUSE BACKUP SLIDES

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YH Advertising Effect on Net Earnings

2016 2017 2018 2019 2020$0.00

$10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00

Net Income (mil-lions)

Net Income (millions)

2016 2017 2018 2019 2020

YH Plan $610.87 $769.70 $939.03 $1108.05 $1285.34

YH Org. Growth 554.48 643.20 733.25 821.24 903.36

Difference 56.39 126.50 205.78 286.82 381.98

Addn’l F/B 17.60 39.83 65.26 91.48 122.37

Addn’l Labor 17.69 39.30 63.20 86.95 114.15

Addn’l Rest. Exp 9.37 21.02 34.12 47.38 62.79

Net Earnings $11.72 $26.35 $43.20 $61.01 $82.67

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Yard House Marketing and MediaCraft Beer Buzz Words:

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Advertising Plan

FISCALYEAR

SALES INCREASE

2016 12%

2017 10%

2018 8%

2019 6%

2020 6%

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Yard House: Target Persona

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Olive Garden Rebrand (2014)

  2015 2014 2013

Olive Garden $3,789.60 $3,643.10 $3,684.80

Darden spent an additional $11 million on marketing exclusively for Olive Garden which increased sales by 5.5%.

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Yard House Map of Locations/Stadiums

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Yard House – Additional Locations

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Yard House Marketing Plan Key AssumptionsYard House Sales   Base Business Pro FormaMarketing Sales   Increase in sales of 12% (2016), 10% (2017),

8% (2018), 6% (2019), and 6% (2020)

YH Food/Beverage Expense (2016) $14.6 million Portion to YH Sales

YH Labor Expense (2016) $14.8 million Portion to YH SalesYH Restaurant Expense (2016) $7.8 million Portion to YH Sales

YH Increase in Sales   Followed treatment for Olive Garden re-brand

Olive Garden Rebrand Sales Increase 5.5% Darden 10-K (2014)

Social Media Reach % Increase 20% Followed treatment for Olive Garden re-brand

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Advertising Plan

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Media Schedule

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Social Media Plan

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INVENTORY OPTIMIZATION BACKUP

SLIDES

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Percentage Allocation: Food 87.49% Darden 10-K; Proportion of Breakdown of Beverages

Percentage Allocation: Beverage 12.51% Darden 10-K; Cost Breakdown of Beverages

Syrus Consulting Cost $500,000 Syrus Industry Professional

# of Employees to Train 140,000 Darden 10-K

Minimum Wage $7.95 Average of 50 States

Hours of Training 2 Consultation with Syrus Industry Professional

Annual Software Cost Per Store $1,800 Consultation with Syrus Industry Professional

Annual Store Increase 20 Darden 10-K; Historic Growth Trends

Food Cost Decrease 2%-4% Consultation with Syrus Industry Professional

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Key Assumptions

Initial Investment $5,487,200

CF1 $39,390,000

CF2 $52,270,000

CF3 $66,250,000

CF4 $81,290,000

CF5 $97,250,000

WACC 3.08%

NPV $297,970,804

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NPV Analysis

Capital Grille

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Eddie V’s

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Seasons 52

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Darden Restaurants

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Overview: Presence of Darden Restaurants per State

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Common Size – Base Projections

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Common Size – Combined Strategies

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Common Size - Divestiture

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Common Size – Marketing Plan

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Common Size – Inventory Optimization

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Common Size – Inventory Optimization