EARNINGS CALL

Fiscal 2017 Q2December 20, 2016

1

DISCLAIMER / NON-GAAP INFORMATION

The following slides are part of a presentation by Darden Restaurants, Inc. (the "Company") and are intended to be

viewed as part of that presentation (the "Presentation"). No representation is made that the Presentation is complete.

Forward-looking statements in this communication regarding our expected earnings performance and all other statements that are not historical facts,

including without limitation statements concerning our future economic performance and expenses, are made under the Safe Harbor provisions of the

Private Securities Litigation Reform Act of 1995. Any forward-looking statements speak only as of the date on which such statements are first made, and

we undertake no obligation to update such statements to reflect events or circumstances arising after such date. We wish to caution investors not to place

undue reliance on any such forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties that could cause actual

results to materially differ from those anticipated in the statements. The most significant of these uncertainties are described in Darden's Form 10-K, Form

10-Q and Form 8-K reports. These risks and uncertainties include technology failures including failure to maintain a secure cyber network, food safety and

food-borne illness concerns, litigation, unfavorable publicity, risks relating to public policy changes and federal, state and local regulation of our business,

labor and insurance costs, failure to execute a business continuity plan following a disaster, health concerns including food-related pandemics or virus

outbreaks, intense competition, failure to drive profitable sales growth, our plans to expand our smaller brands Bahama Breeze, Seasons 52 and Eddie V's,

a lack of availability of suitable locations for new restaurants, higher-than-anticipated costs to open, close, relocate or remodel restaurants, a failure to

execute innovative marketing tactics, a failure to develop and recruit effective leaders, a failure to address cost pressures, shortages or interruptions in the

delivery of food and other products and services, adverse weather conditions and natural disasters, volatility in the market value of derivatives, economic

factors specific to the restaurant industry and general macroeconomic factors including interest rates, disruptions in the financial markets, risks of doing

business with franchisees and vendors in foreign markets, failure to protect our intellectual property, impairment in the carrying value of our goodwill or

other intangible assets, failure of our internal controls over financial reporting, an inability or failure to manage the accelerated impact of social media and

other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.

The information in this communication includes financial information determined by methods other than in accordance with accounting principles generally

accepted in the United States of America (“GAAP”), such as adjusted net earnings per diluted share from continuing operations . The Company’s

management uses these non-GAAP measures in its analysis of the Company’s performance. The Company believes that the presentation of certain non-

GAAP measures provides useful supplemental information that is essential to a proper understanding of the operating results of the Company’s

businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they

necessarily comparable to non-GAAP performance measures that may be presented by other companies.

IMPORTANT NOTICE

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$0.99

$1.01

$0.68$0.54

$1.21 $1.10 $0.88

$0.64

FY15 FY16 FY15 FY16 FY16 FY17 FY16 FY17

Darden Adjusted EPS3

Q31 Q42 Q1 Q2

$1.73 $1.75 $1.69 $1.61 $1.85 $1.79 $1.71 $1.64

FY15 FY16 FY15 FY16 FY16 FY17 FY16 FY17

Darden Sales ($bn)

Q31 Q42 Q1 Q2

FISCAL QUARTER HIGHLIGHTS

1 FY15 Q3 includes the Thanksgiving holiday whereas it occurred in Q2 of FY16.2 FY15 Q4 adjusted to exclude $0.13bn in sales and $0.07 in adjusted diluted earnings per share due to the 53rd week. 3 EPS values, except for FY17 Q1 & Q2, are adjusted for special items. A reconciliation of reported to adjusted numbers can be found in the additional information section of this presentation.

4.2%

2.6%

1.3%1.7%

Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17

Same-Restaurant Sales Growth - Comparable Calendar Basis

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CONTINUED TOP LINE MOMENTUM

Same-Restaurant Sales

Q2 Highlights

2.8%

4.9%

2.4%2.0%

2.6%

1 FY16 Same-Restaurant Sales on a comparable calendar basis.2 Industry excluding Darden brands.

2.6%Same-Restaurant

Sales

+21%OG To Go Growth

+540bpsSame-Restaurant

Sales Industry

Outperformance2

FY16 Q21 FY16 Q31 FY16 Q41 FY17 Q1 FY17 Q2

4

0.1%Same-Restaurant

Sales

Q2 Highlights

+290bpsSame-Restaurant

Sales Industry

Outperformance3

1 Segment profit margin calculated as (sales less costs of food & beverage, restaurant labor, restaurant expenses and marketing expenses) / sales.2 Segment profit margin adjusted to exclude the impact of incremental rent and other tax expense from the fiscal 2016 real estate transactions.3 Industry excluding Darden brands.

16.3%20.0%

17.8% 19.0%

14.9% 15.6% 15.0% 14.4%

1.3%1.3%

1.5%0.4% 1.6%

FY15Q3

FY16Q3

FY15Q4

FY16Q4

FY16Q1

FY17Q1

FY16Q2

FY17Q2

21.3%220.3%2

15.4%2

Segment Profit Margin Percent1

Rent and other tax expense impact on Segment Profit Margin

from fiscal 2016 real estate transactions

17.1%2

+60bpsAdjusted Segment

Profit Margin % vs.

Last Year (Basis Point

Diff)2

STRENGTHENING BUSINESS MODEL

16.0%2

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THANK YOU TO OUR 150,000

TEAM MEMBERS!

FINANCIAL UPDATE

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FISCAL SECOND QUARTER HIGHLIGHTS

1.7%Same-Restaurant Sales

$0.64Diluted EPS from Continuing

Operations

~$70 millionDividends Paid

18.5%Adjusted Diluted EPS Growth

vs Last Year1

$19 millionShare Repurchases

1 Prior year EPS values adjusted for special items. A reconciliation of reported to adjusted numbers can be found in the additional information section of this presentation.

~0.3 million Shares Repurchased

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EAT MARGIN INCREASED

50 BASIS POINTS

Fiscal Q2 2017

($ millions) % of Sales

vs. PY* (bps) Favorable/(Unfavorable)

Sales $1,642.5

Food & Beverage $478.1 29.1% 90

Restaurant Labor $538.1 32.8% (20)

Restaurant Expenses $305.3 18.6% (130)

Marketing $57.1 3.5% 10

Restaurant-Level EBITDA $263.9 16.1% (50)

G&A $79.5 4.8% (40)

Depreciation & Amortization $67.8 4.1% 60

Impairments $0.1 0.0% 50

EBIT $116.5 7.1% 10

Interest Expense $9.5 0.6% 70

EBT $107.0 6.5% 80

Income Tax ExpenseNote: Effective Tax Rate

$27.3 1.7%25.5%

(40)

EAT $79.7 4.9% 50

Note: Percentages may not foot due to rounding. * Compared to FY16 Q2 adjusted performance. A reconciliation of reported to adjusted numbers can be found in the additional information section of this presentation.

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1 Segment profit margin calculated as (sales less costs of food & beverage, restaurant labor, restaurant expenses and marketing expenses) / sales.2 Segment profit margin adjusted to exclude the impact of incremental rent and other tax expense from the fiscal 2016 real estate transactions.

Segment sales growth ($ millions)

…with strong Segment Profit Margin, excluding incremental rent from real estate transactions1

17.6% 16.8%

0.8% 2.5%

FY16 Q2 FY17 Q2

15.0% 14.4%

0.4% 1.6%

FY16 Q2 FY17 Q2

18.2%

18.2%

0.1%

FY16 Q2 FY17 Q2

14.2% 14.8%

0.1%0.6%

FY16 Q2 FY17 Q2

SEGMENT PERFORMANCE

$892 $915

FY16 Q2 FY17 Q2

$365 $365

FY16 Q2 FY17 Q2

$123 $129

FY16 Q2 FY17 Q2

-%

$228 $234

FY16 Q2 FY17 Q2

Fine Dining Other

Fine Dining Other

19.3%2

16.0%2

18.3%2

15.4%2

Rent and other tax expense impact on Segment Profit Margin from fiscal 2016 real estate transactions

18.4%2

15.4%2

14.3%2

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FISCAL 2017 ANNUAL OUTLOOK

Note: Dollars in millions except per share amounts.

Total Sales Growth

1.7% to 2.7%

Same Restaurant Sales

1.0% to 2.0%

New Restaurants

24 to 28

Capital Spending

$310 to $350

Cost Savings

$30

Total Inflation

1.5% to 2.0%

Effective Tax Rate

26% to 27%

Sales Margin

Earnings per Diluted Share

$3.87 to $3.97(~126 million Weighted Average Diluted Shares Outstanding)

ADDITIONAL INFORMATION

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SECOND QUARTER SAME-RESTAURANT

SALES GROWTH

1.2%

-0.3%

2.7%

2.6%

0.7%

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Product Breakdown and Contract Coverage For 2nd Half of Fiscal 2017

¹ Includes cheese, cream, butter, and shortening

² Includes breadsticks and pasta

COMMODITIES OUTLOOK –

2nd HALF OF FISCAL 2017

Dec-May

FY2017

Spend by

Category Coverage Outlook

Beef 20% 55% Low Single Digit Deflation

Produce 12% 80% Low Single Digit Inflation

Dairy / Oil1 12% 60% Low Single Digit Inflation

Seafood 10% 90% Mid Single Digit Inflation

Wheat2 7% 95% Flat

Chicken 7% 95% Low Single Digit Inflation

Non-Perishable / Other 32% 65% Low Single Digit Inflation

Weighted Average

Coverage100% ~70%

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REPORTED TO ADJUSTED EARNINGS

RECONCILIATIONS

Note: The sum of the quarterly Diluted EPS amounts do not total the annual EPS amounts due to the impact of the timing of share repurchases

on the weighted average share count. Values may not foot due to rounding. A detailed reconciliation of reported to adjusted earnings can be found in the Investor Relations section of the

Darden website (www.darden.com) under Non-GAAP Reporting.

Fiscal 2016

Q1 Q2 Q3 Q4 Annual

Reported Diluted Net EPS from Continuing Operations $0.63 $0.23 $0.84 $1.10 $2.78

Real Estate Plan Implementation 0.05 0.16 0.03 - 0.26

Debt Retirement Costs - 0.17 0.34 - 0.51

Strategic Action Plan and Other Costs - (0.02) - - (0.02)

Adjusted Diluted Net EPS from Continuing Operations $0.68 $0.54 $1.21 $1.10 $3.53

Fiscal 2015

Q3 Q4*

Reported Diluted Net EPS from Continuing Operations $1.01 $0.92

Debt Retirement Costs 0.00 0.00

Strategic Action Plan and Other Costs (0.02) 0.16

Adjusted Diluted Net EPS from Continuing Operations $0.99 $1.08

Remove 53rd Week Impact (0.07)

Adjusted Diluted Net EPS from Continuing Operations (52-Week Basis) $0.99 $1.01

* Reflects an extra week of operations due to a 53 week year

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REPORTED TO ADJUSTED EBIT MARGIN

AND EARNINGS RECONCILIATIONS

Change

(in millions) 11/27/2016 11/29/2015 (bps)

Sales - as reported 1,642.5$ 1,608.8$

Earnings from continuing operations - as reported 79.7$ 30.1$

Interest, net - as reported 9.5 57.3

Income taxes - as reported 27.3 (5.7)

EBIT from continuing operations 116.5$ 81.7$

EBIT Margin from continuing operations 7.1% 5.1% 200

EBIT Impacts -$ 31.0$ (1)

Adjusted EBIT from continuing operations 116.5$ 112.7$ Adjusted EBIT Margin from continuing operations 7.1% 7.0% 10

Earnings from continuing operations - as reported 79.7$ 30.1$

EBIT Impacts - 31.0 (1)

Interest expense impacts - 35.6 (2)

Income tax impacts of adjustments - (26.2)

Adjusted earnings from continuing operations 79.7$ 70.5$

Adjusted earnings margin from continuing operations 4.9% 4.4% 50

(1) Represents costs associated with the real estate implementation

(2) Represents costs associated with debt retirement

Quarter Ended

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FISCAL AND COMPARABLE

CALENDAR DATES

Fiscal 2016 Same-Restaurant Sales Calculation Dates

Fiscal Calendar Basis Comparable Calendar Basis

Q1

June 1, 2015 – August 30, 2015

vs.

May 26, 2014 – August 24, 2014

June 1, 2015 – August 30, 2015

vs.

June 2, 2014 – August 31, 2014

Q2

August 31, 2015 - November 29, 2015

vs.

August 25, 2014 - November 23, 2014

August 31, 2015 - November 29, 2015

vs.

September 1, 2014 - November 30, 2014

Q3

November 30, 2015 – February 28, 2016

vs.

November 24, 2014 – February 22, 2015

November 30, 2015 – February 28, 2016

vs.

December 1, 2014 – March 1,2015

Q4

February 29, 2016 - May 29, 2016

vs.

February 23, 2015 - May 24, 2015

February 29, 2016 - May 29, 2016

vs.

March 2, 2015 - May 31, 2015