ORLANDO, FL—Darden Restaurants Inc. (NYSE:DRI) announced the results of its Annual Meeting of Shareholders, held virtually on September 18, 2024. The meeting concluded with the election of nine directors, advisory approval of executive compensation, and the ratification of the company's independent auditor, among other proposals.
Shareholders elected all nine director nominees, with votes for each ranging from 94,150,334 to 96,289,903. The directors will serve until the next annual meeting or until their successors are elected and qualified.
The advisory resolution on executive compensation passed with 92,051,437 votes for, while the ratification of KPMG LLP as the independent registered public accounting firm for the fiscal year ending May 25, 2025, received overwhelming support with 101,692,407 votes for.
Additionally, shareholders approved the amendment and restatement of the company's 2015 Omnibus Incentive Plan, with 92,375,019 votes for the proposal. This plan outlines the framework for Darden's incentive and equity-based compensation.
Several shareholder proposals did not pass. A proposal requesting the company to disclose the percent of pork raised in group housing was rejected with 76,676,287 votes against. Similarly, a proposal urging compliance with WHO guidelines for antimicrobials in the supply chain was not approved, garnering 86,537,913 votes against.
Lastly, the proposal to issue a report on the company's strategy to reduce greenhouse gas emissions in line with the Paris Agreement’s 1.5-degree goal also failed, with 75,301,186 votes against.
These results were certified by Peter W. Descovich, the independent Inspector of Election for the Annual Meeting. The outcomes of the votes demonstrate shareholder support for the current board and management strategies, while also reflecting the company's ongoing commitment to corporate governance and accountability.
In other recent news, Darden Restaurants has reported mixed Q1 results, with a 1.1% decline in same-store sales and a 2% year-over-year decrease in adjusted earnings per share to $1.75. On the other hand, Longhorn Steakhouse, a Darden brand, posted a 3.7% growth in same-store sales. In response to these results, Darden announced a delivery partnership with Uber Technologies (NYSE:UBER), set to begin in late 2024 at select Olive Garden locations.
Barclays (LON:BARC), Citi, and Evercore ISI maintained their Overweight, Buy, and In Line ratings respectively, while TD Cowen downgraded its rating to hold due to sales concerns. Barclays also increased its price target for Darden to $192.
In addition, Darden recently acquired Chuy's, a chain of full-service Tex-Mex restaurants, for $605 million, expected to have a neutral impact on the earnings per share for fiscal year 2025.
InvestingPro Insights
As Darden Restaurants Inc. (NYSE:DRI) continues to navigate the post-pandemic market, shareholders have shown confidence in the company's strategic direction at the recent Annual Meeting. Reflecting on this, InvestingPro data provides additional context to the company's financial health and market position. Darden boasts a solid market capitalization of $20.44 billion, underscoring its significant presence in the industry. With a P/E ratio of 19.99, the company trades at a premium, which is echoed by a high Price/Book ratio of 9.13, suggesting that the market holds the company's assets in high regard.
InvestingPro Tips highlight that while Darden has been successful in maintaining dividend payments for 30 consecutive years, and has raised its dividend for the last 3 years, analysts have tempered expectations by revising earnings downwards for the upcoming period. Nevertheless, the company's consistent profitability over the last twelve months and a respectable annual revenue growth of 8.6% indicate a still-robust business model.
For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available, providing further insights into Darden's financial metrics and market performance. These tips can be a valuable resource for shareholders and potential investors to make informed decisions in light of the company's recent shareholder meeting outcomes and future prospects.
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