DARDEN RESTAURANTS INC

Previous wording

To facilitate review of our discussion and analysis, the following table sets forth our financial results for the periods indicated. All information is derived from the unaudited consolidated statements of earnings for the three and nine months ended February 23, 2025 and February 25, 2024.

Current wording

To facilitate review of our discussion and analysis, the following table sets forth our financial results for the periods indicated. All information is derived from the unaudited consolidated statements of earnings for the three months ended August 24, 2025 and August 25, 2024.

Previous wording

The following table details the number of company-owned restaurants currently reported in continuing operations that were open at the end of the third quarter of fiscal 2025, compared with the number open at the end of fiscal 2024 and the end of the third quarter of fiscal 2024.

Current wording

The following table details the number of company-owned restaurants currently reported in continuing operations that were open at the end of the first quarter of fiscal 2026, compared with the number open at the end of fiscal 2025 and the end of the first quarter of fiscal 2025.

Previous wording

1 Includes 103 Chuy’s locations acquired on October 11, 2024

Current wording

2 Includes 103 Chuy’s locations acquired during the second quarter of fiscal 2025.

Previous wording

During the second quarter of fiscal 2025, we entered into an exclusive multi-year delivery arrangement with Uber Technologies, Inc. (Uber). The agreement enables our guests to order delivery via Darden restaurant channels, with delivery handled by Uber. The pilot of first-party delivery for Olive Garden began during the second quarter of fiscal 2025 and rolled out to nearly all Olive Garden locations during the second and third quarters of fiscal 2025. A pilot of first-party delivery from a limited number of Cheddar’s Scratch Kitchen locations will begin in the fourth quarter of fiscal 2025.

Current wording

During the second quarter of fiscal 2025, we entered into an exclusive multi-year delivery arrangement with Uber Technologies, Inc. (Uber), which enables our guests to order delivery via Darden restaurant channels, with delivery handled by Uber. During fiscal 2025 and the first quarter of 2026, we rolled the program out to nearly all Olive Garden and Cheddar’s Scratch Kitchen locations.

Previous wording

•Total sales increased 6.2 percent and 4.4 percent to $3.16 billion and $8.81 billion for the third quarter and first nine months of fiscal 2025 compared to $2.97 billion and $8.43 billion for the third quarter and first nine months of fiscal 2024 driven by sales from 143 net new restaurants, including the acquisition of 103 Chuy’s restaurants on October 11, 2024, and blended same-restaurant sales increase of 0.7 percent 1 and 0.8 percent.1 Our blended U.S. same-restaurant sales for the third quarter of fiscal 2025 were negatively impacted by approximately 1.0 percent and 0.9 percent respectively, due to severe weather and a shift in the timing of the Thanksgiving holiday week. Our blended U.S. same-restaurant sales for the first nine months of fiscal 2025 were negatively impacted by 0.4 percent due to severe weather.

Current wording

•Total sales increased 10.4 percent to $3.04 billion for the first three months of fiscal 2026 compared to $2.76 billion for the first three months of fiscal 2025 driven by sales from 125 net new restaurants, including the acquisition of 103 Chuy’s restaurants on October 11, 2024, and a blended same-restaurant sales increase of 4.7 percent.1

Previous wording

•Reported diluted net earnings per share from continuing operations were $2.74 and $6.30 for the third quarter and first nine months of fiscal 2025 compared to $2.60 and $5.95 for the third quarter and nine months of fiscal 2024.

Current wording

•Reported diluted net earnings per share from continuing operations were $2.19 for the first three months of fiscal 2026 compared to $1.74 for the first three months of fiscal 2025.

Previous wording

We expect sales for fiscal 2025 to be approximately $12.1 billion, same-restaurant sales growth of approximately 1.5 percent 1 and approximately 50 to 55 new restaurant openings. Additionally, we expect capital expenditures incurred to build new restaurants, remodel and maintain existing restaurants and for technology initiatives to be approximately $650 million. These amounts all include the addition of Chuy’s and our expectations for Chuy’s results from the date of acquisition forward.

Current wording

We expect sales growth for fiscal 2026 to be between 7.5 and 8.5 percent, driven by growth of 2.0 percent related to the fifty-third week, same-restaurant sales growth to be between 2.5 and 3.5 percent 2 and approximately 65 new restaurant openings. Additionally, we expect capital expenditures incurred to build new restaurants, remodel and maintain existing restaurants and for technology initiatives to be between $700 and $750 million. These amounts all include the addition of Chuy’s and our expectations for Chuy’s results from the date of acquisition forward.

Previous wording

(1)Same-restaurant sales is a year-over-year comparison of each period’s sales volumes for a 52-week year and is limited to restaurants that have been open, and operated by Darden, for at least 16 months. Accordingly, Chuy’s results will not be included in this calculation until the fourth quarter of fiscal 2026 and Ruth’s Chris results are included for fiscal 2025 November and forward only.

Current wording

(1)Same-restaurant sales is a year-over-year comparison of each period’s sales volumes for a 52 week year and is limited to restaurants that have been open, and operated by Darden, for at least 16 months. Accordingly, Chuy’s results will not be included in this calculation until the fourth quarter of fiscal 2026. Additionally, results from Bahama Breeze are excluded as they are not expected to be operated by Darden for the entirety of the fiscal year.

Previous wording

Olive Garden’s sales increase for the third quarter of fiscal 2025 was primarily driven by same-restaurant sales increases, as well as revenue from new restaurants. The increase in U.S. same-restaurant sales for the third quarter of fiscal 2025 resulted from a 4.6 percent increase in average check, which includes a 0.9 increase in off premise catering sales, partially offset by a 3.9 percent decrease in same-restaurant guest counts. Olive Garden’s sales increase for the nine months of fiscal 2025 was primarily driven by revenue from new restaurants, offset by a decrease in same-restaurant guest counts.

Current wording

Olive Garden’s sales increase for the first quarter of fiscal 2026 was primarily driven by same-restaurant sales increases, as well as revenue from new restaurants, partially offset by the sale of eight Olive Garden Canada locations. The increase in U.S. same-restaurant sales for the first quarter of fiscal 2026 resulted from a 2.8 percent increase in same-restaurant guest counts, combined with a 3.1 percent increase in average check, which includes a 0.8 increase in off premise catering sales.

Previous wording

LongHorn Steakhouse’s sales increase for the third quarter and nine months of fiscal 2025 was primarily driven by same-restaurant sales increases combined with revenue from new restaurants. The increase in same-restaurant sales for the third quarter of fiscal 2025 resulted from a 3.3 percent increase in average check, partially offset by a 0.7 percent decrease in same-restaurant guest counts. The increase in same restaurant sales for the nine months of fiscal 2025 resulted from a 3.1 percent increase in average check combined with a 1.4 percent increase in same-restaurant guest counts.

Current wording

LongHorn Steakhouse’s sales increase for the first quarter of fiscal 2026 was primarily driven by same-restaurant sales increases combined with revenue from new restaurants. The increase in same-restaurant sales for the first quarter of fiscal 2026 resulted from a 2.3 percent increase in average check combined with a 3.2 percent increase in same-restaurant guest counts.

Previous wording

Fine Dining’s sales increase for the third quarter and nine months of fiscal 2025 was primarily driven by an increase in average check combined with revenue from new restaurants. The decrease in same-restaurant sales for the third quarter of fiscal 2025 resulted from a 4.0 percent decrease in same-restaurant guest counts, offset by a 3.4 percent increase in average check. The decrease in same restaurant sales for the nine months of fiscal 2025 resulted from a 6.1 percent decrease in same-restaurant guest counts, partially offset by a 2.8 percent increase in average check.

Current wording

Fine Dining’s sales increase for the first quarter of fiscal 2026 was primarily driven by an increase in average check combined with revenue from new restaurants. The decrease in same-restaurant sales for the first quarter of fiscal 2026 resulted from a 1.0 percent decrease in same-restaurant guest counts, offset by a 0.8 percent increase in average check.

Previous wording

Other Business’ sales increase for the third quarter and nine months of fiscal 2025 was primarily driven by the addition of Chuy’s operating results and revenue from new restaurants. The decrease in same-restaurant sales for the third quarter of fiscal 2025 resulted from a 3.4 percent decrease in same-restaurant guest counts, partially offset by a 3.1 percent increase in average check. The decrease in same restaurant sales for the nine months of fiscal 2025 resulted from a 3.0 percent decrease in same-restaurant guest counts, partially offset by a 2.6 percent increase in average check.

Current wording

Other Business’ sales increase for the first quarter of fiscal 2026 was primarily driven by the addition of Chuy’s operating results and revenue from new restaurants. The increase in same-restaurant sales for the first quarter of fiscal 2026 resulted from a 0.9 percent increase in same-restaurant guest counts, combined with a 2.4 percent increase in average check.

Previous wording

The following table sets forth selected operating data as a percent of sales for the periods indicated. All information is derived from the unaudited consolidated statements of earnings for the quarters and nine months ended February 23, 2025 and February 25, 2024.

Current wording

The following table sets forth selected operating data as a percent of sales for the periods indicated. All information is derived from the unaudited consolidated statements of earnings for the quarters ended August 24, 2025 and August 25, 2024.

Previous wording

•Food and beverage costs decreased as a percent of sales primarily due to a 0.9% impact from pricing leverage and a 0.2% impact from cost savings, partially offset by a 0.5% impact from menu mix and other.

Current wording

•Food and beverage costs decreased as a percent of sales primarily due to a 0.7% impact from pricing leverage, partially offset by a 0.5% impact from inflation.

Previous wording

•Restaurant expenses increased as a percent of sales primarily due to a 0.4% impact from inflation and a 0.3% impact from brand mix, partially offset by a 0.5% impact from pricing.

Current wording

•Restaurant labor costs increased as a percent of sales primarily due to a 1.0% impact from inflation and a 0.3% impact from higher performance-based compensation expense including a higher 401k match for our restaurant teams, partially offset by a 0.7% impact from pricing leverage, a 0.2% impact from productivity and a 0.2% impact from brand mix.

Previous wording

•Restaurant expenses increased as a percent of sales primarily due to a 0.4% impact from inflation, a 0.3% impact from brand mix and other, partially offset by a 0.5% impact from pricing leverage.

Current wording

•Restaurant expenses increased as a percent of sales primarily due to a 0.5% impact from inflation, a 0.3% impact from Uber direct fees and a 0.3% impact from brand mix, partially offset by a 0.7% impact from sales leverage and a 0.2% impact from other.

Previous wording

•General and administrative expenses increased as a percent of sales primarily due to a 0.3% impact from Chuy’s transaction and integration costs, a 0.1% impact from inflation and a 0.1% impact from brand mix, partially offset by 0.2% Ruth’s Chris transaction and integration costs during the third quarter of 2024, a 0.1% impact from mark to market adjustments and a 0.1% impact from pricing leverage.

Current wording

•General and administrative expenses decreased as a percent of sales primarily due to a 0.5% impact from sales leverage including synergies realized from the Chuy’s transaction, partially offset by a 0.2% impact from Chuy’s transaction and integration costs, a 0.1% impact from mark to market adjustments and a 0.1% impact from inflation.

Previous wording

•Depreciation and amortization expenses increased as a percent of sales primarily due to the acquisition of Chuy’s as well as incremental depreciation on new restaurants and other capital investments.

Current wording

•Depreciation and amortization expenses remained flat as a percent of sales.

Previous wording

Net interest expense increased as a percent of sales for the third quarter and the first nine months of fiscal 2025 primarily due to financing related to the Chuy’s acquisition. See Liquidity and Capital Resources for a description of our senior notes issuance to finance the Chuy’s acquisition.

Current wording

Net interest expense increased as a percent of sales for the first three months of fiscal 2026 primarily due to financing related to the Chuy’s acquisition. See Liquidity and Capital Resources for a description of our senior notes issuance to finance the Chuy’s acquisition.

Previous wording

The effective income tax rate for continuing operations for the quarter ended February 23, 2025 was 13.1 percent compared to an effective income tax rate for the quarter ended February 25, 2024 of 10.7 percent. The effective income tax rate for continuing operations for the nine ended February 23, 2025 was 12.2 percent compared to an effective income tax rate for the nine months ended February 25, 2024 of 11.6 percent. The increase in the tax rate is primarily driven by higher net earnings from continuing operations as well as nondeductible transaction costs related to Chuy’s.

Current wording

The effective income tax rate for continuing operations for the three months ended August 24, 2025 was 12.2 percent compared to an effective income tax rate for the three months ended August 25, 2024 of 10.6 percent. The increase in the tax rate is primarily driven by higher net earnings from continuing operations, offset by the mark to market impacts on hedges related to our deferred compensation programs.

Previous wording

On an after-tax basis, losses from discontinued operations for the third quarter and first nine months of fiscal 2025 were $0.3 million ($0.00 per diluted share) and $1.2 million ($0.01 per diluted share) compared with losses from discontinued operations for the third quarter and first nine months of fiscal 2024 of $0.5 million ($0.00 per diluted share) and $1.0 million ($0.00 per diluted share).

Current wording

On an after-tax basis, losses from discontinued operations for the first three months of fiscal 2026 were $0.1 million ($0.00 per diluted share) compared with losses from discontinued operations for the first three months of fiscal 2025 of $0.4 million ($0.00 per diluted share).

Previous wording

We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, Ruth’s Chris, The Capital Grille, Chuy’s, Seasons 52, Bahama Breeze, Eddie V’s and The Capital Burger in North America as operating segments. We aggregate our operating segments into reportable segments based on a combination of the size, economic characteristics and sub-segment of full-service dining within which each brand operates. Our four reportable segments are: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining and (4) Other Business (see Note 7 to our unaudited consolidated financial statements in Part I, Item 1 of Form 10-Q).

Current wording

We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Chuy’s, Yard House, Ruth’s Chris, The Capital Grille, Seasons 52, Eddie V’s, Bahama Breeze and The Capital Burger in North America as operating segments. We aggregate our operating segments into reportable segments based on a combination of the size, economic characteristics and sub-segment of full-service dining within which each brand operates. Our four reportable segments are: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining and (4) Other Business (see Note 7 to our unaudited consolidated financial statements in Part I, Item 1 of Form 10-Q).

Previous wording

The increases in Olive Garden’s segment profit margin for the third quarter and first nine months of fiscal 2025 was driven primarily by lower food and beverage and restaurant labor costs, partially offset by increased restaurant expenses and marketing costs. The increases in Longhorn Steakhouse’s segment profit margin for the third quarter and first nine months of fiscal 2025 was driven primarily by positive same-restaurant sales and lower food and beverage costs. The increase in Fine Dining’s segment profit margin for the third quarter of fiscal 2025 was driven primarily by lower food and beverage costs, partially offset by negative same-restaurant sales, higher restaurant labor costs and restaurant expenses. The decrease in Fine Dining’s segment profit margin for the first nine months of fiscal 2025 was driven primarily by negative same-restaurant sales and higher restaurant labor and restaurant expenses, partially offset by lower food and beverage costs. The increases in Other Business’ segment profit margin for the third quarter and first nine months of fiscal 2025 was driven primarily by the addition of Chuy’s operating results and lower food and beverage and restaurant labor costs, partially offset by negative same-restaurant sales and higher marketing costs.

Current wording

The decrease in Olive Garden’s segment profit margin for the first quarter of fiscal 2026 was driven primarily by increased restaurant labor costs and restaurant expenses, partially offset by decreased food and beverage costs. The decrease in Longhorn Steakhouse’s segment profit margin for the first quarter of fiscal 2026 was driven primarily by increased restaurant labor and food and beverage costs, primarily due to pricing approximately 100 bps below inflation, partially offset by decreased restaurant expenses and marketing costs. The decrease in Fine Dining’s segment profit margin for the first quarter of fiscal 2026 was driven primarily by increased restaurant labor costs and negative same-restaurant sales, partially offset by lower restaurant expenses and food and beverage costs. The increase in Other Business’ segment profit margin for the first quarter of fiscal 2026 was driven primarily by the addition of Chuy’s operating results and lower food and beverage and restaurant labor costs, partially offset by higher restaurant expenses and marketing costs.

Previous wording

Our sales volumes fluctuate seasonally. Typically, our average sales per restaurant are highest in the winter and spring, followed by the summer, and lowest in the fall. Holidays, changes in the economy, severe weather, effects of other conditions may impact sales volumes seasonally in some operating regions. Because of the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.

Current wording

Our sales volumes have historically fluctuated seasonally. Our average sales per restaurant are highest in the winter and spring, followed by the fall and summer. Holidays, changes in the economy, severe weather, and the effects of other conditions may impact sales volumes seasonally in some operating regions. Because of the historical seasonality of our business and these other factors, results for any fiscal quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.

Previous wording

On October 23, 2023, we entered into a $1.25 billion Revolving Credit Agreement (as amended, Revolving Credit Agreement) with Bank of America, N.A. (BOA), as administrative agent, and the lenders and other agents party thereto. The Revolving Credit Agreement is a senior unsecured credit commitment to the Company and contains customary representations and affirmative and negative covenants (including limitations on liens and subsidiary debt and, prior to the Amendment (as defined below), a maximum consolidated lease adjusted total debt to total capitalization ratio of 0.75 to 1.00) and events of default usual for credit facilities of this type. As of February 23, 2025, we had no outstanding balances and were in compliance with all covenants under the Revolving Credit Agreement. As of February 23, 2025, $58.2 million of commercial paper was outstanding in addition to $0.2 million of letters of credit outstanding, which were both backed by this facility. After consideration of commercial paper and letters of credit backed by the Revolving Credit Agreement, as of February 23, 2025, we had $1.19 billion of credit available under the Revolving Credit Agreement.

Current wording

On October 23, 2023, we entered into a $1.25 billion Revolving Credit Agreement (as amended, Revolving Credit Agreement) with Bank of America, N.A. (BOA), as administrative agent, and the lenders and other agents party thereto. The Revolving Credit Agreement is a senior unsecured credit commitment to the Company and contains customary representations and affirmative and negative covenants (including limitations on liens and subsidiary debt and, prior to the Amendment (as defined below), a maximum consolidated lease adjusted total debt to total capitalization ratio of 0.75 to 1.00) and events of default usual for credit facilities of this type. As of August 24, 2025, we had no outstanding balances and were in compliance with all covenants under the Revolving Credit Agreement. As of August 24, 2025, $142.0 million of commercial paper and $0.2 million of letters of credit were outstanding, and were both backed by this facility. After consideration of commercial paper and letters of credit backed by the Revolving Credit Agreement, as of August 24, 2025, we had $1.10 billion of credit available under the Revolving Credit Agreement.

Previous wording

Net cash flows provided by operating activities from continuing operations increased to $1.25 billion for the first nine months of fiscal 2025, from $1.20 billion for the nine months of fiscal 2024. Net cash flows provided by operating activities include net earnings from continuing operations of $747.0 million and $720.5 million in the first nine months of fiscal 2025 and 2024, respectively. Net cash flows provided by operating activities increased in fiscal 2025 primarily due to higher net earnings in fiscal 2025 and the timing of federal income tax payments.

Current wording

Net cash flows provided by operating activities from continuing operations increased to $342.5 million for the first three months of fiscal 2026, from $273.2 million for the first three months of fiscal 2025. Net cash flows provided by operating activities include net earnings from continuing operations of $257.9 million and $207.6 million in the first three months of fiscal 2026 and 2025, respectively. Net cash flows provided by operating activities increased in fiscal 2026 primarily due to higher net earnings in fiscal 2026 and the timing of federal income tax payments.

Previous wording

$613.7 million during fiscal 2025. Net cash used in the acquisition of Ruth’s Chris was $699.9 million during the first nine months of fiscal 2024. Capital expenditures increased to $472.6 million for the first nine months of fiscal 2025 from $460.8 million for the first nine months of fiscal 2024 reflecting a slight increase in new restaurant construction and remodel spend during fiscal 2025.

Current wording

Net cash flows used in investing activities from continuing operations were $159.3 million for the first three months of fiscal 2026, compared to $149.7 million for the first three months of fiscal 2025. Capital expenditures increased to $174.1 million for the first three months of fiscal 2026 from $145.2 million for the first three months of fiscal 2025, reflecting an increase in new restaurant construction and remodel spend during fiscal 2026. Additionally, the first three months of fiscal 2026 include a portion of the proceeds from the sale of eight Olive Garden Canada locations.

Previous wording

Net cash flows used in financing activities from continuing operations were $123.9 million for the first nine months of fiscal 2025, compared to net cash used in financing activities of $158.5 million for the first nine months of fiscal 2024. Net cash flows used in financing activities for the first nine months of fiscal 2025 included repayment of commercial paper of $28.6 million, net proceeds from the issuance of long-term debt of $750.0 million, dividends paid of $494.6 million and share repurchases of $367.2 million. Net cash flows used in financing activities for the first nine months of fiscal 2024 included net proceeds from issuance of short-term debt of $158.7 million, net proceeds from the 2033 Notes of $500.0 million, dividends paid of $472.1 million and share repurchases of $356.6 million. Dividends declared by our Board of Directors totaled $4.20 and $3.93 per share for the first nine months of fiscal 2025 and 2024, respectively.

Current wording

Net cash flows used in financing activities from continuing operations were $212.2 million for the first three months of fiscal 2026, compared to net cash used in financing activities of $126.7 million for the first three months of fiscal 2025. Net cash flows used in financing activities for the first three months of fiscal 2026 included borrowings of commercial paper of $142.0 million, net, dividends paid of $175.1 million and share repurchases of $182.7 million. Net cash flows used in financing activities for the first three months of fiscal 2025 included dividends paid of $166.0 million and share repurchases of $172.4 million. Dividends declared by our Board of Directors totaled $1.50 and $1.40 per share for the first three months of fiscal 2026 and 2025, respectively.

Previous wording

On March 20, 2024, our Board of Directors authorized a new share repurchase program under which we may repurchase up to $1 billion of our outstanding common stock. This repurchase program does not have an expiration and replaced the prior share repurchase authorization. During the quarter and nine months ended February 23, 2025, we repurchased 0.3 million and 2.4 million shares of our common stock, respectively, compared to 0.2 million and 2.3 million shares of our common stock, respectively, during the quarter and nine months ended February 25, 2024.

Current wording

On June 18, 2025, our Board of Directors authorized a new share repurchase program under which we may repurchase up to $1 billion of our outstanding common stock. This repurchase program does not have an expiration and replaced the prior share repurchase authorization. During the three months ended August 24, 2025, we repurchased 0.9 million shares of our common stock compared to 1.2 million shares of our common stock during the three months ended August 25, 2024.

Previous wording

Our current assets totaled $880.6 million as of February 23, 2025, compared to $822.8 million as of May 26, 2024. The increase was primarily due to an increase in inventories, cash and cash equivalents and prepaid income tax, partially offset by a decrease in receivables, net.

Current wording

Our current assets totaled $932.8 million as of August 24, 2025, compared to $937.7 million as of May 25, 2025. The decrease was primarily due to a decrease in cash and cash equivalents partially offset by an increase in prepaid income tax.

Previous wording

Our current liabilities totaled $2.28 billion as of February 23, 2025, compared to $2.19 billion as of May 26, 2024. The increase was primarily driven by an increase in unearned revenues associated with gift card sales in excess of gift card redemptions and other current liabilities.

Current wording

Our current liabilities totaled $2.35 billion as of August 24, 2025, compared to $2.25 billion as of May 25, 2025. The increase was primarily driven by an increase in short term debt partially offset by unearned revenues associated with gift card redemptions in excess of gift card activations.

Previous wording

•Economic and business factors and their impacts on the restaurant industry and general macroeconomic factors including unemployment, energy prices, tariffs and interest rates;

Current wording

•Certain economic and business factors and their impacts on the restaurant industry and general macroeconomic factors including unemployment, energy prices, tariffs and interest rates;

Previous wording

•Failures to maintain food safety throughout the supply chain and food-borne illness concerns;

Current wording

•Failure to maintain food safety throughout the supply chain and food-borne illness concerns;

Previous wording

•A failure to successfully complete our integration of Chuy’s Holdings operations into our business;

Current wording

•A failure to successfully complete our integration of Chuy’s operations into our business;

Previous wording

•Insufficient or ineffective response to legislation or government regulation may impact our cost structure, operational efficiencies and talent availability;

Current wording

•Insufficient or ineffective response to legislation or government regulation may adversely impact our cost structure, operational efficiencies and talent availability;

Previous wording

•Intense competition, or an insufficient focus on competition and the consumer landscape;

Current wording

•Intense competition, or an insufficient strategy or focus, on competition and the consumer landscape;

Previous wording

•A failure to identify and execute innovative marketing and guest relationship tactics and ineffective or improper use of other marketing initiatives and increased advertising and marketing costs;

Current wording

•A failure to identify and execute innovative marketing and guest relationship tactics, ineffective or improper use of other marketing initiatives and increased advertising and marketing costs;

Previous wording

•Our inability or failure to execute a comprehensive business continuity plan following a major natural disaster such as a hurricane or manmade disaster, including terrorism;

Current wording

•Our inability or failure to execute a comprehensive business continuity plan following a major natural disaster, such as a hurricane or manmade disaster;

Previous wording

•Volatility in the market value of derivatives we may use to hedge commodity and broader market prices;

Current wording

•Volatility in the market value of derivatives we may use to hedge exposures to fluctuations in commodity and broader market prices;