Earnings CallFiscal 2016 Q2December 18, 2016

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Disclaimer

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 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, technology failures including a failure to maintain a secure

cyber network, failure to execute a business continuity plan following a disaster, health concerns including 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.

IMPORTANT NOTICE

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Non GAAP Information

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.

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Today’s Topics

Second Quarter Highlights

Financial Update

Framework for Long-Term Value Creation

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$0.71

$0.54

$0.32 $0.28

$0.99$1.08

$0.68

$0.54

FY14 FY15 FY14 FY15 FY15 FY16 FY15 FY16

Darden Adjusted EPS2

Q3 Q41 Q1 Q21

$1.62 $1.65 $1.60 $1.56$1.73

$1.88$1.69 $1.61

FY14 FY15 FY14 FY15 FY15 FY16 FY15 FY16

Darden Sales ($bn)

Q3 Q41 Q1 Q21

Financial Highlights

1 FY15 Q4 includes the impact of the additional week due to a 53 week fiscal year. FY16 Q2 includes the negative impact of the Thanksgiving holiday shift,

which occurred in Q3 of FY15.2 EPS values adjusted for special items. A reconciliation of GAAP to non-GAAP numbers can be found in the additional information section of this

presentation.

3.6%3.8%

3.4%

2.9%

Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16

Same-Restaurant Sales Growth - Comparable Calendar Basis

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Olive Garden: Momentum continued…

2.8%Calendar

Same-Restaurant Sales

+300bpsSame-Restaurant Sales1

Industry Outperformance

5th

Consecutive Qtr. of Same-

Restaurant Sales Growth

0.9%Calendar Same-

Restaurant Guest Count

100%Restaurants w/

Table-Top Tablets

32%OG To Go

2-Year Growth

Same-Restaurant Sales1

OG To Go Sales

Q2 Highlights

0.5%

2.2%

3.4%

2.5%2.8%

FY15 Q2 FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2

1 FY16 Same-Restaurant Sales on a comparable calendar basis

14% 15%22% 23%

18% 17%

Q1 Q2 Q3 Q4

FY15 FY16

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Longhorn: Strong topline momentum…

3.6%Calendar

Same-Restaurant Sales 5.4% 5.2%4.8%

3.6%

FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2

Same-Restaurant Sales1

Q2 Highlights

+400bpsSame-Restaurant Sales1

Industry Outperformance

11th

Consecutive Qtr. of Same-

Restaurant Sales Growth

1.5%Calendar Same-

Restaurant Guest Count

17Menu Items Removed to

Simplify Operations

2Guest-Driving Promotions

1 FY16 Same-Restaurant Sales on a comparable calendar basis

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Same-Restaurant Sales1

Specialty Restaurants: Same-restaurant sales growth at all five brands…

5.8%

3.8%

2.4%

0.9%

3.2%

1 FY16 Same-Restaurant Sales on a comparable calendar basis

5.4%3.2% 3.6%

2.4%

FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2

6.1%4.4%

6.4%

0.9%

FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2

5.2%

3.1% 3.8% 3.8%

FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2

9.6%

5.2% 3.9% 3.2%

FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2

3.2%1.7%

2.5%

5.8%

FY15 Q3 FY15 Q4 FY16 Q1 FY16 Q2

Financial Update

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Fiscal 2016 Q2 Adjusted Earnings Growth Drivers

Fiscal 2016 Q2 Adjusted Earnings Growth Drivers1

Fiscal 2015 Q2 Adjusted Diluted Net EPS from Continuing Operations $0.28

Operating Performance Improvement Growth 0.27

Net Legal Settlements (G&A) 0.05

Restaurant Impairments (0.04)

Net Incremental Impact from Real Estate Transactions (0.02)

Fiscal 2016 Q2 Adjusted Diluted Net EPS from Continuing Operations $0.54

Fiscal 2016 Q2 Adjusted Diluted EPS vs. Fiscal 2015 Q2 Adjusted Diluted EPS $0.26

Growth % 92.9%

Net Incremental Impact for Real Estate Transactions

Estimated

Three Months Ended

Twelve Months Ended

($ millions, except per share) 11/29/2015 5/29/2016

GAAP Rent and Other Taxes $10 $75 to $78

Depreciation & Amortization (5) (36)

Reduction in Interest Expense 0 (24)

Net Incremental Expense $5 $15 to $18

Net Incremental Reduction to EPS $0.02 ~$0.08

1 EPS values adjusted for special items. A reconciliation of GAAP to non-GAAP numbers can be found in the additional information section of this presentation.

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Fiscal 2016 Second Quarter Margins

As ReportedContinuing

Operations

As Adjusted

Q2 2016 Q2 2016 vs. Q2 2015 (Bps)Favorable/(Unfavorable)

Food & Beverage 30.0% 30.0% 110

Restaurant Labor 32.6% 32.6% (10)

Restaurant Expenses 17.3% 17.3% 60

Marketing 3.6% 3.6% 40

Restaurant-Level EBITDA 16.6% 16.6% 200

G&A 6.2% 4.4% 110

Depreciation & Amortization 4.7% 4.7% 40

Impairments 0.5% 0.5% (50)

EBIT 5.1% 7.0% 300

Interest Expense 3.6% 1.3% 20

EBT 1.5% 5.7% 320

Income Tax ExpenseNote: Effective Tax Rate

(0.4)%(23.0)%

1.3%22.9%

(110)

EAT 1.9% 4.4% 210

Note Continuing operations, values may not tie due to rounding

111 Segment profit calculated as sales less costs of food & beverage, restaurant labor, restaurant expenses and marketing expenses.

All of our segments had positive sales growth…

…coupled with significant Segment Profit1 growth ($mm)

$140.5 $157.1

FY15 Q2 FY16 Q2

$42.8 $54.8

FY15 Q2 FY16 Q2

$21.1 $22.4

FY15 Q2 FY16 Q2

15.9% 17.6% 12.4% 15.0% 17.5% 18.2%

$23.0 $32.3

FY15 Q2 FY16 Q2

10.9% 14.2%

Sales and profit increases in all segments…

$882 $892

FY15 Q2 FY16 Q2

$346 $365

FY15 Q2 FY16 Q2

$120 $123

FY15 Q2 FY16 Q2

$211 $228

FY15 Q2 FY16 Q2

Segment Profit

Margin %

Fine Dining Other

Fine Dining Other

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Real Estate Transaction Summary

Number of Properties Net Proceeds to Date

Transactions Status Completed Remaining ($ millions)

Four Corners Property Trust, Inc. - REIT Completed 424 0 $315

Restaurant Sale Leasebacks In Process 62 2 $199

Restaurant Support Center Sale Leaseback Completed 1 0 $117

Total 487 2 $631

Net Incremental Impact for Real Estate Transactions

Estimated

($ millions, except per share) Annualized Impact

GAAP Rent and Other Taxes $130 to $135

Depreciation & Amortization (60)

Reduction in Interest Expense (50)

Net Incremental Expense $20 to $25

Net Incremental Reduction to EPS $0.10 to $0.12

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Dividend & Share Repurchase

New Share Repurchase Program

Updated Dividend

• $500 million authorization

• No expiration date

• Replaces all other outstanding share repurchase authorizations

• Represents approximately 6.7% of the Company’s outstanding shares1

DRI Annualized DPS - Pre Spin ($0.55 per quarter) $2.20

Minimum DRI Updated Annualized DPS - Post Spin ($0.4375 per quarter) $1.75

FCPT Estimated Annualized DPS ($1.35, adjusted for 1:3 spin ratio) $0.45

Aggregate DRI and FCPT annualized DPS - Post Spin $2.20

Actual Q2 DRI Annualized DPS - Announced 12/18/15 ($0.50 per quarter) $2.00

Minimum DRI Updated Annualized DPS - Post Spin ($0.4375 per quarter) $1.75

Growth 14.3%

1 As of the last trading day of the second quarter fiscal 2016.

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Restaurant Openings New Restaurant Openings 18 to 22

Same-Restaurant

Sales

Total +2.5% to +3.0%

Olive Garden +1.5% to +2.5%

LongHorn Steakhouse +3.0% to +4.0%

Specialty Restaurants Approximately 3%

Tax Rate Annual Effective Rate 23% to 25%

Capital Expenditures

($M)

Total $230 - $255

New Restaurants $85

Refresh/Maintenance/Other $145 - $170

Adjusted Earnings

per Diluted Share1

Total $3.25 to $3.35

Growth2 27% to 31%

1 Excludes real estate implementation and debt retirement costs.2 Assumes a 52 week fiscal year for 2015. Non-GAAP number. A reconciliation of GAAP to non-GAAP numbers can be found in the additional information section of

this presentation.

FY2016 Annual Outlook

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$35

$80 - $90

$30 - $40 $145- $165

FY 2015 FY 2016 FY 2017 Cumulative

Annual Cost Reduction Outlook

Estimated cost reduction ($millions)

Restaurant expenses & labor costs

COGS

SG&A expenses

Comprehensive cost reductions underway without impacting the guest experience

We have identified $145 - $165 million annualized cost reduction

opportunities to be achieved by FY17

Previous Outlook

$35 $100 - $110$15 - $20$50 - $55

Long-Term Value Creation Framework

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Strategy for Long-Term Performance

1Driving Philosophy

Culinary

Innovation

& Execution

Attentive

Service

Engaging

Atmosphere

Integrated

Marketing

Back-To-Basics Operating Philosophy

4Competitive

Advantages

Significant

Scale

Extensive

Data & Insights

Rigorous

Strategic Planning

Results-

Oriented Culture

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Long-Term Value Creation Framework

Annual Target, Over Time

Business

Performance

(EAT Growth)

Same-Restaurant Sales 1% - 3%

New Restaurant Growth 2% - 3% 7% - 10%

EBIT Margin Expansion 10 - 40bps

Return of

Cash

Dividend Payout Ratio 50% - 60%3% - 5%

Share Repurchase ($millions) $100 - $200

Total Shareholder Return (EPS Growth + Dividend Yield) 10% - 15%

Note: Growth in the individual components will vary year-to-year.

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Thank you to our 150,000 Team Members!

Additional Information

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Reported to Adjusted Earnings Reconciliations

Note: For Fiscal 2015, the sum of the quarterly Diluted EPS amounts do not total the annual EPS amounts due to the impact of the Accelerated Share Repurchase program on the weighted average share count. Values may not tie due to rounding.

Fiscal 2015

Q1 Q2 Q3 Q4* Annual*

Reported Diluted Net EPS from Continuing Operations ($0.14) ($0.24) $1.01 $0.92 $1.51

Debt Retirement Costs 0.37 0.05 0.00 0.00 0.42

Strategic Action Plan and Other Costs 0.09 0.47 (0.02) 0.16 0.70

Adjusted Diluted Net EPS from Continuing Operations $0.32 $0.28 $0.99 $1.08 $2.63

* Reflects the additional operating week vs Fiscal 2014

Fiscal 2014

Q1 Q2 Q3 Q4 Annual

Reported Diluted Net EPS from Continuing Operations $0.32 $0.05 $0.65 $0.36 $1.38

Red Lobster-Related Shared Support Costs 0.04 0.04 0.04 0.04 $0.15

Other Strategic Action Plan Costs 0.03 0.01 0.09 $0.13

Asset Impairments and Other Costs 0.00 0.01 0.04 $0.05

Adjusted Diluted Net EPS from Continuing Operations $0.36 $0.12 $0.71 $0.54 $1.71

Fiscal 2016

Q1 Q2

Reported Diluted Net EPS from Continuing Operations $0.63 $0.23

Real Estate Plan Implementation 0.05 0.16

Debt Retirement Costs 0.17

Strategic Action Plan and Other Costs (0.02)

Adjusted Diluted Net EPS from Continuing Operations $0.68 $0.54

Fiscal 2016 Adj. Diluted EPS vs. Fiscal 2015 Adj. Diluted EPS $0.36 $0.26

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Product Breakdown and Contract Coverage For Fiscal 2016

¹ Includes cheese, cream, butter, and shortening

² Includes breadsticks and pasta

Commodities Outlook

Dec-May

FY2016

Spend by

Category Coverage Outlook

Beef 19% 55% Low Single Digit Inflation

Produce 13% 80% Low Single Digit Inflation

Dairy / Oil1 12% 65% Low Single Digit Inflation

Seafood 11% 95% Low Single Digit Deflation

Wheat2 7% 95% Low Single Digit Inflation

Chicken 6% 45% Low Single Digit Deflation

Non-Perishable / Other 32% 40% Low Single Digit Inflation

Weighted Average

Coverage100% 60%

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Updated FY2016 Annual Earnings Growth Outlook

Update

1 Represents non-GAAP measure. A reconciliation of GAAP to non-GAAP numbers can be found in the additional information section of this presentation.2 Estimated

Per Share % Growth

Fiscal 2015 Adjusted Diluted Net EPS from Continuing Operations1 $2.63

Remove 53rd Week Impact in Fiscal 2015 (In Q4) (0.07)

Fiscal 2015 52 Week Adjusted Diluted Net EPS from Continuing Operations1 $2.56

Growth from Fiscal 2015 (52 Week Year) to Fiscal 20162

Operating Performance $0.73 – 0.83 28 – 32%

Net Incremental Real Estate Expenses (0.08) (3)%

Reduced Interest Expense related to FY15 Debt Retirement (FY16 Q1) 0.04 2%

Total Growth From Fiscal 2015 (52 Week Year) to Fiscal 2016 $0.69 - $0.79 27% - 31%

Fiscal 2016 Adjusted Diluted Net EPS from Continuing Operations Outlook $3.25 - $3.35

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Calendar Comparable Basis - Defined

1 Represents non-GAAP measure. A reconciliation of GAAP to non-GAAP numbers can be found in the additional information section of this presentation.2 Estimated

Q1 Comparable CalendarJune 1, 2015 – August 30, 2015

vs.

June 2, 2014 – August 31, 2014

Q2 Comparable CalendarAugust 31, 2015 - November 29, 2015

vs.

September 1, 2014 - November 30, 2014