Darden Restaurants

Darden Restaurants' new headquarters, stock price are on the rise
Construction crews are making progress on Darden Restaurants' new $100 million headquarters in south Orange County. As of Tuesday, the steel frame has been completed, and the concrete flooring is nearly finished. (STEPHEN M. DOWELL, ORLANDO SENTINEL / June 3, 2008)
Mark Chediak Sentinel Staff Writer
June 4, 2008
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Darden Restaurants' new corporate headquarters has started to rise on 57 acres south of Orlando -- and so has the casual-dining company's stock since hitting a low late last year.NEW HOME GOING UPWHAT: A $100 million building started in October. Steel frame completed. Concrete flooring nearly finished. Parking deck and facade under way.WHY: Execs at Darden Restaurants, Orlando's only Fortune 500 company, are eager to move from its sprawling 11-building campus off Lake Ellenor Drive since striking a deal in early 2006 to relocate in Orange County. (The company was promised about $12.9 million in state and county money to stay in the Orlando area.)

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WHERE: Corner of John Young Parkway and the BeachLine Expressway.LOOKING AHEAD: Headquarters should be ready by fall 2009 and will feature state-of-the art test kitchens, on-site dining facility and fitness center, built-in wireless Internet access and large, open work spaces. It will house all Darden's executive and support staff -- more than 1,100 people -- in one space for the first time.STOCK GOING UPWHAT: Price has resurged since a plunge in December, after the company announced disappointing earnings. Shares of the company closed at $33.56 on Tuesday, up about 26 percent from the start of the year.WHY: Analysts credit Darden with doing a good job of managing costs despite rising food prices and increasing labor expenses. Restaurant sales have been holding up better than competitors. Olive Garden keeps filling its tables, as cash-strapped customers love endless, salad, breadsticks and soup. Last year's purchase of LongHorn Steakhouse and Capital Grille also seen as a plus.LOOKING AHEAD: Darden will release results of its fiscal fourth quarter and fiscal year 2008 at the end of the month. Many analysts expect the company to meet sales and earnings goals. One analyst at JPMorgan says sales at Olive Garden should be up (about 2 percent), with sales flat at Red Lobster and sales dipping (down 3 percent) at LongHorn. Economic downturn will make it a challenging summer for all restaurant companies.