940944--7/28/2006--DARDEN_RESTAURANTS_INC

related topics
{cost, regulation, environmental}
{financial, litigation, operation}
{cost, operation, labor}
{acquisition, growth, future}
{condition, economic, financial}
{competitive, industry, competition}
{tax, income, asset}
{capital, credit, financial}
We face intense competition, and if we are unable to continue to compete effectively, our business, financial condition and results of operations would be adversely affected. Certain economic and business factors specific to the restaurant industry and certain general economic factors that are largely out of our control may adversely affect our results of operations. The price and availability of food, ingredients and utilities used by our restaurants could adversely affect our revenues and results of operations. We may be subject to increased labor and insurance costs. Increased advertising and marketing costs could adversely affect our results of operations. We may experience higher-than-anticipated costs associated with the opening of new restaurants or with the closing, relocating and remodeling of existing restaurants, which may adversely affect our results of operations. Litigation may adversely affect our business, financial condition and results of operations. Unfavorable publicity could harm our business. A lack of availability of suitable locations for new restaurants or a decline in the quality of the locations of our current restaurants may adversely affect our revenues and results of operations. We are subject to a number of risks relating to federal, state and local regulation of our business that may increase our costs and decrease our profit margins. Our growth through the opening of new restaurants and the development or acquisition of new dining concepts may not be successful and could result in poor financial performance. Our plans to improve financial performance at Bahama Breeze and Smokey Bones and reposition the Smokey Bones brand may not be successful, which could require us to make substantial further investments in those concepts and result in further losses and impairments.

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