Darden Restaurant Financial Statements and Financial Ratios Analyzed from 2015 to 2019

Expert Darden Restaurant Financial Report & Analysis

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Hey All,

Thanks for visiting my Darden Restaurant Financial Report page. On this page, you will be able to find preliminary information about Darden Restaurant's current financial performance as well as some historical track records and trends. 

For a more detailed examination of Darden Restaurant's financial performance, please check out the "Financial Report".  In this report, written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, you will find:

  • Summarized income statement for the last 5 years.
  • Summarized balance sheet for the last 5 years.
  • Summary analysis by myself of important income statement, balance sheet, and financial ratio trends and other happenings.
  • Five year’s worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
  • Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
  • Professional financial analysis tips provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is were I use plain English to explain concepts.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul Borosky, MBA.

Darden Restaurants Financial Report and Analysis by Paul Borosky, MBA.
  • Company Report comes with a 7-day Limited 100% MONEY BACK GUARANTEE.
  • Free Bonus Downloads: Darden Restaurant's Annual Statements for the Last Five Years (10k reports)!

Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Darden Restaurant: Brief Summary

Dardent Restaurant's home headquarters is located in Orlando, FL. The company competes in the Restaurant industry.  Specifically, in the consumer cyclical sector. 

At present, Darden employs about 185,000 employees in several countries.  The CEO is Eugene Lee.

From a financial perspective, Darden's stock price has ranged between 26.15 to 128.41 in the last 52 weeks.  Their market cap is about $7.7 billion. The beta for the company is 1.06.  This indicates that the firm's riskiness is about on par with the overall market. On a quarterly basis, the company pays out in dividends about .88 a share.

Darden Restaurant Financial Report Sources

“Darden Restaurant Inc. 2019 Company Analysis… For Beginners: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA. and owner of Quality Business Plan.  In this report, the author selected Darden's 2019 10k, 2017 10k annual report, 2016 10k annual report, Darden's 2015 10k annual report, and Darden's 2014 10k annual report as the basis for information gathering.  Once all Darden's 10k annual statements were collected, the author then inserted Darden's s income statement information and Darden's balance sheet information into a customized financial template. 

Darden Restaurant’s Income Statement – Summary Analysis

In this section, I walk through a broad definition as to what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail.  After each line item is defined and discussed, I finally offer a summary analysis of Darden Restaurant's important income statement line item trends from 2015 to 2019, in most cases.

Revenue Growth:  Darden’s growth rate for 2017 and 2016 was 3.4% and 2.5% prospectively.  In 2018, the growth rate jumped up to 12.7%.  Finally, in 2019, the growth rate moderated at 5.3%.  If the company can maintain a 6% growth rate, which is the last five years average, then this will indicate that the firm is exceeding industry averages for revenue growth.

COGS:  The organization’s cost of goods sold has averaged an annual growth rate of approximately 3.8%.  This is well below the company’s revenue growth rate.  This shows that the firm is not only doing an excellent job with negotiating prices for raw materials.  But, if price increases are warranted from raw material cost, then the organization has little issue with passing on the price increase to their customers.

Darden Restaurants Income Statement 2019

Column1 2019 2018 2017 2016 2015
Revenues                      8,510                8,080                7,170                6,933                 6,764
COGS                      2,412                2,303                2,070                2,039                 2,085
Gross Profit                      6,098                5,777                5,100                4,894                 4,679
SG&A                         405                  409                  387                  384                   430
Depreciation                         336                  313                  272                  290                   319
R & D                            -                    -                    -                    -                     -
Other                            -                    -                    -                    -                     -
Operating Expenses                      7,677                7,313                6,492                6,311                 6,396
EBIT                         832                  766                  677                  622                   175
Other Income                            -
Interest Expense                           50                  161                    40                  172                   192
EBT                         782                  605                  637                  450                   175
Taxes                           64                      2                  154                    90                   (21)
Net Income                        713                 596                 479                 375                  709
Tax Rate 8.1% 0.3% 24.2% 20.0% -12.0%

Section 2: Darden Inc. Balance Sheet Analyzed from 2014 to 2019

For Darden Restaurant's balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define Darden's balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2015 to 2019.  Next, I then offer a summary analysis of Darden’s important balance sheet line items.

Cash:  Darden’s cash position has ranged from $535 million to $146 million in the last five years.  In 2019, their cash position was 457 million.  This shows that the firm is maintaining a cash balance closer to their high end as compared to low.

 Accounts Receivable:  In the last four years, Darden has continually increased its Accounts Receivables.  In 2016, the organization ended its Accounts Receivable at $64 million.  This figure had grown moderately to $88 million in 2019.  The growth of their Accounts Receivable may be due to the organization offering some of their proprietary products for retail store sales at grocery stores.  As this trend continues, investors should expect a moderate increase in this line item for the foreseeable future.

Darden Restaurants Summary Balance Sheet 2019

Column1 2019 2018 2017 2016 2015
Cash                           457                146                233                274                535
Short Term Investment                              -                  -                  -                  -                  -
Account Receivable                             88                  83                  75                  64                  78
Inventory                           207                205                178                175                163
Other                              -                  -                  -                  -                  -
Current Assets                          893               553               587               820            1,056
Net PPE                        2,553              2,429              2,272              2,041              3,215
Goodwill                        1,184              1,183              1,201                872                872
Other                              -                  -                  -                  -                  -
Total Assets                       5,893            5,469            5,292            4,583            5,995
Accounts Payable                           333                277                249                242                199
Accrued Expense                           175                177                149                135                141
Accrued Taxes                             12                  -                    2                  -                  13
Notes Payable                              -                  -                  -                  -                  -
LT Debt - Current                              -                  -                  -                  -                  15
Other                              -                  -                  -                  -                  -
Total Current Liabilities                        1,474              1,384              1,289              1,187              1,197
LT Debt                           928                926                936                440              1,452
Other                              -                  -                  -                  -                  -
Total Liabilities                       3,500            3,274            3,190            2,630            3,661
Common Stock                        1,685              1,631              1,614              1,502              1,405
Treasury                              -                  (8)                  (8)                  (8)                  (8)
Retained Earnings                           807                658                560                548              1,026
Other                              -                  -                  -                  -                  -
Total Equity                       2,393            2,195            2,102            1,952            2,334
Total Equity & Liability                       5,893            5,470            5,292            4,583            5,995

 

Section 3: Darden Inc. Financial Ratios Analyzed from 2014 to 2019

For this section, I have chosen about 16 different financial ratios to review for Darden Restaurant Inc from 2014 to 2019.  In reviewing each of Darden's financial ratios, I first start with defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of important Darden's Financial ratios.

Darden's Current Ratio

Darden’s current ratio has ranged between .4 and .88.  In 2019, their current ratio was .61.  For most industries, the optimal current ratio would be 1.0 or higher.  However, in industries with high cash flows such as restaurants and retail stores, lower current ratios have become a trend.  From this, the organization seems to have adequate short-term funding to cover its short-term liabilities.

Darden's Total Asset Turnover

Darden’s total asset turnover ended in 2015 at 1.13.  Over the next five years, the company improved upon its total asset turnover ratio.  This resulted in a 1.44 total asset turnover in 2019.  To continue this trend, the organization must continue to optimize the usage of all assets, which includes short-term as well as fixed.

Darden's Return on Assets

Darden’s return on assets has steadily increased over the last four years.  This means that the company is making more money on fewer assets.  In 2016, their return on assets was 8.18%.  2019 ended with the company at 12.1%.  To ensure that this trend continues, the company may increase its tables available at restaurants or design business strategies to increase its per table turnover.

Darden's Debt Ratio

Darden has systematically been reducing its long-term debt.  In 2015, the organization had approximately $1.4 billion in long-term debt.  As of 2019, their deposition fell to $928 million.  Also, their debt ratio within the same timeframe had fallen from 24% to 15%.  Typically, restaurants often carry a debt load of approximately 50%.  This means that the firm could possibly increase its debt position.  By doing this, not only will this improve the company’s return on equity but they will also be gaining tax benefits from the increased interest expense write-offs.

Darden Restaurants 2019 Liquidity Ratios

Ratios 2019 2018 2017 2016 2015
Current Ratio                           0.61                    0.40
Cash Ratio                           0.31                    0.11
Quick Ratio                           0.47                    0.25
Net Working Capital                            232                     (20)

Darden Restaurants 2019 Asset Utilization

Ratios 2019 2018 2017 2016 2015
Total Asset Turnover                           1.44                    1.48
Fixed Asset Turnover                           3.33                    3.33
Days Sales Outstanding                           3.77                    3.75
Inventory Turnover                         41.11                  39.42
Accounts Receivable Turnover                         96.70                  97.35
Working Capital Turnover                         36.68              (404.01)
AP Turnover                         25.56                  29.17
Average Days Inventory                           0.11                    0.11
Average Days Payable                           0.07                    0.08

Darden Restaurants 2019 Profitability Ratios

Ratios 2019 2018 2017 2016 2015
Return on Assets 12.10% 10.90%
Return on Equity 29.80% 27.16%
Net Profit Margin 8.38% 7.38%
Gross Profit Margin 71.66% 71.50%
Operating Profit Margin 9.78% 9.48%
Basic Earning Power 14.12% 14.01%
ROCE 18.83% 18.75%
Capital Employed                         4,419                  4,085
ROIC 27.44% 31.70%
Market Measures
Price/Earning Ratio #DIV/0!
Earnings per common Share                              -                        -                        -                        -                        -
Dividend Payout
MVA
EVA

Darden Restaurants 2019 Long-term Debt

Ratios 2019 2018 2017 2016 2015
Debt Ratio 15.75% 16.93%
Debt/Equity 38.78% 42.19%
Times Interest Earned                         16.64                    4.76
2019 2018 2017 2016 2015
FCF                            510                     880
NOPAT                            764                     764
Operating Capital                         2,785                  2,409