Darden Restaurant Inc. Company Analysis… For Beginners.

Darden Restaurant Financial Statements and Financial Ratios Analyzed

Hey All,

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

For a more detailed examination of Darden Restaurants' financial performance, I offer two reports, which are "A Beginner's Guide to Darden Restaurants Financial Analysis" and "Darden Restaurants Financial Report by Paul Borosky, MBA."  Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, and include:

  • Summarized income statements for the last 5 years.
  • Summarized balance sheets for the last 5 years.
  • Five years’ 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 are provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is where I use plain English to explain concepts.

 

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Darden Restaurants Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years.
  • Overall financial analysis summary for the company.

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

Sincerely,

Paul, MBA.

PDF/Downloadable Versions

Darden Restaurant Beginner's Guide to Financial Analysis 2022 by Paul Borosky, MBA.

Click Below for the CURRENT

Downloadable PDF Price!!

Darden Restaurant 2022 Financial Report by Paul Borosky, MBA

Click Below for the CURRENT

Downloadable PDF Price!!

Sample Financial Report

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

Darden Restaurant: Brief Summary

Darden Restaurants headquarters is located in Orlando, Florida.  The company competes in the restaurant industry—specifically, the consumer cyclical sector.  At present, the organization employs approximately 175,000 individuals.  Darden Restaurant brands include the Olive Garden, Longhorn Steakhouse, Cheddar's Scratch Kitchen, the Capital Grille, and others.  At present, the organization operates approximately 1,800 restaurants in the United States as well as Canada.

Darden Restaurant Financial Report Sources

“Darden Restaurant Inc. 2022 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 2022 10k, 2017 10k annual report, 2016 10k annual report, and Darden's 2019 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 of 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, in most cases.

Revenue Growth:  

Darden Restaurant’s revenues were $8 billion as of 2018.  Over the next several years, the company would increase its revenues moderately, ending 2022 at $9.6 billion.  On average, the annual revenue growth rate over the last five years was about 5.8%.  This trend indicates that the company has entered the mature phase of the business cycle and is consistently growing the revenues moderately but seemingly sustainable over the long term.  From an investor’s perspective, this is a good trend.

Analyst Grade: A

Darden 2022 Summary Income Statement

Column1

2022

2021 2020 2019

2018

Revenues

                     9,630

                     7,191                      7,806                      8,510

                8,080

COGS

                     2,943

                     2,072                      2,240                      2,412

                2,303

Gross Profit

                     6,687

                     5,119                      5,566                      6,098

                5,777

 
SG&A

                        466

                        487                         614                         405

                  409

Depreciation

                        368

                        350                         356                         591

                  565

R & D                            -                            -                            -                            -                     -
Other                            -                            -                            -                            -                     -
Total Operating Expenses

                     8,468

                     3,630                      4,157                      4,248

                4,031

EBIT

                     1,162

                        648                           48                         832

                  766

Other Income                            -                            -                            -                            -                     -
Interest Expense

                          69

                          63                           57                           50

                  161

EBT

                     1,094

                        576                        (161)                         782

                  605

Taxes

                        139

                         (55)                        (111)                           64

                      2

Net Income

                       953

                       629                         (52)                        713

                 596

Darden Restaurant’s Balance Sheet

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.  Next, I then offer a summary analysis of Darden’s important balance sheet line items.

Cash:

Darden Restaurant’s cash holding was $146 million in 2018.  As a percentage of sales, their cash holdings were 1.8%.  As of 2022, their cash holdings increased to $421 million or 4.4% of sales.  The substantial increase in cash holdings indicates that the organization feels the need to increase its liquidity to ensure current liability coverage.  From an investor perspective, a significant increase in idle cash is a concerning and negative trend.

Analyst Grade: B

Darden 2022 Summary Balance Sheet

Column1

2022

2021 2020 2019

2018

Cash

                          421

                   1,214                       763                       457

               146

Short Term Investment                              -                         -                         -                         -                  -
Account Receivable

                            72

                        68                         50                         88

                 83

Inventory

                          271

                      190                       207                       207

               205

Other                              -                         -                         -                         -                  -
Current Assets

                      1,179

                 1,871                  1,101                      893

              553

Net PPE

                       3,356

                   2,869                    2,757                    2,553

             2,429

Goodwill

                       1,037

                   1,037                    1,037                    1,184

             1,183

Other                              -                         -                         -                         -                  -
Total Assets

                   10,136

               10,656                  9,946                  5,893

           5,469

Accounts Payable

                          367

                      304                       249                       333

               277

Accrued Expense

                          182

                      177                       150                       175

               177

Accrued Taxes

                            32

                        35                           6                         12

                 -

Notes Payable                              -                         -

                      270

                        -

                 -

LT Debt - Current                              -                         -                         -                         -                  -
Other                              -                         -                         -                         -                  -
Total Current Liabilities

                       1,848

                   1,848                    1,793                    1,474

             1,384

LT Debt

                            91

                      929                       929                       928

               926

Other                              -                         -                         -                         -                  -
Total Liabilities

                      7,938

                 7,843                  7,615                  3,500

           3,274

Common Stock

                       2,226

                   2,286                    2,205                    1,685

             1,631

Treasury                              -                         -                         -

                        -

                 (8)

Retained Earnings

                          (26)

                      522                       144                       807

               658

Other                              -                         -                         -                         -                  -
Total Equity

                      2,198

                 2,813                  2,331                  2,393

           2,195

Total Equity & Liability

                   10,136

               10,656                  9,946                  5,893

           5,470

 

Section 3: Darden Inc. Financial Ratios Analyzed

For this section, I have chosen about 16 different financial ratios to review for Darden Restaurant Inc from 2016 to 2020.  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 Restaurant’s current ratio was .4 in 2018.  In the next several years, the organization would improve its current ratio ending in 2021 at 1.01.  However, in 2022, the organization would reduce its current ratio to .64.  This trend indicates that the company is having moderate difficulties in sustaining a stable current ratio.  Investors should be concerned about this trend because it indicates that the organization is unable to execute optimal current asset management strategies consistently.

Analyst Grade: B

Darden's Return on Assets

Darden Restaurant’s return on assets (ROA) in 2018 was 10.9%.  In 2022, their return on assets was 9.4%.  This trend indicates that the company is underutilizing assets under management on a consistent basis in terms of generating revenues.  From this, the company either needs to sell off underperforming fixed assets or quickly implement new sales strategies to increase revenues in the short term.  From an investor’s perspective, this is a poor trend.

Analyst Grade: C