Darden Restaurant Financial Statements and Financial Ratios Analyzed from 2016 to 2020

Expert Darden Restaurant Financial Report & Analysis

At Your Fingertips!

Darden Restaurants Annual Reports

$4.99
  • Pretty Cool Annual Reports (5 years)
  • Killer One easy download
  • Awesome Expert financial analysis

Darden Financial Report by Paul Borosky, MBA.

$9.99
  • Pretty Cool Easy to download PDF File.
  • Killer Expert financial analysis done by an MBA.
  • Awesome Easy to use format.

Darden Financial Report - Plus Free Annual Reports (5 yrs)

$9.99
  • Pretty Cool Easy PDF File download.
  • Killer Expert financial analysis done by an MBA.
  • Awesome Easy to use format.
  • Tubular Free Annual Reports Download (5 years).

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.

PDF/Downloadable Version

Darden 2020 Financial Analysis and Report by Paul Borosky, MBA.
  • Free Bonus Downloads: Darden Restaurant's Annual Statements for the Last Five Years (10k reports)!

Amazon.com Version

  • No 10k annual statements.

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. 2020 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 202010k, 2017 10k annual report, 2016 10k annual report, 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 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 2016 to 2020, in most cases.

Revenue Growth:  

Darden Restaurants ended 2016 with revenues at approximately $6.9 billion.  In the next three years, the organization would increase revenues to approximately $8.5 billion.  However, in 2020, the revenues would fall to $7.8 billion due to the coronavirus.  In growth percentage terms, the organization's best growth was 12.7% from 2017 to 2018.

From an investor's perspective, $7.8 billion in revenues through the current economic climate is pretty good for a casual dining restaurant.  An important factor for continued revenue growth in the coming years may be how the organization best adapts to the current economic environment.  If the organization is able to provide a safe dining experience for customers, then they should expect moderate to low revenue growth in the next several years.  However, if dining experiences continue to be perceived as dangerous, then plummeting revenue growth may be the result.

Darden Restaurants Income Statement Summary 2020 to 2016

Column1 2020 2019 2018 2017 2016
Revenues             7,806             8,510         8,080         7,170         6,933
COGS             2,240             2,412         2,303         2,070         2,039
Gross Profit             5,566             6,098         5,777         5,100         4,894
SG&A                376                405           409           387           384
Depreciation                356                336           313           272           290
R & D                   -                   -             -             -             -
Other                   -                   -             -             -             -
Operating Expenses             7,759             7,677         7,313         6,492         6,311
EBIT                  48                832           766           677           622
Other Income                   -                   -             -             -             -
Interest Expense                  57                  50           161             40           172
EBT                  (9)                782           605           637           450
Taxes              (111)                  64               2           154             90
Net Income                (52)               713          596          479          375

Darden Restaurant’s Balance Sheet 2020 to 2016 – Summary Analysis

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 2016 to 2020.  Next, I then offer a summary analysis of Darden’s important balance sheet line items.

Cash:

In 2016, Darden Restaurants had approximately $274 million in cash.  In the next two years, the cash position would fall to $146 million in 2018.  Fortunately, though, the 2019 and 2020, their cash position would substantially increase, ending 2020 at $763 million.

This cash position is noteworthy, not only because the organization has increased the cash position for the last two years.  But, the firm was able to do it through the recent COVID outbreak.  Possible reasons for this improvement could be cost-cutting measures, or the organization has taken out short and/or long-term debt to ensure liquidity.

Darden Restaurants Summary Balance Sheet 2020 to 2016

Column1 2020 2019 2018 2017 2016
Cash 763 457 146 233 274
Short Term Investment 0 0 0 0 0
Account Receivable 50 88 83 75 64
Inventory 207 207 205 178 175
Other 0 0 0 0 0
Current Assets 1101 892.6 553 587 820
Net PPE 2757 2552.6 2429 2272 2041
Goodwill 1037 1184 1183 1201 872
Other 0 0 0 0 0
Total Assets 9946 5893 5469 5292 4582.6
Accounts Payable 249 333 277 249 241.9
Accrued Expense 150 175 177 149 135.1
Accrued Taxes 6 12 0 1.9 0
Notes Payable 270 0 0 0 0
LT Debt - Current 0 0 0 0 0
Other 0 0 0 0 0
Total Current Liabilities 1793 1474 1384 1289 1187.1
LT Debt 929 928 926 936 440
Other 0 0 0 0 0
Total Liabilities 7615 3500 3274 3190 2630
Common Stock 2205 1685 1631 1614 1502
Treasury 0 0 -7.8 -7.8 -7.8
Retained Earnings 144 807 657.6 560.1 547.5
Other 0 0 0 0 0
Total Equity 2331 2393 2194.8 2101.7 1952
Total Equity & Liability 9946 5893 5469.6 5292.3 4582.6

Section 3: Darden Inc. Financial Ratios Analyzed from 2016 to 2020

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's current ratio has ranged between .4 and .69.  In 2020, 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 2016 at 1.51.  Over the next three 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.  However, due to the COVID shutdown, the firm's total asset turnover was detrimentally impacted in 2020, ending the year at .78.  Once the virus subsides, the firm should be able to continue their trend in optimizing total asset usage.

Darden's Return on Assets

Darden's return on assets had steadily increased between 2016 and 2019.  This means that the company is making more money on the same or 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.  Unfortunately, in 2020, the organization's return on assets fell to -.53%.  This was to be expected through a COVID outbreak.  Again, once the virus subsides, the organization should be able to achieve a return on asset growth utilizing proven business models.

Liquidity Ratios - Darden Restaurants 2020

Ratios 2020 2019 2018 2017 2016
Current Ratio         0.61         0.61
Cash Ratio         0.43         0.31
Quick Ratio         0.50         0.47
Net Working Capital          615          232

Asset Utilization - Darden Restaurants 2020

Ratios 2020 2019 2018 2017 2016
Total Asset Turnover         0.78         1.44
Fixed Asset Turnover         2.83         3.33
Days Sales Outstanding         2.34         3.77
Inventory Turnover       37.71       41.11
Accounts Receivable Turnover     156.12       96.70
Working Capital Turnover       12.69       36.68
AP Turnover       31.35       25.56
Average Days Inventory       33.73       31.32
Average Days Payable       40.57       50.39
Cash Conversion Cycle        (4.51)      (15.29)

Profitability Ratios - Darden Restaurants 2020

Ratios 2020 2019 2018 2017 2016
Return on Assets -0.53% 12.10%
Return on Equity -2.25% 29.80%
Net Profit Margin -0.67% 8.38%
Gross Profit Margin 71.30% 71.66%
Operating Profit Margin 0.61% 9.78%
Basic Earning Power 0.48% 14.12%
ROCE 0.59% 18.83%
Capital Employed       8,153       4,419
ROIC -16.13% 27.44%

Long-term Debt - Darden Restaurants 2020

Ratios 2020 2019 2018 2017 2016
Debt Ratio 9.34% 15.75%
Debt/Equity 39.85% 38.78%
Times Interest Earned         0.84       16.64