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!
- Included - Free Bonus Downloads: Annual Statements for the Last Five Years (10k reports)!
- Included - Expert financial analysis done by Paul Borosky MBA.
- Included - Analyst "Letter Grades" for ratios.
- **See Terms and Conditions.
Darden Restaurants 2021 Beginner's Guide
Table of Contents
- Disclaimer 3
- Forward 4
- Income Statement 6
- Darden Restaurants’ Summarized Income Statements 6
- Revenues 7
- Cost of Goods Sold (COGS) 8
- Selling, General, and Administrative Expenses (SG&A 8
- Research and Development (R&D) 9
- Operating Expenses 10
- Earnings Before Interest and Taxes (EBIT 10
- Interest Expense 11
- Earnings Before Taxes (EBT) 12
- Taxes 12
- Net income 12
- Tax Rate 13
- Balance Sheet 15
- Darden Restaurants’ Summarized Balance Sheets 15
- Cash 16
- Short-Term Investments 17
- Accounts Receivables 17
- Inventory 18
- Current Assets 19
- Property, Plant, and Equipment (PP&E) 20
- Total Assets 21
- Accounts Payable 22
- Accrued Expenses 22
- Short-Term Debt 23
- Total Current Liabilities 24
- Long Term Debt (LT Debt) 25
- Total Liabilities 26
- Common Stock and Additional Paid-in Capital 27
- Treasury 28
- Retained Earnings 28
- Total Equity 29
- Financial Ratios 31
- Darden Restaurants’ Liquidity Ratios 32
- Current Ratio 32
- Quick Ratio 33
- Cash Ratio 34
- Darden Restaurants’ Asset Ratios 36
- Total Asset Turnover 37
- Fixed Asset Turnover 38
- Days Sales Outstanding 38
- Inventory Turnover 39
- Accounts Receivable Turnover 40
- Accounts Payable Turnover 41
- Other Asset Ratio Calculations 42
- Working Capital Turnover 42
- Average Days in Inventory 42
- Average Days Payable 42
- Darden Restaurants’ Profitability Ratios 44
- Return on Assets (ROA) 44
- Return on Equity (ROE) 45
- Net Profit Margin 46
- Gross Profit Margin 47
- Operating Profit Margin 47
- Darden Restaurants’ Debt Ratios 49
- Debt Ratio 49
- Debt to Equity Ratio 50
- Times Interest Earned 51
Darden Restaurants Financial Report 2020
Table of Contents
- Disclaimer 3
- Acknowledgments 4
- Forward 5
- About the Author 7
- Company Summary 8
- Financial Statement Introduction 10
- Income Statement 11
- Darden Restaurants’ Income Statement – Summary Analysis 12
- Income Statement Discussion 13
- Balance Sheet 22
- Balance Sheet – Summary Analysis 23
- Balance Sheet Discussion 24
- Financial Ratios 40
- Liquidity Ratios 41
- Liquidity Ratios - Summary Analysis 41
- Liquidity Ratios Discussion 42
- Current Ratio 42
- Quick Ratio 43
- Cash Ratio 44
- Other Liquidity Ratios 44
- Net Operating Working Capital 44
- Asset Ratios 46
- Asset Utilization Ratios - Summary Analysis 47
- Asset Utilization Ratios Discussion 48
- Total Asset Turnover 48
- Fixed Asset Turnover 48
- Days Sales Outstanding 49
- Inventory Turnover 50
- Accounts Receivable Turnover 51
- Accounts Payable Turnover 52
- Other Asset Ratio Calculations 52
- Working Capital Turnover 53
- Average Days in Inventory 53
- Average Days Payable 53
- Profitability Ratios 55
- Profitability Ratios - Summary Analysis 56
- Profitability Ratios Discussion 56
- Return on Assets (ROA) 56
- Return on Equity (ROE) 57
- Profit Margin 58
- Gross Profit Margin 59
- Operating Profit Margin 60
- Basic Earnings Power 60
- ROCE 61
- Capital Employed 61
- Debt Ratios 62
- Darden Restaurants’ Debt Ratios - Summary Analysis 62
- Debt Ratios Discussion 63
- Long-Term Debt Ratio 63
- Debt to Equity Ratio 64
- Times Interest Earned 64
- WACC 66
- Book Value of WACC 66
- Free Cash Flow (FCF) 68
- Free Cash Flows – 2015 - 2019 68
- Free Cash Flows – 5 Year Projections 69
- Income Statement – Projections for 5 years 70
- Income Statement – 5 Year Projections 70
- Balance Sheet – Projections for 5 years 71
- Balance Sheet – 5 Year Projections 71
- Company Valuation and Intrinsic Stock Price 73
- Appendix 1: Summarized Income Statement 74
- Appendix 2: Income Statement – Percent of Sales 75
- Appendix 3: Income Statement – Year over Year Growth 76
- Appendix 4: Summarized Balance Sheet 77
- Appendix 5: Balance Sheet as Percent of Total Assets 79
- Appendix 6: Summarized Financial Ratios 80
Sample Financial Report
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, 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 from 2016 to 2020, in most cases.
Darden Restaurants ended 2016 with revenues of 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 maybe how the organization best adapts to the current economic environment. If the organization is able to provide a safe dining experience for customers, then it 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 2021 Summary Income Statement
|R & D||-||-||-||-||-|
|Total Operating Expenses||
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 between 2016 to 2020. Next, I then offer a summary analysis of Darden’s important balance sheet line items.
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 its cash position over 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 2021 Summary Balance Sheet
|Short Term Investment||-||-||-||-||-|
|LT Debt - Current||-||-||-||-||-|
|Total Current Liabilities||
|Total Equity & Liability||
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'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 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 its trend in optimizing total asset usage.
Darden's Return on Assets
Darden's return on assets 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 the 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
|Net Working Capital||615||232|
Asset Utilization - Darden Restaurants 2020
|Total Asset Turnover||0.78||1.44|
|Fixed Asset Turnover||2.83||3.33|
|Days Sales Outstanding||2.34||3.77|
|Accounts Receivable Turnover||156.12||96.70|
|Working Capital Turnover||12.69||36.68|
|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
|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%|
Long-term Debt - Darden Restaurants 2020
|Times Interest Earned||0.84||16.64|