Darden Restaurant Financial Statements and Financial Ratios Analyzed from 2015 to 2019
“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 book, 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.
In this template, various graphs and charts were generated showing changes to Darden's revenues, profits, and other financial statement changes. With this complete, a brief analysis was done for each of Darden's important financial statement line items. Further, in the book, we also supply financial ratios for Darden for the last five years. Each financial ratio has a formula supplied. This allows you to better understand how the calculations were performed. On a final note, for each financial statement line item and financial ratio, we offer a brief analysis of the company’s trends and what the changes mean in relations to the financial statements and financial ratios.
Darden Restaurant: Brief Summary
Darden Restaurant’s headquarters in located at 1000 Darden Center Drive in Orlando, FL. The company competes in the restaurant industry. Currently, the firm employs over 180,000 individuals. Popular brands Olive Garden, Longhorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, and Bahama Breeze.
Darden currently has a market capitalization of approximately 14.07 billion. The firm’s beta is .76. This indicates that the company is less risky as compared to the overall market. Their profit margin is slightly over 8%. This is well above industry average. Mena holders of the company’s stock include institutions, 93% and company employees, .19%.
As for their executive team, their CEO is Eugene Lee. Senior vice president and chief finance officer is Ricardo Cardenas. Finally, Matthew Broad is their General Counsel.
Section 1: Darden Inc. Income Statement Analyzed 2014 to 2018
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 each of Darden's important income statement line items, such as revenues, gross profits, etc. in detail. After each line item is defined and discussed, I then offer an analysis of Darden’s income statement line item from 2014 to 2018, in most cases.
Darden Restaurants Income Statement 2019 |
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| 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% |
Darden Restaurants Income Statement 2018 |
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| Column1 | 2018 | 2017 | 2016 | 2015 | 2014 |
| Revenues | 8,080 | 7,170 | 6,933 | 6,764 | 6,285 |
| COGS | 2,303 | 2,070 | 2,039 | 2,085 | 1,892 |
| Gross Profit | 5,777 | 5,100 | 4,894 | 4,679 | 4,393 |
| SG&A | 409 | 387 | 384 | 430 | 413 |
| Depreciation | 313 | 272 | 290 | 319 | 304 |
| R & D | - | - | - | - | - |
| Other | - | - | - | - | |
| Operating Expenses | 7,313 | 6,492 | 6,311 | 6,396 | 5,976 |
| EBIT | 766 | 677 | 622 | 175 | 174 |
| Other Income | |||||
| Interest Expense | 161 | 40 | 172 | 192 | 134 |
| EBT | 605 | 637 | 450 | 175 | 174 |
| Taxes | 2 | 154 | 90 | (21) | (9) |
| Net Income | 596 | 479 | 375 | 709 | 286 |
Section 2: Darden Inc. Balance Sheet Analyzed from 2014 to 2019
For Darden Restaurant Inc. balance sheet, I again go through each important line item from the balance sheet. In reviewing each line item, I will define the Darden's balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2014 to 2019. Next, I then offer an analysis of Darden's balance sheet line item.
Darden Restaurants Summary Balance Sheet 2019 |
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| 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 |
Darden Restaurants Balance Sheet 2018 - 2014 |
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| Column1 | 2018 | 2017 | 2016 | 2015 | 2014 |
| Cash | 146 | 233 | 274 | 535 | 98 |
| Short Term Investment | - | - | - | - | - |
| Account Receivable | 83 | 75 | 64 | 78 | 84 |
| Inventory | 205 | 178 | 175 | 163 | 197 |
| Other | - | - | - | - | - |
| Current Assets | 553 | 587 | 820 | 1,056 | 1,976 |
| Net PPE | 2,429 | 2,272 | 2,041 | 3,215 | 3,381 |
| Goodwill | 1,183 | 1,201 | 872 | 872 | 873 |
| Other | - | - | - | - | - |
| Total Assets | 5,469 | 5,292 | 4,583 | 5,995 | 7,101 |
| Accounts Payable | 277 | 249 | 242 | 199 | 233 |
| Accrued Expense | 177 | 149 | 135 | 141 | 126 |
| Accrued Taxes | - | 2 | - | 13 | - |
| Notes Payable | - | - | - | - | 208 |
| LT Debt - Current | - | - | - | 15 | 15 |
| Other | - | - | - | - | - |
| Total Current Liabilities | 1,384 | 1,289 | 1,187 | 1,197 | 1,619 |
| LT Debt | 926 | 936 | 440 | 1,452 | 2,481 |
| Other | - | - | - | - | - |
| Total Liabilities | 3,274 | 3,190 | 2,630 | 3,661 | 4,944 |
| Common Stock | 1,631 | 1,614 | 1,502 | 1,405 | 1,302 |
| Treasury | (8) | (8) | (8) | (8) | (8) |
| Retained Earnings | 658 | 560 | 548 | 1,026 | 996 |
| Other | - | - | - | - | - |
| Total Equity | 2,195 | 2,102 | 1,952 | 2,334 | 2,157 |
| Total Equity & Liability | 5,470 | 5,292 | 4,583 | 5,995 | 7,101 |
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 2018. 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 Darden's Financial ratio. Ratios calculated and analyzed for the last five years include:
- Darden Restaurant's current ratio for 2014 to 2018
- Darden Restaurant's quick ratio for 2014 to 2018
- Darden Restaurant's cash ratio for 2014 to 2018
- Darden Restaurant's total asset turnover for 2014 to 2018
- Darden Restaurant's fixed asset turnover for 2014 to 2018
- Darden Restaurant's Days Sales Outstanding for 2014 to 2018
- Darden Restaurant's Inventory Turnover for 2014 to 2018
- Darden Restaurant'sAccounts Receivable Turnover for 2014 to 2018
- Darden Restaurant's accounts payable turnover for 2014 to 2018
- Darden Restaurant's return on assets (ROA) for 2014 to 2018
- Darden Restaurant's return on equity (ROE) for 2014 to 2018
- Darden Restaurant's profit margin for 2014 to 2018
- Darden Restaurant's gross profit margin for 2014 to 2018
- Darden Restaurant's operating profit margin for 2014 to 2018
- Darden Restaurant's long-term debt ratio for 2014 to 2018
- Darden Restaurant's debt to equity ratio for 2014 to 2018
- Darden Restaurant's times interest earned for 2014 to 2018
Darden Restaurants 2019 Liquidity Ratios |
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| Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
| Current Ratio | 0.61 | 0.40 | 0.46 | 0.69 | 0.88 |
| Cash Ratio | 0.31 | 0.11 | 0.18 | 0.23 | 0.45 |
| Quick Ratio | 0.47 | 0.25 | 0.32 | 0.54 | 0.75 |
| Net Working Capital | 232 | (20) | 86 | 136 | 424 |
Darden Restaurants 2019 Asset Utilization |
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| Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
| Total Asset Turnover | 1.44 | 1.48 | 1.35 | 1.51 | 1.13 |
| Fixed Asset Turnover | 3.33 | 3.33 | 3.16 | 3.40 | 2.10 |
| Days Sales Outstanding | 3.77 | 3.75 | 3.82 | 3.37 | 4.21 |
| Inventory Turnover | 41.11 | 39.42 | 40.28 | 39.62 | 41.50 |
| Accounts Receivable Turnover | 96.70 | 97.35 | 95.60 | 108.33 | 86.72 |
| Working Capital Turnover | 36.68 | (404.01) | 83.28 | 50.98 | 15.97 |
| AP Turnover | 25.56 | 29.17 | 28.80 | 28.66 | 34.02 |
| Average Days Inventory | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 |
| Average Days Payable | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 |
Darden Restaurants 2019 Profitability Ratios |
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| Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
| Return on Assets | 12.10% | 10.90% | 9.05% | 8.18% | 11.83% |
| Return on Equity | 29.80% | 27.16% | 22.79% | 19.21% | 30.38% |
| Net Profit Margin | 8.38% | 7.38% | 6.68% | 5.41% | 10.48% |
| Gross Profit Margin | 71.66% | 71.50% | 71.13% | 70.59% | 69.18% |
| Operating Profit Margin | 9.78% | 9.48% | 9.44% | 8.97% | 2.59% |
| Basic Earning Power | 14.12% | 14.01% | 12.79% | 13.57% | 2.92% |
| ROCE | 18.83% | 18.75% | 16.91% | 18.32% | 3.65% |
| Capital Employed | 4,419 | 4,085 | 4,003 | 3,396 | 4,798 |
| ROIC | 27.44% | 31.70% | 21.77% | 22.86% | 5.39% |
| Market Measures | |||||
| Price/Earning Ratio | #DIV/0! | ||||
| Earnings per common Share | - | - | - | - | - |
| Dividend Payout | |||||
| MVA | |||||
| EVA | |||||
Darden Restaurants 2019 Long-term Debt |
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| Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
| Debt Ratio | 15.75% | 16.93% | 17.69% | 9.60% | 24.23% |
| Debt/Equity | 38.78% | 42.19% | 44.54% | 22.54% | 62.24% |
| Times Interest Earned | 16.64 | 4.76 | 16.93 | 3.62 | 0.91 |
| 2019 | 2018 | 2017 | 2016 | 2015 | |
| FCF | 510 | 880 | 67 | 1,797 | |
| NOPAT | 764 | 764 | 513 | 498 | 196 |
| Operating Capital | 2,785 | 2,409 | 2,358 | 2,177 | 3,639 |
2018 Darden Liquidity Ratios |
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| Ratios | 2018 | 2017 | 2016 | 2015 | 2014 |
| Current Ratio | 0.40 | 0.46 | 0.69 | 0.88 | 1.22 |
| Cash Ratio | 0.11 | 0.18 | 0.23 | 0.45 | 0.06 |
| Quick Ratio | 0.25 | 0.32 | 0.54 | 0.75 | 1.10 |
| Net Working Capital | (20) | 86 | 136 | 424 | 20 |
2018 Darden Asset Utilization |
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| Ratios | 2018 | 2017 | 2016 | 2015 | 2014 |
| Total Asset Turnover | 1.48 | 1.35 | 1.51 | 1.13 | 0.89 |
| Fixed Asset Turnover | 3.33 | 3.16 | 3.40 | 2.10 | 1.86 |
| Days Sales Outstanding | 3.75 | 3.82 | 3.37 | 4.21 | 4.87 |
| Inventory Turnover | 39.42 | 40.28 | 39.62 | 41.50 | 31.94 |
| Accounts Receivable Turnover | 97.35 | 95.60 | 108.33 | 86.72 | 75.00 |
| Working Capital Turnover | (404.01) | 83.28 | 50.98 | 15.97 | 312.69 |
| AP Turnover | 29.17 | 28.80 | 28.66 | 34.02 | 26.96 |
| Average Days Inventory | 0.11 | 0.11 | 0.11 | 0.11 | 0.09 |
| Average Days Payable | 0.08 | 0.08 | 0.08 | 0.09 | 0.07 |
Darden 2018 - Profitablility Ratios |
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| Ratios | 2018 | 2017 | 2016 | 2015 | 2014 |
| Return on Assets | 10.90% | 9.05% | 8.18% | 11.83% | 4.03% |
| Return on Equity | 27.16% | 22.79% | 19.21% | 30.38% | 13.26% |
| Net Profit Margin | 7.38% | 6.68% | 5.41% | 10.48% | 4.55% |
| Gross Profit Margin | 71.50% | 71.13% | 70.59% | 69.18% | 69.90% |
| Operating Profit Margin | 9.48% | 9.44% | 8.97% | 2.59% | 2.77% |
| Basic Earning Power | 14.01% | 12.79% | 13.57% | 2.92% | 2.45% |
| ROCE | 18.75% | 16.91% | 18.32% | 3.65% | 3.17% |
| Capital Employed | 4,085 | 4,003 | 3,396 | 4,798 | 5,482 |
| ROIC | 31.70% | 21.77% | 22.86% | 5.39% | 5.37% |
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