Darden Restaurant Inc. Company Analysis… For Beginners.

Darden Restaurant Financial Statements and Financial Ratios Analyzed

A Beginner's Guide to Darden Restaurants Financial Analysis - 2021

$5.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • NOT Included-Identify and discuss financial trends for the company..
  • NOT Included-Expert financial analysis done by Paul Borosky, MBA.
  • NOT Included- Analyst "Letter Grades" for the company's ratios.
  • NOT Included-Free Annual Reports Download for (5 Years)

Darden Restaurants Financial Report by Paul Borosky, MBA. - 2020

$9.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • Included Identify and discuss financial trends for the company.
  • Included Expert financial analysis done by Paul Borosky MBA.
  • Included Analyst "Letter Grades" for the company's ratios.
  • Included Free Annual Reports Download for the company (5 years).

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 2020 Financial Analysis and Report by Paul Borosky, MBA.
  • 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

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, 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.

Revenue Growth:  

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

Column1

2021

2020 2019 2018

2017

Revenues

                     7,191

                     7,806                      8,510                8,080

                7,170

COGS

                     2,072

                     2,240                      2,412                2,303

                2,070

Gross Profit

                     5,119

                     5,566                      6,098                5,777

                5,100

 
SG&A

                        487

                        614                         405                  409

                  387

Depreciation

                        350

                        356                         591                  565

                  511

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

                     3,630

                     4,157                      4,248                4,031

                3,530

EBIT

                        648

                          48                         832                  766

                  677

Other Income                            -                            -                    -                     -
Interest Expense

                          63

                          57                           50                  161

                    40

EBT

                        576

                       (161)                         782                  605

                  637

Taxes

                         (55)

                       (111)                           64                      2

                  154

Net Income

                       629

                        (52)                        713                 596

                 479

 

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.

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 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

Column1

2021

2020 2019 2018

2017

Cash

                       1,214

                      763                       457                146

               233

Short Term Investment                              -                         -                         -                  -                  -
Account Receivable

                            68

                        50                         88                  83

                 75

Inventory

                          190

                      207                       207                205

               178

Other                              -                         -                         -                  -                  -
Current Assets

                      1,871

                 1,101                      893               553

              587

Net PPE

                       2,869

                   2,757                    2,553              2,429

             2,272

Goodwill

                       1,037

                   1,037                    1,184              1,183

             1,201

Other                              -                         -                         -                  -                  -
Total Assets

                   10,656

                 9,946                  5,893            5,469

           5,292

Accounts Payable

                          304

                      249                       333                277

               249

Accrued Expense

                          177

                      150                       175                177

               149

Accrued Taxes

                            35

                          6                         12                  -

                   2

Notes Payable

                             -

                      270                         -                  -

                 -

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

                       1,848

                   1,793                    1,474              1,384

             1,289

LT Debt

                          929

                      929                       928                926

               936

Other                              -                         -                         -                  -                  -
Total Liabilities

                      7,843

                 7,615                  3,500            3,274

           3,190

Common Stock

                       2,286

                   2,205                    1,685              1,631

             1,614

Treasury

                             -

                        -                         -                  (8)

                 (8)

Retained Earnings

                          522

                      144                       807                658

               560

Other                              -                         -                         -                  -                  -
Total Equity

                      2,813

                 2,331                  2,393            2,195

           2,102

Total Equity & Liability

                   10,656

                 9,946                  5,893            5,470

           5,292

 

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

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