Darden Restaurant Financial Analysis - 4050 Words

Executive Summary Darden Restaurants, Inc. has been a public company since 1995. A company born of the chain Red Lobster, Darden is a recent spin-off as a result of mergers and acquisitions of various types. Publicly traded on the New York Stock Exchange, Darden (DRI) is the parent company of Red Lobster, The Olive Garden, the now-defunct China Coast concept, and a new â€Å"Floribbean† concept: Bahama Breezes. Throughout its existence, as a part of General Mills, Pillsbury, or on its own as DRI, Darden has made waves throughout the restaurant industry. The thought processes behind the introduction of a concept are considered revolutionary, as exemplified by the strategy behind The Olive Garden and Bahama Breezes. While Darden has†¦show more content†¦(DRI). With Bill Darden serving as CEO, DRI operates three divisions – The Olive Garden, Red Lobster, and Bahama Breezes, a recent creation, a calypso-themed restaurant. Currently, Red Lobster is the largest full-service restaurant chain and the largest seafood company in North America. The company’s 680 units are company owned and operated. Of those 680 units, 646 are spread throughout every state (including the District of Columbia) but Alaska, and 34 are operated in Canada. Sales for fiscal year 1998 totaled nearly $2 billion. The Olive Garden currently operates 459 units in the United States, and 5 units in Canada. Gross sales for The Olive Garden totaled over $1 billion. Gross sales for all divisions of Darden Restaurants exceeded 3.2 billion dollars! Darden s net earnings in fiscal year 1998 were just over 101 million dollars, with shareholders receiving an eight-cent dividend. There are two possible sources of discrepancies we would like to disclose in this introduction: financial histories and restructuring charges. The first source of some discrepancies throughout the paper is a lack of some financial history. 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