Darden Restaurant Financial Analysis

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Financial Analysis of Darden Restaurants, Inc. Abstract The financial statements of Darden International, Inc. restaurants were examined, in the context of individualized and standardized statements. Common-sized statements of past performance revealed improved financials in 2009. Financial ratios show evidence that Darden has strengthened in the most current fiscal year. In contrast, however, benchmarked analyses illustrate Darden’s weaknesses compared to the competition. Together, these findings suggest that Darden Restaurants Inc. only conservatively possesses the financial strength and stability to be considered for investment. Financial Analysis of Darden Restaurants, Inc. Darden Restaurants, Inc. is the world’s largest full-service restaurant company, operating 1,773 restaurants as of May 31, 2009 in the United States and Canada, to include subsidiaries such as Red Lobster, Olive Garden, LongHorn Steakhouse, and five lesser-known restaurants. The firm was originally incorporated in 1968 as Red Lobster Inns of America, Inc, was acquired by General Mills in 1970, and became a separately publicly held company in 1995 when it was incorporated as Darden Restaurants, Inc. as the parent company of GMRI, Inc. and other subsidiaries. In 2007, Darden acquired RARE Hospitality International, Inc. and its LongHorn Steakhouse chain. Darden’s direct competitors in the full-service restaurant industry include Brinker International Inc. who owns, operates, or franchises 1,689 restaurants including Chili’s Grill & Bar, On The Border Mexican Grill & Cantina, and Maggiano’s Little Italy. DineEquity, Inc., another strong competitor, operates 3,400 restaurants under the names Applebee’s Neighborhood Grill and Bar and International House of Pancakes. YahooFinance ranked Darden as third strongest leader in market capitalization in the restaurant industry, with

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