In today’s day and age we can’t go a couple of miles without seeing numerous restaurants specifying in all sorts of exotic foods. Casual dining establishments are just minutes away each offering an assortment of cuisine that everyone can enjoy. Darden Restaurants Inc located in Orlando, Florida is the largest casual dining restaurant chain owned and operated around the world. Red Lobster, Olive Garden, Smokey Bones, Bahama Breeze, and Seasons 52 are the brands that constitute this publicly traded company that is found on the New York Stock Exchange using the ticker symbol DRI. Throughout this report we will emphasis on Darden’s financial performance for the fiscal year ending May 28th 2006.
Darden serves about 300 million meals a year in one of there 1,427 restaurants around the United States and Canada. Financially Darden Restaurants Inc for the fiscal year ending May 28th 2006 has generated some impressive numbers that have substantially increased from previous years. Total company assets reported on the consolidated balance sheet totaled an outstanding 3,010,170,000 and cash and cash equivalents on the financial statement were 42,334,000. Furthermore, operating expenses on the income statement reported 5.24 billion with a net income of 338.2 million which is an increase of 16.4 percent from fiscal 2005 net income. Sales were 5.72 billion for the whole company in fiscal 2006 which demonstrated an 8.4 percent growth from the previous year. This was a direct result of a 46 store expansion and a U.S. net sales increase in Red lobster, Olive Garden, and Bahama Breeze.
Darden Inc had several commitments and contingencies in 2006 that made them liable for guarantee of subsidiary obligations under the standby letters of credit. They included wo ...