On March 20, Darden Restaurants
- Sales for the quarter increased 4.7%. Same-stores sales rose at its Red Lobster and Olive Garden segments, but were partially offset by falling same-restaurant sales at its Smokey Bones unit.
- The company expects same-restaurant sales at Red Lobster and Olive Garden to rise between 2% and 3% in fiscal 2007.
- The company plans to open 35 to 40 net new restaurants; as a result, sales growth is expected to rise 5% with EPS growth of 10% to 12% in fiscal 2007.
(Figures in millions, except per-share data)
Income Statement Highlights
Q3 2007 |
Q3 2006 |
Change |
|
---|---|---|---|
Sales |
$1,542.9 |
$1,474.2 |
4.7% |
Net Profit |
$106.4 |
$105.3 |
1% |
EPS |
$0.72 |
$0.67 |
7.5% |
Diluted Shares |
148.3 |
156.9 |
(5.5%) |
Get back to basics with the income statement.
Margin Checkup
Q3 2007 |
Q3 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
23.4% |
23.4% |
0.1 |
Operating Margin |
9.6% |
10.1% |
(0.5) |
Net Margin |
6.9% |
7.1% |
(0.2) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q3 2007 |
Q3 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$53.8 |
$53.1 |
1.3% |
Accounts Rec. |
$43.7 |
$39.2 |
11.4% |
Inventory |
$282.4 |
$245.3 |
15.1% |
Liabilities |
Q3 2007 |
Q3 2006 |
Change |
---|---|---|---|
Accounts Payable |
$220.9 |
$222.5 |
(0.7%) |
Long-Term Debt |
$492.3 |
$645.1 |
(23.7%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
The company did not include a cash flow statement in its press release.
Free cash flow is a Fool's best friend.
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