Darden Digests Another Quarter: Fool by Numbers

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On Tuesday, Dec. 19, Darden Restaurants (NYSE: DRI) released fiscal 2007 second-quarter earnings for the period ended Nov. 27, 2006. Here are the quick and dirty details for the quarter.

• Sales grew 4.5% to $1.4 billion thanks to rising same-store sales at Olive Garden and Red Lobster and new store openings at Olive Garden and Smokey Bones.
• Total diluted earnings grew 17.1% because of increased profitability and fewer shares outstanding.
• For fiscal 2007, management is projecting 10%-12% diluted earnings per share growth.

(Figures in thousands, except per-share data)

Income Statement Highlights

	Q2 2006	Q2 2005	Change
Sales	$1,385,299	$1,325,093	4.5%
Net Profit	$61,662	$55,057	12.0%
EPS	$0.41	$0.35	17.1%
Diluted Shares	150,700	156,200	(3.5%)

*Three months ended Nov. 26, 2006, and Nov. 27, 2005.

Get back to basics with a look at the income statement.

Margin Checkup

	Q2 2006	Q2 2005	Change*
Gross Margin	70.8%	70.5%	0.3
Operating Margin	6.9%	7.0%	(0.1)
Net Margin	4.5%	4.2%	0.3

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets	Q2 2006	Q2 2005	Change
Cash + ST Invest.	$38,400	$82,536	(53.5%)
Accounts Rec.	$36,831	$38,066	(3.2%)
Inventory	$284,091	$247,353	14.9%

Liabilities	Q2 2006	Q2 2005	Change
Accounts Payable	$214,890	$209,767	2.4%
Long-Term Debt	$493,174	$645,830	(23.6%)

Learn the ways of the balance sheet.

Cash Flow Highlights
Fools will have to wait until Darden files its 10-Q for juicy cash flow details. Boo!

Find out why Fools always follow the money.

Related Companies:

• Brinker (NYSE: EAT)
• Applebee's (Nasdaq: APPB)
• OSI Restaurant Partners (NYSE: OSI)

Related Foolishness:

• Foolish Fundamentals: Margins
• Foolish Fundamentals: Free Cash Flow
• Foolish Fundamentals: Return on Invested Capital
• Foolish Fundamentals: The Cash Flow Statement

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so checkFool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.