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:

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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.