On June 20, Darden Restaurants (NYSE:DRI) released Q4 2006 earnings for the period ended May 28.

  • Comps were 9.4% for Red Lobster and 2.5% for Olive Garden, its two primary concepts. Bahama Breeze reported 3.6% comparables and Smoky Bones was down 7.7%.
  • The company repurchased 2.4 million shares during the quarter.
  • Growth of Smoky Bones will be minimized while the company refocuses the concept and improves operations.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q4 2006

Q4 2005

Change

Sales

$1,500

$1,512

$1,394

8.5%

Net Profit

--

92.3

84

9.9%

EPS

$0.60

$0.60

$0.52

15.4%

Diluted Shares

153.8

162

(5.1%)



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

70.10%

69.77%

0.33

Operating Margin

9.57%

9.5%

0.07

Net Margin

6.10%

6.02%

0.08

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$42.3

$42.8

(1.2%)

Accounts Rec.

$37.1

$36.5

1.6%

Inventory

$198.7

$235.4

(15.6%)



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$213.2

$191.2

11.5%

Long-Term Debt

$494.6

$350.3

41.2%



Learn the ways of the balance sheet.

Cash Flow Highlights

No data given, which is not very Foolish.

Find out why Fools always follow the money.

Related Companies:

  • Brinker International (NYSE:EAT)
  • The Cheesecake Factory (NASDAQ:CAKE)
  • P.F. Chang's China Bistro (NASDAQ:PFCB)
  • Ruby Tuesday (NYSE:RI)

Related Foolishness:

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 check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Jim Mueller has a position in Cheesecake Factory, but not in any other company mentioned. Fool rules are here.