On June 19, Darden Restaurants
- The company suffered from the soft casual dining market, posting a meager 3.2% in sales.
- The Olive Garden segment delivered same-store sales of 3.5%, while Red Lobster's same-store sales fell 2.2%.
- Losses from discontinued operations totaling $1.05 per share resulted mainly from the decision to close Smokey Bones. Excluding the one-time charge, earnings would have been $0.67 per share.
- Management projects 3% unit growth in fiscal 2008.
(Figures in millions, except per-share data.)
Income Statement Highlights
Q4 2007 |
Q4 2006 |
Change |
|
---|---|---|---|
Sales |
$1,459.8 |
$1,414.3 |
3.2% |
Net Profit |
($55.1) |
$92.3 |
N/A |
EPS |
($0.38) |
$0.60 |
N/A |
Diluted Shares |
145.9 |
153.8 |
(5.1%) |
Get back to basics with the income statement.
Margin Checkup
Q4 2007 |
Q4 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
22.8% |
23.5% |
(0.7) |
Operating Margin |
10% |
10.6% |
(0.6) |
Net Margin |
(3.8%) |
6.5% |
(10.3) |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q4 2007 |
Q4 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$30.2 |
$42.3 |
(28.6%) |
Accounts Rec. |
$46.4 |
$37.1 |
25.1% |
Inventory |
$209.6 |
$198.7 |
5.5% |
Liabilities |
Q4 2007 |
Q4 2006 |
Change |
---|---|---|---|
Accounts Payable |
$178.0 |
$213.2 |
(16.5%) |
Long-Term Debt |
$491.6 |
$494.7 |
(0.6%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
Performing due diligence without the cash flow statement is like eating lobster without the butter.
Free cash flow is a Fool's best friend.
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