Darden Restaurants, Inc. is the largest fullservice restaurant company operating in the
world, with 2138 subsidiaries located in North
America and Canada, not including locations
in Japan, Puerto Rico, Mexico, and the Middle
East Region (Dubai, Qatar, Kuwait, and Abu
Dhabi).
Founder Bill Darden
En.wikipedia.org
First Chairman and Chief
Executive Officer, Joe Lee
Chairman and Chief
Executive Officer
www.darden.com/media/me
dia_brand_photos.asp
"We take pride in providing a terrific dining
experience to every guest, every time, in every one
of our restaurants. That is how we will be the best
company in casual dining, now and for generations."
Joe R. Lee
Chairman
Darden Restaurants
www.DardenRestaurants.com
“We’re on a path to create what we believe is a
truly great company; a vibrant organization
that consistently produces competitively strong
financial results is a special place to work for
employees. Our vision is to be a company that
positively affects meaningful more guests,
employees, communities and business
partners- a company that matters even more
than we do today.”
“
• Integrity and fairness
• Respect and caring
• Diversity
• Always learning — always teaching
• Being "of service."
• Teamwork
• Excellence
• Our Core Values communicate the behaviors and attitudes
we cherish as we strive to deliver on Darden's Core Purpose.
That's what motivates us to be the best.
Darden's Core Purpose
"To nourish and delight everyone we serve."
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In 1938, 19-year-old Bill Darden of Waycross, Georgia entered into the restaurant business
establishing a 25-seat luncheonette called the Green Frog that included a slogan, “Service
with a Hop.”
In 1968, the first Red Lobster, full-service seafood prototype was opened in Lakeland,
Florida, managed by Joe Lee, who previously worked in one of Darden’s other restaurants
as a manager
In 1970 General Mills, a marketer of diverse food products acquired every Red Lobster Inn
because the company lacked the necessary cash flow expansion and development.
In the 1970s -1980s constant rapid growth, in 1982 and 1983 the fist franchised Red
Lobsters were established in Tokyo, Japan and the opening of the first Olive Garden, also
350 establishments in 36 states in the US.
In 1995, General Mills decided to spin-off the restaurant operations to concentrate further
on consumer products. Lee, former president of Red Lobster divisions, was promoted to
Chairman and Chief Executive Officer of the new company entitled Darden Restaurants, in
honor of Bill Darden, the founder. In 1997, the company experienced market saturation and
was forced to relinquish unprofitable restaurants.
In the early 2000s’, Red Lobster and Olive Garden experienced record high sales with a
revenue of 5 billion and began an expansion venture, investing in diverse specialty
restaurants.
www.darden.com/media/media_bra
nd_photos.asp
www.darden.com/media/media_b
rand_photos.asp
www.darden.com/media/media_b
rand_photos.asp
$9,000,000.00
$8,000,000.00
$7,000,000.00
$6,000,000.00
$5,000,000.00
Series 1
$4,000,000.00
$3,000,000.00
$2,000,000.00
$1,000,000.00
$0.00
2010
2011
2012
2013
www.forbes.com/sites/.../2014/.../dardenrestaurants-to-slim-down
Internal Origin
(attributes of the
Organization)
External Origin
(attributes of the
Environment)
www.GlobaData
Strengths
Strong Brand
Portfolio
Leading the
Presence: the US
Increasing
Liquidity Position
Weaknesses
Decline in Profit
Margins
Debt Obligations
Opportunities
Strategic
Acquisition
International
Expansion
Growth Potential
in the Restaurant
Industry
Threats
Government
Regulations
Rising Manpower
Costs
Highly
Competitive
Market
LANDRY’S
DINEEQUIT
Y
DineEquity
Landry’s
Brenner’s Steak
House
Clam Jumper
Muer Seafood
Restaurants
The Luis San Resort
Kehman Broadwalk
Tower of the Americas
Fish Tales
Rainforest Café
Applebees
IHop
The Crab House
Down Town
Aquarium
The San Luis
Restaurant
Rusty Pelican
Fisherman’s
Wharf
Cadillac Bar
Pleasure Pier
Golden Nugget
The Westi n
Houston
Downtown
Charter House
Mai Tai Bar
$9,000,000,000.00
$8,550,000,000.00
$8,000,000,000.00
$7,000,000,000.00
$6,000,000,000.00
Darden
$5,000,000,000.00
DineEquity
$4,000,000,000.00
$3,000,000,000.00
$2,500,000,000.00
$2,000,000,000.00
$640,470,000.00
$1,000,000,000.00
$0.00
www.hoovers.com
Landry's
NET PROFIT MARGIN
RETURN OF EQUITY
12.00%
11.06%
$0.30
10.00%
26.16%
9.03%
$0.25
Darden
8.00%
22.70%
$0.20
16.35%
DineEquity
6.00%
$0.15
Landry's
4.00%
3.81%
Industry
Average
2.00%
Darden
DineEquity
$0.10
Landry's
Industry Average
$0.05
$0.00
1
-$0.05
0.00%
1
-0.87%
-2.00%
www.hoovers.com
-$0.10
-4.08%
OPERATING PROFIT
MARGIN
CURRENT RATIO
70.00%
1.17
1.2
63.36%
1.15
60.00%
1
50.00%
0.8
Darden
0.6
0.6
0.54
DineEquity
Landry's
Industry Average
0.4
40.00%
Darden
33.38%
30.00%
20.00%
0.2
10.00%
0
1
0.00%
www.hoovers.com
48.37%
DineEquity
Industry Average
PRICE/EARNINGS RATIO
EARNINGS PER SHARE
35
30
28.01
$7.00
25
20.45 21.05
$6.00
20
$5.00
15
Darden
DineEquity
10
Landry's
Industry Average
5
$4.00
$3.00
Darden
$2.00
DineEquity
$1.00
$0.00
-$1.00
0
1
-$2.00
-5
-10
-15
-12.58
www.hoovers.com
2010
2011
2012
2013
TOTAL DEBT EQUITY
7
8.93
6.56
9
6
8
7
5
4.38
Darden
4
3
1
6
DineEquity
Landry's
2
INTEREST COVERAGE
Industry Average
1.32
Darden
5.12
DineEquity
5
Landry's
4
3
1.16
Industry Average
2.1
2
0.94
1
0
0
“Baa2”(Moody’s Investors Service, “BBB”(Standard & Poor, and “BBB”, (Fitch)
DARDEN
DINEEQUITY
$60.00
$90.00
53.87
$50.00
49.93
47.9
52.24
49.87
50.99
45.39
44.95 44.65
$80.00
77.7176.39
46.21
70.5 70.8
$70.00
$40.00
66.27
$60.00
51.77
$50.00
$30.00
Series1
47.7 48.44
53
41.1
$40.00
$30.00
$20.00
Series1
$20.00
$10.00
$10.00
Market Price 42.90 4/28/2014 Market Price
74.93
4/1/2014
1/1/2014
10/1/2013
7/1/2013
4/1/2013
1/1/2013
10/1/2012
7/1/2012
4/1/2012
1/1/2012
10/1/2011
7/1/2011
4/1/2014
1/1/2014
10/1/2013
7/1/2013
4/1/2013
1/1/2013
10/1/2012
7/1/2012
4/1/2012
1/1/2012
10/1/2011
7/1/2011
4/1/2011
$0.00
4/1/2011
$0.00
www.morningstar.co
m
www.forbes.com/sites/...
/2014/.../dardenrestaurants-to-slimdown
PRE- SPIN OFF
POST-SPIN OFF
DRI
DRI
New
Company
Olive Garden
Red Lobster
Long Horn
Steakhouse
Specialty
Restaurants
www.forbes.com/sites/.../2014/.../darden
-restaurants-to-slim-down
Olive
Garden
Red Lobster
Specialty
Restaurants
Long Horn
Steakhouse
Red
Lobster
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In conclusion, Darden’s Restaurants is currently the largest fullservice division of the restaurant industry. Darden is experiencing
a decline in sales in some of their popular restaurants, but still
remain the industry leader. According to Darden Restaurants,
“their decline in sales is due to financial constraints, a money
conscious consumer, which is due to starting a new job position or
entering retirement.” (annual report) Because of Darden’s history
of success and experience in the restaurant industry, with the
proper restructuring and reorganizing the weak areas of their
business structure, Darden has the potential to increase sales;
therefore, I recommend the purchasing of Darden’s stock if you
are a risk taker. This recouping of the organization structure has
been shown in the past with Apple, for example, Apple was
experiencing a decline of sales until Steve Jobs was rehired as
CEO, Steve implemented a new vision for the company, and
Apple became the industry leader.
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Bernasek, A. (2014). TWO NUMBERS: TODAY’S 99% SPECIAL. Newsweek Global,
162(9), 85.
Thorn, B. (2013). Concepts grow sales, cachet with luxury ingredients. Nation’s Restaurant
News, 47(13),1
Darden Restaurants, Inc.
Retrieved April 6, 2014, from
http://eres.medaille.edu:2156/H/company360/history.html?
companyId=43598000000000
Bret, T. (2013, July). Concepts grow sales, cachet with luxury ingredients. Nation’s
Restaurant
News, 47(13), 1-25.3. Retrieved on April 7, 2104, EBSCO host. http:/web.b ebscohost.
Com/
Ehost/detail?vid=3&side=cla3bfc0-dc4f-4a03-b22f-4d2710
Darden Restaurants, Inc. International Directory of Company Histories. Retrieved from
Darden Restaurants, Inc. (2013, December).-Financial and Strategic Analysis Review.
www.GLOBALDATA
Darden Restaurants To Slim Down.
Retrieved from http://b-iforbesimg.com/joecornell/files/2014/01/DRIStub.png
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Darden Restaurants, Inc.
Retrieved from
http://globalbb.onesource.com/web/ReportsMain.aspx?KeyID=429127&Proces
Darden-Competitive Landscape-Hoover
Retrieved from
http://eres.medaille.edu:2156/H/company360/competitiveLandscape.html?companyId=435
9
Darden- Historical Financials-Hoover’s
http://bi.galegroup.com/essentials/article/GALE%7C12501313873/7703b14ee6a9059e3c15
Retrieved from http://eres.medaille.edu:2156/H/company360/financialHistory.html?
companyId=43598000
DineEquity-Financial Summary-Hoover’s
Retrieved from http://eresmedaille.edu:2156/H/company360/financialSummary.html?
companyId=1383400
Darden RESTRNT, Ticker DRI (2012, April). ValuEngine: The Leader in Stock Valuation
and
Forecasting. Retrieved from www. Business Essentials
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Darden Restaurants To Slim Down.
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Benefit Performance: Restaurants & Institutions
Retrieved from
http://bi.galegroup.com/essentials/article/GALE%7CA65953026/51bb57aee24f0ed561
77d
Darden Restaurants, Inc.
Retrieved from
http://globalbb.onesource.com/web/ReportsMain.aspx?KeyID=429127&Proces
Darden-Competitive Landscape-Hoover
Retrieved from
http://eres.medaille.edu:2156/H/company360/competitiveLandscape.html?companyI
d=4359
Darden- Historical Financials-Hoover’s
http://bi.galegroup.com/essentials/article/GALE%7C12501313873/7703b14ee6a9059e3
c15