Darden Restaurants Inc DRI Darden Restaurants Inc DRI

Darden Restaurants Inc. (DRI)

Darden Restaurants, Inc. (DRI) 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).

Hall of Fame Founder Bill Darden En. wikipedia. org First Chairman and Chief Executive Officer, Joe Lee Chairman and Chief Executive Officer

Darden Restaurant Support Center www. darden. com/media/ media_brand_photos. as p

Mission Statement "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. Darden. Restaurants. com

Vision Statement “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. ”

Core Values “ • 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. "

History � � � 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 1970 s -1980 s 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 2000 s’, 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.

Brand Logos

Red Lobster Seafood Restaurant www. darden. com/media_ brand_photos. asp

Bahama Breeze Restaurant www. darden. com/media/medi a_brand_photos. asp

Capital Grille Restaurant www. darden. com/media/medi a_brand_photos. asp

Darden’s yearly sales $9, 000. 00 $8, 000. 00 $7, 000. 00 $6, 000. 00 $5, 000. 00 Series 1 $4, 000. 00 $3, 000. 00 $2, 000. 00 $1, 000. 00 $0. 00 2011 2012 2013

Comparison of Subsidiary Sales www. forbes. com/sites/. . . /2014/. . . /darde n-restaurants-to-slim-down

Darden’s Swot Analysis Strengths Strong Brand Portfolio Internal Origin (attributes of the Organization) External Origin (attributes of the Environment) www. Globa. Data Leading the Presence: the US Increasing Liquidity Position Opportunities Strategic Acquisition International Expansion Growth Potential in the Restaurant Industry Weaknesses Decline in Profit Margins Debt Obligations Threats Government Regulations Rising Manpower Costs Highly Competitive Market

Competitors DINEEQUIT Y Dine. Equity LANDRY’S Landry’s Brenner’s Steak House Clam Jumper Muer Seafood Restaurants Rainforest Café The Luis San Resort Kehman Broadwalk Tower of the Americas Fish Tales Applebees The Crab House Down Town Aquarium IHop 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

2013 Annual Sales $9, 000, 000. 00 $8, 550, 000. 00 $8, 000, 000. 00 $7, 000, 000. 00 $6, 000, 000. 00 $5, 000, 000. 00 Darden $4, 000, 000. 00 Dine. Equity $3, 000, 000. 00 $2, 500, 000. 00 $2, 000, 000. 00 $1, 000, 000. 00 $0. 00 www. hoovers. com $640, 470, 000. 00 Landry's

Competitor Analysis NET PROFIT MARGIN 12. 00% RETURN OF EQUITY 11. 06% $0. 30 10. 00% 26. 16% 9. 03% Darden 8. 00% $0. 25 $0. 20 Dine. Equity 6. 00% 4. 00% 22. 70% 16. 35% $0. 15 Landry's 3. 81% Industry Average 2. 00% Darden Dine. Equity $0. 10 Landry's Industry Average $0. 05 $0. 00 1 0. 00% -$0. 05 1 -0. 87% -2. 00% www. hoovers. com -$0. 10 -4. 08%

Competitor Analysis OPERATING PROFIT MARGIN CURRENT RATIO 1. 2 1. 17 1. 14999999 70. 00% 60. 00% 1 50. 00% 0. 8 0. 6 63. 36% 0. 600000001 0. 54 Darden Dine. Equity Landry's Industry Average 0. 4 40. 00% 30. 00% 20. 00% 0. 2 10. 00% 0 1 www. hoovers. com 0. 00% 48. 37% Darden 33. 38% Dine. Equity Industry Average

Competitor Analysis PRICE/EARNINGS RATIO EARNINGS PER SHARE 35 $7. 00 25 $6. 00 28. 01 30 $5. 00 20. 45 21. 05 $4. 00 20 $3. 00 Darden 15 Darden Dine. Equity 10 $2. 00 Landry's $1. 00 Industry Average 5 $0. 00 0 1 -$1. 00 -5 -$2. 00 -15 Dine. Equity -12. 58 www. hoovers. com 2010 2011 2012 2013

Competitor Analysis TOTAL DEBT EQUITY 7 6. 56 INTEREST COVERAGE 8. 93 9 6 8 7 5 4. 38 6 Darden 4 Dine. Equity 5. 12 Darden 5 Dine. Equity Landry's 3 Industry Average Landry's 4 Industry Average 3 2 1. 32 1. 15999999 2. 1 2 1 0. 940000001 1 0 0 “Baa 2”(Moody’s Investors Service, “BBB”(Standard & Poor, and “BBB”, (Fitch)

Stock Analysis DARDEN DINEEQUITY $60. 00 $90. 00 53. 87 $50. 00 47. 9 49. 93 44. 95 44. 65 52. 24 49. 87 50. 99 45. 39 $80. 00 46. 21 77. 71 76. 39 70. 5 70. 8 $70. 00 66. 27 $60. 00 $40. 00 $50. 00 $30. 00 Series 1 53 47. 7 48. 44 51. 77 $40. 00 41. 1 $30. 00 $20. 00 Series 1 $20. 00 $10. 00 $0. 00 4/26/2011 $0. 00 4/8/2011 4/26/2012 4/8/2013 4/8/2014 4/26/2013 Market Price 42. 90 4/28/2014 Market Price www. morningstar. com

Historical Sales www. forbes. com/sites /. . . /2014/. . . /dardenrestaurants-to-slimdown

Business Organization Structure PRE- SPIN OFF POST-SPIN OFF DRI New Company Olive Garden Red Lobster Long Horn Steakhouse Specialty Restaurants www. forbes. com/sites/. . . /2014/. . . /dar den-restaurants-to-slim-down Olive Garden Red Lobster Specialty Restaurants Long Horn Steakhouse Red Lobster

Conclusion � � 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.

References � � � � 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/company 360/history. html? company. Id=4359800000 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=cla 3 bfc 0 -dc 4 f-4 a 03 -b 22 f-4 d 2710 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

References � � � � Darden Restaurants, Inc. Retrieved from http: //globalbb. onesource. com/web/Reports. Main. aspx? Key. ID=429127& Proces Darden-Competitive Landscape-Hoover Retrieved from http: //eres. medaille. edu: 2156/H/company 360/competitive. Landscape. html? company. Id=4359 Darden- Historical Financials-Hoover’s http: //bi. galegroup. com/essentials/article/GALE%7 C 12501313873/7703 b 14 ee 6 a 9059 e 3 c 15 Retrieved from http: //eres. medaille. edu: 2156/H/company 360/financial. History. html? company. Id=43598000 Dine. Equity-Financial Summary-Hoover’s Retrieved from http: //eresmedaille. edu: 2156/H/company 360/financial. Summary. html? company. Id=1383400 Darden RESTRNT, Ticker DRI (2012, April). Valu. Engine: The Leader in Stock Valuation and Forecasting. Retrieved from www. Business Essentials

References � � � � � Darden Restaurants To Slim Down. Retrieved from http: //b-iforbesimg. com/joecornell/files/2014/01/DRIStub. png Benefit Performance: Restaurants & Institutions Retrieved from http: //bi. galegroup. com/essentials/article/GALE%7 CA 65953026/51 bb 57 aee 24 f 0 ed 56177 d Darden Restaurants, Inc. Retrieved from http: //globalbb. onesource. com/web/Reports. Main. aspx? Key. ID=429127& Proces Darden-Competitive Landscape-Hoover Retrieved from http: //eres. medaille. edu: 2156/H/company 360/competitive. Landscape. html? company. Id=4 359 Darden- Historical Financials-Hoover’s http: //bi. galegroup. com/essentials/article/GALE%7 C 12501313873/7703 b 14 ee 6 a 9059 e 3 c 15