Darden Restaurants, Inc. (DRI) is the largest full-service restaurant company in the world. It operates over 2,200

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Darden Restaurants, Inc. (DRI) is the largest full-service restaurant company in the world. It operates over 2,200 restaurants under a variety of brand names, including Olive Garden, Bahama Breeze, and LongHorn Steakhouse. Chipotle Mexican Grill, Inc. (CMG) operates over 2,452 restaurants throughout the United States. It’s a leader and innovator in the food service industry. The cost of food, beverage, and packaging and the beginning and ending inventory balances from recent annual reports for Darden and Chipotle are as follows (in millions):

a. Compute the inventory turnover for both companies.
b. Compute the days’ sales in inventory for both companies.
c. Which company is more efficient in managing inventory?
d. What might explain the difference in the inventory management efficiency of the two companies?

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Related Book For  book-img-for-question

Financial And Managerial Accounting

ISBN: 9780357714041

16th Edition

Authors: Carl S. Warren, Jefferson P. Jones, William Tayler

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