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 indstry. 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): Darden Chipotle Cost of goods sold (food, beverage, and packaging) $2,412.5 $1,601.0 Inventories: Beginning of year End of year 205.3 19.9 207.3 21.6 a. Compute the inventory turnover for both companies. Round your answers to one decimal place. Inventory Turnover. 11.7 Darden Restaurants Chipotle X b. Compute the days' sales in inventory for both companies. Assume a 365-day year. If required, round all computations to one decimal place and use in subsequent calculations. Round final answers to one decimal place. Darden Restaurants Chipotle Days' Sales in Inventory days 4.7 days c. Which company is more efficient in managing inventory? Check My Work Type here to search chove Esc A- 4+ W 56F ^ Previous Next 1:00 AM 4/13/2023 Home End Insert Defeb appears to manage its food, beverage, and packaging inventories more efficiently. d. Based on the details provided in the question which of the following is correct? 1. The difference in inventory management efficiency may relate to the types of food the restaurants serve. Darden's food turnover can be slower. Chipotle offers food products that must be sold fresh. Chipotle must manage its inventory more carefully. 2. The difference in inventory management efficiency may relate to the types of food the restaurants serve. Chipotle's food turnover can be slower. Darden must manage its inventory more carefully. Feedback Check My Work a. Inventory Turnover = Cost of Goods Sold/Average Inventory b. Number of Days' Sales in Inventory = Average Inventory/Average Daily Cost of Goods Sold c. The days sales in inventory shows how fast the company is moving its inventory. Shorter days inventory outstanding means the company can convert its inventory into cash sooner. d. Consider the type of restaurant and food offered when commenting on efficiency. Check My Work Type here to search b enova 4+ M 56F Previous Next 1:00 AM 4/13/2023 Home End Insert