Darden Restaurants, Inc. (NYSE:DRI) in March, 2020 wants to project revenue growth for the next year. The pandemic has just started to severely impacted operations. DO NOT consider information dated after March 2020; no one advising Darden knows that information in March.Cover the points below in a short paragraph; execs need the key points quickly. You can include graphs, tables, and other supporting evidence in an appendix.
- Is there a similar time period; if so, when?
- Part A: Investigate stock returns for Darden over time.
- Part B: Investigate the Dow Jones U.S. Restaurants & Bars Index athttps://www.marketwatch.com/investing/index/djusru/charts?countrycode=xx.
- Part C: Investigate Darden's revenue growth onDarden's Income statement from 1994 to 2020for periods when there was a fall-off in revenues; DO NOT use Capital IQ revenue numbers in your calculations for revenue growth that are labeled "Reclassified."
- What in Darden Restaurants, Inc. analysts' transcripts supports the period, if any, that you chose?
- Summarize any critical pros and cons for the comparison period, that you recommend, so you present an unbiased view of your recommendation. If you are recommending no comparable period, what is your credible reason why?
- There are no perfect answers; there are well supported answers.
- State your evidence and logic for choosing a comparison period followed by the revenue growth rate you recommend for forecasting revenue growth over the April 2020 to March 2021 time period.
Einstein's quote applies: "Everything should be as simple as it can be, but not simpler." So, make your paragraph as simple as possible, but not simpler.
A B S&P C D E F G H I J Capital IQ K L M Darden Restaurants, Inc. (NYSE:DR]) > Financials > Income Statement In Millions of the reported currency, except per share items. Template: Standard Period Type: Annual Restatement: Latest Filings Currency: Order: Latest on Right Conversion: 11 Units: Reported Currency s&P Capital IQ (Default) Decimals: Today's Spot Rate 12 Source : Capital IQ & Proprietary Capital IQ (Default) 13 14 Income Statement For the Fiscal Period Ending 15 12 months May-29-1994 12 months May-28-1995 12 months 12 months 12 months Reclassified 12 months Reclassified Restated 16 Currency May-26-1996 May-25-1997 May-31-1998 12 months May-30-1999 12 months Restated 12 months Restated 12 months Restated 17 USD 12 months USD 12 months USD USD May-28-2000 USD USD May-27-2001 May-26-2002 USD 8 Revenue USD May-25-2003 USD May-30-2004 May-29-2005 USD USD 19 Other Revenue 2,963.0 3,163.3 3, 191.8 USD 3,171.8 3,287.0 20 3,458.1 3,675.5 Total Revenue 3,992.4 4,366.9 2,963.0 4,655.0 5,003.4 Revenue growth 3,163.3 3, 191.8 4,977.6 6.8% 3,171.8 3,287.0 0.9% 3,458.1 -0.6% 3.6% 3,675.5 3,992.4 5.2% 4,366.9 23 Cost Of Goods Sold 6.3% 8.6% 4,655.0 9.4% 5,003.4 6.6% 4,977.6 24 Gross Profit 2,325.0 7.5% 2,495.6 667.6 2,576.0 2,628.4 0.5% 638 .0 2,473.1 25 718.61 595.8 2,744. 658 .6 2,891.6 713.2 3,124.4 783.9 3,394. 868 .0 972.4 3,647.9 3,902.9 26 Selling General & Admin Exp. 1,007.1 3,827.3 27 R & D Exp 301.1 1,100.4 345.8 373.9 1,150.3 361.3 358.5 360.9 363.0 389.2 28 Depreciation & Amort 417.2 124.7 431.7 472.1 135.5 467.3 136.9 126.3 30 29 Other Operating Expense/(Income) 134.6 125.3 130.5 146.9 165.8 191.2 210.0 194.7 31 32 Other Operating Exp., Total 425.9 481.3 508.5 498. 33 484.8 486.2 493.5 536. 583.0 622.9 682.1 34 Operating Income 212.1 186.3 662.0 210.1 97.7 173.8 227.0 290.4 331.9 389.5 384.1 418.3 488.3S&P Capital IQ Darden Restaurants, Inc. (NYSE:DR] In Millions of the reported currency, except per share items Income Statement For the Fiscal Period Ending Restated 12 months Reclassified 12 months 12 months 12 months 12 months Reclassified Reclassified Reclassified 15 12 months 12 months Reclassified 12 months Reclassified 12 months 12 months Reclassified 17 6 Currency May-28-200 May-27-2007 May-25-2008 May-31-2009 USD May-30-2010 USD USD May-29-2011 May-27-2012 May-26-2013 12 months USD May-25-2014 12 months USD USD May-31-2015 USD May-29-2016 USD May-28-2017 18 USD USD Revenue USD USD 19 Other Revenue 5,353. 5,567.1 6,626.5 7,217.5 7,113.1 7,500.2 5,327. 20 5,921.0 5,285.6 6,764.0 Total Revenue 6,933.5 7,170.2 Revenue growth 5,353.6 5,567.1 7.6% 6,626. 4.0% 7,217.5 7,113. 19.0% 7,500. 8.9% 5,327.1 -1.4% 5.4% 5,921.0 -29.0% 6,285.6 6,764.0 11.1% 6.2% 6,933.5 .6% ,170.2 Cost Of Goods Sold 2.5% 3.4% Gross Profit 4,098.5 4,258.8 1,255.1 1,308.3 5,138.7 5,636.9 5,484.0 5,699.5 1,487. 1,580.6 4,088.3 4,616. 25 1,629.1 1,800.7 1,238. 4,990.5 1,304.4 5,341.5 1,295.1 5,392.4 5,600.8 1,422. Selling General & Admin Exp. 1,541.1 1,569.4 R & D Exp 504.8 534.6 641.7 665.6 684.5 738.0 540.1 625.2 $47.3 28 673.5 622.9 Depreciation & Amor 627.4 197.0 29 Other Operating Expense/(Income) 200.4 245.7 283.1 300 .9 316.8 241.3 278.3 304.4 319.3 290.2 272.9 Other Operating Exp., Total 701.8 735.0 887.4 948.7 985.4 1,054.8 781.4 903.5 951.7 992.8 913.1 Operating Income 900.3 553.3 573.3 600.4 631.9 643.7 745.9 457.4 400.9 35 Interest Expense 343.4 429.7 628.0 669.1 Interest and Invest. Income (47.0) 3.1 (40.7) (86.9) 0.6 (108.3) 1.2 (95.2) 0.9 (94.5) (103.0 1.3 0.9 (126.9) 0.9 (134.9) (101.6 (66.8) 38 Net Interest Exp. (43.9 (40.1) (85.7) 0.9 (41.5) (107.4 93.9 (93.6) 0.6 (102.1) 0. 1.1 (126.0 1.3 (134.3 Other Non-Operating Inc. (Exp.) (101.0) (65.7 (40.2) 0 EBT Excl Unusual Items 509.4 533.2 514.7 524.5 549.8 652.3 355.3 274.9 209.1 328.7 562.3 628.9Capital IQ Darden Restaurants, Inc. (NYSE:DR] In Millions of the reported currency, except per share items. 11 12 13 14 Income Statement Reclassified Reclassified Reclassified For the Fiscal Period Ending Reclassified Reclassified 12 months Reclassified Reclassified 12 months 12 months Press Release 12 months 15 12 months 12 months 12 months 12 months May-29-2011 May-27-2012 12 months 12 months May-26-2013 May-25-2014 May-31-2015 May-29-2016 May-28-2017 May-27-2018 May-26-2019 16 Currency May-31-2020 17 USD USD USD USD USD USD USD USD USD USD 18 Revenue 7,500.2 5,327.1 5,921.0 6,285.6 6,764.0 6,933.5 7,170.2 8,080.1 8,510.4 19 Other Revenue 7,806.9 20 Total Revenue 7,500.2 5,327.1 5,921. 21 6,285.6 6,764.0 6,933. 7,170.2 8,080.1 8,510.4 7,806.9 Revenue growth 5.4% -29.0% 11.1% 6.2% 7.6% 2.5% 3.4% 12.7% 5.3% 8.3% 23 Cost Of Goods Sold 5,699.5 4,088.3 4,616.6 4,990.5 5,341.5 24 Gross Profit 1,800.7 1,238.8 5,392.4 5,600. 6,334. 6,661.4 6,398.5 1,304.4 25 1,295.1 1,422.5 1,541.1 1,569.4 1,745.4 1,849.0 1,408.4 26 Selling General & Admin Exp. 738.0 540.1 625.2 647.3 673.5 622.9 627.4 27 662.1 660.8 614.4 R & D Exp. 28 Depreciation & Amort. 316.8 241.3 278.3 304.4 319.3 290.2 272.9 313.1 336.7 355.9 29 Other Operating Expense/(Income) 30 31 Other Operating Exp., Total 1,054.8 781.4 903.5 951.7 992.8 913.1 900.3 975.2 397.5 970.3