Darden Restaurants

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Darden Restaurants

• Andy Petzar
• DRI
• 10/11/04

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Company Background

• Bill Darden, the founder of Red Lobster, was
  19-years old when he opened his first restaurant
  in Waycross, Georgia. He named it the "The Green
  Frog. Right from the start, Darden focused on
  service as the key to his success.
• Incorporated in March1995, Darden Restaurants,
  Inc. is the world's largest casual dining
  restaurant company

Bill Darden1918 - 1994Founder of Darden
Restaurants
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Key/Interesting Facts About Darden

• As the largest casual dining restaurant company
  in the world, Operates 1,325 casual dining
  restaurants in 49 states and Canada
• Operate four distinct restaurant concepts that
  together generate annual sales of more than 5
  billion
• Restaurants included
• Red Lobster
• Olive Garden
• Bahama Breeze
• Smokey Bones Barbeque and Grill
• Seasons 52

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Stock Info

• 1st purchased 11/13/04 at 20.74
• Currently valued at 24.05

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Competitors
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Recent News

• Darden Restaurants, Inc. Announces Succession
  Plan
• announced that Joe R. Lee, 63, who serves as
  Darden's Chairman and Chief Executive Officer,
  will step down as Chief Executive Officer in
  December 2004.
• To enable the Company to benefit from his years
  of experience and to assure a smooth and
  effective transition to the new leadership, Lee
  will remain as Chairman of the Board until his
  planned retirement in December 2005.
• Effective December 2004, Clarence Otis, Jr., 48,
  who serves as President of its Smokey Bones
  business unit, will become Darden's Chief
  Executive Officer, and upon Lee's retirement in
  2005, is expected to become Chairman. Andrew H.
  (Drew) Madsen, 48, who serves as President of
  Olive Garden, will become Darden's President and
  Chief Operating Officer.

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Recent News

• Darden Restaurants, Inc. Issues FY 2005 EPS
  Growth Outlook Darden Restaurants, Inc.
  announced that it expects fiscal 2005 earnings
  growth of 8 to 12. The Company also expects to
  open at least 50 to 60 new restaurants in fiscal
  2005. According to Reuters Estimates, analysts
  expect the Company to earn 1.63 per share in the
  same period.
• Darden Restaurants, Inc. Reports Asset Impairment
  and Restructuring Charge Comments on FY 2004 EPS
  Guidance Darden Restaurants, Inc. announced that
  it has closed six Bahama Breeze restaurants and
  will record an estimated 22.5 million non-cash,
  after-tax charge (36.7 million pre-tax) for
  asset impairment in the fourth quarter ending May
  30, 2004.

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SWOT Analysis

• Strengths
• Weaknesses
• Opportunities
• Threats

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SWOT Analysis

• Weaknesses

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Ratio Comparison
Mil Millions   MRQ Most Recent Quarter   TTM
Trailing Twelve Months
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Ratio Comparison
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Intrinsic Value

• Intrinsic Value is 27.63
• Stock Price as of 10/11/04 is 24.05
• Recommendation to buy, sell, or hold