Darden Restaurants, Inc. has recently released its 10-K report for the fiscal year ended May 26, 2024, filed with the SEC on July 19, 2024. The company owns and operates full-service restaurants in the United States and Canada under various brand names including Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, and others. Darden Restaurants, Inc. was founded in 1968 and is based in Orlando, Florida.
The 10-K report's "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" section provides insights into several aspects of the company's operations. Darden Restaurants, Inc. highlights the seasonal fluctuations in its sales volumes, with the highest average sales per restaurant occurring in the winter and spring, followed by the fall and summer. The report also discusses the impact of inflation on the company's operations, particularly in relation to food and beverage costs and labor inflation.
Moreover, the 10-K report delves into the critical accounting estimates made by the company, emphasizing the significant judgments and uncertainties involved in preparing its consolidated financial statements. Key estimates mentioned include the valuation of long-lived assets, the valuation and recoverability of goodwill and trademarks, and the estimation of unearned revenues, primarily representing the liability for gift cards sold but not yet redeemed.
Furthermore, the report sheds light on Darden Restaurants, Inc.'s liquidity and capital resources. It outlines the company's principal source of liquidity, which is generated from operating activities and used to finance various aspects of the business, including capital expenditures for new restaurants, remodeling and maintaining existing restaurants, paying dividends to shareholders, and repurchasing shares of common stock. The report also details the company's credit ratings and provides information about its Revolving Credit Agreement, Term Loan Agreement, and the issuance of senior notes.
As of May 25, 2025, the company's outstanding long-term debt primarily consisted of unsecured senior notes due in 2027 and 2029, reflecting its ongoing financial commitments and capital structure.
Following these announcements, the company's shares moved -0.56%, and are now trading at a price of $208.37. If you want to know more, read the company's complete 10-K report here.
