Preview

Compare the financial situations of two companies.

Powerful Essays
Open Document
Open Document
2946 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Compare the financial situations of two companies.
Introduction

This report is to compare the financial situations of two companies in the restaurant industry, Darden Restaurants Inc. of Florida and Brinker International Inc. of Texas. The report will provide a detailed analysis and summary of several things including financial analysis, industry history and analysis, both companies history and analysis, vertical and horizontal analysis, and the creditworthiness of each company.

These analysis' that we are going to conduct will provide us with a myriad of information about the two companies and how they compare to each other.

In comparing the companies to each other it is important to take into account the liquidity or ability of a firm to meet its current obligations, and solvency analysis, which is a firm's ability to meet interest payments and other financial long term obligations. Profitability is also very important to gauge along with the activity ratio's which give us insight into how a company is managing its assets and running its business in general. (Accounting Text and Cases, 10th Edition, By Anthony, Hawkins

and Merchant. New York: Irwin/McGraw-Hill, Inc., 1999. This report will give us in depth analysis on the two companies financial position and will help in determining which company is healthier financially.

History and Development

Restaurant Industry History

The restaurant industry historically has been an increasingly competitive industry and a widespread industry as well. Companies in this industry can compete on a variety of different things including taste of food, quality, service, timeliness of food, atmosphere or different food products.

Darden Restaurants Inc.

Darden Restaurants is the world's biggest restaurant operator. The company is in the business of restaurant dining for customers who enjoy somewhat "relaxed" dining, and eating Italian and seafood in the United States and Canada. (99 Darden Restaurants 1999 Annual Report.) This is evident because as far as customers are


Bibliography: Accounting Text and Cases, 10th Edition, By Anthony, Hawkins and Merchant. New York: Irwin/McGraw-Hill, Inc., 1999. Darden Restaurants Inc. Consolidated Annual Report for year ending 1999. Darden Restaurants Inc. Consolidated Annual Report for year ending 2000. Brinker International Inc. Consolidated Annual Report for year ending 2000.
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Riordan Financial Ratios Bsa500
    • 2439 Words
    • 10 Pages

    Riordan Financial Ratios Bsa500

    This is a brief analysis and comparison of select financial ratios of four companies: two in the manufacturing and two in the retail food industries. The financial ratios analyzed are the current ratio, debt ratio, profit margin, return on assets. I should point out that I used the most recent financial reports provided for each company, although in some cases they may not represent the same years. All dollar figures are in thousands.…

    • 2439 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Good Essays

    XACC/280 Financial Analysis: Pepsico
    • 1114 Words
    • 5 Pages

    XACC/280 Financial Analysis: Pepsico

    To any company whether small or a large corporation, the financial analysis is very important in order for a successful business. This will determine if the company is healthy enough to invest or even to see where you are weak in the financial part of the business. It is the company’s responsibility to present accurate analysis of their financial reports. What I hope to present to you is information that you will help see the comparison of both companies within their financial standings. In this report I will present a vertical analysis and a horizontal analysis, and ratio analysis. I will also try to provide some strategies…

    • 1114 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Organizational Structure Of Boston Pizza International Inc
    • 6343 Words
    • 17 Pages

    Organizational Structure Of Boston Pizza International Inc

    The food industry in Canada, with its highly competitive market continues to evolve and change each day, affected by its financial surroundings, mechanical progression and accordingly, the shifting nature of consumer behavior (Office of Consumer Affairs, 2013). Canadian restaurant sector can be divided into three groups, the fast food or quick service, the mid- scale casual dining, and the fine dining. Ostensibly dominating the second group of casual dining is the Boston Pizza International Inc. (also known as BP). This research project is based on the Boston Pizza perceived as a Platinum Member of Canada 's 50 Best Managed Companies. This is to appreciate how the company has placed itself in the market and the factors at play, which have contributed not only to scale the pinnacle of success but also ward off the strategies of competitors and new entrants alike. Data collected is through the information available on the company’s website and other relevant websites, journals and articles and hence the implied limitation. It begins with the evaluation of the impact of various functions of the Boston Pizza such human resources, finance, operations, and marketing. Review of the organizations design and departmentalization with respect to the geographic location, products, services, and marketing…

    • 6343 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Good Essays

    Cango Financial
    • 1115 Words
    • 5 Pages

    Cango Financial

    The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future prospects. Financial analysis is also a very useful technique that forms a basis for making key decisions about company operations. In addition to internal company members, these ratios are used by potential investors and shareholders to make investment decisions about the company.…

    • 1115 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Xacc/280 Financial Analysis
    • 1261 Words
    • 6 Pages

    Xacc/280 Financial Analysis

    In this report there are vertical analysis and horizontal analysis with these two companies. The comparison between the two companies could be beneficial for an investor who wants to invest their money with either company. Although if a person were to invest in either company they would need to do more extensive searches on their own to know that they are investing in the company wisely.…

    • 1261 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Reebok Vs Caesar
    • 516 Words
    • 3 Pages

    Reebok Vs Caesar

    1. Compute financial ratios using the guidelines provided below. Use the component ratios of return on equity to explain the reasons for the difference in the profitability across the two firms. In other words, is profit margin, asset turnover or/and financial leverage responsible for the difference in profitability? Comment on the riskiness of the two companies based on the financial ratios. I would like you to compute the ratios for 1988, 1989 and 1990. Data to compute the ratios for 1990 are in the current financial statements. But to compute ratios for 1988 and 1989, you may have to get some data from notes and supplementary disclosures (all included in the case). I provide guidelines for this purpose below.…

    • 516 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Outback 5 Principles
    • 1218 Words
    • 5 Pages

    Outback 5 Principles

    The industry was highly fragmented and subject to risks from food cost and wage inflation, lifestyle trends, seasonality and shifts in investor sentiment-all of these factors that are usually present in our modern times. All of these factors dictated how each restaurant conducted operations. The fast pace of society required companies to develop well organized take-out services to accommodate working…

    • 1218 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Better Essays

    Jet Blue vs Southwest
    • 1154 Words
    • 5 Pages

    Jet Blue vs Southwest

    This case is a report that compares the financials of two well-known firms in the airline industry, JetBlue and Southwest. JetBlue Airways Corp was established in the year 1998 with a vision of being a leading cost efficient passenger airline with competitive, low rates. The company has been working toward a goal of growing sustainably while also maintaining efficient liquidity. The second firm in this case report, Southwest Airlines Company is a much older airline, which was founded as a commuter airline in 1971. Both companies operate on point-to-point services, and have aimed for competitive and cheap rates. However, due to increase in competition in recent years in the airline industry, both firms have had to rethink and revise their respective strategies. Southwest has recently drifted a little from its original conservative strategy by acquiring common stock of other airways. Similarly, its competitor JetBlue has opted to move away from its plan of low-cost, and in the last couple of years had begun to increase the charge for additional amenities, while also selling its common stock to other airlines, thus not sticking to its initial scheme of growing individually. In this case report, I am going to draw a comparison between these two reputed companies by reviewing their financial statements to establish the creditworthiness of each of them.…

    • 1154 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Bp Accounting Ratios
    • 347 Words
    • 2 Pages

    Bp Accounting Ratios

    A company?s financial statements and ratios are good indicators of its performance over the years. This report specifically compares the ratios for 2004 and 2005, with some additional insight into 2003, 2002, and 2001.…

    • 347 Words
    • 2 Pages
    Good Essays
    Read More
  • Better Essays

    Darden Restaurants
    • 2798 Words
    • 12 Pages

    Darden Restaurants

    When evaluating a firm, several factors must be determined to make an educated decision to invest in the company or not. Darden Restaurants is the world’s largest full service restaurant chain and offers many competitive advantages. During the current economy, many firms are closing their doors and turning to other forms of work. Darden’s economic trends and strategies are discussed and also the tactics to achieve these strategies. Darden has an excellent human resources department and the managers within this department are some of the best in the industry. They play an integral role in helping Darden continue to be successful. Examining Darden’s financial statements is a superior way to see if they are creating value. Darden is a solid company all of the way around, and they are creating a great culture to work in.…

    • 2798 Words
    • 12 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Campany Case 6 Darden Restaurants
    • 322 Words
    • 2 Pages

    Campany Case 6 Darden Restaurants

    With more than 1800 restaurants spread throughout the country Darden Restaurants has become the largest full service restaurant company. Darden's success lies with in its ability to create brands with similar operations as well as effectively differentiating and positioning their brands. Some of the ways Darden differentiated their brands was by creating restaurants that provide customers with an emotional as well as physical experience. For example The Olive Garden, which is one of Dardens most promising brands and accounts for half of dardens annual revenues, focused on the concept of creating a mythical Italian family dining, hence their marketing phrase “When your here, your family”. Darden targeted the customers that wanted to experience an italian style dining atmosphere. Olive garden's management worked directly with italian chefs to capture the authenticity of italian style cooking and food. An example of effective marketing positioning is Red Lobsters strategy to develop a healthier style of dining as well as a more appealing menu. Red Lobster had to make some substantial changes when their sales dropped back in 2004. At the center of these changes was a concept that Red lobster referred to as “Stealth Health” which was a concept that prompted a development of a new menu based off wood-fired grilling. With one third of its new menu consisting of wood-fired grilled food, it helped bring in new customers who were interested in trying something new. Although this concept may have drawn away its original patrons, they targeted a segment that was much more abundant. However, Red Lobster did its best to keep original items on the menu for their loyal classic customer. I also feel this concept was created based of the facts that a majority of the customer base is shifting to more healthier options when dining out. The “Stealt health” strategy is an excellent approach to provide for this shifting…

    • 322 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Netflix Company Analysis
    • 3520 Words
    • 15 Pages

    Netflix Company Analysis

    Summarize the company’s financial health. How does it compare to other companies in the industry?…

    • 3520 Words
    • 15 Pages
    Better Essays
    Read More
  • Powerful Essays

    Financial Analysis Coca-Cola Verses Pepsico. Inc.
    • 1780 Words
    • 8 Pages

    Financial Analysis Coca-Cola Verses Pepsico. Inc.

    In this paper we will review each company’s financial documents to see how each of the companies is doing financially. We will also perform a vertical and horizontal analysis from each of the company’s financial data. Once the analysis is complete I will give recommendations to each company according to the financial review.…

    • 1780 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Best Essays

    Overview of the Hospitality and Tourism Industry
    • 2338 Words
    • 10 Pages

    Overview of the Hospitality and Tourism Industry

    In the following paper, I will determine the challenges involved in managing restaurant operations that are specific to my state, as well as how I would address those challenges. Secondly, I will determine the impact of computerization on food service and lodging operations in my state. Next, I will analyze the interdependence of food service, lodging, and meeting segments of the hospitality industry and make two recommendations for how the synergy between the three sub-segments could be improved, using examples from my state to illustrate my case. In addition, I will consider how these segments can improve their relationships between one another and how they can combine their services in order to be more marketable in my home state. Finally, I will determine the likely consequences of the introduction of gaming entertainment into my state and the impact of significant economic expansion of the segment upon other segments of the hospitality industry.…

    • 2338 Words
    • 10 Pages
    Best Essays
    Read More
  • Powerful Essays

    Chick Fila Marketing Plan
    • 3457 Words
    • 14 Pages

    Chick Fila Marketing Plan

    Kochak, J. (1998, January). Nest egg. Restaurant Business, 97(2), 52-54. Retrieved October 22, 2007, from ABI/INFORM Global database. (Document ID: 25330225…

    • 3457 Words
    • 14 Pages
    Powerful Essays
    Read More