Managerial Accounting Paper / Financial Analysis
soccer821
Outline.docxOUTLINE
Term Project
Comparative Financial Statement Analysis of Darden Restaurants and Flanigan’s Enterprises
Prepared by
Christopher Valdes
For Professor C.E. Reese
In partial fulfillment of the requirements for
ACC 770 – Managerial Accounting
Gus Machado School of Business / Graduate Studies
St. Thomas University
Miami Gardens, Florida.
Term Fl2 / Fall, 2019
December 12, 2019
Table of Contents
I. Introduction
a. Objective
b. Scope
c. Methodology/Organization
II. Business history and future
a. Industry
b. Darden Restaurants
c. Flanigan’s Enterprises
III. Financial analysis
a. Ratio Analysis Explanation
i. Liquidity Ratios
ii. Activity Ratios
iii. Solvency Ratios
iv. Profitability Ratios
b. Horizontal and Vertical Analysis
i. Overview
ii. Complementary Application
IV. Liquidity analysis
a. Industry
b. Darden Restaurants
c. Flanigan’s Enterprises
V. Activity analysis
a. Industry
b. Darden Restaurants
c. Flanigan’s Enterprises
VI. Solvency analysis
a. Industry
b. Darden Restaurants
c. Flanigan’s Enterprises
VII. Profitability analysis
a. Industry
b. Darden Restaurants
c. Flanigan’s Enterprises
VIII. Horizontal and Vertical Analysis
IX. Comparative analysis
a. Credit Worthiness Analysis
i. Short Term
ii. Long Term
b. Investment Attractiveness Analysis
c. Recommendations / Current Developments
X. Summary and Conclusions
XI. References / Bibliography
XII. Appendices
a. Horizontal Analysis Tables
b. Vertical Analysis Tables
Introduction
This paper conducts a comparative financial analysis on Darden Restaurants and Flanigan’s Enterprises with the objective to assess the financial health of the companies. Financial analysis provides companies with objective answers and support for making informed decisions. By reviewing past and current financial statements and comparing them to the restaurant industry, future predictions can be made to ensure that the companies can be profitable. Financial analysis allows companies to discover areas that must be improved to ensure that creditors look favorable upon the companies and drive profit potential.
Darden Restaurants ranked number 15 in Florida’s 125 top publicly traded companies. The Darden family of restaurants features some of the most recognizable and successful brands in full-service dining: Olive Garden, Long Horn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze® and Eddie V's.
Flanigan’s Enterprises ranked number 108 in Florida’s 125 top publicly traded companies operates as a chain of full-service restaurants and package liquor stores. The Company operates through two segments: the restaurant segment and the package liquor store segment. The operation of package stores consists of retail liquor sales and related items.
