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Choose a time period to help project future revenue growth for Darden Restaurants
Description
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 100 words or less; 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 at https://www.marketwatch.com/investing/index/djusru/charts?countrycode=xx .
Part C: Investigate Darden’s revenue growth on Darden’s Income statement from 1994 to 2020 for 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 100 words as simple as possible, but not simpler.