The ratings on Darden Restaurants Inc. reflect the company's relatively good position in the casual-dining industry, geographic and concept diversity, and the good cash flow and profitability of its restaurants. The company's participation in the intensely competitive casual-dining sector of the restaurant industry partially offset these strengths. Darden is the largest full-service casual-dining restaurant company in the U.S., operating more than 1,750 units. Operating results have generally been good since 1998 because the company has successfully reinvested in its core businesses. Darden has improved the food, service, and atmosphere at its units. Nevertheless, it has reported weak operating results for several quarters due to decelerating of sales growth and margin pressure from high commodity costs and lack of sales leverage.
