Darden Restaurants Inc (DRI)

Fixed asset turnover

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	May 26, 2024	Feb 29, 2024	Feb 25, 2024	Nov 30, 2023	Nov 26, 2023	Aug 31, 2023	Aug 27, 2023	May 31, 2023	May 28, 2023	Feb 28, 2023	Feb 26, 2023	Nov 30, 2022	Nov 27, 2022	Aug 31, 2022	Aug 28, 2022
Revenue (ttm)	US$ in thousands	12,076,700	11,762,300	11,563,100	11,647,900	11,865,700	11,635,700	11,404,200	11,160,000	10,915,700	10,957,400	10,964,200	11,019,800	11,074,400	10,791,900	10,555,100	10,215,000	9,874,900	9,991,300	10,047,900	10,050,700
Property, plant and equipment	US$ in thousands	—	—	—	—	—	6,691,900	—	3,048,400	7,583,200	3,016,400	7,592,000	2,985,200	7,099,000	6,084,700	7,046,600	2,715,000	6,993,500	2,665,400	6,938,600	2,587,000
Fixed asset turnover		—	—	—	—	—	1.74	—	3.66	1.44	3.63	1.44	3.69	1.56	1.77	1.50	3.76	1.41	3.75	1.45	3.89

May 31, 2025 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $12,076,700K ÷ $—K
= —

The fixed asset turnover ratio for Darden Restaurants Inc exhibits notable fluctuations over the analyzed periods. Historically, the ratio demonstrates a pattern of elevated values, generally oscillating around approximately 3.60 to 3.89, during specific assessment dates, indicative of periods where sales effectively utilize fixed assets.

For instance, as of August 28, 2022, the ratio stood at 3.89, which is relatively high, implying efficient utilization of fixed assets in generating revenue during that period. Similarly, on November 27, 2022, the ratio maintained a comparable level of 3.75, further emphasizing a period of operational efficiency.

Conversely, at several other points, the ratio sharply declines to approximately 1.41 to 1.56, notably on dates such as August 31, 2022, and August 31, 2023. These lower ratios suggest periods of reduced efficiency, possibly due to increased investment in fixed assets or challenges in generating sales from existing assets.

In the most recent data points, the ratio again approaches pre-2023 levels, with values like 3.66 on February 25, 2024, indicating a potential return to more efficient asset utilization.

Overall, the data reflects significant variability in fixed asset turnover, pointing to cyclical or strategic adjustments in fixed asset management, or changes in sales performance relative to fixed assets. The pattern suggests that while periods of high efficiency are observable, they are intermittently disrupted by phases of lower ratios, warranting further investigation into operational or strategic factors influencing asset utilization efficiency.