Darden Restaurants Inc (DRI)
Profitability ratios
Return on sales
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | |
|---|---|---|---|---|---|
| Gross profit margin | 21.16% | 19.89% | 19.86% | 18.78% | 20.72% |
| Operating profit margin | 11.54% | 11.54% | 11.46% | 11.49% | 12.07% |
| Pretax margin | 10.32% | 10.29% | 10.68% | 10.70% | 11.36% |
| Net profit margin | 9.02% | 9.02% | 9.36% | 9.39% | 9.89% |
Darden Restaurants Inc's profitability ratios show a fluctuating trend over the reported periods. The gross profit margin declined from 20.72% on May 31, 2022, to 18.78% on May 28, 2023, indicating a decrease in the percentage of revenue retained after accounting for cost of goods sold. However, there was a slight recovery to 19.86% on May 31, 2023, and further improvement to 21.16% on May 31, 2024.
The operating profit margin, which reflects earnings before interest and taxes relative to revenue, also experienced a downward trend from 12.07% on May 31, 2022, to 11.49% on May 28, 2023. It remained relatively stable at around 11.5% from May 31, 2023, to May 31, 2024.
Similarly, the pretax margin, indicating the proportion of each dollar of revenue that translates to pre-tax earnings, decreased from 11.36% on May 31, 2022, to 10.70% on May 28, 2023. It continued to decline slightly to 10.29% on May 26, 2024, before slightly recovering to 10.32% on May 31, 2024.
The net profit margin, a measure of profitability after all expenses have been deducted, mirrored the trend of the pretax margin with a decrease from 9.89% on May 31, 2022, to 9.39% on May 28, 2023, and further declined to 9.02% on both May 26, 2024, and May 31, 2024.
Overall, the fluctuations in these profitability ratios suggest that Darden Restaurants Inc faced challenges in maintaining consistent profitability during the analyzed periods, potentially influenced by factors like cost management, revenue fluctuations, and economic conditions impacting the restaurant industry. Further analysis would be needed to understand the specific drivers behind these trends and their implications for the company's financial performance.
Return on investment
| May 31, 2024 | May 26, 2024 | May 31, 2023 | May 28, 2023 | May 31, 2022 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.61% | 11.61% | 11.73% | 11.73% | 11.47% |
| Return on assets (ROA) | 9.08% | 9.08% | 9.59% | 9.59% | 9.40% |
| Return on total capital | 58.65% | 58.60% | 54.76% | 53.10% | 53.08% |
| Return on equity (ROE) | 45.82% | 45.82% | 44.60% | 44.60% | 43.34% |
Darden Restaurants Inc has shown a stable trend in its profitability ratios over the years analyzed.
- Operating return on assets (Operating ROA) remained relatively consistent, ranging from 11.47% to 11.73% during the period.
- Return on assets (ROA) also exhibited stability, with values fluctuating slightly between 9.08% and 9.59%.
- Return on total capital increased steadily over the years, starting at 53.08% in May 2022 and reaching 58.65% by May 31, 2024.
- Return on equity (ROE) followed a similar trend to return on total capital, showing improvement from 43.34% in May 2022 to 45.82% by May 31, 2024.
Overall, Darden Restaurants Inc demonstrated strong profitability ratios, indicating efficient management of assets and capital to generate returns for its shareholders. The increase in return on total capital and ROE reflects the company's ability to generate higher profits relative to the invested capital, showcasing positive financial performance.