Darden Restaurants Inc (DRI)
Profitability ratios
Return on sales
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 19.89% | 18.78% | 19.84% | 19.53% | 15.11% |
| Operating profit margin | 11.54% | 11.49% | 12.12% | 9.03% | 0.62% |
| Pretax margin | 10.29% | 10.70% | 11.39% | 7.98% | -2.12% |
| Net profit margin | 9.02% | 9.39% | 9.94% | 8.76% | -0.68% |
Darden Restaurants Inc has demonstrated consistent improvement in its profitability ratios over the past five years. The gross profit margin has increased steadily from 15.11% in 2020 to 19.89% in 2024, indicating efficient management of production costs and pricing strategies.
The operating profit margin has also shown positive growth, rising from 0.62% in 2020 to 11.54% in 2024. This suggests that Darden Restaurants has effectively controlled its operating expenses and increased operational efficiency.
The pretax margin, reflecting the company's profitability before taxes, has generally shown an upward trend from -2.12% in 2020 to 10.29% in 2024. This improvement indicates that Darden Restaurants has been more successful in generating income from its operations while managing its tax liabilities.
Finally, the net profit margin, which measures the company's overall profitability after all expenses are accounted for, has shown consistent growth over the years, reaching 9.02% in 2024. This indicates that Darden Restaurants has been able to effectively manage its costs, increase revenues, and generate profits for its shareholders.
Overall, Darden Restaurants Inc's profitability ratios reflect a positive trend, indicating improved operational efficiency and financial performance over the past five years.
Return on investment
| May 26, 2024 | May 28, 2023 | May 29, 2022 | May 30, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.61% | 11.73% | 11.47% | 6.09% | 0.48% |
| Return on assets (ROA) | 9.08% | 9.59% | 9.40% | 5.91% | -0.53% |
| Return on total capital | 58.60% | 53.10% | 36.54% | 16.59% | -3.52% |
| Return on equity (ROE) | 45.82% | 44.60% | 43.34% | 22.37% | -2.25% |
Darden Restaurants Inc has shown consistent improvement in its profitability ratios over the past five years.
The Operating Return on Assets (Operating ROA) has been relatively stable, ranging from 0.48% in 2020 to 11.73% in 2023. This indicates that the company has been effectively generating operating profits relative to its total assets, with a peak of 11.73% in 2023.
The Return on Assets (ROA) has also exhibited positive growth, with values ranging from -0.53% in 2020 to 9.59% in 2023. This ratio demonstrates the company's ability to generate profits from its total assets, reflecting an upward trend in profitability.
The Return on Total Capital has shown significant improvement over the years, increasing from -3.52% in 2020 to 58.60% in 2024. This ratio signifies the company's efficiency in generating profits from its total capital, indicating a strong performance in utilizing its capital resources.
The Return on Equity (ROE) has notably increased from -2.25% in 2020 to 45.82% in 2024, showing a favorable trend in generating profits for the company's shareholders. This indicates that Darden Restaurants Inc has been successful in maximizing returns for its equity investors.
Overall, the consistent improvement in profitability ratios reflects positively on Darden Restaurants Inc's financial performance and efficiency in utilizing its assets and capital to generate profits.