Darden Restaurants Inc (DRI)

Pretax margin

		May 26, 2024	May 28, 2023	May 29, 2022	May 30, 2021	May 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	1,172,600	1,118,900	1,091,600	573,400	-164,200
Revenue	US$ in thousands	11,391,500	10,461,500	9,585,300	7,181,100	7,748,300
Pretax margin		10.29%	10.70%	11.39%	7.98%	-2.12%

May 26, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $1,172,600K ÷ $11,391,500K
= 10.29%

The pretax margin of Darden Restaurants Inc has shown varying trends over the past five years, with the most recent figure standing at 10.29% for the fiscal year ending May 26, 2024. This represents a slight decline from the previous year's margin of 10.70%. Compared to two years ago, the pretax margin has decreased from 11.39% to the current level. The figure for the fiscal year ending May 26, 2024, reflects the company's ability to generate pre-tax profits relative to its total revenue. The positive margins observed in recent years indicate that Darden Restaurants Inc has been able to effectively manage its operating expenses and generate profitability. However, it is important to note the significant improvement from a negative pretax margin of -2.12% in the fiscal year ending May 31, 2020, to the positive figures in more recent years. This demonstrates a positive turnaround in the company's financial performance over the period under review.