Darden Restaurants Inc (DRI)
Profitability ratios
Return on sales
| 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 | May 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 33.31% | 20.18% | 19.30% | 19.38% | 19.86% | 19.34% | 20.03% | 19.61% | 20.01% | 20.55% | 20.69% | 20.93% | 19.99% | 18.91% | 17.31% | 16.56% | 16.40% | 17.36% | 18.79% | 19.29% |
| Operating profit margin | 11.81% | 11.82% | 12.55% | 13.32% | 12.45% | 11.68% | 10.73% | 9.74% | 10.58% | 11.44% | 12.27% | 13.08% | 12.12% | 11.05% | 10.35% | 9.64% | 10.67% | 11.66% | 12.25% | 12.80% |
| Pretax margin | 10.29% | 10.34% | 11.17% | 11.96% | 11.18% | 10.38% | 9.46% | 8.51% | 9.49% | 10.49% | 11.41% | 12.32% | 11.36% | 10.30% | 9.60% | 8.86% | 9.81% | 10.82% | 11.40% | 11.97% |
| Net profit margin | 8.96% | 8.98% | 9.76% | 10.47% | 9.85% | 9.21% | 8.35% | 7.45% | 8.36% | 9.30% | 10.08% | 10.87% | 9.97% | 8.98% | 8.36% | 7.70% | 8.56% | 9.45% | 9.98% | 10.51% |
The profitability ratios for Darden Restaurants Inc have shown some fluctuations over the reported periods. The gross profit margin has generally remained within a range of 16% to 21%, with a spike to 33.31% in February 2025, indicating potential efficiency in production and pricing strategies.
The operating profit margin has varied between 9.64% and 13.32%, with a decreasing trend in the later periods, which may suggest challenges in controlling operating expenses or generating higher revenues.
The pre-tax margin has also fluctuated between 8.51% and 12.32%, with a slight decline towards the most recent period, possibly indicating pressures on profitability before considering taxes and other non-operating items.
The net profit margin has ranged from 7.45% to 10.87%, showing a similar trend to the pre-tax margin, with a decrease in the most recent period to 8.96%. This could imply that the company's bottom line has been impacted by various factors affecting profitability after all expenses have been accounted for.
Overall, while Darden Restaurants Inc has maintained relatively healthy profitability margins, there is a need for the company to address any downward trends in operating and net profit margins to ensure sustained profitability in the future.
Return on investment
| 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 | May 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 11.06% | 10.91% | 12.87% | 12.19% | 12.80% | 11.73% | 10.54% | 9.39% | 10.23% | 11.13% | 12.00% | 14.15% | 12.77% | 11.57% | 10.49% | 9.49% | 10.63% | 11.69% | 12.29% | 11.03% |
| Return on assets (ROA) | 8.39% | 8.30% | 10.01% | 9.58% | 10.12% | 9.24% | 8.20% | 7.18% | 8.09% | 9.04% | 9.86% | 11.75% | 10.50% | 9.41% | 8.48% | 7.58% | 8.53% | 9.48% | 10.02% | 9.06% |
| Return on total capital | 62.24% | 65.11% | 67.36% | 69.62% | 64.95% | 61.43% | 55.24% | 52.47% | 56.62% | 58.24% | 62.81% | 65.69% | 59.05% | 56.69% | 35.79% | 46.57% | 36.38% | 56.32% | 41.24% | 58.09% |
| Return on equity (ROE) | 47.83% | 50.15% | 53.01% | 55.38% | 51.10% | 48.15% | 42.72% | 39.87% | 44.92% | 47.45% | 51.74% | 54.66% | 48.85% | 46.36% | 41.78% | 37.63% | 42.30% | 46.00% | 48.61% | 48.10% |
Darden Restaurants Inc profitability ratios show a positive trend over the periods analyzed. The Operating return on assets (Operating ROA) improved from 11.03% on May 31, 2022, to 12.87% on August 31, 2024, with some fluctuations in between. This indicates that the company effectively generated profits from its operations relative to its assets.
Similarly, the Return on assets (ROA) also exhibited an increasing trend, from 9.06% to 10.01% during the same period. This ratio signifies the company's ability to generate earnings from its total assets, reflecting an upward trajectory in profitability.
The Return on total capital was robust, starting at 58.09% on May 31, 2022, and reaching 62.24% by February 28, 2025. This ratio indicates how efficiently the company utilized its total capital to generate profits, showing a consistent improvement over time.
The Return on equity (ROE) demonstrated a positive progression, increasing from 48.10% on May 31, 2022, to 47.83% by February 28, 2025. This ratio reflects the company's ability to generate returns for its shareholders based on their equity investments.
Overall, the profitability ratios of Darden Restaurants Inc showcase an upward trend, highlighting the company's effectiveness in generating profits from its assets, capital, and equity across the periods analyzed.