Darden Restaurants Inc (DRI)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 1,049,500 | 1,053,800 | 1,038,500 | 1,136,300 | 1,242,000 | 1,146,000 | 1,050,000 | 931,600 | 813,200 | 916,200 | 1,019,200 | 1,111,300 | 1,203,400 | 1,075,500 | 947,600 | 854,000 | 760,400 | 854,900 | 949,400 | 1,003,400 |
| Total assets | US$ in thousands | 12,587,000 | 12,560,900 | 12,519,200 | 11,355,500 | 11,323,000 | 11,323,000 | 11,358,200 | 11,358,200 | 11,322,100 | 11,322,100 | 11,269,200 | 11,269,200 | 10,241,500 | 10,241,500 | 10,075,400 | 10,075,400 | 10,025,300 | 10,025,300 | 10,014,500 | 10,014,500 |
| ROA | 8.34% | 8.39% | 8.30% | 10.01% | 10.97% | 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% |
May 31, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $1,049,500K ÷ $12,587,000K
= 8.34%
The analysis of Darden Restaurants Inc.'s return on assets (ROA) over the specified period reveals notable fluctuations with an overall pattern of modest decline and subsequent partial recovery. Initially, at the end of August 2022, the ROA stood at approximately 10.02%, indicating a relatively efficient utilization of assets to generate earnings. In the following months, there was a downward trend, with the ROA decreasing to 7.58% by the end of November 2022, reflecting reduced asset efficiency or increased asset bases that did not proportionally increase net income.
The early 2023 data exhibits some recovery, with ROA rising back to around 9.41% in February 2023, suggesting improved operational performance or asset management. A further increase was observed in May 2023, with the ROA reaching approximately 11.75%, indicating a period of enhanced earnings derived from asset utilization.
However, the subsequent fall below 10% in August 2023 and continued decline through late November 2023, with the ROA dropping to 7.18%, indicates a diminished efficiency in asset utilization or possibly increased investments not yet translating into proportional earnings. This downward trend persisted into early 2024, with the ROA fluctuating around 8.2% to 9.24%, again reflecting variability in operational efficiency.
Toward mid-2024, there was a slight upward movement, with ROA reaching approximately 10.97%, before experiencing another decline to 8.30% in late November 2024. Moving into early 2025, the ROA remained relatively stable around the 8.3% to 8.4% mark, suggesting a period of stabilization in asset utilization efficiency.
Overall, the ROA figures indicate that Darden Restaurants Inc. has experienced periods of strength and decline in asset efficiency. The fluctuations could be attributed to operational factors, strategic investments, cost management, or external economic conditions influencing profitability relative to assets. The recent trend points to a stabilization in the 8% to 9% range, warranting ongoing assessment of operational performance and asset management strategies.
Peer comparison
May 31, 2025