Darden Restaurants Inc (DRI)

Return on equity (ROE)

May 31, 2025 May 31, 2024 May 26, 2024 May 31, 2023 May 28, 2023
Net income US$ in thousands 1,049,600 1,027,600 1,027,600 981,900 981,900
Total stockholders’ equity US$ in thousands 2,311,300 2,242,500 2,242,500 2,201,500 2,201,500
ROE 45.41% 45.82% 45.82% 44.60% 44.60%

May 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,049,600K ÷ $2,311,300K
= 45.41%

The analysis of Darden Restaurants Inc's Return on Equity (ROE) over the specified period reveals a generally high and stable profitability metric. As of May 28 and May 31, 2023, the ROE stood at 44.60%, indicating that the company was able to generate substantial income relative to shareholders' equity during this period. Moving forward to May 26 and May 31, 2024, the ROE increased slightly to 45.82%, suggesting a modest improvement in the company's ability to convert equity into net income. This increase signifies a positive trend in profitability efficiency on equity capital over the year.

However, by May 31, 2025, the ROE declined somewhat to 45.41%, indicating a slight decrease from the previous year's endpoint. Despite this decrease, the ROE remains at an elevated level, reflecting sustained high profitability margins. Overall, Darden Restaurants Inc has consistently demonstrated strong profitability relative to its equity base over the assessed periods, with minor fluctuations indicating stable operational effectiveness and efficient use of shareholders’ capital.