Darden Restaurants Inc (DRI)

Return on equity (ROE)

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Net income (ttm)	US$ in thousands	1,027,600	1,034,600	1,008,300	983,400	981,900	948,500	908,900	914,900	952,800	1,039,600	921,300	824,100	629,300	-219,200	-115,600	-186,900	-52,400	635,600	626,900	717,800
Total stockholders’ equity	US$ in thousands	2,242,500	2,180,900	2,039,700	2,148,000	2,201,500	2,043,900	2,020,900	2,064,100	2,198,200	2,285,800	2,543,000	2,752,400	2,813,100	2,575,500	2,455,100	2,375,000	2,331,200	2,341,200	2,273,700	2,381,300
ROE		45.82%	47.44%	49.43%	45.78%	44.60%	46.41%	44.98%	44.32%	43.34%	45.48%	36.23%	29.94%	22.37%	-8.51%	-4.71%	-7.87%	-2.25%	27.15%	27.57%	30.14%

May 26, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,027,600K ÷ $2,242,500K
= 45.82%

The return on equity (ROE) of Darden Restaurants Inc has exhibited fluctuating trends over the past few years. The ROE has shown a general positive trajectory, with some significant peaks in the range of 45% to 49%, indicating strong profitability and efficient utilization of shareholders' equity during those periods.

However, there have been noticeable variations in ROE, such as a dip to 36.23% in the third quarter of 2021, followed by a substantial decrease to 22.37% in the fourth quarter of the same year. The most significant decline was observed in the first quarter of 2022, with a negative ROE of -8.51%, indicating that the company did not generate satisfactory profits relative to shareholders' equity during that period.

Despite these fluctuations, there has been a gradual recovery in the ROE, reaching 45.82% in the first quarter of 2024. It is crucial for Darden Restaurants Inc to closely monitor and manage its profitability and operational efficiency to sustain the positive ROE trends and enhance shareholder value in the long term.