Darden Restaurants Inc (DRI)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,371,200 | 1,348,300 | 1,444,000 | 1,561,300 | 1,456,600 | 1,339,700 | 1,204,800 | 1,070,300 | 1,154,900 | 1,250,900 | 1,349,200 | 1,446,200 | 1,300,000 | 1,158,700 | 1,046,800 | 941,100 | 1,057,600 | 1,162,600 | 1,220,300 | 1,276,900 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 880,900 | — | 885,800 | — | 895,100 | — |
| Total stockholders’ equity | US$ in thousands | 2,203,000 | 2,070,900 | 2,143,700 | 2,242,500 | 2,242,500 | 2,180,900 | 2,180,900 | 2,039,700 | 2,039,700 | 2,148,000 | 2,148,000 | 2,201,500 | 2,201,500 | 2,043,900 | 2,043,900 | 2,020,900 | 2,020,900 | 2,064,100 | 2,064,100 | 2,198,200 |
| 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% |
February 28, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,371,200K ÷ ($—K + $2,203,000K)
= 62.24%
Darden Restaurants Inc's return on total capital has shown fluctuations over the specified period. The ratio ranged from a high of 69.62% on May 31, 2024, to a low of 35.79% on February 26, 2023. Notably, the ratio consistently stayed above 50% from May 28, 2023, to February 29, 2024, indicating strong returns relative to the total capital employed. However, there was a slight decrease in the ratio to 62.24% on February 28, 2025.
Overall, Darden Restaurants Inc has demonstrated a generally favorable return on total capital, reflecting efficient utilization of both equity and debt to generate profits. The company's performance in this aspect indicates effective management of its capital structure and investments, which is crucial for sustaining profitability and creating value for its shareholders.
Peer comparison
Feb 28, 2025