Darden Restaurants Inc (DRI)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,317,600 | 1,372,000 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 880,900 | — | 885,800 | — | 895,100 |
| Total stockholders’ equity | US$ in thousands | 2,311,300 | 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 |
| Return on total capital | 57.01% | 62.28% | 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% |
May 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,317,600K ÷ ($—K + $2,311,300K)
= 57.01%
The analysis of Darden Restaurants Inc.'s return on total capital over the specified period indicates a generally positive trend, reflecting the company's effective utilization of its capital base to generate earnings. Starting from late 2022, there was a notable fluctuation, with the return decreasing from approximately 41.24% in August 2022 to a low of around 36.38% in late November 2022. This decline suggests periods of operational or market pressures impacting overall profitability relative to total capital during that interval.
Subsequently, the return experienced a recovery, reaching over 56.69% by the end of February 2023, indicating improved efficiency or favorable market conditions. The upward trajectory continued through 2023 and mid-2024, with the return escalating to a peak of approximately 69.62% in May 2024, which signifies a period of strong operational performance and capital management. During this time, the company appeared to optimize its resource allocation and profitability.
Following this peak, the return demonstrated slight declines, dropping to about 65.11% by the end of November 2024 and further to approximately 62.28% in late February 2025. Despite these minor fluctuations, the return remains notably robust, illustrating sustained effectiveness in capital utilization. The data concludes with a forecasted decrease to around 57.01% by mid-2025, implying potential recalibrations in operational strategy, market conditions, or investment intensity.
Overall, the periods of increased return highlight strengths in operational efficiency and strategic decision-making, while the dips may reflect market or internal challenges. The trend underscores Darden's capacity to generate substantial returns on total capital, with fluctuations aligning to broader economic and operational variables.
Peer comparison
May 31, 2025