Darden Restaurants Inc (DRI)

Interest coverage

		May 31, 2025	May 31, 2024	May 26, 2024	May 31, 2023	May 28, 2023
Earnings before interest and tax (EBIT)	US$ in thousands	1,185,800	1,315,300	1,314,200	1,205,600	1,169,100
Interest expense	US$ in thousands	—	143,200	-4,500	61,700	50,200
Interest coverage		—	9.19	—	19.54	23.29

May 31, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,185,800K ÷ $—K
= —

The interest coverage ratios of Darden Restaurants Inc, as provided, demonstrate variation across the specified periods. As of May 28, 2023, the company recorded an interest coverage ratio of 23.29, indicating a strong capacity to meet its interest obligations comfortably, as the ratio reflects earnings before interest and taxes (EBIT) exceeding interest expenses by over twenty-three times.

By May 31, 2023, this ratio declined slightly to 19.54, which still represents a robust coverage and suggests that the company maintained a comfortable margin for interest payments, though the decrease indicates some easing in its ability to cover interest compared to the earlier period.

As of May 26, 2024, the interest coverage ratio is reported as unavailable ("—"). This absence may be attributable to insufficient or missing financial data, potentially owing to a lack of earnings or other anomalies in the financial statements for that period.

By May 31, 2024, the ratio is reported as 9.19, which, although lower than previous periods, still indicates the company retains a healthy ability to cover interest expenses, with earnings exceeding interest obligations by roughly nine times. This level demonstrates that, despite some reduction, Darden Restaurants Inc continues to maintain a conservative interest coverage ratio, signaling manageable debt service obligations.

For May 31, 2025, the lack of data ("—") suggests the absence of a reported ratio, possibly due to incomplete financial disclosures or data collection issues.

In summary, Darden Restaurants Inc has historically maintained high interest coverage ratios, indicating strong financial stability relative to its debt servicing capabilities. Although a decline is evident from 23.29 to 9.19 over the observed periods, the ratios remain well above the generally acceptable threshold of 1.5 to 2.0, underscoring the company's continued ability to comfortably meet its interest obligations, with the notable caveat of missing data points that could impact a comprehensive analysis.