Darden Restaurants (BSP:D1RI34) Return-on-Tangible-Asset: 16.14% (As of May. 2026) — 35% Above Median

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BSP:D1RI34 Darden Restaurants Inc BSP:D1RI34
82 GF Score
Price R$265.92
GF Value R$255.37
Valuation Fairly Valued
! 4 Warning Signs
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What is Darden Restaurants Return-on-Tangible-Asset?

Darden Restaurants BSP:D1RI34 82 Return-on-Tangible-Asset is 16.14% as of May. 2026, which is 35% above its 10-year median of 11.98. GuruFocus rates BSP:D1RI34 with a GF Score™ of 82/100 and a GF Value™ of R$255.37 (Fairly Valued). The stock has 4 warning signs investors should review. Among 364 Restaurants companies, Darden Restaurants ranks better than 88.46% on this metric.

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Darden Restaurants's annualized Net Income for the quarter that ended in May. 2026 was R$8,068 Mil. Darden Restaurants's average total tangible assets for the quarter that ended in May. 2026 was R$49,990 Mil. Therefore, Darden Restaurants's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 was 16.14%.

The historical rank and industry rank for Darden Restaurants's Return-on-Tangible-Asset or its related term are showing as below:

BSP:D1RI34' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -0.9   Med: 11.98   Max: 20.88
Current: 12.36

During the past 13 years, Darden Restaurants's highest Return-on-Tangible-Asset was 20.88%. The lowest was -0.90%. And the median was 11.98%.

BSP:D1RI34's Return-on-Tangible-Asset is ranked better than
88.46% of 364 companies
in the Restaurants industry
Industry Median: 2.39 vs BSP:D1RI34: 12.36

Darden Restaurants  (BSP:D1RI34) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Darden Restaurants Return-on-Tangible-Asset Related Terms


Darden Restaurants Return-on-Tangible-Asset Historical Data

* Premium members only.

The historical data trend for Darden Restaurants's Return-on-Tangible-Asset can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Darden Restaurants Return-on-Tangible-Asset Chart

Darden Restaurants Annual Data
Trend May17 May18 May19 May20 May21 May22 May23 May24 May25 May26
Return-on-Tangible-Asset
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.87 11.90 12.26 12.09 11.75

Darden Restaurants Quarterly Data
Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24 Nov24 Feb25 May25 Aug25 Nov25 Feb26 May26
Return-on-Tangible-Asset Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.65 10.51 9.55 12.22 16.14

BSP:D1RI34 vs YUMC, TXRH, DPZ: Return-on-Tangible-Asset Comparison

For the Restaurants subindustry, Darden Restaurants's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Darden Restaurants Return-on-Tangible-Asset vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Darden Restaurants's Return-on-Tangible-Asset falls into.


BSP:D1RI34
82GF Score
Darden Restaurants Inc BSP:D1RI34
Return-on-Tangible-Asset is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Darden Restaurants Return-on-Tangible-Asset Calculation

Darden Restaurants's annualized Return-on-Tangible-Asset for the fiscal year that ended in May. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: May. 2026 )  (A: May. 2025 )(A: May. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: May. 2026 )  (A: May. 2025 )(A: May. 2026 )
=6011.176/( (53739.571+48594.035)/ 2 )
=6011.176/51166.803
=11.75 %

Darden Restaurants's annualized Return-on-Tangible-Asset for the quarter that ended in May. 2026 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: May. 2026 )  (Q: Feb. 2026 )(Q: May. 2026 )
=8068.036/( (51385.979+48594.035)/ 2 )
=8068.036/49990.007
=16.14 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (May. 2026) net income data.

What does a Return-on-Tangible-Asset of 16.14% mean?
Darden Restaurants (BSP:D1RI34) has a Return-on-Tangible-Asset of 16.14% as of May. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Darden Restaurants and its competitors. This is 35% above median its historical median of 11.98. According to the industry distribution chart, Darden Restaurants ranks #42 out of 364 companies in the Restaurants industry, placing it in the top 11.5%.
Is Darden Restaurants' Return-on-Tangible-Asset too high?
Darden Restaurants' current Return-on-Tangible-Asset of 16.14% is 35% above median its 10-year median of 11.98. The Restaurants industry median Return-on-Tangible-Asset is 2.39. Darden Restaurants' value of 16.14% is 575.3% above this industry median. Based on the distribution chart, Darden Restaurants ranks #42 out of 364 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Darden Restaurants has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Darden Restaurants' Return-on-Tangible-Asset compare to YUMC and TXRH?
According to the Restaurants industry distribution chart, Darden Restaurants ranks #42 out of 364 companies for Return-on-Tangible-Asset. This places Darden Restaurants in the top 12% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 2.39. Darden Restaurants' value of 16.14% is 575.3% above this benchmark. While the company's 10-year median is 11.98 vs. the industry median of 2.39, Darden Restaurants has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Restaurants company?
The median Return-on-Tangible-Asset among Restaurants companies is 2.39, based on 364 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Darden Restaurants's current Return-on-Tangible-Asset of 16.14% is 575.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Darden Restaurants and its competitors. For the Restaurants industry, the median Return-on-Tangible-Asset is 2.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Darden Restaurants's current Return-on-Tangible-Asset is 16.14%, which is 35% above median its own 10-year median of 11.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Darden Restaurants stock overvalued right now?
Based on GuruFocus' analysis, Darden Restaurants (BSP:D1RI34) is currently considered Fairly Valued. The stock's GF Value™ is R$255.37, compared to a current price of R$265.92 — trading 4.1% above its estimated fair value. The current Return-on-Tangible-Asset is 16.14%, which is 35% above median its 10-year median of 11.98 and 575.3% above the Restaurants industry median of 2.39. Darden Restaurants' overall GF Score™ is 82/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Darden Restaurants (BSP:D1RI34), the current Return-on-Tangible-Asset is 16.14% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Darden Restaurants (BSP:D1RI34) Overvalued in 2026?

Based on GuruFocus' analysis, Darden Restaurants stock appears to be overvalued. The current stock price of R$265.92 is trading 4.1% above its estimated GF Value™ of R$255.37. GuruFocus considers Darden Restaurants to be Fairly Valued.

Key valuation signals for BSP:D1RI34:

  • Return-on-Tangible-Asset: 16.14% (35% above median its 10-year median of 11.98)
  • GF Value™: R$255.37 vs. price of R$265.92 (4.1% above fair value)
  • GF Score™: 82/100 with 4 warning signs
  • Industry Position: 575.3% above the Restaurants median (#42 of 364)

No single metric tells the full story. See the BSP:D1RI34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Darden Restaurants Business Description

Address 1000 Darden Center Drive, Orlando, FL, USA, 32837
Darden Restaurants is the largest global full-service dining operator, with over $12 billion in system sales across 2,159 company-owned stores at the end of fiscal 2025, spanning the US and Canada. The firm operates 10 banners in four segments, including Olive Garden (43% of sales), LongHorn Steakhouse (25%), and fine dining (21%), which includes The Capital Grille, Ruth's Chris, and Eddie V's. The other 11% of sales comes from smaller concepts such as Yard House and Cheddar's. Darden primarily generates revenue through sales of food and beverage items at its company-owned restaurants. It also earns royalties on sales from 154 franchised locations in US and international markets, which sit within the other segment but are immaterial to consolidated results.
82GF Score

Get the complete analysis for BSP:D1RI34

Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$265.92
Price
R$255.37
GF Value