Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Darden Restaurants's annualized net income for the quarter that ended in May. 2026 was MXN28,100 Mil. Darden Restaurants's average shareholder tangible equity for the quarter that ended in May. 2026 was MXN-14,669 Mil. Therefore, Darden Restaurants's annualized Return-on-Tangible-Equity for the quarter that ended in May. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Darden Restaurants's Return-on-Tangible-Equity or its related term are showing as below:
MEX:DRI'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -19.56 Med: 255.43 Max: 2451.55
Current: Negative Tangible Equity
During the past 13 years, Darden Restaurants's highest Return-on-Tangible-Equity was 2,451.55%. The lowest was -19.56%. And the median was 255.43%.
MEX:DRI's Return-on-Tangible-Equity is ranked better than 99.7% of 333
companies
in the Restaurants industry
Industry Median: 8.4
vs MEX:DRI: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Darden Restaurants Return-on-Tangible-Equity Related Terms
Darden Restaurants Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Darden Restaurants's Return-on-Tangible-Equity 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.
MEX:DRI vs YUMC, TXRH, DPZ: Return-on-Tangible-Equity Comparison
For the Restaurants subindustry, Darden Restaurants's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Darden Restaurants's Return-on-Tangible-Equity falls into.
* 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Darden Restaurants (MEX:DRI) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of May. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Darden Restaurants and its competitors. According to the industry distribution chart, Darden Restaurants ranks #1 out of 333 companies in the Restaurants industry, placing it in the top 0.3%.
Is Darden Restaurants' Return-on-Tangible-Equity too high?
Darden Restaurants' current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Darden Restaurants ranks #1 out of 333 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 87/100, reflecting its overall financial health beyond just this single metric.
How does Darden Restaurants' Return-on-Tangible-Equity compare to YUMC and TXRH?
According to the Restaurants industry distribution chart, Darden Restaurants ranks #1 out of 333 companies for Return-on-Tangible-Equity. This places Darden Restaurants in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.40. 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-Equity for a Restaurants company?
The median Return-on-Tangible-Equity among Restaurants companies is 8.40, based on 333 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Darden Restaurants and its competitors. For the Restaurants industry, the median Return-on-Tangible-Equity is 8.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Darden Restaurants's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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?
Darden Restaurants (MEX:DRI) has a current Return-on-Tangible-Equity of Negative Tangible Equity%. The stock's GF Value™ is MXN3,414.96, compared to a current price of MXN3,470.00 — trading 1.6% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Darden Restaurants' overall GF Score™ is 87/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Darden Restaurants (MEX:DRI), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 (MEX:DRI) Overvalued in 2026?
Based on GuruFocus' analysis, Darden Restaurants stock appears to be overvalued.
The current stock price of MXN3,470.00 is trading 1.6% above its estimated GF Value™ of MXN3,414.96.
No single metric tells the full story. See the MEX:DRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
87GF Score
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