Darden RestaurantsMEX:DRI 87 ROC (Joel Greenblatt) % is 25.48% as of May. 2026, which is 44% above its 10-year median of 17.66. GuruFocus rates MEX:DRI with a GF Score™ of 87/100 and a GF Value™ of MXN3,414.96. The stock has 5 warning signs investors should review. Among 364 Restaurants companies, Darden Restaurants ranks better than 64.84% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Darden Restaurants's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 25.48%.
The historical rank and industry rank for Darden Restaurants's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:DRI'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -2.13 Med: 17.66 Max: 33.57
Current: 19.06
During the past 13 years, Darden Restaurants's highest ROC (Joel Greenblatt) % was 33.57%. The lowest was -2.13%. And the median was 17.66%.
MEX:DRI's ROC (Joel Greenblatt) % is ranked better than 64.84% of 364
companies
in the Restaurants industry
Industry Median: 8.38
vs MEX:DRI: 19.06
Darden Restaurants's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 10.40% per year.
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Darden Restaurants ROC (Joel Greenblatt) % Related Terms
Darden Restaurants ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Darden Restaurants's ROC (Joel Greenblatt) % 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: ROC (Joel Greenblatt) % Comparison
For the Restaurants subindustry, Darden Restaurants's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Darden Restaurants's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (May. 2026) EBIT data.
* 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.
What does a ROC (Joel Greenblatt) % of 25.48% mean?
Darden Restaurants (MEX:DRI) has a ROC (Joel Greenblatt) % of 25.48% as of May. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Darden Restaurants and its competitors. This is 44% above median its historical median of 17.66. According to the industry distribution chart, Darden Restaurants ranks #128 out of 364 companies in the Restaurants industry, placing it in the top 35.2%.
Is Darden Restaurants' ROC (Joel Greenblatt) % too high?
Darden Restaurants' current ROC (Joel Greenblatt) % of 25.48% is 44% above median its 10-year median of 17.66. The Restaurants industry median ROC (Joel Greenblatt) % is 8.38. Darden Restaurants' value of 25.48% is 204.1% above this industry median. Based on the distribution chart, Darden Restaurants ranks #128 out of 364 companies in the Restaurants industry, which is above the industry midpoint. Overall, Darden Restaurants has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Darden Restaurants' ROC (Joel Greenblatt) % compare to YUMC and TXRH?
According to the Restaurants industry distribution chart, Darden Restaurants ranks #128 out of 364 companies for ROC (Joel Greenblatt) %. This puts Darden Restaurants in the upper half of its industry. The industry median ROC (Joel Greenblatt) % is 8.38. Darden Restaurants' value of 25.48% is 204.1% above this benchmark. While the company's 10-year median is 17.66 vs. the industry median of 8.38, 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 ROC (Joel Greenblatt) % for a Restaurants company?
The median ROC (Joel Greenblatt) % among Restaurants companies is 8.38, based on 364 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Darden Restaurants's current ROC (Joel Greenblatt) % of 25.48% is 204.1% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Darden Restaurants and its competitors. For the Restaurants industry, the median ROC (Joel Greenblatt) % is 8.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Darden Restaurants's current ROC (Joel Greenblatt) % is 25.48%, which is 44% above median its own 10-year median of 17.66. 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 ROC (Joel Greenblatt) % of 25.48%. 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 ROC (Joel Greenblatt) % is 25.48%, which is 44% above median its 10-year median of 17.66 and 204.1% above the Restaurants industry median of 8.38. 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 ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Darden Restaurants (MEX:DRI), the current ROC (Joel Greenblatt) % is 25.48% 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.
Key valuation signals for MEX:DRI:
ROC (Joel Greenblatt) %: 25.48% (44% above median its 10-year median of 17.66)
GF Value™: MXN3,414.96 vs. price of MXN3,470.00 (1.6% above fair value)
Industry Position: 204.1% above the Restaurants median (#128 of 364)
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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