Darden Restaurants (BSP:D1RI34) ROCE % : 12.37% (As of Aug. 2024)

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What is Darden Restaurants ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Darden Restaurants's annualized ROCE % for the quarter that ended in Aug. 2024 was 12.37%.

Darden Restaurants ROCE % Historical Data

The historical data trend for Darden Restaurants's ROCE % 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.

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Darden Restaurants ROCE % Chart

Darden Restaurants Annual Data

Trend

May15

May16

May17

May18

May19

May20

May21

May22

May23

May24

ROCE %

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-1.75

7.33

13.18

14.61

15.35

Darden Restaurants Quarterly Data
	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
ROCE %	Get a 7-Day Free Trial															11.63	12.63	17.32	17.38	12.37

Darden Restaurants ROCE % Calculation

Darden Restaurants's annualized ROCE % for the fiscal year that ended in May. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: May. 2024 )		(A: May. 2023 )		(A: May. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: May. 2024 )		(A: May. 2023 )		(A: May. 2024 )
	=	6773.898	/	( ( (51015.984 - 9650.771)	+	(58163.986 - 11262.434) )	/ 2 )
	=	6773.898	/	( (41365.213	+	46901.552)	/ 2 )
	=	6773.898	/	44133.3825
	=	15.35 %

Darden Restaurants's ROCE % of for the quarter that ended in Aug. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Aug. 2024 )		(Q: May. 2024 )		(Q: Aug. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Aug. 2024 )		(Q: May. 2024 )		(Q: Aug. 2024 )
	=	6000.276	/	( ( (58163.986 - 11262.434)	+	(63042.329 - 12906.037) )	/ 2 )
	=	6000.276	/	( ( 46901.552	+	50136.292 )	/ 2 )
	=	6000.276	/	48518.922
	=	12.37 %

(1) Note: The EBIT data used here is four times the quarterly (Aug. 2024) EBIT data.

Darden Restaurants (BSP:D1RI34) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Darden Restaurants ROCE % Related Terms

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Darden Restaurants Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Darden Restaurants Inc (BSP:D1RI34) » Definitions » ROCE %

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DRI:USA 0I77:UK DDN:Germany DDN:Germany

Address

1000 Darden Center Drive, Orlando, FL, USA, 32837

Website

https://www.darden.com

Darden Restaurants is the largest restaurant operator in the us full-service space, with consolidated revenue of $11.4 billion in fiscal 2024 resulting in 3%-4% full-service market share (per NRA data and our calculations). The company maintains a portfolio of 10 restaurant brands: Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Ruth's Chris, Yard House, The Capital Grille, Seasons 52, Eddie V's, Bahama Breeze, and The Capital Burger. Darden generates revenue almost exclusively from company-owned restaurants, though a small network of franchised restaurants and consumer-packaged goods sales through the traditional grocery channel contribute modestly. As of the end of its fiscal 2024, the company operated 2,031 restaurants in the us.

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