Darden Return On Equity

DRI
 Stock
  

USD 143.77  1.56  1.10%   

Darden Restaurants fundamentals help investors to digest information that contributes to Darden Restaurants' financial success or failures. It also enables traders to predict the movement of Darden Stock. The fundamental analysis module provides a way to measure Darden Restaurants' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Darden Restaurants stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
The current Average Equity is estimated to increase to about 2.5 B.

Darden Return On Equity Analysis

Darden Restaurants' Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
 2010 2014 2019 2022 (projected)
Consolidated Income286.2 M713.4 M952.8 M473.89 M
Direct Expenses4.99 B6.66 B7.63 B7.39 B
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
More About Return On Equity | All Equity Analysis

Current Darden Restaurants Return On Equity

    
  0.38 %  
Most of Darden Restaurants' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Darden Restaurants is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Darden Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Darden Restaurants is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Return On Equity. Since Darden Restaurants' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Darden Restaurants' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Darden Restaurants' interrelated accounts and indicators.

Darden Return On Equity Historical Pattern

Today, most investors in Darden Restaurants Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Darden Restaurants' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Darden Restaurants return on equity as a starting point in their analysis.
   Darden Restaurants Return On Equity   
Share
       Timeline  
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Compare to competition

Darden Shareholders Equity

Shareholders Equity

2.38 Billion

Darden Restaurants Shareholders Equity is most likely to increase significantly in the upcoming years. The last year's value of Shareholders Equity was reported at 2.2 Billion
Based on the latest financial disclosure, Darden Restaurants has a Return On Equity of 0.3806%. This is 89.43% lower than that of the Hotels, Restaurants & Leisure sector and 98.45% lower than that of the Consumer Discretionary industry. The return on equity for all United States stocks is notably lower than that of the firm.

Darden Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Darden Restaurants' direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Darden Restaurants could also be used in its relative valuation, which is a method of valuing Darden Restaurants by comparing valuation metrics of similar companies.
Darden Restaurants is currently under evaluation in return on equity category among related companies.

Darden Fundamentals

About Darden Restaurants Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Darden Restaurants's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Darden Restaurants using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Darden Restaurants based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Average Equity2.4 B2.5 B

Darden Restaurants Investors Sentiment

The influence of Darden Restaurants' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Darden. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Darden Restaurants' public news can be used to forecast risks associated with investment in Darden. The trend in average sentiment can be used to explain how an investor holding Darden can time the market purely based on public headlines and social activities around Darden Restaurants. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Darden Restaurants' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Darden Restaurants' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Darden Restaurants' news discussions. The higher the estimated score, the more favorable is the investor's outlook on Darden Restaurants.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Darden Restaurants in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Darden Restaurants' short interest history, or implied volatility extrapolated from Darden Restaurants options trading.

Pair Trading with Darden Restaurants

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Darden Restaurants position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Darden Restaurants will appreciate offsetting losses from the drop in the long position's value.

Moving together with Darden Restaurants

+0.93EATBrinker International Buyout TrendPairCorr
+0.78DGDollar General Sell-off TrendPairCorr
+0.72LULULululemon Athletica Earnings Call TodayPairCorr
The ability to find closely correlated positions to Darden Restaurants could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Darden Restaurants when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Darden Restaurants - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Darden Restaurants to buy it.
The correlation of Darden Restaurants is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Darden Restaurants moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Darden Restaurants moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Darden Restaurants can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Darden Restaurants Piotroski F Score and Darden Restaurants Altman Z Score analysis. You can also try Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Complementary Tools for analysis

When running Darden Restaurants price analysis, check to measure Darden Restaurants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Darden Restaurants is operating at the current time. Most of Darden Restaurants' value examination focuses on studying past and present price action to predict the probability of Darden Restaurants' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Darden Restaurants' price. Additionally, you may evaluate how the addition of Darden Restaurants to your portfolios can decrease your overall portfolio volatility.
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Is Darden Restaurants' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Darden Restaurants. If investors know Darden will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Darden Restaurants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Darden Restaurants is measured differently than its book value, which is the value of Darden that is recorded on the company's balance sheet. Investors also form their own opinion of Darden Restaurants' value that differs from its market value or its book value, called intrinsic value, which is Darden Restaurants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Darden Restaurants' market value can be influenced by many factors that don't directly affect Darden Restaurants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Darden Restaurants' value and its price as these two are different measures arrived at by different means. Investors typically determine Darden Restaurants value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Darden Restaurants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.