Darden Restaurants Inc (DRI)

Days of inventory on hand (DOH)

		May 31, 2025	Feb 28, 2025	Nov 30, 2024	Aug 31, 2024	May 31, 2024	May 26, 2024	Feb 29, 2024	Feb 25, 2024	Nov 30, 2023	Nov 26, 2023	Aug 31, 2023	Aug 27, 2023	May 31, 2023	May 28, 2023	Feb 28, 2023	Feb 26, 2023	Nov 30, 2022	Nov 27, 2022	Aug 31, 2022	Aug 28, 2022
Inventory turnover		20.57	23.80	24.80	26.67	23.48	23.06	22.19	21.66	20.77	20.73	22.47	22.57	22.30	21.87	20.22	19.85	20.18	20.25	22.10	21.58
DOH	days	17.75	15.34	14.72	13.69	15.54	15.83	16.45	16.85	17.58	17.61	16.25	16.17	16.37	16.69	18.05	18.39	18.09	18.03	16.52	16.91

May 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 20.57
= 17.75

The analysis of Darden Restaurants Inc.'s days of inventory on hand (DOH) reveals fluctuations over the specified periods, indicating variations in inventory management efficiency. At the end of August 2022, the DOH was approximately 16.91 days, which slightly decreased to 16.52 days by the end of August 2022. During late November 2022, the DOH increased to around 18.03 and 18.09 days, reflecting a temporary accumulation of inventory. This elevated level persisted into early 2023, with DOH figures of approximately 18.39 days in late February 2023, suggesting a period where inventory levels were relatively higher than earlier periods.

Subsequently, there was a reduction in DOH, reaching about 16.69 days in late May 2023 and slightly decreasing to 16.37 days by the end of May 2023. This decline indicates more efficient inventory turnover during this timeframe. As the fiscal year progressed into late August 2023, the DOH stabilized at approximately 16.17 to 16.25 days, maintaining a relatively consistent inventory cycle.

By late November 2023, the DOH increased again to approximately 17.61 days, before slightly declining to 17.58 days, suggesting a temporary accumulation of inventory. Early in 2024, the DOH was around 16.85 days in late February 2024, followed by a further decrease to approximately 16.45 days by month's end. Mid-2024 figures show a notable reduction, with the DOH falling to 15.83 days in late May and slightly decreasing to 15.54 days in early June, reflecting improved inventory management.

However, towards the latter part of 2024 and early 2025, the DOH increased again, reaching about 13.69 days in August 2024 and fluctuating around 14.72 days in November 2024. In early 2025, the DOH rose to approximately 15.34 days in February and then increased to 17.75 days by the end of May 2025, indicating a period of higher inventory holdings.

Overall, Darden's DOH has displayed cyclical patterns, oscillating between approximately 13.7 days and 18 days over the analyzed periods. The trend suggests occasional periods of increased inventory levels, potentially aligned with strategic or seasonal inventory adjustments, followed by phases of improved turnover efficiency. The fluctuations point to a generally stable inventory management approach with instances of short-term inventory buildup and clearance.