Darden Restaurants Inc (DRI)

Inventory turnover

		May 31, 2025	May 31, 2024	May 26, 2024	May 31, 2023	May 28, 2023
Cost of revenue	US$ in thousands	3,657,000	8,979,800	4,291,400	8,404,400	3,894,300
Inventory	US$ in thousands	311,600	290,500	290,500	287,900	287,900
Inventory turnover		11.74	30.91	14.77	29.19	13.53

May 31, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $3,657,000K ÷ $311,600K
= 11.74

The inventory turnover ratios of Darden Restaurants Inc over the specified periods indicate fluctuations in inventory management efficiency. On May 28, 2023, the inventory turnover stood at 13.53, suggesting a moderate rate of inventory sales relative to inventory holdings. By May 31, 2023, this ratio markedly increased to 29.19, implying an improved efficiency in converting inventory into sales within that period.

However, the following year, the ratio decreased to 14.77 on May 26, 2024, approaching the earlier level observed in 2023, which indicates a decline in inventory turnover efficiency. Yet, this was quickly followed by a significant rise a few days later to 30.91 on May 31, 2024, matching the higher turnover levels observed in the previous year, indicating a period of improved inventory management.

Looking further ahead, on May 31, 2025, the inventory turnover declined again to 11.74, representing a substantial reduction from the previous peak of 30.91. This downward trend suggests a decrease in inventory turnover efficiency, which could be attributed to factors such as increased inventory levels, decreased sales velocity, or potential overstocking.

Overall, the data shows that Darden Restaurants Inc experienced periods of enhanced inventory turnover, notably around late May 2023 and 2024, followed by a decline in the subsequent year. The fluctuations highlight variability in inventory management performance over time, with the most recent ratio indicating a decline relative to past peaks, which merits further analysis of underlying operational factors.