Darden Restaurants Inc (DRI)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	6,409,000	7,725,700	7,886,400	7,938,300	6,821,100	6,697,600	6,615,900	6,459,600	6,450,100	6,439,500	6,447,900	6,476,500	6,419,900	6,297,200	6,186,200	6,073,000	5,974,500	5,995,200	6,035,300	5,894,100
Inventory	US$ in thousands	311,600	324,600	318,000	297,700	290,500	290,500	298,200	298,200	310,600	310,600	287,000	287,000	287,900	287,900	305,900	305,900	296,100	296,100	273,100	273,100
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

May 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $6,409,000K ÷ $311,600K
= 20.57

The inventory turnover ratios of Darden Restaurants Inc. over the analyzed period demonstrate a general upward trend, with fluctuations aligning with seasonal and operational dynamics. Starting from approximately 21.58x in late August 2022, the ratio exhibits minor fluctuations across subsequent quarters, peaking at 22.30x in May 2023 and reaching similar levels in late August 2023 at 22.47x. This suggests consistent efficiency in inventory management during this timeframe.

Notably, during November 2023, the inventory turnover slightly decreases to around 20.73x, indicating a marginal slowdown or increased inventory levels relative to sales during this period. However, the ratio resumes an upward trajectory thereafter, surpassing previous levels to reach approximately 23.06x in May 2024 and further improving to 26.67x by late August 2024. This indicates a marked improvement in inventory utilization efficiency, possibly reflecting operational enhancements or higher sales volume relative to inventory holdings.

Subsequent data points reveal some variability, with ratios decreasing to around 20.57x in May 2025 before experiencing an increase again in later periods. Overall, the trend suggests that Darden progressively enhanced its inventory management efficiency over time, with periods of fluctuation likely influenced by seasonal factors, product mix adjustments, or strategic inventory control initiatives.

In summary, the company's inventory turnover ratio has shown a positive trend over the analyzed period, indicating improved inventory efficiency, with notable peaks in mid-2024, aligning with periods of operational optimization.