Darden Restaurants Inc (DRI)

Gross profit margin

		May 31, 2025	May 31, 2024	May 26, 2024	May 31, 2023	May 28, 2023
Gross profit	US$ in thousands	8,419,700	2,410,200	2,265,700	2,083,400	1,965,100
Revenue	US$ in thousands	12,076,700	11,390,000	11,391,500	10,487,800	10,461,500
Gross profit margin		69.72%	21.16%	19.89%	19.86%	18.78%

May 31, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $8,419,700K ÷ $12,076,700K
= 69.72%

The gross profit margin of Darden Restaurants Inc. exhibits notable variability across the reported periods. As of May 28, 2023, the gross profit margin was recorded at 18.78%. This metric increased to 19.86% by May 31, 2023, indicating an improvement in the proportion of revenue remaining after deducting cost of goods sold within a short timeframe. Continuing the upward trend, the gross profit margin further rose to 19.89% on May 26, 2024, reflecting sustained operational efficiency or favorable product mix.

The gross profit margin then experienced a more significant increase, reaching 21.16% as of May 31, 2024. This substantial rise suggests a further enhancement in profitability at the gross level, potentially driven by factors such as cost control measures, menu price adjustments, or product mix improvements.

However, the most recent data point, recorded for May 31, 2025, indicates a dramatic spike to 69.72%. Such a marked increase is highly anomalous and warrants scrutiny, as it deviates considerably from prior figures and may reflect irregularities such as accounting adjustments, extraordinary income, or errors in reporting.

Overall, the progression of Darden's gross profit margin suggests a trend of increasing profitability at the gross level over the analyzed periods, punctuated by an apparent outlier in the latest period. A detailed investigation into the circumstances surrounding the last reported figure would be necessary to understand the underlying causes of this extraordinary change.