Darden Restaurants Inc (DRI)
Gross profit margin
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Gross profit (ttm) | US$ in thousands | 5,667,700 | 4,036,600 | 2,451,600 | 2,484,500 | 2,535,600 | 2,429,100 | 2,323,000 | 2,235,100 | 2,140,300 | 2,192,600 | 2,253,100 | 2,280,100 | 2,317,500 | 2,157,700 | 1,995,500 | 1,768,600 | 1,635,300 | 1,731,000 | 1,837,600 | 1,981,600 |
Revenue (ttm) | US$ in thousands | 12,076,700 | 11,762,300 | 11,563,100 | 11,647,900 | 11,865,700 | 11,635,700 | 11,404,200 | 11,160,000 | 10,915,700 | 10,957,400 | 10,964,200 | 11,019,800 | 11,074,400 | 10,791,900 | 10,555,100 | 10,215,000 | 9,874,900 | 9,991,300 | 10,047,900 | 10,050,700 |
Gross profit margin | 46.93% | 34.32% | 21.20% | 21.33% | 21.37% | 20.88% | 20.37% | 20.03% | 19.61% | 20.01% | 20.55% | 20.69% | 20.93% | 19.99% | 18.91% | 17.31% | 16.56% | 17.33% | 18.29% | 19.72% |
May 31, 2025 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $5,667,700K ÷ $12,076,700K
= 46.93%
The gross profit margin of Darden Restaurants Inc. has exhibited notable fluctuations over the specified periods, reflecting variations in cost management, pricing strategies, and competitive dynamics.
Between August 28, 2022, and May 31, 2023, the gross profit margin experienced a downward trend, declining from 19.72% to a low of 16.56% on November 30, 2022. This suggests that during this period, the company faced challenges such as increased cost of goods sold, pricing pressures, or possibly higher commodity costs impacting profitability.
Subsequently, from February 26, 2023, onward, there was a trend of recovery and gradual improvement. The margin climbed from 17.31% in late February 2023 to reach approximately 20.93% by May 31, 2023. This rebound indicates effective cost containment measures, strategic pricing adjustments, or an improved sales mix that enhanced gross profitability.
Further monitoring shows that in August 2023, the gross margin remained relatively stable around 20.55%, with minor fluctuations through late 2023, maintaining a range of approximately 19.61% to 20.55%. These figures suggest steady operational efficiency and effective margin management during this period.
However, a sharp and significant increase in gross profit margin was observed in early 2024, with figures rising from approximately 20.37% on February 29, 2024, to 21.37% by May 31, 2024, and further into August 2024, reaching 21.33%. This indicates a notable improvement in profitability, possibly driven by favorable cost reductions, menu optimization, or pricing strategies.
A substantial escalation is apparent in the subsequent period, with gross profit margins soaring to 34.32% on February 28, 2025, and subsequently to 46.93% by May 31, 2025. Such a dramatic increase is atypical and may be attributable to extraordinary events such as strategic divestitures, asset sales, or other non-recurring factors significantly impacting either revenue or costs.
Overall, the gross profit margin of Darden Restaurants Inc. has demonstrated periods of stress and recovery, with recent data indicating a significant upward trajectory. The latest figures reflect a strong position in gross profitability, although the extraordinary increase (~46.93%) warrants further investigation into specific operational or strategic changes influencing these margins.
Peer comparison
May 31, 2025