Darden Restaurants Inc (DRI)

Gross profit margin

		May 26, 2024	Feb 25, 2024	Nov 26, 2023	Aug 27, 2023	May 28, 2023	Feb 26, 2023	Nov 27, 2022	Aug 28, 2022	May 29, 2022	Feb 27, 2022	Nov 28, 2021	Aug 29, 2021	May 30, 2021	Feb 28, 2021	Nov 29, 2020	Aug 30, 2020	May 31, 2020	Feb 23, 2020	Nov 24, 2019	Aug 25, 2019
Gross profit (ttm)	US$ in thousands	2,265,700	2,220,100	2,162,700	2,061,000	1,965,100	1,909,500	1,827,600	1,842,400	1,901,800	1,898,700	1,742,300	1,612,500	1,402,400	866,400	1,014,600	1,057,200	1,170,400	1,626,700	1,615,500	1,605,000
Revenue (ttm)	US$ in thousands	11,391,400	11,166,700	10,977,000	10,747,000	10,461,500	10,281,300	9,947,700	9,719,100	9,585,300	9,266,800	8,561,900	7,960,300	7,181,100	6,215,800	6,813,900	7,198,000	7,797,500	8,756,500	8,659,800	8,582,100
Gross profit margin		19.89%	19.88%	19.70%	19.18%	18.78%	18.57%	18.37%	18.96%	19.84%	20.49%	20.35%	20.26%	19.53%	13.94%	14.89%	14.69%	15.01%	18.58%	18.66%	18.70%

May 26, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,265,700K ÷ $11,391,400K
= 19.89%

The gross profit margin of Darden Restaurants Inc has shown some fluctuations over the past few quarters. The margin has ranged from a low of 13.94% in February 2021 to a high of 20.49% in February 2022. In the most recent quarter ending May 26, 2024, the gross profit margin stood at 19.89%.

Overall, the trend in the gross profit margin has been relatively stable, with minor variations within the range of 18% to 20%. This indicates that Darden Restaurants Inc has been able to effectively manage its cost of goods sold and maintain a consistent level of gross profit relative to its revenue.

It is worth noting the significant drop in the gross profit margin in the quarter ending February 28, 2021, where it hit a low of 13.94%. This could be a result of various factors such as increased costs or lower sales revenue during that period. However, the company has since shown improvement in its margin, gradually increasing to the current level of 19.89%.

Overall, maintaining a gross profit margin within the range of 18% to 20% demonstrates that Darden Restaurants Inc has been able to efficiently generate profit from its core operations after accounting for the cost of goods sold. This is a positive sign of the company's profitability and operational efficiency.