Darden Restaurants Inc (DRI)

Pretax margin

		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	May 31, 2022
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,210,700	1,196,100	1,301,100	1,419,400	1,300,800	1,183,900	1,056,200	928,700	1,039,700	1,150,400	1,257,500	1,364,700	1,225,700	1,086,900	981,000	874,700	980,600	1,086,800	1,145,700	1,204,300
Revenue (ttm)	US$ in thousands	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	10,057,200
Pretax margin		10.29%	10.34%	11.17%	11.96%	11.18%	10.38%	9.46%	8.51%	9.49%	10.49%	11.41%	12.32%	11.36%	10.30%	9.60%	8.86%	9.81%	10.82%	11.40%	11.97%

February 28, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,210,700K ÷ $11,762,300K
= 10.29%

The pretax margin of Darden Restaurants Inc has exhibited some fluctuations over the reported periods. Starting at 11.97% on May 31, 2022, the pretax margin gradually decreased to 8.51% by November 30, 2023. The trend reversed from that point onwards, with an uptick to 11.96% on May 31, 2024. Subsequently, the margin saw some fluctuations but generally remained in the range of 10-12%, reaching 10.29% by February 28, 2025.

Overall, the pretax margin trend indicates some variability in Darden Restaurants Inc's ability to generate income before taxes, although it showed a positive recovery after a period of decline. This metric reflects the company's efficiency in managing operating expenses and generating profit from its core operations before accounting for taxes. A higher pretax margin suggests better profitability and efficiency in converting revenue into pre-tax earnings.