Darden Restaurants, Inc. stock research
FY2023 Q3
Darden Restaurants (DRI) Gross Margin — Quarter Ended Feb 26, 2023
Gross margin improved sequentially and year over year as revenue grew faster than cost of revenue. Gross profit increased compared to both prior periods.
Gross margin takeaway
Quarter ended Feb 26, 2023 · FY2023 Q3
Gross margin improved sequentially and year over year as revenue grew faster than cost of revenue. Gross profit increased compared to both prior periods.
- Revenue growth outpaced cost of revenue growth, leading to gross margin expansion.
- Compared to the prior quarter, gross margin strengthened. Versus the same quarter a year ago, gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.0%
Gross profit
$556.5M
Revenue
$2.8B
Cost of revenue
$2.2B
Quarter-over-quarter change
n/a
Year-over-year change
+0.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Feb 26, 2023 | $2.8B | $556.5M | $2.2B | 20.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Feb 27, 2022
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth outpaced cost of revenue growth, leading to gross margin expansion.
Compared to the prior quarter, gross margin strengthened. Versus the same quarter a year ago, gross margin also improved.
Monitor whether the gross margin can sustain its improved level.