Darden Restaurants, Inc. stock research
FY2024 Q4
Darden Restaurants (DRI) Gross Margin — Quarter Ended May 26, 2024
For the quarter, revenue was unchanged from the prior quarter while gross profit improved and cost of revenue decreased, leading to a stronger gross margin. Compared to the same quarter one year earlier, revenue was higher, gross profit increased, and cost of revenue also rose, with gross margin remaining broadly stable.
Gross margin takeaway
Quarter ended May 26, 2024 · FY2024 Q4
For the quarter, revenue was unchanged from the prior quarter while gross profit improved and cost of revenue decreased, leading to a stronger gross margin. Compared to the same quarter one year earlier, revenue was higher, gross profit increased, and cost of revenue also rose, with gross margin remaining broadly stable.
- Gross profit improved sequentially while revenue was flat, indicating that a shift in the relationship between cost of revenue and revenue drove the margin higher.
- Sequentially, gross margin improved from the prior quarter, as cost of revenue decreased relative to revenue. Year-over-year, gross margin was mixed, as revenue and cost of revenue both rose by similar proportions.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.8%
Gross profit
$643.7M
Revenue
$3.0B
Cost of revenue
$2.3B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+0.1 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 |
|---|---|---|---|---|
| Aug 27, 2023 | $2.7B | $519.1M | $2.2B | 19.0% |
| Nov 26, 2023 | $2.7B | $513.3M | $2.2B | 18.8% |
| Feb 25, 2024 | $3.0B | $613.9M | $2.4B | 20.6% |
| May 26, 2024 | $3.0B | $643.7M | $2.3B | 21.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 25, 2024
+1.1 pts
Year-over-year change
May 28, 2023
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit improved sequentially while revenue was flat, indicating that a shift in the relationship between cost of revenue and revenue drove the margin higher.
Sequentially, gross margin improved from the prior quarter, as cost of revenue decreased relative to revenue. Year-over-year, gross margin was mixed, as revenue and cost of revenue both rose by similar proportions.
Monitor whether the relative cost of revenue continues to decline or stabilize, as this has been a key lever for margin improvement.