Darden Restaurants, Inc. stock research
FY2025 Q1
Darden Restaurants (DRI) Gross Margin — Quarter Ended Aug 25, 2024
In the current quarter, gross profit was derived from revenue minus cost of revenue, resulting in a gross margin that reflects the proportion of revenue retained after covering those costs.
Gross margin takeaway
Quarter ended Aug 25, 2024 · FY2025 Q1
In the current quarter, gross profit was derived from revenue minus cost of revenue, resulting in a gross margin that reflects the proportion of revenue retained after covering those costs.
- The gross margin weakened sequentially as the decrease in gross profit was proportionally larger than the decline in revenue, while cost of revenue decreased slightly. Compared to the same quarter last year, gross margin remained stable as revenue and gross profit increased modestly with cost of revenue unchanged.
- Compared to the preceding quarter, gross margin was lower due to a larger relative drop in gross profit. Versus the same quarter one year earlier, gross margin was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.0%
Gross profit
$522.6M
Revenue
$2.8B
Cost of revenue
$2.2B
Quarter-over-quarter change
-2.8 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 |
|---|---|---|---|---|
| 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% |
| Aug 25, 2024 | $2.8B | $522.6M | $2.2B | 19.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 26, 2024
-2.8 pts
Year-over-year change
Aug 27, 2023
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as the decrease in gross profit was proportionally larger than the decline in revenue, while cost of revenue decreased slightly. Compared to the same quarter last year, gross margin remained stable as revenue and gross profit increased modestly with cost of revenue unchanged.
Compared to the preceding quarter, gross margin was lower due to a larger relative drop in gross profit. Versus the same quarter one year earlier, gross margin was unchanged.
Monitor the trend in cost of revenue relative to revenue in future quarters.