Darden Restaurants, Inc. stock research
FY2025 Q2
Darden Restaurants (DRI) Gross Margin — Quarter Ended Nov 24, 2024
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. The gross margin improved, reflecting a larger increase in gross profit relative to revenue.
Gross margin takeaway
Quarter ended Nov 24, 2024 · FY2025 Q2
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. The gross margin improved, reflecting a larger increase in gross profit relative to revenue.
- The quarter's gross margin was higher than both the preceding quarter and the year-ago quarter. This improvement was underpinned by gross profit rising more than the increase in revenue.
- Sequentially, gross margin improved from the prior quarter, and it was also higher than the same quarter one year earlier. Revenue and gross profit both showed growth in those comparisons, while cost of revenue also increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.7%
Gross profit
$569.4M
Revenue
$2.9B
Cost of revenue
$2.3B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
+0.9 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 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% |
| Nov 24, 2024 | $2.9B | $569.4M | $2.3B | 19.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 25, 2024
+0.7 pts
Year-over-year change
Nov 26, 2023
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The quarter's gross margin was higher than both the preceding quarter and the year-ago quarter. This improvement was underpinned by gross profit rising more than the increase in revenue.
Sequentially, gross margin improved from the prior quarter, and it was also higher than the same quarter one year earlier. Revenue and gross profit both showed growth in those comparisons, while cost of revenue also increased.
Monitor the relationship between revenue growth and cost of revenue growth, as it directly determines the direction of gross margin.