Darden Restaurants, Inc. stock research
FY2025 Q3
Darden Restaurants (DRI) Gross Margin — Quarter Ended Feb 23, 2025
Revenue increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross profit grew in both comparisons, and gross margin improved versus the prior quarter but weakened against the year-ago period.
Gross margin takeaway
Quarter ended Feb 23, 2025 · FY2025 Q3
Revenue increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross profit grew in both comparisons, and gross margin improved versus the prior quarter but weakened against the year-ago period.
- The improvement in gross margin from the prior quarter was the strongest observable driver, as revenue growth outpaced cost of revenue growth. This demonstrated a positive shift in the relationship between revenue and costs.
- Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.3%
Gross profit
$673.0M
Revenue
$3.2B
Cost of revenue
$2.5B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+0.7 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 |
|---|---|---|---|---|
| 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% |
| Feb 23, 2025 | $3.2B | $673.0M | $2.5B | 21.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 24, 2024
+1.6 pts
Year-over-year change
Feb 25, 2024
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was the strongest observable driver, as revenue growth outpaced cost of revenue growth. This demonstrated a positive shift in the relationship between revenue and costs.
Compared to the immediately preceding quarter, gross margin was higher. Compared to the same quarter one year earlier, gross margin was lower.
Monitor the cost of revenue trend relative to revenue in upcoming quarters to see if the improved margin relationship can be sustained.