Darden Restaurants, Inc. stock research
FY2026 Q1
Darden Restaurants (DRI) Gross Margin — Quarter Ended Aug 24, 2025
Revenue decreased sequentially while cost of revenue also decreased, but the decline in revenue was larger, causing gross profit to fall and gross margin to weaken. Compared to the same quarter last year, revenue and gross profit increased, but gross margin was slightly lower.
Gross margin takeaway
Quarter ended Aug 24, 2025 · FY2026 Q1
Revenue decreased sequentially while cost of revenue also decreased, but the decline in revenue was larger, causing gross profit to fall and gross margin to weaken. Compared to the same quarter last year, revenue and gross profit increased, but gross margin was slightly lower.
- The primary driver of the gross margin change was the relative movement of revenue and cost of revenue. Revenue fell more sharply than cost of revenue, compressing the margin.
- Sequentially, gross margin weakened from the prior quarter. Year-over-year, gross margin was marginally lower despite higher revenue and gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.9%
Gross profit
$574.3M
Revenue
$3.0B
Cost of revenue
$2.5B
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 24, 2024 | $2.9B | $569.4M | $2.3B | 19.7% |
| Feb 23, 2025 | $3.2B | $673.0M | $2.5B | 21.3% |
| May 25, 2025 | $3.3B | $707.7M | $2.6B | 21.6% |
| Aug 24, 2025 | $3.0B | $574.3M | $2.5B | 18.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 25, 2025
-2.8 pts
Year-over-year change
Aug 25, 2024
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin change was the relative movement of revenue and cost of revenue. Revenue fell more sharply than cost of revenue, compressing the margin.
Sequentially, gross margin weakened from the prior quarter. Year-over-year, gross margin was marginally lower despite higher revenue and gross profit.
Monitor the impact of the Chuy's acquisition on operating costs and gross margin, as referenced in the liquidity discussion.