Darden Restaurants, Inc. stock research
FY2026 Q2
Darden Restaurants (DRI) Gross Margin — Quarter Ended Nov 23, 2025
Revenue and gross profit were higher than both the prior quarter and the same quarter last year, but gross margin weakened because cost of revenue increased more than revenue. The relationship among the metrics shows that the rise in cost of revenue outpaced revenue growth, compressing profitability.
Gross margin takeaway
Quarter ended Nov 23, 2025 · FY2026 Q2
Revenue and gross profit were higher than both the prior quarter and the same quarter last year, but gross margin weakened because cost of revenue increased more than revenue. The relationship among the metrics shows that the rise in cost of revenue outpaced revenue growth, compressing profitability.
- The strongest observable driver of the margin change is the relative increase in cost of revenue compared to revenue, as gross profit grew but at a slower rate than revenue.
- Compared with the immediately preceding quarter, gross margin was slightly lower; compared with the same quarter one year earlier, gross margin was notably lower. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher on a year-over-year basis and roughly stable sequentially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.7%
Gross profit
$581.3M
Revenue
$3.1B
Cost of revenue
$2.5B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-1.0 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 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% |
| Nov 23, 2025 | $3.1B | $581.3M | $2.5B | 18.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 24, 2025
-0.1 pts
Year-over-year change
Nov 24, 2024
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin change is the relative increase in cost of revenue compared to revenue, as gross profit grew but at a slower rate than revenue.
Compared with the immediately preceding quarter, gross margin was slightly lower; compared with the same quarter one year earlier, gross margin was notably lower. Revenue and gross profit were higher in both comparisons, while cost of revenue was higher on a year-over-year basis and roughly stable sequentially.
Monitor the trend in cost of revenue relative to revenue, as its growth rate has been a key factor in gross margin pressure.