Darden Restaurants, Inc. stock research
FY2026 Q3
Darden Restaurants (DRI) Gross Margin — Quarter Ended Feb 22, 2026
Revenue increased compared to the prior quarter and the same quarter last year. Gross profit and cost of revenue also rose, with gross margin improving sequentially but weakening slightly versus the year-ago period.
Gross margin takeaway
Quarter ended Feb 22, 2026 · FY2026 Q3
Revenue increased compared to the prior quarter and the same quarter last year. Gross profit and cost of revenue also rose, with gross margin improving sequentially but weakening slightly versus the year-ago period.
- The improvement in gross margin from the previous quarter was driven by revenue growing faster than cost of revenue. Compared to the year-ago quarter, the margin was slightly lower as cost of revenue grew at a similar rate to revenue.
- Sequentially, gross margin strengthened. Year-over-year, gross margin weakened modestly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.0%
Gross profit
$703.6M
Revenue
$3.3B
Cost of revenue
$2.6B
Quarter-over-quarter change
+2.3 pts
Year-over-year change
-0.3 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 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% |
| Feb 22, 2026 | $3.3B | $703.6M | $2.6B | 21.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 23, 2025
+2.3 pts
Year-over-year change
Feb 23, 2025
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the previous quarter was driven by revenue growing faster than cost of revenue. Compared to the year-ago quarter, the margin was slightly lower as cost of revenue grew at a similar rate to revenue.
Sequentially, gross margin strengthened. Year-over-year, gross margin weakened modestly.
Monitor the relationship between revenue and cost of revenue growth rates, as changes in this balance directly affect gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Darden Restaurants, Inc. (DRI) | 21.0% |