Darden RestaurantsMEX:DRI 87 Gross Margin % is 23.29% as of May. 2026, which is 8% above its 10-year median of 21.49. GuruFocus rates MEX:DRI with a GF Score™ of 87/100 and a GF Value™ of MXN3,414.96. The stock has 5 warning signs investors should review. Among 359 Restaurants companies, Darden Restaurants ranks worse than 84.12% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Darden Restaurants had a gross margin of 23.29% for the quarter that ended in May. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Darden Restaurants Gross Margin % Related Terms
Darden Restaurants Gross Margin % Historical Data
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The historical data trend for Darden Restaurants's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:DRI vs YUMC, TXRH, DPZ: Gross Margin % Comparison
For the Restaurants subindustry, Darden Restaurants's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Darden Restaurants Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Darden Restaurants's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Darden Restaurants's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Darden Restaurants (MEX:DRI) has a Gross Margin % of 23.29% as of May. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Darden Restaurants and its competitors. This is near median its historical median of 21.49. Over the past decade, Darden Restaurants' Gross Margin % has ranged from 18.04 to 21.89. According to the industry distribution chart, Darden Restaurants ranks #302 out of 359 companies in the Restaurants industry, placing it in the top 84.1%.
Is Darden Restaurants' Gross Margin % too high?
Darden Restaurants' current Gross Margin % of 23.29% is near median its 10-year median of 21.49. Over the past 10 years, this metric has ranged from a low of 18.04 to a high of 21.89. The Restaurants industry median Gross Margin % is 45.71. Darden Restaurants' value of 23.29% is 49% below this industry median. Based on the distribution chart, Darden Restaurants ranks #302 out of 359 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Darden Restaurants has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Darden Restaurants' Gross Margin % compare to YUMC and TXRH?
According to the Restaurants industry distribution chart, Darden Restaurants ranks #302 out of 359 companies for Gross Margin %. This places Darden Restaurants in the lower half of its industry. The industry median Gross Margin % is 45.71. Darden Restaurants' value of 23.29% is 49% below this benchmark. Historically, Darden Restaurants' own Gross Margin % has ranged from 18.04 to 21.89 over the past decade. While the company's 10-year median is 21.49 vs. the industry median of 45.71, Darden Restaurants has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Darden Restaurants's current Gross Margin % of 23.29% is 49% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Darden Restaurants and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Darden Restaurants's current Gross Margin % is 23.29%, which is near median its own 10-year median of 21.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Darden Restaurants stock overvalued right now?
Darden Restaurants (MEX:DRI) has a current Gross Margin % of 23.29%. The stock's GF Value™ is MXN3,414.96, compared to a current price of MXN3,470.00 — trading 1.6% above its estimated fair value. The current Gross Margin % is 23.29%, which is near median its 10-year median of 21.49 and 49% below the Restaurants industry median of 45.71. Darden Restaurants' overall GF Score™ is 87/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Darden Restaurants (MEX:DRI), the current Gross Margin % is 23.29% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Darden Restaurants (MEX:DRI) Overvalued in 2026?
Based on GuruFocus' analysis, Darden Restaurants stock appears to be overvalued.
The current stock price of MXN3,470.00 is trading 1.6% above its estimated GF Value™ of MXN3,414.96.
Key valuation signals for MEX:DRI:
Gross Margin %: 23.29% (near median its 10-year median of 21.49)
GF Value™: MXN3,414.96 vs. price of MXN3,470.00 (1.6% above fair value)
Industry Position: 49% below the Restaurants median (#302 of 359)
No single metric tells the full story. See the MEX:DRI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Darden Restaurants is the largest global full-service dining operator, with over $12 billion in system sales across 2,159 company-owned stores at the end of fiscal 2025, spanning the US and Canada. The firm operates 10 banners in four segments, including Olive Garden (43% of sales), LongHorn Steakhouse (25%), and fine dining (21%), which includes The Capital Grille, Ruth's Chris, and Eddie V's. The other 11% of sales comes from smaller concepts such as Yard House and Cheddar's. Darden primarily generates revenue through sales of food and beverage items at its company-owned restaurants. It also earns royalties on sales from 154 franchised locations in US and international markets, which sit within the other segment but are immaterial to consolidated results.
87GF Score
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