>
Switch to:

Darden Restaurants Gross Margin %

: 19.47% (As of Feb. 2021)
View and export this data going back to 1995. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. Darden Restaurants's Gross Profit for the three months ended in Feb. 2021 was $337 Mil. Darden Restaurants's Revenue for the three months ended in Feb. 2021 was $1,733 Mil. Therefore, Darden Restaurants's Gross Margin % for the quarter that ended in Feb. 2021 was 19.47%.

Warning Sign:

Darden Restaurants Inc gross margin has been in long term decline. The average rate of decline per year is -2.4%.


NYSE:DRI' s Gross Margin % Range Over the Past 10 Years
Min: 15.59   Med: 21.81   Max: 24.01
Current: 15.59

15.59
24.01

During the past 13 years, the highest Gross Margin % of Darden Restaurants was 24.01%. The lowest was 15.59%. And the median was 21.81%.

NYSE:DRI's Gross Margin % is ranked lower than
86% of the 324 Companies
in the Restaurants industry.

( Industry Median: 42.24 vs. NYSE:DRI: 15.59 )

Darden Restaurants had a gross margin of 19.47% for the quarter that ended in Feb. 2021 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Darden Restaurants was -2.40% per year.


Darden Restaurants Gross Margin % Historical Data

* 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.

* Premium members only.

Darden Restaurants Annual Data
May11 May12 May13 May14 May15 May16 May17 May18 May19 May20
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.23 21.89 21.60 21.73 18.04

Darden Restaurants Quarterly Data
May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.93 0.83 19.73 19.04 19.47

Competitive Comparison
* 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.


Darden Restaurants Gross Margin % Distribution

* The bar in red indicates where Darden Restaurants's Gross Margin % falls into.



Darden Restaurants Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Darden Restaurants's Gross Margin for the fiscal year that ended in May. 2020 is calculated as

Gross Margin % (A: May. 2020 )=Gross Profit (A: May. 2020 ) / Revenue (A: May. 2020 )
=1408.4 / 7806.9
=(Revenue - Cost of Goods Sold) / Revenue
=(7806.9 - 6398.5) / 7806.9
=18.04 %

Darden Restaurants's Gross Margin for the quarter that ended in Feb. 2021 is calculated as


Gross Margin % (Q: Feb. 2021 )=Gross Profit (Q: Feb. 2021 ) / Revenue (Q: Feb. 2021 )
=337.4 / 1733
=(Revenue - Cost of Goods Sold) / Revenue
=(1733 - 1395.6) / 1733
=19.47 %

* 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  (NYSE:DRI) Gross Margin % Explanation

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 19.47% for the quarter that ended in Feb. 2021 => No sustainable competitive advantage


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 % Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)