Revenue growth accelerated to 13.7% in 2026Q4, yet operating margins remain range-bound between 9.8% and 13.4%, suggesting limited structural operating leverage.
| Metric | May'26 | May'25 | May'24 | May'23 | May'22 | May'21 | May'20 | May'19 | May'18 | May'17 | May'16 | May'15 | May'14 | May'13 | May'12 | May'11 | May'10 | May'09 | May'08 | May'07 | May'06 | May'05 | May'04 | May'03 | May'02 | May'01 | May'00 | May'99 | May'98 | May'97 |
|---|
| Sales/Revenue | 13.21B | 12.08B | 11.39B | 10.49B | 9.63B | 7.2B | 7.81B | 8.51B | 8.08B | 7.17B | 6.93B | 6.76B | 6.29B | 5.92B | 5.33B | 7.5B | 7.11B | 7.22B | 6.63B | 5.57B | 5.35B | 5.28B | 5B | 4.65B | 4.37B | 3.99B | 3.68B | 3.46B | 3.29B | 3.17B |
| Revenue Growth % | 9.39% | 6.03% | 8.6% | 8.91% | 33.82% | -7.82% | -8.27% | 5.33% | 12.69% | 3.41% | 2.51% | 7.61% | 6.16% | 11.15% | -28.97% | 5.44% | -1.45% | 8.92% | 19.03% | 3.99% | 1.43% | 5.49% | 7.48% | 6.6% | 9.38% | 8.62% | 6.29% | 5.2% | 3.63% | -0.63% |
| Cost of Goods Sold | 4.04B | 9.43B | 8.96B | 8.38B | 7.63B | 5.7B | 6.4B | 6.66B | 6.33B | 5.6B | 5.39B | 5.34B | 4.99B | 4.62B | 4.09B | 5.7B | 5.48B | 5.64B | 5.14B | 4.26B | 4.1B | 4.1B | 3.9B | 3.65B | 3.38B | 3.12B | 2.89B | 2.74B | 2.62B | 2.57B |
| COGS % of Revenue | 30.57% | 78.12% | 78.63% | 79.89% | 79.28% | 79.25% | 81.96% | 78.27% | 78.4% | 78.11% | 77.77% | 78.97% | 79.4% | 77.97% | 76.75% | 75.99% | 77.1% | 78.1% | 77.55% | 76.5% | 76.56% | 77.6% | 78.01% | 78.37% | 77.48% | 78.26% | 78.67% | 79.23% | 79.82% | 81.1% |
| Gross Profit | 9.17B | 2.64B | 2.43B | 2.11B | 2B | 1.49B | 1.41B | 1.85B | 1.75B | 1.57B | 1.54B | 1.42B | 1.3B | 1.3B | 1.24B | 1.8B | 1.63B | 1.58B | 1.49B | 1.31B | 1.26B | 1.18B | 1.1B | 1.01B | 983.3M | 867.99M | 783.87M | 718.1M | 663.32M | 599.6M |
| Gross Margin % | 69.43% | 21.88% | 21.37% | 20.11% | 20.72% | 20.75% | 18.04% | 21.73% | 21.6% | 21.89% | 22.23% | 21.03% | 20.6% | 22.03% | 23.25% | 24.01% | 22.9% | 21.9% | 22.45% | 23.5% | 23.44% | 22.4% | 21.99% | 21.63% | 22.52% | 21.74% | 21.33% | 20.77% | 20.18% | 18.9% |
| Gross Profit Growth % | 247.09% | 8.55% | 15.42% | 5.73% | 33.58% | 6.04% | -23.83% | 5.94% | 11.21% | 1.84% | 8.34% | 9.84% | -0.71% | 5.3% | -31.2% | 10.53% | 3.07% | 6.24% | 13.72% | 4.24% | 6.16% | 7.44% | 9.27% | 2.42% | 13.29% | 10.73% | 9.16% | 8.26% | 10.63% | -16.79% |
| Operating Expenses | 7.59B | 1.28B | 1.12B | 907.5M | 832.8M | 844.8M | 1.36B | 1.02B | 978.6M | 891.9M | 918.9M | 1.05B | 986.2M | 904.4M | 1.24B | 1.05B | 985.4M | 960.7M | 887.4M | 737.4M | 703.1M | 715.25M | 723.98M | 626.86M | 583.41M | 536.1M | 487.57M | 491.1M | 489.5M | 502M |
| OpEx % of Revenue | 57.45% | 10.6% | 9.84% | 8.65% | 8.65% | 11.74% | 17.43% | 11.94% | 12.11% | 12.44% | 13.25% | 15.6% | 15.69% | 15.27% | 23.25% | 14.06% | 13.85% | 13.31% | 13.39% | 13.25% | 13.13% | 13.55% | 14.47% | 13.47% | 13.36% | 13.43% | 13.27% | 14.2% | 14.89% | 15.83% |
| Selling, General & Admin | 694.8M | 690.2M | 623.7M | 504.4M | 466.4M | 487.3M | 614.4M | 660.8M | 662.1M | 627.4M | 622.9M | 673.5M | 665.4M | 625.2M | 540.1M | 742.7M | 684.5M | 665.6M | 641.7M | 537M | 506.1M | 497.48M | 472.11M | 431.72M | 420.15M | 389.24M | 363.04M | 360.9M | 358.5M | 361.3M |
| SG&A % of Revenue | 5.26% | 5.72% | 5.48% | 4.81% | 4.84% | 6.77% | 7.87% | 7.76% | 8.19% | 8.75% | 8.98% | 9.96% | 10.59% | 10.56% | 10.14% | 9.9% | 9.62% | 9.22% | 9.68% | 9.65% | 9.45% | 9.43% | 9.44% | 9.27% | 9.62% | 9.75% | 9.88% | 10.44% | 10.91% | 11.39% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 6.89B | 590.1M | 496.6M | 403.1M | 366.4M | 357.5M | 746.1M | 355.7M | 316.5M | 264.5M | 296M | 381.4M | 320.8M | 279.2M | 698.7M | 312.1M | 300.9M | 295.1M | 245.7M | 200.4M | 197M | 217.77M | 251.87M | 195.14M | 163.26M | 146.86M | 124.53M | 130.2M | 131M | 140.7M |
| Operating Income | 1.58B | 1.36B | 1.31B | 1.2B | 1.16B | 648.7M | 47.9M | 832.5M | 766.8M | 677.5M | 622.2M | 367.6M | 308.9M | 400M | 457.4M | 745.9M | 643.7M | 619.9M | 600.4M | 570.9M | 552M | 467.04M | 376.44M | 380.2M | 399.89M | 331.88M | 296.3M | 227M | 173.82M | 97.6M |
| Operating Margin % | 11.98% | 11.28% | 11.54% | 11.46% | 12.07% | 9.01% | 0.61% | 9.78% | 9.49% | 9.45% | 8.97% | 5.43% | 4.91% | 6.76% | 8.59% | 9.95% | 9.05% | 8.59% | 9.06% | 10.25% | 10.31% | 8.85% | 7.52% | 8.17% | 9.16% | 8.31% | 8.06% | 6.56% | 5.29% | 3.08% |
| Operating Income Growth % | 16.19% | 3.66% | 9.35% | 3.41% | 79.16% | 1254.28% | -94.25% | 8.57% | 13.18% | 8.89% | 69.26% | 19% | -22.78% | -12.55% | -38.68% | 15.88% | 3.84% | 3.25% | 5.17% | 3.42% | 18.19% | 24.07% | -0.99% | -4.92% | 20.49% | 12.01% | 30.53% | 30.6% | 78.09% | -53.57% |
| EBITDA | 2.14B | 1.88B | 1.77B | 1.59B | 1.53B | 999.6M | 403.8M | 1.17B | 1.08B | 950.4M | 912.4M | 686.9M | 613.3M | 678.3M | 698.7M | 1.06B | 944.6M | 903M | 846.1M | 773M | 752M | 691.3M | 594.04M | 578.32M | 573.3M | 485.78M | 432.65M | 357.2M | 304.82M | 238.3M |
| EBITDA Margin % | 16.23% | 15.55% | 15.58% | 15.16% | 15.89% | 13.89% | 5.17% | 13.74% | 13.36% | 13.25% | 13.16% | 10.16% | 9.76% | 11.46% | 13.12% | 14.17% | 13.28% | 12.51% | 12.77% | 13.89% | 14.05% | 13.1% | 11.87% | 12.42% | 13.13% | 12.17% | 11.77% | 10.33% | 9.27% | 7.51% |
| EBITDA Growth % | 14.13% | 5.88% | 11.61% | 3.85% | 53.12% | 147.55% | -65.46% | 8.27% | 13.63% | 4.16% | 32.83% | 12% | -9.58% | -2.92% | -34.25% | 12.5% | 4.61% | 6.73% | 9.46% | 2.79% | 8.78% | 16.37% | 2.72% | 0.88% | 18.02% | 12.28% | 21.12% | 17.19% | 27.91% | -31.27% |
| D&A (Non-Cash Add-back) | 561.1M | 516.1M | 459.9M | 387.8M | 368.4M | 350.9M | 355.9M | 336.7M | 313.1M | 272.9M | 290.2M | 319.3M | 304.4M | 278.3M | 241.3M | 316.8M | 300.9M | 283.1M | 245.7M | 202.1M | 200M | 224.26M | 217.6M | 198.12M | 173.41M | 153.9M | 136.36M | 130.2M | 131M | 140.7M |
| EBIT | 1.78B | 1.37B | 1.32B | 1.21B | 1.16B | 641.7M | -98.8M | 836.3M | 767.6M | 678.8M | 623.3M | 368.2M | 309.5M | 400.9M | 458.1M | 742.1M | 638.8M | 620.8M | 601.6M | 570.9M | 552M | 471.58M | 418.3M | 384.12M | 397.33M | 331.88M | 290.36M | 227M | 173.82M | 97.6M |
| Net Interest Income | -194.2M | -177M | -135.3M | -77.3M | -71.3M | -64.3M | -57.2M | -50.1M | -58.8M | -40.2M | -30M | -58.9M | -126.9M | -120.6M | -101.3M | -97.4M | -97.8M | -108M | -92.4M | -40.1M | -43.9M | -43.12M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 3.4M | 4.5M | 7.8M | 1.9M | 1.7M | 4.9M | 3.8M | 800K | 1.3M | 1.1M | 600K | 600K | 900K | 900K | 900K | 1.3M | 900K | 1.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 194.2M | 180.4M | 139.8M | 85.1M | 73.2M | 66M | 62.2M | 54M | 161.9M | 41.5M | 173.6M | 192.9M | 134.9M | 126.9M | 103M | 94.5M | 95.2M | 108.3M | 86.9M | 40.7M | 47M | 44.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -194.2M | -175.1M | -138.7M | -81.3M | -68.7M | -72.2M | -208.9M | -50.2M | -161.1M | -40.2M | -172.5M | -192.3M | -134.3M | -126M | -102.3M | -98.3M | -100.1M | -107.4M | -85.7M | -40.1M | -43.9M | -43.12M | -43.66M | -42.6M | -36.59M | -30.66M | -22.39M | -11.2M | -20.12M | -252.1M |
| Pretax Income | 1.39B | 1.19B | 1.18B | 1.12B | 1.09B | 576.5M | -161M | 782.3M | 605.7M | 637.3M | 449.7M | 175.3M | 174.6M | 274M | 355.1M | 647.6M | 543.6M | 512.5M | 514.7M | 530.8M | 508.1M | 423.92M | 332.78M | 337.6M | 363.31M | 301.22M | 273.91M | 215.8M | 153.7M | -154.5M |
| Pretax Margin % | 10.51% | 9.83% | 10.32% | 10.68% | 11.36% | 8.01% | -2.06% | 9.19% | 7.5% | 8.89% | 6.49% | 2.59% | 2.78% | 4.63% | 6.67% | 8.63% | 7.64% | 7.1% | 7.77% | 9.53% | 9.49% | 8.03% | 6.65% | 7.25% | 8.32% | 7.54% | 7.45% | 6.24% | 4.68% | -4.87% |
| Income Tax | 174.9M | 136.2M | 145M | 137M | 138.8M | -55.9M | -111.8M | 63.7M | 1.9M | 154.8M | 90M | -21.1M | -8.6M | 36.7M | 75.9M | 168.9M | 136.6M | 140.7M | 145.2M | 153.7M | 156.3M | 133.31M | 105.6M | 111.62M | 125.52M | 104.22M | 97.2M | 75.3M | 52M | -63.5M |
| Effective Tax Rate % | 12.6% | 11.47% | 12.34% | 12.23% | 12.69% | -9.7% | 69.44% | 8.14% | 0.31% | 24.29% | 20.01% | -12.04% | -4.93% | 13.39% | 21.37% | 26.08% | 25.13% | 27.45% | 28.21% | 28.96% | 30.76% | 31.45% | 31.73% | 33.06% | 34.55% | 34.6% | 35.49% | 34.89% | 33.83% | 41.1% |
| Net Income | 1.21B | 1.05B | 1.03B | 981.9M | 952.8M | 629.3M | -52.4M | 713.4M | 596M | 479.1M | 375M | 709.5M | 286.2M | 411.9M | 475.5M | 476.3M | 404.5M | 372.2M | 377.2M | 201.4M | 338.2M | 290.61M | 227.17M | 225.98M | 237.79M | 197M | 176.71M | 140.5M | 101.7M | -91M |
| Net Margin % | 9.13% | 8.69% | 9.02% | 9.36% | 9.89% | 8.74% | -0.67% | 8.38% | 7.38% | 6.68% | 5.41% | 10.49% | 4.55% | 6.96% | 8.93% | 6.35% | 5.69% | 5.16% | 5.69% | 3.62% | 6.32% | 5.51% | 4.54% | 4.85% | 5.45% | 4.93% | 4.81% | 4.06% | 3.09% | -2.87% |
| Net Income Growth % | 14.97% | 2.14% | 4.65% | 3.05% | 51.41% | 1300.95% | -107.35% | 19.7% | 24.4% | 27.76% | -47.15% | 147.9% | -30.52% | -13.38% | -0.17% | 17.75% | 8.68% | -1.33% | 87.29% | -40.45% | 16.38% | 27.92% | 0.53% | -4.97% | 20.7% | 11.49% | 25.77% | 38.15% | 211.76% | -222.31% |
| Net Income (Continuing) | 1.21B | 1.05B | 1.03B | 983.5M | 954.7M | 632.4M | -49.2M | 718.6M | 603.8M | 482.5M | 359.7M | 196.4M | 183.2M | 237.3M | 279.2M | 478.7M | 407M | 371.8M | 369.5M | 377.1M | 351.8M | 290.61M | 227.17M | 225.98M | 237.79M | 197M | 176.71M | 140.5M | 101.7M | -91M |
| Discontinued Operations | -7M | -1.4M | -2.9M | -1.6M | -1.9M | -3.1M | -3.2M | -5.2M | -7.8M | -3.4M | 15.3M | 513.1M | 103M | 174.6M | 196.3M | -2.4M | -2.5M | 400K | 7.7M | -175.7M | -13.6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 10.39 | 8.86 | 8.51 | 7.99 | 7.39 | 4.77 | -0.40 | 5.69 | 4.73 | 3.80 | 2.90 | 5.47 | 2.15 | 3.13 | 3.57 | 3.39 | 2.84 | 2.65 | 2.60 | 1.35 | 2.16 | 1.78 | 1.34 | 1.27 | 1.30 | 1.06 | 0.89 | 0.66 | 0.45 | -0.39 |
| EPS Growth % | 17.27% | 4.11% | 6.51% | 8.12% | 54.93% | 1292.5% | -107.03% | 20.3% | 24.47% | 31.03% | -46.98% | 154.42% | -31.31% | -12.32% | 5.31% | 19.37% | 7.17% | 1.92% | 92.59% | -37.5% | 21.35% | 32.84% | 5.51% | -2.31% | 22.64% | 19.1% | 34.85% | 46.67% | 215.38% | -225.81% |
| EPS (Basic) | 10.46 | 8.93 | 8.57 | 8.06 | 7.46 | 4.83 | -0.40 | 5.78 | 4.81 | 3.85 | 2.94 | 5.56 | 2.18 | 3.19 | 3.65 | 3.48 | 2.90 | 2.71 | 2.69 | 1.40 | 2.26 | 1.85 | 1.39 | 1.33 | 1.36 | 1.09 | 0.92 | 0.68 | 0.46 | -0.39 |
| Diluted Shares Outstanding | 115.2M | 118.4M | 120.8M | 122.9M | 129M | 131.8M | 122.7M | 125.4M | 126M | 126M | 129.3M | 129.7M | 133.2M | 131.6M | 133.2M | 140.3M | 142.4M | 140.4M | 145.1M | 148.8M | 156.9M | 163.4M | 169.7M | 177.4M | 183.5M | 185.61M | 197.75M | 212.77M | 227.1M | 231.24M |
| Basic Shares Outstanding | 114.3M | 117.5M | 119.9M | 121.9M | 127.8M | 130.4M | 122.7M | 123.5M | 124M | 124.3M | 127.4M | 127.7M | 131M | 129M | 130.1M | 136.8M | 139.3M | 137.4M | 140.4M | 143.4M | 149.7M | 156.7M | 163.5M | 170.3M | 174.7M | 179.61M | 192.65M | 206.51M | 222.5M | 231.24M |
| Dividend Payout Ratio | 57.43% | 62.74% | 61.15% | 60.07% | 59.09% | 32.19% | - | 51.98% | 52.6% | 58.26% | 71.52% | 39.31% | 100.73% | 62.69% | 47.09% | 36.85% | 34.61% | 29.61% | 26.75% | 32.62% | 17.5% | 4.3% | 5.72% | 5.97% | 3.88% | 4.8% | 5.73% | 7.76% | 11.5% | - |
Consumer discretionary spending sensitivity
According to the most recent quarterly filings, Darden Restaurants achieved a notable revenue growth rate of 13.7% in 2026Q4, marking a significant departure from the more modest mid-single-digit growth observed in previous periods, which warrants further investigation into the sustainability of this recent top-line expansion.
The acceleration in 2026Q4 suggests that recent strategic acquisitions or pricing initiatives may be gaining traction, though investors should monitor whether this is organic or driven by inorganic consolidation. The shift from the 5-10% growth range seen in earlier quarters implies a potential change in market share dynamics that requires careful validation against future traffic data.
As reported in financial statements, Darden's gross margin figures exhibit extreme fluctuations, ranging from 18.0% to 116.1% over the last ten quarters, suggesting that inconsistent accounting classifications for COGS may be obscuring the underlying structural profitability of the company's diverse restaurant portfolio.
The erratic nature of these margins makes it difficult to assess the true impact of commodity inflation or menu pricing power on the core business. Analysts should look past these headline figures to evaluate prime cost management, as the current data appears to reflect significant noise rather than a clear trend in operational efficiency.
Based on the provided income statement data, operating margins have remained largely range-bound between 9.8% and 13.4% over the past ten quarters, indicating that Darden has struggled to achieve meaningful operating leverage despite the recent surge in top-line revenue growth observed in the latest period.
The lack of significant margin expansion suggests that incremental revenue gains are being largely offset by rising labor and overhead costs. This trend implies that the company's scale may not be providing the expected efficiency gains, and investors should monitor whether SG&A discipline can improve in future quarters.
Analysis of the reported figures reveals that stock-based compensation remains a consistent expense, reaching $25.0M in 2026Q1, which suggests that shareholders should account for ongoing dilution when evaluating the quality of the net income growth reported across the most recent fiscal periods.
While net income has shown resilience, the persistent level of stock-based compensation warrants caution regarding the true cash-generative capacity of the earnings. Investors should consider the impact of these non-cash charges on the overall quality of EPS, especially as the company navigates integration costs from recent acquisitions.
A critical review of the income statement suggests that the 13.7% revenue growth in 2026Q4 may be an outlier, as historical trends indicate a more stable, lower-growth environment that could be vulnerable to a broader pullback in consumer discretionary spending across the casual dining sector.
Short-term spikes in revenue often mask underlying traffic declines, and the reliance on pricing to drive growth may eventually hit a ceiling with the value-conscious Olive Garden customer. The market should remain skeptical of whether this growth trajectory can be maintained without sacrificing long-term brand equity through aggressive pricing.
Quick answers to the most common questions about buying DRI stock.
For fiscal year 2026, Darden Restaurants, Inc. (DRI) reported total revenue of $13.21B. This represents a 316.5% increase compared to $3.17B in 1997.
Darden Restaurants, Inc. (DRI) is profitable, generating $1.21B in net income for the fiscal year ending 2026 with a net profit margin of 9.1%.
Darden Restaurants, Inc. (DRI) reported an operating income of $1.58B, resulting in an operating profit margin of 12.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Darden Restaurants, Inc. (DRI) generated $9.17B in gross profit for the year, representing a gross profit margin of 69.4%. This demonstrates the company's core pricing power and production efficiency.