Revenue Performance
Darden achieved Q3 2025 revenue of $3.158 billion, which signifies a 6.79% year-over-year increase and a sequential growth of 9.27%. This strong performance was attributed to an increase in customer traffic and enhanced marketing efforts.
Profitability Analysis
Gross profit rose to $702.3 million, translating to a gross profit margin of 22.2%, a significant bump of 30.78% year-over-year. The operating income increased to $418.2 million, reflecting a keen focus on cost control measures, resulting in an operating margin of 13.24%.
Balance Sheet Health
Total assets as of the end of Q3 2025 stood at $12.56 billion with total liabilities of $10.36 billion, yielding a debt-to-equity ratio of 2.76 and indicating a manageable level of leverage. The current ratio was reported at 0.386, indicating some liquidity concerns that need addressing.
Cash Flow Performance
Net cash provided by operating activities was robust at $580.3 million, while the company reported a free cash flow of $417.1 million, exhibiting healthy cash generation capabilities.