What is an income statement waterfall?

An income statement waterfall is a bar chart that walks from total revenue down to net income, with each step showing how much a cost or tax line removes (or adds). Subtotals — gross profit, operating income, pre-tax income — are anchored to zero so the cascade reconciles exactly to the bottom line.

How much of Darden Restaurants (DRI) revenue becomes net income?

For TTM through Q2 2026, Darden Restaurants turned $13.2B of revenue into $1.21B of net income — a net margin of 9.1%. The waterfall shows where the rest goes: cost of revenue, operating expenses, non-operating items, and taxes.

What are Darden Restaurants (DRI) gross, operating, and net margins?

For TTM through Q2 2026, Darden Restaurants reported a gross margin of 69.4%, an operating margin of 12%, and a net margin of 9.1%. Each subtotal in the waterfall corresponds to one of these margins.

Why does Darden Restaurants (DRI) have such a high (or low) gross margin?

Gross margin (gross profit ÷ revenue) reflects how much of each revenue dollar remains after direct production costs. Capital-light software and platform businesses often show gross margins above 60–80% because their cost of revenue is mainly hosting and support. Hardware, retail, and commodity businesses show lower gross margins because raw materials and manufacturing costs are significant. The waterfall makes this visible at a glance — the size of the "Cost of Revenue" bar relative to Revenue is the gross margin complement.

What is the difference between gross, operating, and net margin?

Gross margin = (Revenue − Cost of Revenue) ÷ Revenue. It measures production efficiency. Operating margin = Operating Income ÷ Revenue. It adds operating expenses (R&D, S&M, G&A) and measures the profitability of core operations. Net margin = Net Income ÷ Revenue. It also includes interest, other income/expense, and taxes, and represents the shareholder take after everything.

Darden Restaurants (DRI) Income Statement Waterfall

Revenue

$13.2B

Gross Margin

+69.4%

Operating Margin

+12.0%

Net Margin

+9.1%

Income statement waterfall for Darden Restaurants (DRI) — TTM through Q2 2026

Net income: $1.21B

Margin breakdown for Darden Restaurants (DRI) — TTM through Q2 2026

Line item	Amount	Running total
Revenue	$13.2B	$13.2B
Cost of Revenue	-$4.04B	$9.17B
Gross Profit	$9.17B	$9.17B
Operating Expenses	-$7.59B	$1.58B
Operating Income	$1.58B	$1.58B
Other Income / Expense	-$194M	$1.39B
Pre-tax Income	$1.39B	$1.39B
Income Tax	-$175M	$1.21B
Net Income	$1.21B	$1.21B

Revenue$13.2B
Cost of Revenue-$4.04B
Gross Profit$9.17B
Operating Expenses-$7.59B
Operating Income$1.58B
Other Income / Expense-$194M
Pre-tax Income$1.39B
Income Tax-$175M
Net Income$1.21B

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