Financial Analysis

ACQUISITION OF CHUYS On October 11, 2024, we acquired 100 percent of the equity interest of Chuys in an all-cash transaction of $649.1 million in total consideration, $613.7 million in net cash consideration, inclusive of the $35.4 million of cash on Chuys Holdings balance sheet at closing. We financed the acquisition with a portion of the proceeds from the issuance of a $400.0 million aggregate principal amount of 4.350 percent senior notes due 2027 and a $350.0 million aggregate principal amount of 4.550 percent senior notes due 2029, which were issued on October 3, 2024. See Note 7 for additional information. The acquired operations of Chuys included 103 company-owned locations. The results of Chuys operations are included in our consolidated financial statements from the date of acquisition. The assets and liabilities of Chuys were recorded at their respective fair values as of the date of acquisition. We have determined the fair value of these assets, including land, buildings and equipment, and intangible assets, and liabilities, through internal studies and third-party valuations. The fair values set forth below are based on the results of those valuations. The final allocation of the purchase price as of fiscal year ended May 31, 2026 is as follows: Balances at Fiscal 2026 Adjustments Balances at (in millions) May 25, 2025 May 31, 2026 Cash and cash equivalents $ 35.4 $ $ 35.4 Other current assets 10.5 10.5 Land, buildings and equipment 197.3 197.3 Operating lease rig …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES As collateral for performance on contracts and as credit guarantees to banks and insurers, we were contingently liable for guarantees of subsidiary obligations under standby letters of credit. At May 31, 2026 and May 25, 2025, we had $71.9 million and $80.0 million, respectively, of standby letters of credit related to workers compensation and general liabilities accrued in our consolidated financial statements. At both May 31, 2026 and May 25, 2025, we had $16.7 million of surety bonds related to other payments. Most surety bonds are renewable annually. At May 31, 2026 and May 25, 2025, we had $83.3 million and $76.5 million, respectively, of guarantees associated with leased properties that have been assigned to third parties, primarily related to the disposition of Red Lobster in fiscal 2015 and the sale of the Olive Garden Canada Restaurants during the first quarter of 2026. These amounts represent the maximum potential amount of future payments under the guarantees. The fair value of the maximum potential payments discounted at our weighted-average cost of capital at May 31, 2026 and May 25, 2025, amounted to $64.7 million and $61.2 million, respectively. In the event of default by a third party, the indemnity and default clauses in our assignment agreements govern our ability to recover from and pursue the third party for damages incurred as a result of its default. We do not hold any third-party assets as collateral related to these assign …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT The components of long-term debt are as follows: (in millions) May 31, 2026 May 25, 2025 3.850% senior notes due May 2027 $ 500.0 $ 500.0 4.350% senior notes due October 2027 400.0 400.0 4.550% senior notes due October 2029 350.0 350.0 6.300% senior notes due October 2033 500.0 500.0 6.000% senior notes due August 2035 96.3 96.3 6.800% senior notes due October 2037 42.8 42.8 4.550% senior notes due February 2048 300.0 300.0 Total long-term debt $ 2,189.1 $ 2,189.1 Less current portion: 3.850% senior notes due May 2027 1 (500.0) Fair value hedge (36.0) (40.0) Less unamortized discount and issuance costs (15.4) (20.2) Total long-term debt less unamortized discount and issuance costs $ 1,637.7 $ 2,128.9 1 Excludes $0.4 million in unamortized discount and issuance costs The aggregate contractual maturities of long-term debt, including the current portion, for each of the five fiscal years subsequent to May 31, 2026, and thereafter are as follows: (in millions) Fiscal Year 2027 2028 2029 2030 2031 Thereafter Debt repayments $ 500.0 $ 400.0 $ $ 350.0 $ $ 939.1 On October 23, 2023, we entered into a $1.25 billion Revolving Credit Agreement with BOA, as administrative agent, and the lenders and other agents party thereto. The Revolving Credit Agreement is a senior unsecured credit commitment to the Company and contains customary representations and affirmative and negative covenants (including limitations on liens and subsidiary debt and a maximum consolidated lease adjusted tot …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

STOCK-BASED COMPENSATION In September 2024, our shareholders approved the Amended and Restated Darden Restaurants, Inc. 2015 Omnibus Incentive Plan (the A&R 2015 Plan), which, among other things, increased the number of shares of our common stock authorized for issuance by 2.6 million shares, extended the plans termination date to September 18, 2034, and made certain other administrative and non-material changes. All equity grants subject to FASB ASC Topic 718 after the date of approval are made under the A&R 2015 Plan. No further equity grants after that date are permitted under the Darden Restaurants, Inc. 2002 Stock Incentive Plan, the RARE Hospitality International, Inc. Amended and Restated 2002 Long-Term Incentive Plan or any other prior stock option and/or stock grant plans (collectively, the Prior Plans). The A&R 2015 Plan and the Prior Plans are administered by the Compensation Committee of the Board of Directors. The A&R 2015 Plan provides for the issuance of up to 10.2 million common shares in connection with the granting of non-qualified stock options, restricted stock, restricted stock units (RSUs), performance-based restricted stock units (PRSUs), and other stock-based awards, such as Darden stock units to employees, consultants, and non-employee directors. As of May 31, 2026, approximately 10.0 thousand shares may be issued under outstanding awards that were granted under the Prior Plans and may still vest and be exercised in accordance with the …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

FAIR VALUE MEASUREMENTS The fair values of cash equivalents, receivables, net, accounts payable and short-term debt approximate their carrying amounts due to their short duration. The following tables summarize the fair values of financial instruments measured at fair value on a recurring basis at May 31, 2026 and May 25, 2025: Items Measured at Fair Value at May 31, 2026 (in millions) Fair Value of Assets (Liabilities) Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivatives: Commodities futures, swaps & options (1) $ $ $ $ Equity forwards (2) 4.2 4.2 Interest rate swaps (3) (36.0) (36.0) Total $ (31.8) $ $ (31.8) $ Items Measured at Fair Value at May 25, 2025 (in millions) Fair Value of Assets (Liabilities) Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivatives: Commodities futures, swaps & options (1) $ (0.9) $ $ (0.9) $ Equity forwards (2) (3.0) (3.0) Interest rate swaps (3) (40.0) (40.0) Foreign exchange forwards (4) (0.2) $ (0.2) Total $ (44.1) $ $ (44.1) $ (1) The fair value of our commodities futures, swaps, and options is based on closing market prices of the contracts, inclusive of the risk of nonperformance. (2) The fair value of equity forwards is based on the closing market value of Darden stock, inclusive of the risk o …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

INCOME TAXES Total income tax expense was allocated as follows: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Earnings from continuing operations $ 174.9 $ 136.2 $ 145.0 Loss from discontinued operations (2.9) (0.8) (1.7) Total consolidated income tax expense $ 172.0 $ 135.4 $ 143.3 The components of earnings from continuing operations before income taxes and the provision for income taxes thereon are as follows: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Earnings from continuing operations before income taxes: U.S. $ 1,387.3 $ 1,180.6 $ 1,169.2 Foreign 1.3 6.6 6.3 Earnings from continuing operations before income taxes $ 1,388.6 $ 1,187.2 $ 1,175.5 Income taxes: Current: Federal $ 60.0 $ 80.9 $ 99.2 State and local 42.5 54.4 43.5 Foreign 2.7 3.0 Total current $ 105.2 $ 135.3 $ 145.7 Deferred (principally U.S.): Federal $ 62.8 $ 0.2 $ (0.7) State and local 6.9 0.7 Total deferred $ 69.7 $ 0.9 $ (0.7) Total income tax expense $ 174.9 $ 136.2 $ 145.0 The following table is a reconciliation of the U.S. statutory income tax rate to the effective income tax rate from continuing operations included in the accompanying consolidated statements of earnings, pursuant to the disclosure requirements of ASU 2023-09 for the years ended May 31, 2026, May 25, 2025, and May 26, 2024. See Note 1 - Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements for additional details about the adoption of ASU 2023- …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES The components of lease expense for continuing operations in the consolidated statements of earnings for the fiscal years ended May 31, 2026, May 25, 2025, and May 26, 2024 are as follows: (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Operating lease expense $ 445.8 $ 413.7 $ 404.6 Finance lease expense Amortization of leased assets 64.7 57.2 48.1 Interest on lease liabilities 78.2 67.7 54.2 Variable lease expense 39.8 35.6 34.6 Total lease expense $ 628.5 $ 574.2 $ 541.5 The components of lease assets and liabilities on the consolidated balance sheet as of May 31, 2026 and May 25, 2025 are as follows: (in millions) Balance Sheet Classification May 31, 2026 May 25, 2025 Operating lease right-of-use assets Operating lease right-of-use assets $ 3,433.1 $ 3,555.9 Finance lease right-of-use assets Land, buildings and equipment, net 1,395.9 1,294.2 Total lease assets, net $ 4,829.0 $ 4,850.1 Operating lease liabilities - current Other current liabilities $ 216.5 $ 220.1 Finance lease liabilities - current Other current liabilities 18.7 23.8 Operating lease liabilities - non-current Operating lease liabilities - non-current 3,722.3 3,816.9 Finance lease liabilities - non-current Other liabilities 1,721.7 1,583.8 Total lease liabilities $ 5,679.2 $ 5,644.6 Supplemental cash flow information related to leases for the fiscal years ended May 31, 2026, May 25, 2025, and May 26, 2024: (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Cash paid for amounts included in the …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Standards Adopted As of May 25, 2025, we adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The adoption of ASU 2023-07 did not impact the Companys results of operations, cash flow, or financial condition. See Note 6 - Segment Information for the Companys segment disclosures. As of May 31, 2026, we adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which updates income tax disclosures related to the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The amendment also provides further disclosure comparability. We adopted this guidance retrospectively for all reporting periods presented as of May 31, 2026, and provided additional details and disclosures in Note 13 - Income Taxes. The adoption of ASU 2023-09 did not impact the Companys results of operations, cash flow, or financial condition. See Note 13 for additional details. Recently Issued Accounting Standards Not Yet Adopted In March 2024, the SEC adopted its final rules intended to enhance and standardize climate-related disclosures in registration statements and annual reports. The rules required disclosure of material climate-related risks, including disclosure of Board of Directors oversight and risk management activiti …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RETIREMENT PLANS Defined Benefit Plan and Postretirement Benefit Plan We sponsor an unfunded non-contributory postretirement benefit plan that provides health care benefits to certain eligible salaried retirees as a subsidy credit to a health care reimbursement account. This benefit is not impacted by future changes in health care cost trend rates. As of May 31, 2026 and May 25, 2025, the benefit obligation was $10.1 million and $10.8 million, respectively. We fund on a pay-as-you go basis with approximately $1.1 million in annual fundings. We also sponsor a supplemental defined benefit pension plan, which is an unfunded nonqualified plan separate from our terminated primary pension plan which was settled in fiscal 2020. The supplemental plan is frozen and therefore no longer accruing benefits for participants. As of May 31, 2026 and May 25, 2025, the benefit obligation was $2.7 million and $3.2 million, respectively. We fund on a pay-as-you-go basis with $0.4 million funded annually. Defined Contribution Plan We have a defined contribution (401(k)) plan ( the Darden Savings Plan) covering most employees age 18 and older. We match contributions for participants with at least one year of service up to 6 percent of compensation, based on our performance. The match ranges from a minimum of $0.25 to $1.20 for each dollar contributed by the participant. The Darden Savings Plan also provides for a profit sharing contribution for eligible participants equal to 1.5 percent of the par …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

REVENUE RECOGNITION Deferred revenue liabilities from contracts with customers included on our accompanying consolidated balance sheets is comprised of the following: (in millions) May 31, 2026 May 25, 2025 Unearned revenues Deferred gift card revenue $ 636.7 $ 628.8 Deferred gift card discounts (31.6) (30.1) Other 0.9 0.7 Total $ 606.0 $ 599.4 Other liabilities Deferred franchise fees - non-current $ 11.4 $ 5.3 The following table presents a rollforward of deferred gift card revenue: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 Beginning balance $ 628.8 $ 620.6 Sale of Olive Garden Canada gift card balances (0.4) Acquired deferred gift card revenue 2.6 Activations 760.2 737.0 Redemptions and breakage (751.9) (731.4) Ending balance $ 636.7 $ 628.8 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

SEGMENT INFORMATION We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Yard House, Ruths Chris, Cheddars Scratch Kitchen, The Capital Grille, Chuys, Seasons 52, Eddie Vs, Bahama Breeze, and The Capital Burger, as operating segments. The brands operate principally in the U.S. within full-service dining. We aggregate our operating segments into reportable segments based on a combination of the size, economic characteristics, and sub-segment of full-service dining within which each brand operates. We have four reportable segments: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining, and (4) Other Business. The Olive Garden segment includes the results of our company-owned Olive Garden restaurants in the U.S. The LongHorn Steakhouse segment includes the results of our company-owned LongHorn Steakhouse restaurants in the U.S. The Fine Dining segment aggregates our premium brands that operate within the fine-dining sub-segment of full-service dining and includes the results of our company-owned Ruths Chris, The Capital Grille, and Eddie Vs restaurants in the U.S. The Other Business segment aggregates our remaining brands and includes the results of our company-owned Yard House, Cheddars Scratch Kitchen, Chuys, Seasons 52, Bahama Breeze, and The Capital Burger restaurants in the U.S and ongoing royalties and other fees from our franchise operations and contractually managed locations. External sales are derived principally from food and beverage sales. We do …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements include the operations of Darden Restaurants, Inc. and its wholly owned subsidiaries. We own and operate the Olive Garden , LongHorn Steakhouse , Yard House , Ruths Chris Steak House , Cheddars Scratch Kitchen , The Capital Grille , Chuys , Seasons 52 , Eddie Vs Prime Seafood , Bahama Breeze , and The Capital Burger restaurant brands located in the United States and Canada. Through subsidiaries, we own and operate all of our restaurants in the United States, except for four restaurants operating under contractual agreements, one restaurant that we jointly own with a third party and operate independently, and 87 franchised restaurants. We also have 80 franchised restaurants located in Canada, Latin America, the Caribbean, Asia, the Middle East, and Europe. All significant intercompany balances and transactions have been eliminated in consolidation. Certain prior-period amounts have been reclassified to conform to the current periods presentation. On July 14, 2025, we closed on the sale of the Olive Garden Canada Restaurants to Recipe. All gains and losses on disposition have been aggregated in impairments and disposal of assets, net on our consolidated statement of earnings. See Note 4 for additional information. At the closing, Darden and Recipe entered into an area development agreement and franchise agreements, pursuant to which Recipe will operate current and …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

STOCKHOLDERS EQUITY Share Repurchase Program All of the shares purchased during the fiscal year ended May 31, 2026 were purchased as part of our repurchase program authorized by our Board of Directors. On June 24, 2026, our Board of Directors authorized a new share repurchase program under which we may repurchase up to $1.5 billion of our outstanding common stock. This repurchase program, which was announced publicly in a press release issued on June 25, 2026, does not have an expiration date and replaces the previously existing share repurchase authorization. Share Retirements As of May 31, 2026, of the 216.7 million cumulative shares repurchased under the current and previous authorizations, 205.3 million shares were retired and restored to authorized but unissued shares of common stock and there are no remaining treasury shares. We expect that all shares of common stock acquired in the future will also be retired and restored to authorized but unissued shares of common stock. Accumulated Other Comprehensive Income (Loss) As of May 31, 2026, the components of accumulated other comprehensive income (loss), net of tax, are foreign currency translation adjustment ($0.1 million gain), unrealized gains (losses) on derivatives ($22.7 million gain), and benefit plan funding position ($3.2 million loss). As of May 25, 2025, the components of accumulated other comprehensive income (loss), net of tax, are foreign currency translation adjustment ($4.6 million gain), unrealized gains ( …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

SUBSEQUENT EVENTS On June 24, 2026, the Board of Directors declared a cash dividend of $1.62 per share to be paid August 3, 2026 to all shareholders of record as of the close of business on July 10, 2026.

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Commitments and Contingencies As collateral for performance on contracts and as credit guarantees to banks and insurers, we are contingently liable for guarantees of subsidiary obligations under standby letters of credit. As of November 23, 2025 and May 25, 2025, we had $82.0 million and $80.0 million, respectively, of standby letters of credit related to workers compensation and general liabilities accrued in our consolidated financial statements. As of November 23, 2025 and May 25, 2025, we had $16.8 million and $16.7 million, respectively, of surety bonds related to other payments. Most surety bonds are renewable annually. As of November 23, 2025 and May 25, 2025, we had $91.0 million and $76.5 million, respectively, of guarantees associated with leased properties that have been assigned to third parties, primarily related to our disposition of Red Lobster in fiscal 2015 and the sale of the eight Olive Garden Canada locations during the first quarter of fiscal 2026. These amounts represent the maximum potential amount of future payments under the guarantees. The fair value of the maximum potential future payments discounted at our weighted-average cost of capital as of November 23, 2025 and May 25, 2025, amounted to $71.0 million and $61.2 million, respectively. In the event of default by a third party, the indemnity and default clauses in our assignment agreements govern our ability to recover from and pursue the third party for damages incurred as a result of its default …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Stock-Based Compensation We grant stock options for a fixed number of shares to certain employees with an exercise price equal to the fair value of the shares at the date of grant. We also grant restricted stock, restricted stock units and performance stock units with a fair value generally determined based on our closing stock price on the date of grant. In addition, we grant cash-settled stock units (Darden stock units) which are classified as liabilities and are marked to market as of the end of each period. The weighted-average fair value of non-qualified stock options and the related assumptions used in the Black-Scholes option pricing model for options granted during the periods presented were as follows: Six Months Ended November 23, 2025 November 24, 2024 Weighted-average fair value $ 72.10 $ 44.79 Dividend yield 2.9 % 3.6 % Expected volatility of stock 41.3 % 40.8 % Risk-free interest rate 4.0 % 4.1 % Expected option life (in years) 6.3 6.3 Weighted-average exercise price per share $ 208.51 $ 139.43 The weighted-average grant date fair value of market-based performance stock units and the related assumptions used in the Monte Carlo simulations to record stock-based compensation for units granted during the periods presented were as follows: Six Months Ended November 23, 2025 November 24, 2024 Dividend yield (1) 0.0 % 0.0 % Expected volatility of stock 25.8 % 26.5 % Risk-free interest rate 3.7 % 4.2 % Expected life (in years) 3.8 2.9 Weighted-average grant date fair v …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Fair Value Measurements The fair values of cash equivalents, receivables, net, accounts payable and short-term debt approximate their carrying amounts due to their short duration or market based interest rates. The following tables summarize the fair values of financial instruments measured at fair value on a recurring basis as of November 23, 2025 and May 25, 2025 . Items Measured at Fair Value at November 23, 2025 (in millions) Fair value of assets (liabilities) Quoted prices in active market for identical assets (liabilities) (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Derivatives: Commodities futures, swaps and options (1) $ 0.2 $ $ 0.2 $ Equity forwards (2) 1.6 1.6 Interest rate swaps - fair value hedge (3) (31.9) (31.9) Total $ (30.1) $ $ (30.1) $ Items Measured at Fair Value at May 25, 2025 (in millions) Fair value of assets (liabilities) Quoted prices in active market for identical assets (liabilities) (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Derivatives: Commodities futures, swaps and options (1) $ (0.9) $ $ (0.9) $ Equity forwards (2) (3.0) (3.0) Interest rate swaps - fair value hedge (3) (40.0) (40.0) Foreign exchange forwards (4) (0.2) (0.2) Total $ (44.1) $ $ (44.1) $ (1) The fair value of our commodities futures, swaps and options is based on closing market prices of the contracts, inclusive of the risk of nonperformance. (2) The fair value of equity fo …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Income Taxes The effective income tax rate for continuing operations for the three months ended November 23, 2025 was 12.8 percent compared to an effective income tax rate for the three months ended November 24, 2024 of 12.3 percent. The effective income tax rate for continuing operations for the six months ended November 23, 2025 was 12.5 percent compared to an effective income tax rate for the three months ended November 24, 2024 of 11.4 percent. The increase in tax rate is primarily driven by impacts from stock market volatility, primarily offset by valuation allowance releases. Included in our remaining balance of unrecognized tax benefits is $1.3 million related to tax positions for which it is reasonably possible that the total amounts could change within the next 12 months based on the outcome of examinations or as a result of the expiration of the statute of limitations for specific jurisdictions. H.R. 1., also known as the One Big Beautiful Bill Act (OBBBA), was enacted on July 4, 2025. The legislation included several provisions that impact the timing and magnitude of certain tax deductions, including restoring 100% bonus depreciation for qualifying property and the immediate expensing of domestic research and development costs. We have applied the provisions impacting our financial position for the six months ended November 23, 2025, and will continue to assess the potential impacts on our financial position, results of operations and cash flows as additional guida …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Standards Adopted As of May 25, 2025, we adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The adoption of ASU 2023-07 did not impact the Companys results of operations, cash flow, or financial condition. See Note 6 for the Companys segment disclosures. Recently Issued Accounting Standards Not Yet Adopted In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which updates income tax disclosures related to rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The amendments also provide further disclosure comparability. The amendments are effective for fiscal years beginning after December 15, 2024. The amendments should be applied prospectively; however, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on the Companys disclosures. We plan to adopt in the fourth quarter of fiscal 2026. In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires detailed disclosure amounts for purchases of inventory, employee compen …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Revenue Recognition Deferred revenue liabilities from contracts with customers included on our accompanying consolidated balance sheets was comprised of the following: (in millions) November 23, 2025 May 25, 2025 Unearned revenues Deferred gift card revenue $ 593.8 $ 628.8 Deferred gift card discounts (27.5) (30.1) Other 0.7 0.7 Total $ 567.0 $ 599.4 Other liabilities Deferred franchise fees - non-current $ 11.7 $ 5.3 The following table presents a rollforward of deferred gift card revenue: Three Months Ended Six Months Ended (in millions) November 23, 2025 November 24, 2024 November 23, 2025 November 24, 2024 Beginning balance $ 588.3 $ 579.5 $ 628.8 $ 620.6 Sale of Olive Garden Canada gift card balances (0.4) Acquired deferred gift card revenue 2.6 2.6 Activations 144.2 131.0 266.0 253.4 Redemptions and breakage (138.7) (136.2) (300.6) (299.7) Ending balance $ 593.8 $ 576.9 $ 593.8 $ 576.9 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment Information We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddars Scratch Kitchen, Chuys, Yard House, Ruths Chris, The Capital Grille, Seasons 52, Eddie Vs, Bahama Breeze, and The Capital Burger in North America as operating segments. The brands operate principally in the U.S. within full-service dining. We aggregate our operating segments into reportable segments based on a combination of the size, economic characteristics and sub-segment of full-service dining within which each brand operates. We have four reportable segments: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining and (4) Other Business. The Olive Garden segment includes the results of our company-owned Olive Garden restaurants in the U.S. and Canada (through the disposition date of all eight Olive Garden locations in Canada). The LongHorn Steakhouse segment includes the results of our company-owned LongHorn Steakhouse restaurants in the U.S. The Fine Dining segment aggregates our premium brands that operate within the fine-dining sub-segment of full-service dining and includes the results of our company-owned Ruths Chris, The Capital Grille and Eddie Vs restaurants in the U.S. The Other Business segment aggregates our remaining brands and includes the results of our company-owned Cheddars Scratch Kitchen, Yard House, Chuys, Seasons 52, Bahama Breeze, and The Capital Burger restaurants in the U.S. and results from our franchise operations. External sales are derived princi …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Stockholders Equity Accumulated Other Comprehensive Income (AOCI) The components of AOCI, net of tax, for the three and six months ended November 23, 2025 were as follows: (in millions) Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Derivatives Benefit Plan Funding Position Accumulated Other Comprehensive Income Balance at August 24, 2025 $ $ 29.1 $ (3.1) $ 26.0 Gain (loss) (0.4) (7.4) (7.8) Reclassification realized in net earnings (0.6) 0.1 (0.5) Balance at November 23, 2025 $ (0.4) $ 21.1 $ (3.0) $ 17.7 Balance at May 25, 2025 $ 4.6 $ 30.4 $ (3.2) $ 31.8 Gain (loss) (8.0) (8.0) Reclassification realized in net earnings (5.0) (1.3) 0.2 (6.1) Balance at November 23, 2025 $ (0.4) $ 21.1 $ (3.0) $ 17.7 The components of AOCI, net of tax, for the three and six months ended November 24, 2024 were as follows: (in millions) Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Derivatives Benefit Plan Funding Position Accumulated Other Comprehensive Income Balance at August 25, 2024 $ 4.6 $ 24.7 $ (3.4) $ 25.9 Gain (loss) 2.9 2.9 Reclassification realized in net earnings (0.2) 0.2 Balance at November 24, 2024 $ 4.6 $ 27.4 $ (3.2) $ 28.8 Balance at May 26, 2024 $ 4.6 $ 24.5 $ (3.5) $ 25.6 Gain (loss) 3.3 3.3 Reclassification realized in net earnings (0.4) 0.3 (0.1) Balance at November 24, 2024 $ 4.6 $ 27.4 $ (3.2) $ 28.8 The following table presents the amounts and line items in our consolidated statements of earnings where adjustments reclassif …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events On December 17, 2025, the Board of Directors declared a cash dividend of $1.50 per share payable on February 2, 2026 to all shareholders of record as of the close of business on January 9, 2026.

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