DARDEN RESTAURANTS INC, 10-Q filed on 9/29/2023
Quarterly Report
v3.23.3
Cover Page - shares
 3 Months Ended
Aug. 27, 2023
Sep. 15, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Aug. 27, 2023  
Document Transition Report false  
Entity File Number 1-13666  
Entity Registrant Name DARDEN RESTAURANTS, INC.  
Entity Incorporation, State or Country Code FL  
Entity Tax Identification Number 59-3305930  
Entity Address, Address Line One 1000 Darden Center Drive  
Entity Address, City or Town Orlando,  
Entity Address, State or Province FL  
Entity Address, Postal Zip Code 32837  
City Area Code 407  
Local Phone Number 245-4000  
Title of 12(b) Security Common Stock, without par value  
Trading Symbol DRI  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   120,314,697
Entity Central Index Key 0000940944  
Amendment Flag false  
Current Fiscal Year End Date --05-26  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
v3.23.3
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($)
shares in Millions, $ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Sales $ 2,730.6 $ 2,446.1
Costs and expenses:    
Restaurant labor 875.3 793.8
Marketing expenses 38.6 30.3
General and administrative expenses 153.3 88.3
Depreciation and amortization 109.8 95.6
Impairments and disposal of assets, net 3.1 (4.9)
Total operating costs and expenses 2,477.7 2,201.9
Operating income 252.9 244.2
Interest, net 29.7 19.8
Earnings before income taxes 223.2 224.4
Income tax expense 28.4 30.8
Earnings from continuing operations 194.8 193.6
Losses from discontinued operations, net of tax benefit of $0.1 and $0.0, respectively (0.3) (0.6)
Net earnings $ 194.5 $ 193.0
Basic net earnings per share:    
Earnings from continuing operations (in dollars per share) $ 1.61 $ 1.58
Losses from discontinued operations (in dollars per share) 0 (0.01)
Net earnings (in dollars per share) 1.61 1.57
Diluted net earnings per share:    
Earnings from continuing operations (in dollars per share) 1.60 1.56
Losses from discontinued operations (in dollars per share) (0.01) 0
Net earnings (in dollars per share) $ 1.59 $ 1.56
Average number of common shares outstanding:    
Basic (in shares) 120.9 122.9
Diluted (in shares) 122.0 123.9
Food and beverage    
Costs and expenses:    
Food and beverage costs and restaurant expenses $ 851.0 $ 795.3
Restaurant expenses    
Costs and expenses:    
Food and beverage costs and restaurant expenses $ 446.6 $ 403.5
v3.23.3
CONSOLIDATED STATEMENTS OF EARNINGS (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Income Statement [Abstract]    
Tax benefit of discontinued operations $ 0.1 $ 0.0
v3.23.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Statement of Comprehensive Income [Abstract]    
Net earnings $ 194.5 $ 193.0
Foreign currency adjustment 0.0 0.0
Change in fair value of derivatives and amortization of unrecognized gains and losses on derivatives, net of taxes of $5.4 and $0.6, respectively 12.6 2.2
Net unamortized gain (loss) arising during the period, including amortization of unrecognized net actuarial gain (loss), net of taxes of $0.0 and $0.1, respectively, related to pension and other post-employment benefits 0.2 0.1
Other comprehensive income 12.8 2.3
Total comprehensive income $ 207.3 $ 195.3
v3.23.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Statement of Comprehensive Income [Abstract]    
Change in fair value of derivatives and amortization of unrecognized gains and losses on derivatives, tax $ 5.4 $ 0.6
Amortization of unrecognized net actuarial gain (loss), tax $ 0.0 $ 0.1
v3.23.3
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Aug. 27, 2023
May 28, 2023
Current assets:    
Cash and cash equivalents $ 192.1 $ 367.8
Receivables, net 59.2 80.2
Inventories 287.0 287.9
Prepaid income taxes 98.8 107.3
Prepaid expenses and other current assets 198.6 154.5
Total current assets 835.7 997.7
Land, buildings and equipment, net of accumulated depreciation and amortization of $3,506.2 and $3,422.0, respectively 3,991.7 3,725.1
Operating lease right-of-use assets 3,600.3 3,373.9
Goodwill 1,376.9 1,037.4
Trademarks 1,148.0 806.3
Other assets 316.6 301.1
Total assets 11,269.2 10,241.5
Current liabilities:    
Accounts payable 419.6 426.2
Short-term debt 95.4 0.0
Accrued payroll 168.6 173.0
Accrued income taxes 8.5 7.8
Other accrued taxes 74.3 65.9
Unearned revenues 541.7 512.0
Other current liabilities 786.1 752.5
Total current liabilities 2,094.2 1,937.4
Long-term debt 1,477.1 884.9
Deferred income taxes 231.4 142.2
Operating lease liabilities - non-current 3,877.5 3,667.6
Other liabilities 1,441.0 1,407.9
Total liabilities 9,121.2 8,040.0
Stockholders’ equity:    
Common stock and surplus 2,256.8 2,230.8
Retained earnings (deficit) (124.8) (32.5)
Accumulated other comprehensive income (loss) 16.0 3.2
Total stockholders’ equity 2,148.0 2,201.5
Total liabilities and stockholders’ equity $ 11,269.2 $ 10,241.5
v3.23.3
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Millions
Aug. 27, 2023
May 28, 2023
Statement of Financial Position [Abstract]    
Land, buildings and equipment, net of accumulated depreciation and amortization $ 3,506.2 $ 3,422.0
v3.23.3
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Millions
Total
Common Stock And Surplus
Retained Earnings (Deficit)
Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at May. 29, 2022   123,900    
Beginning balance at May. 29, 2022 $ 2,198.2 $ 2,226.0 $ (25.9) $ (1.9)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net earnings 193.0   193.0  
Other comprehensive income (loss) 2.3     2.3
Dividends declared (150.0)   (150.0)  
Stock option exercises (in shares)   100    
Stock option exercises 3.6 $ 3.6    
Stock-based compensation 12.1 $ 12.1    
Repurchases of common stock (in shares)   (1,700)    
Repurchases of common stock (199.0) $ (30.2) (168.8)  
Issuance of stock under Employee Stock Purchase Plan and other plans (in shares)   200    
Issuance of stock under Employee Stock Purchase Plan and other plans 2.8 $ 2.8    
Other 1.1 $ 1.1    
Ending balance (in shares) at Aug. 28, 2022   122,500    
Ending balance at Aug. 28, 2022 2,064.1 $ 2,215.4 (151.7) 0.4
Beginning balance (in shares) at May. 28, 2023   121,100    
Beginning balance at May. 28, 2023 2,201.5 $ 2,230.8 (32.5) 3.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net earnings 194.5   194.5  
Other comprehensive income (loss) 12.8     12.8
Dividends declared $ (160.1)   (160.1)  
Stock option exercises (in shares) 230 200    
Stock option exercises $ 19.4 $ 19.4    
Stock-based compensation 20.6 $ 20.6    
Repurchases of common stock (in shares)   (900)    
Repurchases of common stock (142.9) $ (16.2) (126.7)  
Issuance of stock under Employee Stock Purchase Plan and other plans (in shares)   300    
Issuance of stock under Employee Stock Purchase Plan and other plans 2.9 $ 2.9    
Other (0.7) $ (0.7)    
Ending balance (in shares) at Aug. 27, 2023   120,700    
Ending balance at Aug. 27, 2023 $ 2,148.0 $ 2,256.8 $ (124.8) $ 16.0
v3.23.3
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Statement of Stockholders' Equity [Abstract]    
Dividends declared (in dollars per share) $ 1.31 $ 1.21
v3.23.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Cash flows—operating activities    
Net earnings $ 194.5 $ 193.0
Losses from discontinued operations, net of tax 0.3 0.6
Adjustments to reconcile net earnings from continuing operations to cash flows:    
Depreciation and amortization 109.8 95.6
Impairments and disposal of assets, net 3.1 (4.9)
Stock-based compensation expense 30.3 20.3
Change in current assets and liabilities (59.5) 133.5
Contributions to pension and postretirement plans (0.4) (0.5)
Deferred income taxes 4.2 (9.6)
Change in other assets and liabilities (10.4) (4.2)
Other, net (2.8) 4.0
Net cash provided by operating activities of continuing operations 269.1 427.8
Cash flows—investing activities    
Purchases of land, buildings and equipment (150.9) (122.8)
Proceeds from disposal of land, buildings and equipment 1.6 10.4
Cash used in business acquisitions, net of cash acquired (699.9) 0.0
Purchases of capitalized software and other assets (5.2) (5.8)
Other, net 0.2 0.1
Net cash used in investing activities of continuing operations (854.2) (118.1)
Cash flows—financing activities    
Proceeds from issuance of common stock 22.3 6.4
Dividends paid (158.5) (148.5)
Repurchases of common stock (142.9) (199.0)
Proceeds from issuance of short-term debt 872.1 0.0
Repayments of short-term debt (776.7) 0.0
Proceeds from issuance of long-term debt 600.0 0.0
Principal payments on finance leases (5.5) (4.3)
Payments of debt issuance costs (1.4) 0.0
Net cash provided by (used in) financing activities of continuing operations 409.4 (345.4)
Cash flows—discontinued operations    
Net cash used in operating activities of discontinued operations 0.0 (0.5)
Net cash used in discontinued operations 0.0 (0.5)
Decrease in cash, cash equivalents, and restricted cash (175.7) (36.2)
Cash, cash equivalents, and restricted cash - beginning of period 416.2 472.1
Cash, cash equivalents, and restricted cash - end of period 240.5 435.9
Reconciliation of cash, cash equivalents, and restricted cash:    
Cash and cash equivalents 192.1 377.5
Restricted cash included in prepaid expenses and other current assets 48.4 58.4
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows 240.5 435.9
Cash flows from changes in current assets and liabilities    
Receivables, net 29.5 21.3
Inventories 9.4 (2.5)
Prepaid expenses and other current assets (40.1) (28.0)
Accounts payable (16.0) 12.6
Accrued payroll (13.7) (44.3)
Prepaid/accrued income taxes 20.8 217.0
Other accrued taxes 7.8 6.3
Unearned revenues (32.1) (30.2)
Other current liabilities (25.1) (18.7)
Change in current assets and liabilities $ (59.5) $ 133.5
v3.23.3
Basis of Presentation
 3 Months Ended
Aug. 27, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
Darden Restaurants, Inc. (we, our, Darden or the Company) owns and operates full-service dining restaurants in the United States and Canada under the trade names Olive Garden®, LongHorn Steakhouse®, Cheddar’s Scratch Kitchen®, Yard House®, Ruth’s Chris Steak House®, The Capital Grille®, Seasons 52®, Bahama Breeze®, Eddie V’s Prime Seafood® and The Capital Burger®. As of August 27, 2023, through subsidiaries, we own and operate all of our restaurants in the United States and Canada, except for 2 joint venture restaurants managed by us, 4 managed locations operating under contractual agreements and 92 franchised restaurants. We also have 53 franchised restaurants in operation located in Latin America, the Caribbean, Asia, and the Middle East.
We have prepared these consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature. We operate on a 52/53-week fiscal year which ends on the last Sunday in May. Our fiscal year ending May 26, 2024 will contain 52 weeks of operation. Operating results for interim periods presented are not necessarily indicative of results that may be expected for the full fiscal year.
These statements should be read in conjunction with the consolidated financial statements and related notes to consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended May 28, 2023. We prepare our consolidated financial statements in conformity with GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of sales and costs and expenses during the reporting period. Actual results could differ from those estimates.
We have reclassified certain amounts in prior-period financial statements to conform to the current period’s presentation.
v3.23.3
Acquisition of Ruth’s Chris Steak House
 3 Months Ended
Aug. 27, 2023
Business Combination and Asset Acquisition [Abstract]  
Acquisition of Ruth’s Chris Steak House Acquisition of Ruth’s Chris Steak House
On June 14, 2023, we acquired 100 percent of the equity interest of Ruth’s Chris Steak House (Ruth’s Chris) for $724.6 million in total consideration. We funded the acquisition with the proceeds from the issuance of a $600.0 million Term Loan (Term Loan Agreement) combined with cash on hand.
The acquired operations of Ruth’s Chris included 77 company-owned locations, 74 franchisee-owned locations and 4 managed locations operating under contractual agreement. The results of Ruth’s Chris operations are included in our consolidated financial statements from the date of acquisition.
The Term Loan Agreement is a senior unsecured $600 million 3-year credit agreement with Bank of America, N.A., as administrative agent, the lenders and other agents party thereto, the material terms of which are consistent with our existing revolving credit agreement. The Term Loan Agreement bears interest at a rate of:
(a) Term SOFR (which is defined, for the applicable interest period, as the Term SOFR Screen Rate two U.S. Government Securities Business Days prior to the commencement of such interest period with a term equivalent to such interest period) plus a Term SOFR adjustment of 0.10 percent plus the relevant margin determined by reference to a ratings-based pricing grid (Applicable Margin); or
(b) The base rate (which is defined as the highest of the BOA prime rate, the Federal Funds rate plus 0.500 percent, and the Term SOFR plus 1.00 percent) plus the relevant Applicable Margin.
Assuming a “BBB” equivalent credit rating level, the Applicable Margin under the Term Loan Agreement is 1.125 percent for Term SOFR loans and 0.125 percent for base rate loans. The Term Loan Agreement matures on the third anniversary of the funding date thereunder, June 14, 2023.
The assets and liabilities of Ruth’s Chris were recorded at their respective fair values as of the date of acquisition. We are in the process of confirming, through internal studies and third-party valuations, the fair value of these assets, including land, buildings and equipment, intangible assets, and income tax assets and liabilities. The fair values set forth below are based on preliminary valuations and are subject to adjustment as additional information is obtained. When the valuation process is completed, adjustments to goodwill may result.
The preliminary allocation of the purchase price is as follows:
Balances at
(in millions)June 14, 2023
Current assets$45.6 
Land, buildings and equipment170.5 
Operating lease right-of-use assets291.6 
Trademark341.7 
Other assets12.0 
Goodwill339.5 
     Total assets acquired$1,200.9 
Current liabilities113.5 
Deferred income taxes79.5 
Operating lease liabilities - non-current276.3 
Other liabilities7.0 
     Total liabilities assumed$476.3 
Net assets acquired$724.6 

The excess of the purchase price over the aggregate fair value of net assets acquired was allocated to goodwill. Of the $339.5 million recorded as goodwill, $15.2 million is deductible for tax purposes. The portion of the purchase price attributable to goodwill represents benefits expected because of the acquisition, including sales and unit growth opportunities in addition to supply-chain and support-cost synergies. The trademark has an indefinite life based on the expected use of the asset and the regulatory and economic environment within which it is being used. The trademark represents a highly respected brand with positive connotations, and we intend to cultivate and protect the use of this brand. Goodwill and indefinite-lived trademarks are not amortized but are reviewed annually for impairment or more frequently if indicators of impairment exist. Buildings and equipment will be depreciated over a period of 2 years to 30 years.
As a result of the acquisition and related integration efforts, we incurred expenses of approximately $24.8 million during the quarter ended August 27, 2023, which are included in general and administrative expenses in our consolidated statements of earnings. Pro-forma financial information of the combined entities for periods prior to the acquisition is not presented due to the immaterial impact of the financial results of Ruth’s Chris on our consolidated financial statements
v3.23.3
Revenue Recognition
 3 Months Ended
Aug. 27, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition  
Deferred revenue liabilities from contracts with customers included on our accompanying consolidated balance sheets was comprised of the following:
(in millions)August 27, 2023May 28, 2023
Unearned revenues
Deferred gift card revenue$563.4 $537.0 
Deferred gift card discounts(22.4)(25.5)
Other0.7 0.5 
Total$541.7 $512.0 
Other liabilities
Deferred franchise fees - non-current$4.9 $2.7 
The following table presents a rollforward of deferred gift card revenue.
Three Months Ended
(in millions)August 27, 2023August 28, 2022
Beginning balance$537.0 $521.1 
Acquired deferred gift card revenue61.8 — 
Activations130.1 114.4 
Redemptions and breakage(165.5)(147.0)
Ending balance$563.4 $488.5 
v3.23.3
Additional Financial Information
 3 Months Ended
Aug. 27, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Additional Financial Information Additional Financial Information
Supplemental Balance Sheet Information
The components of lease assets and liabilities on the consolidated balance sheet were as follows:
(in millions)Balance Sheet ClassificationAugust 27, 2023May 28, 2023
Operating lease right-of-use assetsOperating lease right-of-use assets$3,600.3 $3,373.9 
Finance lease right-of-use assetsLand, buildings and equipment, net1,006.5 958.1 
Total lease assets, net$4,606.8 $4,332.0 
Operating lease liabilities - currentOther current liabilities$193.9 $182.5 
Finance lease liabilities - currentOther current liabilities12.5 13.5 
Operating lease liabilities - non-currentOperating lease liabilities - non-current3,877.5 3,667.6 
Finance lease liabilities - non-currentOther liabilities1,229.0 1,172.6 
Total lease liabilities$5,312.9 $5,036.2 
Supplemental Cash Flow Information
Cash paid for interest and income taxes were as follows:
Three Months Ended
(in millions)August 27, 2023August 28, 2022
Interest, net of amounts capitalized$34.3 $21.1 
Income taxes, net of refunds2.0 (176.7)
Non-cash investing and financing activities were as follows:Three Months Ended
(in millions)August 27, 2023August 28, 2022
Increase in land, buildings and equipment through accrued purchases$64.0 $75.9 
Right-of-use assets obtained in exchange for new operating lease liabilities (1)
298.0 49.6 
Right-of-use assets obtained in exchange for new finance lease liabilities45.3 41.5 
Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance2.1 25.3 
(1) Right-of-use assets obtained in fiscal 2024 includes $291.6 million from the acquisition of Ruth’s Chris.
We had restricted cash of $48.4 million as of August 27, 2023 and May 28, 2023, which represents cash held as security for a standby letter of credit. Restricted cash is included in Prepaid Expenses and Other Current Assets on our consolidated balance sheet. See Note 13, Commitments and Contingencies, for further details around standby letters of credit.
v3.23.3
Income Taxes
 3 Months Ended
Aug. 27, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The effective income tax rate for continuing operations for the three months ended August 27, 2023 was 12.7 percent compared to an effective income tax rate for the three months ended August 28, 2022 of 13.7 percent. The decrease in the tax rate is driven by an increase in certain tax credits, primarily attributable to Ruth’s Chris, and higher tax benefits related to option exercises partially offset by certain non-deductible acquisition related costs.
Included in our remaining balance of unrecognized tax benefits is $8.4 million related to tax positions for which it is reasonably possible that the total amounts could change within the next twelve months based on the outcome of examinations or as a result of the expiration of the statute of limitations for specific jurisdictions.
The Inflation Reduction Act (“IRA”) was enacted on August 16, 2022. The IRA includes provisions imposing a 1 percent excise tax on share repurchases that occur after December 31, 2022 and introduces a 15 percent corporate alternative minimum tax (“CAMT”) on adjusted financial statement income. The IRA excise tax and CAMT are immaterial to our consolidated financial statements for the three months ended August 27, 2023.
v3.23.3
Net Earnings per Share
 3 Months Ended
Aug. 27, 2023
Earnings Per Share [Abstract]  
Net Earnings per Share Net Earnings per Share
Outstanding stock options, restricted stock and equity-settled performance stock units granted by us represent the only dilutive effect reflected in diluted weighted average shares outstanding, none of which impact the numerator of the diluted net earnings per share computation. Stock options, restricted stock and equity-settled performance stock units excluded from the calculation of diluted net earnings per share because the effect would have been anti-dilutive, were as follows: 
Three Months Ended
(in millions)August 27,
2023		August 28,
2022
Anti-dilutive stock-based compensation awards— 0.5 
v3.23.3
Segment Information
 3 Months Ended
Aug. 27, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, Ruth’s Chris, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s, 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. 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 Ruth’s Chris, The Capital Grille and Eddie V’s restaurants in the U.S. The Other Business segment aggregates our remaining brands and includes the results of our company-owned Cheddar’s Scratch Kitchen, Yard House, Seasons 52, Bahama Breeze and The Capital Burger restaurants in the U.S. and results from our franchise operations.
External sales are derived principally from food and beverage sales. We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our reportable segments are predominantly in the U.S. There were no material transactions among reportable segments.
Our management uses segment profit as the measure for assessing performance of our segments. Segment profit includes revenues and expenses directly attributable to restaurant-level results of operations (sometimes referred to as restaurant-level earnings). These expenses include food and beverage costs, restaurant labor costs, restaurant expenses and marketing expenses (collectively “restaurant and marketing expenses”). Non-cash lease-related expenses included in restaurant expenses (which is a component of segment profit) and lease-related depreciation and amortization are reported at the corporate level as these are expenses for which our operating segments are not being evaluated. Additionally, our lease-related right-of-use assets are not managed or evaluated at the operating segment level, but rather at the corporate level.
The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP.
(in millions)Olive GardenLongHorn Steakhouse
Fine Dining1
Other BusinessCorporateConsolidated
For the three months ended August 27, 2023
Sales$1,227.9 $669.8 $273.5 $559.4 $— $2,730.6 
Restaurant and marketing expenses965.6 552.4 233.8 475.1 (15.4)2,211.5 
Segment profit$262.3 $117.4 $39.7 $84.3 $15.4 $519.1 
Depreciation and amortization$39.6 $18.2 $15.6 $25.1 $11.3 $109.8 
Impairments and disposal of assets, net0.2 — — — 2.9 3.1 
Purchases of land, buildings and equipment65.8 34.5 23.5 26.6 0.5 150.9 
1 Includes Ruth’s Chris results from the date of acquisition forward.
(in millions)Olive GardenLongHorn SteakhouseFine DiningOther BusinessCorporateConsolidated
For the three months ended August 28, 2022
Sales$1,130.7 $604.6 $183.4 $527.4 $— $2,446.1 
Restaurant and marketing expenses914.6 512.6 153.4 455.1 (12.8)2,022.9 
Segment profit$216.1 $92.0 $30.0 $72.3 $12.8 $423.2 
Depreciation and amortization$35.8 $16.8 $8.9 $24.3 $9.8 $95.6 
Impairments and disposal of assets, net— — — — (4.9)(4.9)
Purchases of land, buildings and equipment56.1 28.0 11.3 25.6 1.8 122.8 
A reconciliation of segment profit to earnings from continuing operations before income taxes is below.
Three Months Ended
(in millions)August 27, 2023August 28, 2022
Segment profit$519.1 $423.2 
Less general and administrative expenses(153.3)(88.3)
Less depreciation and amortization(109.8)(95.6)
Less impairments and disposal of assets, net(3.1)4.9 
Less interest, net(29.7)(19.8)
Earnings before income taxes$223.2 $224.4 
v3.23.3
Impairments and Disposal of Assets, Net
 3 Months Ended
Aug. 27, 2023
Asset Impairment Charges [Abstract]  
Impairments and Disposal of Assets, Net Impairments and Disposal of Assets, Net
Impairments and disposal of assets, net, in our accompanying consolidated statements of earnings were comprised of the following:
Three Months Ended
(in millions)August 27, 2023August 28, 2022
Restaurant impairments$0.3 $— 
Disposal (gains) losses4.9 (4.9)
Other(2.1)— 
Impairments and disposal of assets, net$3.1 $(4.9)

Restaurant impairments and disposal (gains) losses for the quarter ended August 27, 2023 were related to the decision to close four locations. Disposal (gains) losses for the quarter ended August 28, 2022 were related to the sale of properties. Other impacts for the quarter ended August 27, 2023 related to right-of-use asset adjustments on early lease terminations.
v3.23.3
Stockholders' Equity
 3 Months Ended
Aug. 27, 2023
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders’ Equity
Accumulated Other Comprehensive Income (Loss) (AOCI)
The components of AOCI, net of tax, for the quarter ended August 27, 2023 were as follows:
(in millions)Foreign Currency Translation AdjustmentUnrealized Gains (Losses) on DerivativesBenefit Plan Funding PositionAccumulated Other Comprehensive Income (Loss)
Balance at May 28, 2023$4.5 $3.9 $(5.2)$3.2 
Gain (loss)— 12.5 — 12.5 
Reclassification realized in net earnings— 0.1 0.2 0.3 
Balance at August 27, 2023$4.5 $16.5 $(5.0)$16.0 

The components of AOCI, net of tax, for the quarter ended August 28, 2022 were as follows:
(in millions)Foreign Currency Translation AdjustmentUnrealized Gains (Losses) on DerivativesBenefit Plan Funding PositionAccumulated Other Comprehensive Income (Loss)
Balances at May 29, 2022$4.8 $(0.4)$(6.3)$(1.9)
Gain (loss)— 1.5 — 1.5 
Reclassification realized in net earnings— 0.7 0.1 0.8 
Balance at August 28, 2022$4.8 $1.8 $(6.2)$0.4 
The following table presents the amounts and line items in our consolidated statements of earnings where adjustments reclassified from AOCI into net earnings were recorded.
Amount Reclassified from AOCI into Net Earnings
Three Months Ended
(in millions)
AOCI Components
Location of Gain (Loss) Recognized in EarningsAugust 27,
2023		August 28,
2022
Derivatives
Commodity contracts
(1)$(1.9)$0.1 
Equity contracts
(2)1.3 (0.8)
Interest rate contracts
(3)— — 
Total before tax$(0.6)$(0.7)
Tax (expense) benefit0.5 — 
Net of tax$(0.1)$(0.7)
Benefit plan funding position
Recognized net actuarial gain (loss) - other plans
(4)(0.2)(0.2)
Total before tax$(0.2)$(0.2)
Tax (expense) benefit— 0.1 
Net of tax$(0.2)$(0.1)
(1)Primarily included in food and beverage costs and restaurant expenses. See Note 11 for additional details.
(2)Included in general and administrative expenses. See Note 11 for additional details.
(3)Included in interest, net on our consolidated statement of earnings.
(4)Included in the computation of net periodic benefit costs, which is a component of general and administrative expenses.
v3.23.3
Stock-Based Compensation
 3 Months Ended
Aug. 27, 2023
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation 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:
Three Months Ended
 August 27, 2023August 28, 2022
Weighted-average fair value$55.56$36.20
Dividend yield3.4 %3.8 %
Expected volatility of stock42.2 %42.0 %
Risk-free interest rate4.0 %2.8 %
Expected option life (in years)5.95.9
Weighted-average exercise price per share$169.02$121.47
The weighted-average grant date fair value of market-based performance stock units and the related assumptions used in the Monte Carlo simulation to record stock-based compensation for units granted during the periods presented, were as follows:
Three Months Ended
August 27, 2023August 28, 2022
Dividend yield (1)0.0 %0.0 %
Expected volatility of stock32.3 %55.5 %
Risk-free interest rate4.5 %2.9 %
Expected life (in years)2.92.8
Weighted-average grant date fair value per unit$217.11$137.73
(1)Assumes a reinvestment of dividends.
The following table presents a summary of our stock-based compensation activity for the three months ended August 27, 2023.
(in millions)Stock
Options		Restricted
Stock/
Restricted
Stock
Units		Equity-Settled
Performance
Stock Units		Cash-Settled Darden
Stock
Units
Outstanding beginning of period1.62 0.28 0.36 0.81 
Awards granted0.13 0.05 0.16 0.14 
Awards granted performance impact— — — — 
Awards exercised/vested(0.23)(0.08)(0.16)(0.15)
Awards forfeited— — — (0.01)
Outstanding end of period1.52 0.25 0.36 0.79 
We recognized expense from stock-based compensation as follows: 
Three Months Ended
(in millions)August 27,
2023		August 28,
2022
Stock options$4.2 $2.6 
Restricted stock/restricted stock units4.6 2.8 
Equity-settled performance stock units10.5 5.6 
Cash-settled Darden stock units9.7 8.2 
Employee stock purchase plan0.7 0.7 
Director compensation program/other0.6 0.4 
Total stock-based compensation expense$30.3 $20.3 
v3.23.3
Derivative Instruments and Hedging Activities
 3 Months Ended
Aug. 27, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities
We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments as provided by FASB ASC Topic 815, Derivatives and Hedging, and those utilized as economic hedges. We use financial derivatives to manage interest rate, commodity and compensation risks inherent in our business operations. Cash flows related to derivatives are included in operating activities.
By using these instruments, we expose ourselves, from time to time, to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. We minimize this credit risk by entering into transactions with high quality counterparties. Market risk is the adverse effect on the value of a financial instrument that results from a
change in interest rates, commodity prices, or the market price of our common stock. We minimize this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.
We designate commodity contracts and equity forward contracts as cash flow hedging instruments. We have two interest rate swap agreements. One is designated as a fair value hedge of the related debt and the other is designated as a cash flow hedge of the floating rate interest payments on the Term Loan Agreement entered into June 2023 or any related refinancing of the Term Loan. Further, we entered into equity forward contracts to hedge the risk of changes in future cash flows associated with recognized, employee-directed investments in our common stock within the non-qualified deferred compensation plan. We did not elect hedge accounting with the expectation that changes in the fair value of the equity forward contracts would offset changes in the fair value of our common stock investments in the non-qualified deferred compensation plan.
The notional and fair values of our derivative contracts were as follows: 
Fair Values
(in millions, except
per share data)		Number of Shares OutstandingWeighted-Average
 Per Share Forward Rates		Notional ValuesDerivative Assets (1)Derivative Liabilities (1)
August 27, 2023August 27,
2023		May 28,
2023		August 27,
2023		May 28,
2023
Equity forwards:
Designated0.3$139.71$41.3 $— $2.2 $1.7 $— 
Not designated0.5128.5958.7 — 5.1 2.6 — 
Total equity forwards (2)$— $7.3 $4.3 $— 
Commodity contracts:
DesignatedN/AN/A$22.3 $0.7 $— $2.6 $5.6 
Not designatedN/AN/A— — — — — 
Total commodity contracts (3)$0.7 $— $2.6 $5.6 
Interest rate related
Designated - Fair Value HedgeN/AN/A$300.0 $— $— $52.3 $45.4 
Designated - Cash Flow HedgeN/AN/A500.0 17.6 — — — 
Not designatedN/AN/A— — — — 
Total interest rate related$17.6 $— $52.3 $45.4 
Total derivative contracts$18.3 $7.3 $59.2 $51.0 
 
(1)Derivative assets and liabilities are included in receivables, net and other current liabilities, as applicable, on our consolidated balance sheets.
(2)Designated and undesignated equity forwards extend through July 2027.
(3)Commodity contracts extend through June 2024.
    
The effects of derivative instruments accounted for as cash flow hedging instruments in the consolidated statements of earnings were as follows:
Amount of Gain (Loss) Recognized in AOCIAmount of Gain (Loss) Reclassified from AOCI to Earnings
Three Months EndedThree Months Ended
(in millions)August 27,
2023		August 28,
2022		August 27,
2023		August 28,
2022
Equity (1)$(2.2)$(0.5)$1.3 $(0.8)
Commodity (2)1.7 2.6 (1.9)0.1 
Interest rate (3)17.9 — — — 
Total$17.4 $2.1 $(0.6)$(0.7)

(1)Location of the gain (loss) reclassified from AOCI to earnings is general and administrative expenses.
(2)Location of the gain (loss) reclassified from AOCI to earnings is food and beverage costs and restaurant expenses.
(3)Location of the gain (loss) reclassified from AOCI to earnings is interest, net.

The effects of derivative instruments in fair value hedging relationships in the consolidated statement of earnings were as follows:

Amount of Gain (Loss) Recognized in Earnings on DerivativesAmount of Gain (Loss) Recognized in Earnings on Related Hedged Item
Three Months EndedThree Months Ended
(in millions)August 27,
2023		August 28,
2022		August 27,
2023		August 28,
2022
Interest rate (1)(2)$(6.9)$(6.3)$6.9 $6.3 

 (1) Location of the gain (loss) recognized in earnings on derivatives and related hedged item is interest, net.
(2) Hedged item in fair value hedge relationship is debt.

The effects of derivatives not designated as hedging instruments in the consolidated statements of earnings were as follows:
Amount of Gain (Loss) Recognized in Earnings
(in millions)Three Months Ended
Location of Gain (Loss) Recognized in Earnings on DerivativesAugust 27, 2023August 28, 2022
Food and beverage costs and restaurant expenses$— $— 
General and administrative expenses(0.1)(1.1)
Total$(0.1)$(1.1)
Based on the fair value of our derivative instruments designated as cash flow hedges as of August 27, 2023, we expect to reclassify $7.4 million of net gains on derivative instruments from AOCI to earnings during the next 12 months based on the maturity of our contracts. However, the amounts ultimately realized in earnings may change and will be dependent on the fair value of the contracts on the respective settlement dates.
v3.23.3
Fair Value Measurements
 3 Months Ended
Aug. 27, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The fair values of cash equivalents, receivables, net, accounts payable, short-term debt and the Term Loan approximate their carrying amounts due to their short duration or market based interest rates.
The following tables summarize the fair values of financial instruments measured at fair value on a recurring basis as of August 27, 2023 and May 28, 2023. 
Items Measured at Fair Value at August 27, 2023
(in millions) Fair value
of assets
(liabilities)		Quoted prices
in active
market for
identical assets
(liabilities)
(Level 1)		Significant
other
observable
inputs
(Level 2)		Significant
unobservable
inputs
(Level 3)
Derivatives:
Commodities futures, swaps & options(1)$(1.9)$— $(1.9)$— 
Equity forwards(2)(4.3)— (4.3)$— 
Interest rate swaps - fair value hedge(3)(52.3)— (52.3)— 
Interest rate swaps - cash flow hedge(3)17.6 — 17.6 — 
Total$(40.9)$— $(40.9)$— 
 
Items Measured at Fair Value at May 28, 2023
(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)$(5.6)$— $(5.6)$— 
Equity forwards(2)7.3 — 7.3 — 
Interest rate swaps - fair value hedge(3)(45.4)— (45.4)— 
Total$(43.7)$— $(43.7)$— 

(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 of nonperformance.
(3)The fair value of our interest rate swap agreements is based on current and expected market interest rates, inclusive of the risk of nonperformance.
The carrying value and fair value of long-term debt as of August 27, 2023, was $1.48 billion and $1.45 billion, respectively. The carrying value and fair value of long-term debt as of May 28, 2023, was $884.9 million and $857.0 million, respectively. The fair value of long-term debt, classified as Level 2 in the fair value hierarchy, is determined based on market prices or, if market prices are not available, the present value of the underlying cash flows discounted at our incremental borrowing rates.
The fair value of non-financial assets measured at fair value on a non-recurring basis, classified as Level 2 in the fair value hierarchy, is determined based on third-party market appraisals. As of August 27, 2023 and May 28, 2023, adjustments to the fair values of non-financial assets measured at fair value on a non-recurring basis, classified as Level 2, were not material.
The fair value of non-financial assets measured at fair value on a non-recurring basis, classified as Level 3 in the fair value hierarchy, is determined based on appraisals, sales prices of comparable assets, or estimates of discounted future cash flows. As of August 27, 2023, adjustments to the fair values of non-financial assets, classified as Level 3, were not material. As of May 28, 2023, long-lived assets held and used with a carrying amount of $10.0 million, primarily related to one
underperforming restaurant, were determined to have a fair value of $8.4 million resulting in an impairment charge of $1.6 million.
v3.23.3
Commitments and Contingencies
 3 Months Ended
Aug. 27, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies 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 August 27, 2023 and May 28, 2023, we had $79.6 million and $85.3 million, respectively, of standby letters of credit related to workers’ compensation and general liabilities accrued in our consolidated financial statements. As of August 27, 2023 and May 28, 2023, we had $16.1 million and $15.2 million, respectively, of surety bonds related to other payments. Most surety bonds are renewable annually.
As of August 27, 2023 and May 28, 2023, we had $84.3 million and $82.0 million, respectively, of guarantees associated with leased properties that have been assigned to third parties. 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 August 27, 2023 and May 28, 2023, amounted to $68.8 million and $68.4 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 assignment agreements, except to the extent that the assignment allows us to repossess the building and personal property. These guarantees expire over their respective lease terms, which range from fiscal 2024 through fiscal 2034.
We are subject to private lawsuits, administrative proceedings and claims that arise in the ordinary course of our business. A number of these lawsuits, proceedings and claims may exist at any given time. These matters typically involve claims from guests, employees and others related to operational issues common to the restaurant industry, and can also involve infringement of, or challenges to, our trademarks. While the resolution of a lawsuit, proceeding or claim may have an impact on our financial results for the period in which it is resolved, we believe that the final disposition of the lawsuits, proceedings and claims in which we are currently involved, either individually or in the aggregate, will not have a material adverse effect on our financial position, results of operations or liquidity.
v3.23.3
Subsequent Events
 3 Months Ended
Aug. 27, 2023
Subsequent Events [Abstract]  
Subsequent Events Subsequent Events On September 19, 2023, the Board of Directors declared a cash dividend of $1.31 per share payable on November 1, 2023 to all shareholders of record as of the close of business on October 10, 2023.
v3.23.3
Pay vs Performance Disclosure - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Pay vs Performance Disclosure    
Net earnings $ 194.5 $ 193.0
v3.23.3
Insider Trading Arrangements
 3 Months Ended
Aug. 27, 2023
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.23.3
Basis of Presentation (Policies)
 3 Months Ended
Aug. 27, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation We have prepared these consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP) have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal recurring nature. We operate on a 52/53-week fiscal year which ends on the last Sunday in May. Our fiscal year ending May 26, 2024 will contain 52 weeks of operation. Operating results for interim periods presented are not necessarily indicative of results that may be expected for the full fiscal year.These statements should be read in conjunction with the consolidated financial statements and related notes to consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended May 28, 2023. We prepare our consolidated financial statements in conformity with GAAP. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of sales and costs and expenses during the reporting period. Actual results could differ from those estimates.
Reclassification We have reclassified certain amounts in prior-period financial statements to conform to the current period’s presentation.
Derivative Instruments and Hedging Activities
We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments as provided by FASB ASC Topic 815, Derivatives and Hedging, and those utilized as economic hedges. We use financial derivatives to manage interest rate, commodity and compensation risks inherent in our business operations. Cash flows related to derivatives are included in operating activities.
By using these instruments, we expose ourselves, from time to time, to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk for us. We minimize this credit risk by entering into transactions with high quality counterparties. Market risk is the adverse effect on the value of a financial instrument that results from a
change in interest rates, commodity prices, or the market price of our common stock. We minimize this market risk by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.
We designate commodity contracts and equity forward contracts as cash flow hedging instruments. We have two interest rate swap agreements. One is designated as a fair value hedge of the related debt and the other is designated as a cash flow hedge of the floating rate interest payments on the Term Loan Agreement entered into June 2023 or any related refinancing of the Term Loan. Further, we entered into equity forward contracts to hedge the risk of changes in future cash flows associated with recognized, employee-directed investments in our common stock within the non-qualified deferred compensation plan. We did not elect hedge accounting with the expectation that changes in the fair value of the equity forward contracts would offset changes in the fair value of our common stock investments in the non-qualified deferred compensation plan.
v3.23.3
Acquisition of Ruth’s Chris Steak House (Tables)
 3 Months Ended
Aug. 27, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of Preliminary Allocation of the Purchase Price
The preliminary allocation of the purchase price is as follows:
Balances at
(in millions)June 14, 2023
Current assets$45.6 
Land, buildings and equipment170.5 
Operating lease right-of-use assets291.6 
Trademark341.7 
Other assets12.0 
Goodwill339.5 
     Total assets acquired$1,200.9 
Current liabilities113.5 
Deferred income taxes79.5 
Operating lease liabilities - non-current276.3 
Other liabilities7.0 
     Total liabilities assumed$476.3 
Net assets acquired$724.6 
v3.23.3
Revenue Recognition (Tables)
 3 Months Ended
Aug. 27, 2023
Revenue from Contract with Customer [Abstract]  
Schedule of Contract with Customer
Deferred revenue liabilities from contracts with customers included on our accompanying consolidated balance sheets was comprised of the following:
(in millions)August 27, 2023May 28, 2023
Unearned revenues
Deferred gift card revenue$563.4 $537.0 
Deferred gift card discounts(22.4)(25.5)
Other0.7 0.5 
Total$541.7 $512.0 
Other liabilities
Deferred franchise fees - non-current$4.9 $2.7 
The following table presents a rollforward of deferred gift card revenue.
Three Months Ended
(in millions)August 27, 2023August 28, 2022
Beginning balance$537.0 $521.1 
Acquired deferred gift card revenue61.8 — 
Activations130.1 114.4 
Redemptions and breakage(165.5)(147.0)
Ending balance$563.4 $488.5 
v3.23.3
Additional Financial Information (Tables)
 3 Months Ended
Aug. 27, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Supplemental Balance Sheet Information
The components of lease assets and liabilities on the consolidated balance sheet were as follows:
(in millions)Balance Sheet ClassificationAugust 27, 2023May 28, 2023
Operating lease right-of-use assetsOperating lease right-of-use assets$3,600.3 $3,373.9 
Finance lease right-of-use assetsLand, buildings and equipment, net1,006.5 958.1 
Total lease assets, net$4,606.8 $4,332.0 
Operating lease liabilities - currentOther current liabilities$193.9 $182.5 
Finance lease liabilities - currentOther current liabilities12.5 13.5 
Operating lease liabilities - non-currentOperating lease liabilities - non-current3,877.5 3,667.6 
Finance lease liabilities - non-currentOther liabilities1,229.0 1,172.6 
Total lease liabilities$5,312.9 $5,036.2 
Schedule of Supplemental Cash Flow Information
Cash paid for interest and income taxes were as follows:
Three Months Ended
(in millions)August 27, 2023August 28, 2022
Interest, net of amounts capitalized$34.3 $21.1 
Income taxes, net of refunds2.0 (176.7)
Non-cash investing and financing activities were as follows:Three Months Ended
(in millions)August 27, 2023August 28, 2022
Increase in land, buildings and equipment through accrued purchases$64.0 $75.9 
Right-of-use assets obtained in exchange for new operating lease liabilities (1)
298.0 49.6 
Right-of-use assets obtained in exchange for new finance lease liabilities45.3 41.5 
Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance2.1 25.3 
(1) Right-of-use assets obtained in fiscal 2024 includes $291.6 million from the acquisition of Ruth’s Chris.
v3.23.3
Net Earnings per Share (Tables)
 3 Months Ended
Aug. 27, 2023
Earnings Per Share [Abstract]  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share Stock options, restricted stock and equity-settled performance stock units excluded from the calculation of diluted net earnings per share because the effect would have been anti-dilutive, were as follows: 
Three Months Ended
(in millions)August 27,
2023		August 28,
2022
Anti-dilutive stock-based compensation awards— 0.5 
v3.23.3
Segment Information (Tables)
 3 Months Ended
Aug. 27, 2023
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP.
(in millions)Olive GardenLongHorn Steakhouse
Fine Dining1
Other BusinessCorporateConsolidated
For the three months ended August 27, 2023
Sales$1,227.9 $669.8 $273.5 $559.4 $— $2,730.6 
Restaurant and marketing expenses965.6 552.4 233.8 475.1 (15.4)2,211.5 
Segment profit$262.3 $117.4 $39.7 $84.3 $15.4 $519.1 
Depreciation and amortization$39.6 $18.2 $15.6 $25.1 $11.3 $109.8 
Impairments and disposal of assets, net0.2 — — — 2.9 3.1 
Purchases of land, buildings and equipment65.8 34.5 23.5 26.6 0.5 150.9 
1 Includes Ruth’s Chris results from the date of acquisition forward.
(in millions)Olive GardenLongHorn SteakhouseFine DiningOther BusinessCorporateConsolidated
For the three months ended August 28, 2022
Sales$1,130.7 $604.6 $183.4 $527.4 $— $2,446.1 
Restaurant and marketing expenses914.6 512.6 153.4 455.1 (12.8)2,022.9 
Segment profit$216.1 $92.0 $30.0 $72.3 $12.8 $423.2 
Depreciation and amortization$35.8 $16.8 $8.9 $24.3 $9.8 $95.6 
Impairments and disposal of assets, net— — — — (4.9)(4.9)
Purchases of land, buildings and equipment56.1 28.0 11.3 25.6 1.8 122.8 
Schedule of Reconciliation of Operating Profit (Loss) from Segments to Consolidated A reconciliation of segment profit to earnings from continuing operations before income taxes is below.
Three Months Ended
(in millions)August 27, 2023August 28, 2022
Segment profit$519.1 $423.2 
Less general and administrative expenses(153.3)(88.3)
Less depreciation and amortization(109.8)(95.6)
Less impairments and disposal of assets, net(3.1)4.9 
Less interest, net(29.7)(19.8)
Earnings before income taxes$223.2 $224.4 
v3.23.3
Impairments and Disposal of Assets, Net (Tables)
 3 Months Ended
Aug. 27, 2023
Asset Impairment Charges [Abstract]  
Schedule of Impairments And Disposal Of Assets
Impairments and disposal of assets, net, in our accompanying consolidated statements of earnings were comprised of the following:
Three Months Ended
(in millions)August 27, 2023August 28, 2022
Restaurant impairments$0.3 $— 
Disposal (gains) losses4.9 (4.9)
Other(2.1)— 
Impairments and disposal of assets, net$3.1 $(4.9)
v3.23.3
Stockholders' Equity (Tables)
 3 Months Ended
Aug. 27, 2023
Stockholders' Equity Note [Abstract]  
Schedule of AOCI
The components of AOCI, net of tax, for the quarter ended August 27, 2023 were as follows:
(in millions)Foreign Currency Translation AdjustmentUnrealized Gains (Losses) on DerivativesBenefit Plan Funding PositionAccumulated Other Comprehensive Income (Loss)
Balance at May 28, 2023$4.5 $3.9 $(5.2)$3.2 
Gain (loss)— 12.5 — 12.5 
Reclassification realized in net earnings— 0.1 0.2 0.3 
Balance at August 27, 2023$4.5 $16.5 $(5.0)$16.0 

The components of AOCI, net of tax, for the quarter ended August 28, 2022 were as follows:
(in millions)Foreign Currency Translation AdjustmentUnrealized Gains (Losses) on DerivativesBenefit Plan Funding PositionAccumulated Other Comprehensive Income (Loss)
Balances at May 29, 2022$4.8 $(0.4)$(6.3)$(1.9)
Gain (loss)— 1.5 — 1.5 
Reclassification realized in net earnings— 0.7 0.1 0.8 
Balance at August 28, 2022$4.8 $1.8 $(6.2)$0.4 
Schedule of Reclassification out of AOCI
The following table presents the amounts and line items in our consolidated statements of earnings where adjustments reclassified from AOCI into net earnings were recorded.
Amount Reclassified from AOCI into Net Earnings
Three Months Ended
(in millions)
AOCI Components
Location of Gain (Loss) Recognized in EarningsAugust 27,
2023		August 28,
2022
Derivatives
Commodity contracts
(1)$(1.9)$0.1 
Equity contracts
(2)1.3 (0.8)
Interest rate contracts
(3)— — 
Total before tax$(0.6)$(0.7)
Tax (expense) benefit0.5 — 
Net of tax$(0.1)$(0.7)
Benefit plan funding position
Recognized net actuarial gain (loss) - other plans
(4)(0.2)(0.2)
Total before tax$(0.2)$(0.2)
Tax (expense) benefit— 0.1 
Net of tax$(0.2)$(0.1)
(1)Primarily included in food and beverage costs and restaurant expenses. See Note 11 for additional details.
(2)Included in general and administrative expenses. See Note 11 for additional details.
(3)Included in interest, net on our consolidated statement of earnings.
(4)Included in the computation of net periodic benefit costs, which is a component of general and administrative expenses.
v3.23.3
Stock-Based Compensation (Tables)
 3 Months Ended
Aug. 27, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions
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:
Three Months Ended
 August 27, 2023August 28, 2022
Weighted-average fair value$55.56$36.20
Dividend yield3.4 %3.8 %
Expected volatility of stock42.2 %42.0 %
Risk-free interest rate4.0 %2.8 %
Expected option life (in years)5.95.9
Weighted-average exercise price per share$169.02$121.47
The weighted-average grant date fair value of market-based performance stock units and the related assumptions used in the Monte Carlo simulation to record stock-based compensation for units granted during the periods presented, were as follows:
Three Months Ended
August 27, 2023August 28, 2022
Dividend yield (1)0.0 %0.0 %
Expected volatility of stock32.3 %55.5 %
Risk-free interest rate4.5 %2.9 %
Expected life (in years)2.92.8
Weighted-average grant date fair value per unit$217.11$137.73
(1)Assumes a reinvestment of dividends.
Schedule of Stock-Based Compensation Activity
The following table presents a summary of our stock-based compensation activity for the three months ended August 27, 2023.
(in millions)Stock
Options		Restricted
Stock/
Restricted
Stock
Units		Equity-Settled
Performance
Stock Units		Cash-Settled Darden
Stock
Units
Outstanding beginning of period1.62 0.28 0.36 0.81 
Awards granted0.13 0.05 0.16 0.14 
Awards granted performance impact— — — — 
Awards exercised/vested(0.23)(0.08)(0.16)(0.15)
Awards forfeited— — — (0.01)
Outstanding end of period1.52 0.25 0.36 0.79 
Schedule of Recognized Expense From Stock-Based Compensation
We recognized expense from stock-based compensation as follows: 
Three Months Ended
(in millions)August 27,
2023		August 28,
2022
Stock options$4.2 $2.6 
Restricted stock/restricted stock units4.6 2.8 
Equity-settled performance stock units10.5 5.6 
Cash-settled Darden stock units9.7 8.2 
Employee stock purchase plan0.7 0.7 
Director compensation program/other0.6 0.4 
Total stock-based compensation expense$30.3 $20.3 
v3.23.3
Derivative Instruments and Hedging Activities (Tables)
 3 Months Ended
Aug. 27, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Notional and Fair Values of Derivative Contracts
The notional and fair values of our derivative contracts were as follows: 
Fair Values
(in millions, except
per share data)		Number of Shares OutstandingWeighted-Average
 Per Share Forward Rates		Notional ValuesDerivative Assets (1)Derivative Liabilities (1)
August 27, 2023August 27,
2023		May 28,
2023		August 27,
2023		May 28,
2023
Equity forwards:
Designated0.3$139.71$41.3 $— $2.2 $1.7 $— 
Not designated0.5128.5958.7 — 5.1 2.6 — 
Total equity forwards (2)$— $7.3 $4.3 $— 
Commodity contracts:
DesignatedN/AN/A$22.3 $0.7 $— $2.6 $5.6 
Not designatedN/AN/A— — — — — 
Total commodity contracts (3)$0.7 $— $2.6 $5.6 
Interest rate related
Designated - Fair Value HedgeN/AN/A$300.0 $— $— $52.3 $45.4 
Designated - Cash Flow HedgeN/AN/A500.0 17.6 — — — 
Not designatedN/AN/A— — — — 
Total interest rate related$17.6 $— $52.3 $45.4 
Total derivative contracts$18.3 $7.3 $59.2 $51.0 
 
(1)Derivative assets and liabilities are included in receivables, net and other current liabilities, as applicable, on our consolidated balance sheets.
(2)Designated and undesignated equity forwards extend through July 2027.
(3)Commodity contracts extend through June 2024.
Schedule of Effects of Derivative Instruments in Hedging Relationships
The effects of derivative instruments accounted for as cash flow hedging instruments in the consolidated statements of earnings were as follows:
Amount of Gain (Loss) Recognized in AOCIAmount of Gain (Loss) Reclassified from AOCI to Earnings
Three Months EndedThree Months Ended
(in millions)August 27,
2023		August 28,
2022		August 27,
2023		August 28,
2022
Equity (1)$(2.2)$(0.5)$1.3 $(0.8)
Commodity (2)1.7 2.6 (1.9)0.1 
Interest rate (3)17.9 — — — 
Total$17.4 $2.1 $(0.6)$(0.7)

(1)Location of the gain (loss) reclassified from AOCI to earnings is general and administrative expenses.
(2)Location of the gain (loss) reclassified from AOCI to earnings is food and beverage costs and restaurant expenses.
(3)Location of the gain (loss) reclassified from AOCI to earnings is interest, net.
The effects of derivative instruments in fair value hedging relationships in the consolidated statement of earnings were as follows:

Amount of Gain (Loss) Recognized in Earnings on DerivativesAmount of Gain (Loss) Recognized in Earnings on Related Hedged Item
Three Months EndedThree Months Ended
(in millions)August 27,
2023		August 28,
2022		August 27,
2023		August 28,
2022
Interest rate (1)(2)$(6.9)$(6.3)$6.9 $6.3 

 (1) Location of the gain (loss) recognized in earnings on derivatives and related hedged item is interest, net.
(2) Hedged item in fair value hedge relationship is debt.

The effects of derivatives not designated as hedging instruments in the consolidated statements of earnings were as follows:
Amount of Gain (Loss) Recognized in Earnings
(in millions)Three Months Ended
Location of Gain (Loss) Recognized in Earnings on DerivativesAugust 27, 2023August 28, 2022
Food and beverage costs and restaurant expenses$— $— 
General and administrative expenses(0.1)(1.1)
Total$(0.1)$(1.1)
v3.23.3
Fair Value Measurements (Tables)
 3 Months Ended
Aug. 27, 2023
Fair Value Disclosures [Abstract]  
Schedule of Fair Values of Financial Instruments Measured at Fair Value on Recurring Basis
The following tables summarize the fair values of financial instruments measured at fair value on a recurring basis as of August 27, 2023 and May 28, 2023. 
Items Measured at Fair Value at August 27, 2023
(in millions) Fair value
of assets
(liabilities)		Quoted prices
in active
market for
identical assets
(liabilities)
(Level 1)		Significant
other
observable
inputs
(Level 2)		Significant
unobservable
inputs
(Level 3)
Derivatives:
Commodities futures, swaps & options(1)$(1.9)$— $(1.9)$— 
Equity forwards(2)(4.3)— (4.3)$— 
Interest rate swaps - fair value hedge(3)(52.3)— (52.3)— 
Interest rate swaps - cash flow hedge(3)17.6 — 17.6 — 
Total$(40.9)$— $(40.9)$— 
 
Items Measured at Fair Value at May 28, 2023
(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)$(5.6)$— $(5.6)$— 
Equity forwards(2)7.3 — 7.3 — 
Interest rate swaps - fair value hedge(3)(45.4)— (45.4)— 
Total$(43.7)$— $(43.7)$— 

(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 of nonperformance.
(3)The fair value of our interest rate swap agreements is based on current and expected market interest rates, inclusive of the risk of nonperformance.
v3.23.3
Basis of Presentation (Details)
Aug. 27, 2023
restaurant
location
Entity Operated Units, Joint Venture | North America  
Summary Of Significant Accounting Policies [Line Items]  
Number of restaurants 2
Entity Operated Units, Contractual Agreements | North America  
Summary Of Significant Accounting Policies [Line Items]  
Number of restaurants | location 4
Franchised Units | North America  
Summary Of Significant Accounting Policies [Line Items]  
Number of restaurants 92
Franchised Units | Latin America, the Caribbean, Asia and the Middle East  
Summary Of Significant Accounting Policies [Line Items]  
Number of restaurants 53
v3.23.3
Acquisition of Ruth’s Chris Steak House - Narrative (Details)
$ in Millions
 3 Months Ended
Jun. 14, 2023
USD ($)
location
May 31, 2023
USD ($)
Aug. 27, 2023
USD ($)
Aug. 28, 2022
USD ($)
May 28, 2023
USD ($)
Business Acquisition [Line Items]          
Proceeds from issuance of long-term debt     $ 600.0 $ 0.0  
Goodwill     1,376.9   $ 1,037.4
Line of Credit | Unsecured Debt          
Business Acquisition [Line Items]          
Proceeds from issuance of long-term debt $ 600.0        
Credit agreement borrowing capacity   $ 600.0      
Term of credit agreement   3 years      
Line of Credit | Unsecured Debt | Secured Overnight Financing Rate (SOFR)          
Business Acquisition [Line Items]          
Debt instrument, adjustment rate   0.10%      
Basis spread on rates   1.00%      
Line of Credit | Unsecured Debt | Secured Overnight Financing Rate (SOFR) | Term Loan Agreement, BBB Equivalent Credit Rating          
Business Acquisition [Line Items]          
Basis spread on rates   1.125%      
Line of Credit | Unsecured Debt | Fed Funds Rate          
Business Acquisition [Line Items]          
Basis spread on rates   0.50%      
Line of Credit | Unsecured Debt | Base Rate | Term Loan Agreement, BBB Equivalent Credit Rating          
Business Acquisition [Line Items]          
Basis spread on rates   0.125%      
Ruth’s Chris          
Business Acquisition [Line Items]          
Equity interest acquired 10000.00%        
Consideration for equity interest acquired $ 724.6        
Goodwill 339.5        
Goodwill expected to be deductible for tax purposes $ 15.2        
Acquisition and related integration efforts incurred expenses     $ 24.8    
Ruth’s Chris | Minimum          
Business Acquisition [Line Items]          
Depreciation period of buildings and equipment 2 years        
Ruth’s Chris | Maximum          
Business Acquisition [Line Items]          
Depreciation period of buildings and equipment 30 years        
Ruth’s Chris | Entity Operated Units          
Business Acquisition [Line Items]          
Number of restaurant acquired | location 77        
Ruth’s Chris | Franchised Units          
Business Acquisition [Line Items]          
Number of restaurant acquired | location 74        
Ruth’s Chris | Entity Operated Units, Contractual Agreements          
Business Acquisition [Line Items]          
Number of restaurant acquired | location 4        
v3.23.3
Acquisition of Ruth’s Chris Steak House - Schedule of Preliminary Allocation of the Purchase Price (Details) - USD ($)
$ in Millions
Aug. 27, 2023
Jun. 14, 2023
May 28, 2023
Business Acquisition [Line Items]      
Goodwill $ 1,376.9   $ 1,037.4
Ruth’s Chris      
Business Acquisition [Line Items]      
Current assets   $ 45.6  
Land, buildings and equipment   170.5  
Operating lease right-of-use assets   291.6  
Trademark   341.7  
Other assets   12.0  
Goodwill   339.5  
Total assets acquired   1,200.9  
Current liabilities   113.5  
Deferred income taxes   79.5  
Operating lease liabilities - non-current   276.3  
Other liabilities   7.0  
Total liabilities assumed   476.3  
Net assets acquired   $ 724.6  
v3.23.3
Revenue Recognition - Schedule of Deferred Revenue from Contract with Customer (Details) - USD ($)
$ in Millions
Aug. 27, 2023
May 28, 2023
Aug. 28, 2022
May 29, 2022
Unearned revenues        
Total $ 541.7 $ 512.0    
Other liabilities        
Deferred franchise fees - non-current 4.9 2.7    
Gift Card        
Unearned revenues        
Unearned revenues 563.4 537.0 $ 488.5 $ 521.1
Deferred gift card discounts (22.4) (25.5)    
Other        
Unearned revenues        
Unearned revenues $ 0.7 $ 0.5    
v3.23.3
Revenue Recognition - Schedule of Deferred Gift Card Revenue (Details) - Gift Card - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Change in Contract with Customer, Liability [Roll Forward]    
Beginning balance $ 537.0 $ 521.1
Acquired deferred gift card revenue 61.8 0.0
Activations 130.1 114.4
Redemptions and breakage (165.5) (147.0)
Ending balance $ 563.4 $ 488.5
v3.23.3
Additional Financial Information - Schedule of Supplemental Balance Sheet Information (Details) - USD ($)
$ in Millions
Aug. 27, 2023
May 28, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Operating lease right-of-use assets $ 3,600.3 $ 3,373.9
Finance lease right-of-use assets $ 1,006.5 $ 958.1
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] Carrying amount of long-lived assets held and used Carrying amount of long-lived assets held and used
Total lease assets, net $ 4,606.8 $ 4,332.0
Operating lease liabilities - current $ 193.9 $ 182.5
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Other Liabilities, Current Other Liabilities, Current
Finance lease liabilities - current $ 12.5 $ 13.5
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] Other Liabilities, Current Other Liabilities, Current
Operating lease liabilities - non-current $ 3,877.5 $ 3,667.6
Finance lease liabilities - non-current $ 1,229.0 $ 1,172.6
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] Other liabilities Other liabilities
Total lease liabilities $ 5,312.9 $ 5,036.2
v3.23.3
Additional Financial Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions
 3 Months Ended
Jun. 14, 2023
Aug. 27, 2023
Aug. 28, 2022
May 28, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Interest, net of amounts capitalized   $ 34.3 $ 21.1  
Income taxes, net of refunds   2.0 (176.7)  
Increase in land, buildings and equipment through accrued purchases   64.0 75.9  
Right-of-use assets obtained in exchange for new operating lease liabilities   298.0 49.6  
Right-of-use assets obtained in exchange for new finance lease liabilities   45.3 41.5  
Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance   2.1 25.3  
Restricted cash   $ 48.4 $ 58.4 $ 48.4
Ruth’s Chris        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Right-of-use assets obtained in exchange for new operating lease liabilities $ 291.6      
v3.23.3
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Income Tax Disclosure [Abstract]    
Effective income tax rate 12.70% 13.70%
Tax position, change is reasonably possible in the next twelve months $ 8.4  
v3.23.3
Net Earnings per Share (Details) - shares
shares in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Earnings Per Share [Abstract]    
Anti-dilutive stock-based compensation awards (in shares) 0.0 0.5
v3.23.3
Segment Information - Narrative (Details)
 3 Months Ended
Aug. 27, 2023
segment
Segment Reporting [Abstract]  
Number of reportable segments 4
v3.23.3
Segment Information - Schedule of Segment Reporting (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Segment Reporting Information [Line Items]    
Sales $ 2,730.6 $ 2,446.1
Restaurant and marketing expenses 2,211.5 2,022.9
Segment profit 519.1 423.2
Depreciation and amortization 109.8 95.6
Impairments and disposal of assets, net 3.1 (4.9)
Purchases of land, buildings and equipment 150.9 122.8
Operating Segments | Olive Garden    
Segment Reporting Information [Line Items]    
Sales 1,227.9 1,130.7
Restaurant and marketing expenses 965.6 914.6
Segment profit 262.3 216.1
Depreciation and amortization 39.6 35.8
Impairments and disposal of assets, net 0.2 0.0
Purchases of land, buildings and equipment 65.8 56.1
Operating Segments | LongHorn Steakhouse    
Segment Reporting Information [Line Items]    
Sales 669.8 604.6
Restaurant and marketing expenses 552.4 512.6
Segment profit 117.4 92.0
Depreciation and amortization 18.2 16.8
Impairments and disposal of assets, net 0.0 0.0
Purchases of land, buildings and equipment 34.5 28.0
Operating Segments | Fine Dining    
Segment Reporting Information [Line Items]    
Sales 273.5 183.4
Restaurant and marketing expenses 233.8 153.4
Segment profit 39.7 30.0
Depreciation and amortization 15.6 8.9
Impairments and disposal of assets, net 0.0 0.0
Purchases of land, buildings and equipment 23.5 11.3
Operating Segments | Other Business    
Segment Reporting Information [Line Items]    
Sales 559.4 527.4
Restaurant and marketing expenses 475.1 455.1
Segment profit 84.3 72.3
Depreciation and amortization 25.1 24.3
Impairments and disposal of assets, net 0.0 0.0
Purchases of land, buildings and equipment 26.6 25.6
Corporate    
Segment Reporting Information [Line Items]    
Sales 0.0 0.0
Restaurant and marketing expenses (15.4) (12.8)
Segment profit 15.4 12.8
Depreciation and amortization 11.3 9.8
Impairments and disposal of assets, net 2.9 (4.9)
Purchases of land, buildings and equipment $ 0.5 $ 1.8
v3.23.3
Segment Information - Schedule of Reconciliation of Segment Profit to Earnings (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Segment Reporting [Abstract]    
Segment profit $ 519.1 $ 423.2
Less general and administrative expenses (153.3) (88.3)
Less depreciation and amortization (109.8) (95.6)
Less impairments and disposal of assets, net (3.1) 4.9
Less interest, net (29.7) (19.8)
Earnings before income taxes $ 223.2 $ 224.4
v3.23.3
Impairments and Disposal of Assets, Net - Schedule of Impairments and Disposal of Assets (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Asset Impairment Charges [Abstract]    
Restaurant impairments $ 0.3 $ 0.0
Disposal (gains) losses 4.9 (4.9)
Other (2.1) 0.0
Impairments and disposal of assets, net $ 3.1 $ (4.9)
v3.23.3
Impairments and Disposal of Assets, Net - Narrative (Details)
 3 Months Ended
Aug. 27, 2023
location
Asset Impairment Charges [Abstract]  
Number of locations closed 4
v3.23.3
Stockholders' Equity - Schedule of Components of AOCI (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance $ 2,201.5 $ 2,198.2
Gain (loss) 12.5 1.5
Reclassification realized in net earnings 0.3 0.8
Ending balance 2,148.0 2,064.1
Foreign Currency Translation Adjustment    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance 4.5 4.8
Gain (loss) 0.0 0.0
Reclassification realized in net earnings 0.0 0.0
Ending balance 4.5 4.8
Unrealized Gains (Losses) on Derivatives    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance 3.9 (0.4)
Gain (loss) 12.5 1.5
Reclassification realized in net earnings 0.1 0.7
Ending balance 16.5 1.8
Benefit Plan Funding Position    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance (5.2) (6.3)
Gain (loss) 0.0 0.0
Reclassification realized in net earnings 0.2 0.1
Ending balance (5.0) (6.2)
Accumulated Other Comprehensive Income (Loss)    
AOCI Attributable to Parent, Net of Tax [Roll Forward]    
Beginning balance 3.2 (1.9)
Ending balance $ 16.0 $ 0.4
v3.23.3
Stockholders' Equity - Schedule of Reclassification Adjustments out of AOCI (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Less general and administrative expenses $ (153.3) $ (88.3)
Total before tax 223.2 224.4
Tax (expense) benefit (28.4) (30.8)
Net earnings 194.5 193.0
Amount Reclassified from AOCI into Net Earnings | Derivatives    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Total before tax (0.6) (0.7)
Tax (expense) benefit 0.5 0.0
Net earnings (0.1) (0.7)
Amount Reclassified from AOCI into Net Earnings | Derivatives | Commodity contracts    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Food and beverage costs and restaurant expenses (1.9) 0.1
Amount Reclassified from AOCI into Net Earnings | Derivatives | Equity contracts    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Restaurant labor costs and general and administrative expenses 1.3 (0.8)
Amount Reclassified from AOCI into Net Earnings | Derivatives | Interest rate contracts    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Restaurant labor costs and general and administrative expenses 0.0 0.0
Amount Reclassified from AOCI into Net Earnings | Benefit plan funding position    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Total before tax (0.2) (0.2)
Tax (expense) benefit 0.0 0.1
Net earnings (0.2) (0.1)
Amount Reclassified from AOCI into Net Earnings | Benefit plan funding position | Other plans    
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]    
Less general and administrative expenses $ (0.2) $ (0.2)
v3.23.3
Stock-Based Compensation - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Weighted-average fair value (in dollars per share) $ 55.56 $ 36.20
Dividend yield 3.40% 3.80%
Expected volatility of stock 42.20% 42.00%
Risk-free interest rate 4.00% 2.80%
Expected option life (in years) 5 years 10 months 24 days 5 years 10 months 24 days
Weighted-average exercise price per share (in dollars per share) $ 169.02 $ 121.47
Equity-Settled Performance Stock Units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Dividend yield 0.00% 0.00%
Expected volatility of stock 32.30% 55.50%
Risk-free interest rate 4.50% 2.90%
Expected option life (in years) 2 years 10 months 24 days 2 years 9 months 18 days
Weighted-average exercise price per share (in dollars per share) $ 217.11 $ 137.73
v3.23.3
Stock-Based Compensation - Schedule of Stock-Based Compensation Activity (Details)
shares in Thousands
 3 Months Ended
Aug. 27, 2023
shares
Stock Options  
Outstanding shares beginning of period (in shares) 1,620
Awards granted (in shares) 130
Awards exercised/vested (in shares) (230)
Awards forfeited (in shares) 0
Outstanding shares end of period (in shares) 1,520
Restricted Stock/ Restricted Stock Units  
Non-Option Awards  
Outstanding shares beginning of period (in shares) 280
Awards granted (in shares) 50
Awards granted performance impact (in shares) 0
Awards exercised/vested (in shares) (80)
Awards forfeited (in shares) 0
Outstanding shares end of period (in shares) 250
Equity-Settled Performance Stock Units  
Stock Options  
Awards granted performance impact (in shares) 0
Non-Option Awards  
Outstanding shares beginning of period (in shares) 360
Awards granted (in shares) 160
Awards granted performance impact (in shares) 0
Awards exercised/vested (in shares) (160)
Awards forfeited (in shares) 0
Outstanding shares end of period (in shares) 360
Cash-Settled Darden Stock Units  
Non-Option Awards  
Outstanding shares beginning of period (in shares) 810
Awards granted (in shares) 140
Awards granted performance impact (in shares) 0
Awards exercised/vested (in shares) (150)
Awards forfeited (in shares) (10)
Outstanding shares end of period (in shares) 790
v3.23.3
Stock-Based Compensation - Schedule of Recognized Expense From Stock-Based Compensation (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock-based compensation expense $ 30.3 $ 20.3
Stock options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock-based compensation expense 4.2 2.6
Restricted stock/restricted stock units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock-based compensation expense 4.6 2.8
Equity-settled performance stock units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock-based compensation expense 10.5 5.6
Cash-settled Darden stock units    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock-based compensation expense 9.7 8.2
Employee stock purchase plan    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock-based compensation expense 0.7 0.7
Director compensation program/other    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total stock-based compensation expense $ 0.6 $ 0.4
v3.23.3
Derivative Instruments and Hedging Activities - Narrative (Details)
$ in Millions
 3 Months Ended
Aug. 27, 2023
USD ($)
derivative_instrument
Derivative [Line Items]  
Cash flow hedge gains to be reclassified within twelve months | $ $ 7.4
Interest rate contracts  
Derivative [Line Items]  
Number of interest rate swap agreements 2
Interest rate contracts | Designated as Hedging Instruments | Fair Value Hedging  
Derivative [Line Items]  
Number of interest rate swap agreements 1
v3.23.3
Derivative Instruments and Hedging Activities - Schedule of Notional and Fair Values of Derivative Contracts Designated and Not Designated as Hedging Instruments (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Aug. 27, 2023
May 28, 2023
Derivatives, Fair Value [Line Items]    
Derivative assets $ 18.3 $ 7.3
Derivative liabilities 59.2 51.0
Equity forwards:    
Derivatives, Fair Value [Line Items]    
Derivative assets 0.0 7.3
Derivative liabilities $ 4.3 0.0
Equity forwards: | Designated as Hedging Instruments    
Derivatives, Fair Value [Line Items]    
Number of shares outstanding (in shares) 0.3  
Weighted-average per share forward rates (in dollars per share) $ 139.71  
Notional Values $ 41.3  
Derivative assets 0.0 2.2
Derivative liabilities $ 1.7 0.0
Equity forwards: | Not Designated as Hedging Instruments    
Derivatives, Fair Value [Line Items]    
Number of shares outstanding (in shares) 0.5  
Weighted-average per share forward rates (in dollars per share) $ 128.59  
Notional Values $ 58.7  
Derivative assets 0.0 5.1
Derivative liabilities 2.6 0.0
Commodity contracts    
Derivatives, Fair Value [Line Items]    
Derivative assets 0.7 0.0
Derivative liabilities 2.6 5.6
Commodity contracts | Designated as Hedging Instruments    
Derivatives, Fair Value [Line Items]    
Notional Values 22.3  
Derivative assets 0.7 0.0
Derivative liabilities 2.6 5.6
Commodity contracts | Not Designated as Hedging Instruments    
Derivatives, Fair Value [Line Items]    
Notional Values 0.0  
Derivative assets 0.0 0.0
Derivative liabilities 0.0 0.0
Interest rate contracts    
Derivatives, Fair Value [Line Items]    
Derivative assets 17.6 0.0
Derivative liabilities 52.3 45.4
Interest rate contracts | Designated as Hedging Instruments | Fair Value Hedging    
Derivatives, Fair Value [Line Items]    
Notional Values 300.0  
Derivative assets 0.0 0.0
Derivative liabilities 52.3 45.4
Interest rate contracts | Designated as Hedging Instruments | Cash Flow Hedging    
Derivatives, Fair Value [Line Items]    
Notional Values 500.0  
Derivative assets 17.6 0.0
Derivative liabilities 0.0 0.0
Interest rate contracts | Not Designated as Hedging Instruments    
Derivatives, Fair Value [Line Items]    
Derivative assets 0.0 0.0
Derivative liabilities $ 0.0 $ 0.0
v3.23.3
Derivative Instruments and Hedging Activities - Schedule of Effects of Derivative Instruments in Cash Flow Hedging Relationships (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Gain (Loss) Recognized in AOCI $ 17.4 $ 2.1
Amount of Gain (Loss) Reclassified from AOCI to Earnings (0.6) (0.7)
Equity forwards: | General and Administrative Expense    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Gain (Loss) Recognized in AOCI (2.2) (0.5)
Amount of Gain (Loss) Reclassified from AOCI to Earnings 1.3 (0.8)
Commodity contracts | Food and beverage costs and restaurant expenses    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Gain (Loss) Recognized in AOCI 1.7 2.6
Amount of Gain (Loss) Reclassified from AOCI to Earnings (1.9) 0.1
Interest rate contracts | Interest, Net    
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Gain (Loss) Recognized in AOCI 17.9 0.0
Amount of Gain (Loss) Reclassified from AOCI to Earnings $ 0.0 $ 0.0
v3.23.3
Derivative Instruments and Hedging Activities - Schedule of Effects of Derivative Instruments in Fair Value Hedging Relationships (Details) - Interest rate contracts - Interest, Net - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Derivative Instruments, Gain (Loss) [Line Items]    
Amount of Gain (Loss) Recognized in Earnings on Derivatives $ (6.9) $ (6.3)
Amount of Gain (Loss) Recognized in Earnings on Related Hedged Item $ 6.9 $ 6.3
v3.23.3
Derivative Instruments and Hedging Activities - Schedule of Effects of Derivatives Not Designated as Hedging Instruments (Details) - USD ($)
$ in Millions
 3 Months Ended
Aug. 27, 2023
Aug. 28, 2022
Derivative [Line Items]    
Amount of Gain (Loss) Recognized in Earnings $ (0.1) $ (1.1)
Food and beverage costs and restaurant expenses    
Derivative [Line Items]    
Amount of Gain (Loss) Recognized in Earnings 0.0 0.0
General and administrative expenses    
Derivative [Line Items]    
Amount of Gain (Loss) Recognized in Earnings $ (0.1) $ (1.1)
v3.23.3
Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($)
$ in Millions
Aug. 27, 2023
May 28, 2023
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Total $ (40.9) $ (43.7)
Commodities futures, swaps & options    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives (1.9) (5.6)
Equity forwards    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives (4.3) 7.3
Interest rate swaps - cash flow hedge | Designated as Hedging Instruments | Fair Value Hedging    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives (52.3) (45.4)
Interest rate swaps - cash flow hedge | Designated as Hedging Instruments | Cash Flow Hedging    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives 17.6  
Quoted prices in active market for identical assets (liabilities) (Level 1)    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Total 0.0 0.0
Quoted prices in active market for identical assets (liabilities) (Level 1) | Commodities futures, swaps & options    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives 0.0 0.0
Quoted prices in active market for identical assets (liabilities) (Level 1) | Equity forwards    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives 0.0 0.0
Quoted prices in active market for identical assets (liabilities) (Level 1) | Interest rate swaps - cash flow hedge | Designated as Hedging Instruments | Fair Value Hedging    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives 0.0 0.0
Quoted prices in active market for identical assets (liabilities) (Level 1) | Interest rate swaps - cash flow hedge | Designated as Hedging Instruments | Cash Flow Hedging    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives 0.0  
Significant other observable inputs (Level 2)    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Total (40.9) (43.7)
Significant other observable inputs (Level 2) | Commodities futures, swaps & options    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives (1.9) (5.6)
Significant other observable inputs (Level 2) | Equity forwards    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives (4.3) 7.3
Significant other observable inputs (Level 2) | Interest rate swaps - cash flow hedge | Designated as Hedging Instruments | Fair Value Hedging    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives (52.3) (45.4)
Significant other observable inputs (Level 2) | Interest rate swaps - cash flow hedge | Designated as Hedging Instruments | Cash Flow Hedging    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives 17.6  
Significant unobservable inputs (Level 3)    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Total 0.0 0.0
Significant unobservable inputs (Level 3) | Commodities futures, swaps & options    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives 0.0 0.0
Significant unobservable inputs (Level 3) | Equity forwards    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives 0.0 0.0
Significant unobservable inputs (Level 3) | Interest rate swaps - cash flow hedge | Designated as Hedging Instruments | Fair Value Hedging    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives 0.0 $ 0.0
Significant unobservable inputs (Level 3) | Interest rate swaps - cash flow hedge | Designated as Hedging Instruments | Cash Flow Hedging    
Fair Value Assets and Liabilities Measured On Recurring Basis [Line Items]    
Derivatives $ 0.0  
v3.23.3
Fair Value Measurements - Narrative (Details)
$ in Millions
May 28, 2023
USD ($)
restaurant
Aug. 27, 2023
USD ($)
Impaired Long-Lived Assets Held and Used [Line Items]    
Carrying value of long-term debt $ 884.9 $ 1,477.1
Fair value of long-term debt 857.0 1,450.0
Carrying amount of long-lived assets held and used 3,725.1 $ 3,991.7
Significant unobservable inputs (Level 3) | Underperforming Restaurants    
Impaired Long-Lived Assets Held and Used [Line Items]    
Carrying amount of long-lived assets held and used $ 10.0  
Number of underperforming restaurants | restaurant 1  
Assets held-for-sale, long-lived, fair value $ 8.4  
Asset impairment $ 1.6  
v3.23.3
Commitments and Contingencies (Details) - USD ($)
$ in Millions
Aug. 27, 2023
May 28, 2023
Workers Compensation and General Liabilities Accrued    
Loss Contingencies [Line Items]    
Standby letters of credit $ 79.6 $ 85.3
Surety Bonds and Other Payments    
Loss Contingencies [Line Items]    
Standby letters of credit 16.1 15.2
Property Lease Guarantee    
Loss Contingencies [Line Items]    
Loss contingency, estimate of possible loss 84.3 82.0
Fair value of potential payments discounted at pre-tax cost of capital related to guarantee obligations $ 68.8 $ 68.4
v3.23.3
Subsequent Events (Details) - $ / shares
 3 Months Ended
Sep. 19, 2023
Aug. 27, 2023
Aug. 28, 2022
Subsequent Event [Line Items]      
Dividends declared (in dollars per share)   $ 1.31 $ 1.21
Subsequent Event      
Subsequent Event [Line Items]      
Dividends declared (in dollars per share) $ 1.31