DARDEN RESTAURANTS INC

Previous wording

To facilitate review of our discussion and analysis, the following table sets forth our financial results for the periods indicated. All information is derived from the unaudited consolidated statements of earnings for the three and six months ended November 24, 2024 and November 26, 2023.

Current wording

To facilitate review of our discussion and analysis, the following table sets forth our financial results for the periods indicated. All information is derived from the unaudited consolidated statements of earnings for the three and nine months ended February 23, 2025 and February 25, 2024.

Previous wording

The following table details the number of company-owned restaurants currently reported in continuing operations that were open at the end of the second quarter of fiscal 2025, compared with the number open at the end of fiscal 2024 and the end of the second quarter of fiscal 2024.

Current wording

The following table details the number of company-owned restaurants currently reported in continuing operations that were open at the end of the third quarter of fiscal 2025, compared with the number open at the end of fiscal 2024 and the end of the third quarter of fiscal 2024.

Previous wording

•Reported diluted net earnings per share from continuing operations were $1.82 and $3.57 for the second quarter and first six months of fiscal 2025 compared to $1.76 and $3.35 for the second quarter and six months of fiscal 2024.

Current wording

•Reported diluted net earnings per share from continuing operations were $2.74 and $6.30 for the third quarter and first nine months of fiscal 2025 compared to $2.60 and $5.95 for the third quarter and nine months of fiscal 2024.

Previous wording

1 Same-restaurant sales results exclude Chuy’s as they have not yet been owned and operated by Darden for a 16-month

Current wording

1 Same-restaurant sales results exclude Chuy’s as it has not yet been owned and operated by Darden for a 16-month

Previous wording

period and includes Ruth’s Chris for the month of November only.

Current wording

period and includes Ruth’s Chris for fiscal November 2025 and forward only.

Previous wording

On October 11, 2024, we acquired 100 percent of the equity interest of Chuy’s Holdings, Inc. (Chuy’s Holdings) in an all-cash transaction of $649.1 million in total consideration, net of $35.3 million of cash on Chuy’s Holdings balance sheet at closing. We financed the acquisition with a portion of the proceeds from the issuance of a $400.0 million aggregate principal amount of 4.350 percent senior notes due 2027 (2027 Notes) and a $350.0 million aggregate principal amount of 4.550 percent senior notes due 2029 (2029 Notes), which were issued on October 3, 2024. The 2027 Notes will mature on October 15, 2027 and the 2029 Notes will mature on October 15, 2029. Interest on the Notes will be paid semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2025, to holders of record on the preceding March 31 or September 30, as the case may be.

Current wording

On October 11, 2024, we acquired 100 percent of the equity interest of Chuy’s Holdings, Inc. (Chuy’s Holdings) in an all-cash transaction of $649.1 million in total consideration, $613.7 million in net cash consideration, inclusive of $35.4 million of cash on Chuy’s Holdings balance sheet at closing. We financed the acquisition with a portion of the proceeds from the issuance of a $400.0 million aggregate principal amount of 4.350 percent senior notes due 2027 (2027 Notes) and a $350.0 million aggregate principal amount of 4.550 percent senior notes due 2029 (2029 Notes), which were issued on October 3, 2024. The 2027 Notes will mature on October 15, 2027 and the 2029 Notes will mature on October 15, 2029. Interest on the Notes will be paid semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2025, to holders of record on the preceding March 31 or September 30, as the case may be.

Previous wording

During the second quarter of fiscal 2025, we entered into an exclusive multi-year delivery arrangement with Uber Technologies, Inc. (Uber). The agreement will enable our guests to order on-demand delivery via Darden restaurant channels, with delivery handled by Uber Direct, through Uber’s national delivery network. The pilot of first-party delivery for approximately 100 Olive Garden locations began during the second quarter of fiscal 2025, with further rollouts expected in the third quarter of fiscal 2025.

Current wording

During the second quarter of fiscal 2025, we entered into an exclusive multi-year delivery arrangement with Uber Technologies, Inc. (Uber). The agreement enables our guests to order delivery via Darden restaurant channels, with delivery handled by Uber. The pilot of first-party delivery for Olive Garden began during the second quarter of fiscal 2025 and rolled out to nearly all Olive Garden locations during the second and third quarters of fiscal 2025. A pilot of first-party delivery from a limited number of Cheddar’s Scratch Kitchen locations will begin in the fourth quarter of fiscal 2025.

Previous wording

We expect sales for fiscal 2025 to be approximately $12.1 billion, same-restaurant sales growth of approximately 1.5 percent 1 and approximately 50 to 55 new restaurant openings. Additionally, we expect capital expenditures incurred to build new restaurants, remodel and maintain existing restaurants and for technology initiatives to be approximately $650 million. These amounts now all include the addition of Chuy’s and our expectations for Chuy’s results from the date of acquisition forward.

Current wording

We expect sales for fiscal 2025 to be approximately $12.1 billion, same-restaurant sales growth of approximately 1.5 percent 1 and approximately 50 to 55 new restaurant openings. Additionally, we expect capital expenditures incurred to build new restaurants, remodel and maintain existing restaurants and for technology initiatives to be approximately $650 million. These amounts all include the addition of Chuy’s and our expectations for Chuy’s results from the date of acquisition forward.

Previous wording

(1)Same-restaurant sales is a year-over-year comparison of each period’s sales volumes for a 52-week year and is limited to restaurants that have been open, and operated by Darden, for at least 16 months. Accordingly, Chuy’s results will not be included in this calculation until the fourth quarter of fiscal 2026 and Ruth’s Chris results are included for fiscal 2025 November only.

Current wording

(1)Same-restaurant sales is a year-over-year comparison of each period’s sales volumes for a 52-week year and is limited to restaurants that have been open, and operated by Darden, for at least 16 months. Accordingly, Chuy’s results will not be included in this calculation until the fourth quarter of fiscal 2026 and Ruth’s Chris results are included for fiscal 2025 November and forward only.

Previous wording

Olive Garden’s sales increase for the second quarter of fiscal 2025 was primarily driven by same-restaurant sales increases, as well as revenue from new restaurants. The increase in U.S. same-restaurant sales for the second quarter of fiscal 2025 resulted from a 3.7 percent increase in average check, which includes a 0.6 percent increase in off premise catering sales, partially offset by a 1.6 percent decrease in same-restaurant guest counts. Olive Garden’s sales increase for the six months of fiscal 2025 was primarily driven by revenue from new restaurants offset by same-restaurant sales decreases. The decrease in U.S. same restaurant sales for the six months of fiscal 2025 resulted from a 3.6 percent decrease in same-restaurant guest counts, partially offset by a 3.3 percent increase in average check.

Current wording

Olive Garden’s sales increase for the third quarter of fiscal 2025 was primarily driven by same-restaurant sales increases, as well as revenue from new restaurants. The increase in U.S. same-restaurant sales for the third quarter of fiscal 2025 resulted from a 4.6 percent increase in average check, which includes a 0.9 increase in off premise catering sales, partially offset by a 3.9 percent decrease in same-restaurant guest counts. Olive Garden’s sales increase for the nine months of fiscal 2025 was primarily driven by revenue from new restaurants, offset by a decrease in same-restaurant guest counts.

Previous wording

LongHorn Steakhouse’s sales increase for the second quarter and six months of fiscal 2025 was primarily driven by same-restaurant sales increases combined with revenue from new restaurants. The increase in same-restaurant sales for the second quarter of fiscal 2025 resulted from a 4.3 percent increase in same-restaurant guest counts, combined with a 3.1 percent increase in average check. The increase in same restaurant sales for the six months of fiscal 2025 resulted from a 3.0 percent increase in average check combined with a 2.5 percent increase in same-restaurant guest counts.

Current wording

LongHorn Steakhouse’s sales increase for the third quarter and nine months of fiscal 2025 was primarily driven by same-restaurant sales increases combined with revenue from new restaurants. The increase in same-restaurant sales for the third quarter of fiscal 2025 resulted from a 3.3 percent increase in average check, partially offset by a 0.7 percent decrease in same-restaurant guest counts. The increase in same restaurant sales for the nine months of fiscal 2025 resulted from a 3.1 percent increase in average check combined with a 1.4 percent increase in same-restaurant guest counts.

Previous wording

Fine Dining’s sales decrease for the second quarter and six months of fiscal 2025 was primarily driven by same-restaurant sales decreases, combined with a decrease in same-restaurant guest counts. The decrease in same-restaurant sales for the second quarter of fiscal 2025 resulted from a 8.3 percent decrease in same-restaurant guest counts, offset by a 2.7 percent increase in average check. The decrease in same restaurant sales for the six months of fiscal 2025 resulted from a 8.7 percent decrease in same-restaurant guest counts, partially offset by a 3.1 percent increase in average check.

Current wording

Fine Dining’s sales increase for the third quarter and nine months of fiscal 2025 was primarily driven by an increase in average check combined with revenue from new restaurants. The decrease in same-restaurant sales for the third quarter of fiscal 2025 resulted from a 4.0 percent decrease in same-restaurant guest counts, offset by a 3.4 percent increase in average check. The decrease in same restaurant sales for the nine months of fiscal 2025 resulted from a 6.1 percent decrease in same-restaurant guest counts, partially offset by a 2.8 percent increase in average check.

Previous wording

Other Business’ sales increase for the second quarter and six months of fiscal 2025 was primarily driven by the addition of Chuy’s operating results and revenue from new restaurants. The increase in same-restaurant sales for the second quarter of fiscal 2025 resulted from a 2.7 percent increase in average check, offset by a 2.0 percent decrease in same-restaurant guest counts. The decrease in same restaurant sales for the six months of fiscal 2025 resulted from a 2.9 percent decrease in same-restaurant guest counts, partially offset by a 2.4 percent increase in average check.

Current wording

Other Business’ sales increase for the third quarter and nine months of fiscal 2025 was primarily driven by the addition of Chuy’s operating results and revenue from new restaurants. The decrease in same-restaurant sales for the third quarter of fiscal 2025 resulted from a 3.4 percent decrease in same-restaurant guest counts, partially offset by a 3.1 percent increase in average check. The decrease in same restaurant sales for the nine months of fiscal 2025 resulted from a 3.0 percent decrease in same-restaurant guest counts, partially offset by a 2.6 percent increase in average check.

Previous wording

The following table sets forth selected operating data as a percent of sales for the periods indicated. All information is derived from the unaudited consolidated statements of earnings for the quarters ended November 24, 2024 and November 26, 2023.

Current wording

The following table sets forth selected operating data as a percent of sales for the periods indicated. All information is derived from the unaudited consolidated statements of earnings for the quarters and nine months ended February 23, 2025 and February 25, 2024.

Previous wording

•Food and beverage costs decreased as a percent of sales primarily due to a 0.9% impact from pricing leverage, a 0.2% impact from cost savings and a 0.1% impact from inflation, partially offset by a 0.3% impact from mix and other.

Current wording

•Food and beverage costs decreased as a percent of sales primarily due to a 0.9% impact from pricing leverage and a 0.2% impact from cost savings, partially offset by a 0.3% impact from menu mix and other.

Previous wording

•Restaurant expenses remained flat as a percent of sales primarily due to a 0.2% impact from sales leverage and a 0.2% related to other, partially offset by a 0.4% impact from inflation.

Current wording

•Marketing expenses remained flat as a percent of sales.

Previous wording

•General and administrative expenses increased as a percent of sales primarily due to a 0.7% impact from Chuy’s transaction and integration costs incurred during the second quarter of fiscal 2025 offset by Ruth’s Chris during the second quarter of fiscal 2024, a 0.2% impact from mark to market adjustments and a 0.1% impact from inflation, partially offset by a 0.2% impact from sales leverage.

Current wording

•General and administrative expenses increased as a percent of sales primarily due to a 0.3% impact from Chuy’s transaction and integration costs, a 0.1% impact from inflation and a 0.1% impact from brand mix, partially offset by 0.2% Ruth’s Chris transaction and integration costs during the third quarter of 2024, a 0.1% impact from mark to market adjustments and a 0.1% impact from pricing leverage.

Previous wording

•Food and beverage costs decreased as a percent of sales primarily due to a 0.9% impact from pricing leverage and a 0.2% impact from cost savings, partially offset by a 0.5% impact from mix and other.

Current wording

•Food and beverage costs decreased as a percent of sales primarily due to a 0.9% impact from pricing leverage and a 0.2% impact from cost savings, partially offset by a 0.5% impact from menu mix and other.

Previous wording

•Restaurant labor costs remained flat as a percent of sales primarily due to a 0.4% impact from sales leverage, a 0.6% impact from salary and benefits and a 0.2% impact from productivity improvement, partially offset by a 1.2% impact from inflation.

Current wording

•Restaurant labor costs remained flat as a percent of sales primarily due to a 0.9% impact from pricing leverage and a 0.3% impact from manager and team member productivity improvement, offset by a 1.2% impact from inflation.

Previous wording

•Restaurant expenses increased as a percent of sales primarily due to a 0.4% impact from inflation, partially offset by a 0.2% impact from sales leverage and a 0.1% impact related to other.

Current wording

•Restaurant expenses increased as a percent of sales primarily due to a 0.4% impact from inflation, a 0.3% impact from brand mix and other, partially offset by a 0.5% impact from pricing leverage.

Previous wording

•General and administrative expenses decreased as a percent of sales primarily due to a 0.2% impact from incentive pay, a 0.2% impact from sales leverage, and a 0.1% impact from transaction and integration costs in the first six months of fiscal 2024 related to the Ruth’s Chris acquisition offset by Chuy’s in fiscal 2025, partially offset by a 0.2% impact from mark to market adjustments, and a 0.2% impact from inflation.

Current wording

•General and administrative expenses decreased as a percent of sales primarily due to a 0.1% impact from incentive pay timing, a 0.1% impact from pricing leverage, and a 0.1% impact from transaction and integration costs in the first nine months of fiscal 2024 related to the Ruth’s Chris acquisition offset by Chuy’s in fiscal 2025, partially offset by a 0.1% impact from mark to market adjustments and a 0.1% impact from inflation.

Previous wording

Net interest expense increased as a percent of sales for the second quarter and the first six months of fiscal 2025 primarily due to financing related to the Chuy’s acquisition. See Liquidity and Capital Resources for a description of our senior notes issuance to finance the Chuy’s acquisition.

Current wording

Net interest expense increased as a percent of sales for the third quarter and the first nine months of fiscal 2025 primarily due to financing related to the Chuy’s acquisition. See Liquidity and Capital Resources for a description of our senior notes issuance to finance the Chuy’s acquisition.

Previous wording

The effective income tax rate for continuing operations for the quarter ended November 24, 2024 was 12.3 percent compared to an effective income tax rate for the quarter ended November 26, 2023 of 12.1 percent. The increase in the tax rate is primarily driven by nondeductible transaction costs related to Chuy’s. The effective income tax rate for continuing operations for the six ended November 24, 2024 was 11.4 percent compared to an effective income tax rate for the six months ended November 26, 2023 of 12.4 percent. The decrease in the tax rate is primarily driven by the release of federal tax reserves and the favorable impact of mark to market hedges.

Current wording

The effective income tax rate for continuing operations for the quarter ended February 23, 2025 was 13.1 percent compared to an effective income tax rate for the quarter ended February 25, 2024 of 10.7 percent. The effective income tax rate for continuing operations for the nine ended February 23, 2025 was 12.2 percent compared to an effective income tax rate for the nine months ended February 25, 2024 of 11.6 percent. The increase in the tax rate is primarily driven by higher net earnings from continuing operations as well as nondeductible transaction costs related to Chuy’s.

Previous wording

On an after-tax basis, losses from discontinued operations for the second quarter and first six months of fiscal 2025 were $0.6 million ($0.00 per diluted share) and $1.0 million ($0.01 per diluted share) compared with losses from discontinued operations for the second quarter and first six months of fiscal 2024 of $0.2 million ($0.00 per diluted share) and $0.5 million ($0.00 per diluted share).

Current wording

On an after-tax basis, losses from discontinued operations for the third quarter and first nine months of fiscal 2025 were $0.3 million ($0.00 per diluted share) and $1.2 million ($0.01 per diluted share) compared with losses from discontinued operations for the third quarter and first nine months of fiscal 2024 of $0.5 million ($0.00 per diluted share) and $1.0 million ($0.00 per diluted share).

Previous wording

The increase in Olive Garden’s segment profit margin for the second quarter of fiscal 2025 was driven primarily by positive same-restaurant sales, lower food and beverage costs, and restaurant labor costs, partially offset by increased marketing costs. The decrease in Olive Garden’s segment profit margin for the first six months of fiscal 2025 was driven primarily by negative same-restaurant sales, higher restaurant expenses, and marketing costs, partially offset by lower food and beverage costs. The increase in Longhorn Steakhouse’s segment profit margin for the second quarter and first six months of fiscal 2025 was driven primarily by positive same-restaurant sales, lower food and beverage costs, restaurant labor, and restaurant expenses, partially offset by higher marketing expenses. The decrease in Fine Dining’s segment profit margin for the second quarter and first six months of fiscal 2025 was driven primarily by negative same-restaurant sales, higher restaurant labor costs and restaurant expenses, partially offset by lower food and beverage costs. The increases in Other Business’ segment profit margin for the second quarter of fiscal 2025 was driven primarily by the addition of Chuy’s operating results, positive same-restaurant sales, lower food and beverage costs, and restaurant labor costs, partially offset by higher restaurant expenses and marketing costs. The increases in Other Business’ segment profit margin for the first six months of fiscal 2025 was driven primarily by the addition of Chuy’s operating results and lower food and beverage costs partially offset by negative same-restaurant sales, higher restaurant expenses, and marketing costs.

Current wording

The increases in Olive Garden’s segment profit margin for the third quarter and first nine months of fiscal 2025 was driven primarily by lower food and beverage and restaurant labor costs, partially offset by increased restaurant expenses and marketing costs. The increases in Longhorn Steakhouse’s segment profit margin for the third quarter and first nine months of fiscal 2025 was driven primarily by positive same-restaurant sales and lower food and beverage costs. The increase in Fine Dining’s segment profit margin for the third quarter of fiscal 2025 was driven primarily by lower food and beverage costs, partially offset by negative same-restaurant sales, higher restaurant labor costs and restaurant expenses. The decrease in Fine Dining’s segment profit margin for the first nine months of fiscal 2025 was driven primarily by negative same-restaurant sales and higher restaurant labor and restaurant expenses, partially offset by lower food and beverage costs. The increases in Other Business’ segment profit margin for the third quarter and first nine months of fiscal 2025 was driven primarily by the addition of Chuy’s operating results and lower food and beverage and restaurant labor costs, partially offset by negative same-restaurant sales and higher marketing costs.

Previous wording

On October 23, 2023, we entered into a $1.25 billion Revolving Credit Agreement (as amended, Revolving Credit Agreement) with Bank of America, N.A. (BOA), as administrative agent, and the lenders and other agents party thereto. The Revolving Credit Agreement is a senior unsecured credit commitment to the Company and contains customary representations and affirmative and negative covenants (including limitations on liens and subsidiary debt and, prior to the Amendment (as defined below), a maximum consolidated lease adjusted total debt to total capitalization ratio of 0.75 to 1.00) and events of default usual for credit facilities of this type. As of November 24, 2024, we had no outstanding balances and were in compliance with all covenants under the Revolving Credit Agreement. As of November 24, 2024, $275.2 million of commercial paper was outstanding in addition to $0.5 million of letters of credit outstanding, which were both backed by this facility. After consideration of commercial paper and letters of credit backed by the Revolving Credit Agreement, as of November 24, 2024, we had $974.2 million of credit available under the Revolving Credit Agreement.

Current wording

On October 23, 2023, we entered into a $1.25 billion Revolving Credit Agreement (as amended, Revolving Credit Agreement) with Bank of America, N.A. (BOA), as administrative agent, and the lenders and other agents party thereto. The Revolving Credit Agreement is a senior unsecured credit commitment to the Company and contains customary representations and affirmative and negative covenants (including limitations on liens and subsidiary debt and, prior to the Amendment (as defined below), a maximum consolidated lease adjusted total debt to total capitalization ratio of 0.75 to 1.00) and events of default usual for credit facilities of this type. As of February 23, 2025, we had no outstanding balances and were in compliance with all covenants under the Revolving Credit Agreement. As of February 23, 2025, $58.2 million of commercial paper was outstanding in addition to $0.2 million of letters of credit outstanding, which were both backed by this facility. After consideration of commercial paper and letters of credit backed by the Revolving Credit Agreement, as of February 23, 2025, we had $1.19 billion of credit available under the Revolving Credit Agreement.

Previous wording

Net cash flows provided by operating activities from continuing operations increased to $661.8 million for the first six months of fiscal 2025, from $609.9 million for the six months of fiscal 2024. Net cash flows provided by operating activities include net earnings from continuing operations of $423.3 million and $407.1 million in the first six months of fiscal 2025 and

Current wording

Net cash flows provided by operating activities from continuing operations increased to $1.25 billion for the first nine months of fiscal 2025, from $1.20 billion for the nine months of fiscal 2024. Net cash flows provided by operating activities include net earnings from continuing operations of $747.0 million and $720.5 million in the first nine months of fiscal 2025 and 2024, respectively. Net cash flows provided by operating activities increased in fiscal 2025 primarily due to higher net earnings in fiscal 2025 and the timing of federal income tax payments.

Previous wording

Net cash flows used in investing activities from continuing operations were $939.3 million for the first six months of fiscal 2025, compared to $1,022.9 million for the first six months of fiscal 2024. Net cash used in the acquisition of Chuy’s was $613.7 million during the second quarter of fiscal 2025. Net cash used in the acquisition of Ruth’s Chris was $699.9 million during the first six months of fiscal 2024. Capital expenditures increased to $314.5 million for the first six months of fiscal 2025 from $312.4 million for the first six months of fiscal 2024 reflecting a slight increase in new restaurant construction and remodel spend during fiscal 2025.

Current wording

$613.7 million during fiscal 2025. Net cash used in the acquisition of Ruth’s Chris was $699.9 million during the first nine months of fiscal 2024. Capital expenditures increased to $472.6 million for the first nine months of fiscal 2025 from $460.8 million for the first nine months of fiscal 2024 reflecting a slight increase in new restaurant construction and remodel spend during fiscal 2025.

Previous wording

Net cash flows provided by financing activities from continuing operations were $298.9 million for the first six months of fiscal 2025, compared to net cash provided by financing activities of $216.7 million for the first six months of fiscal 2024. Net cash flows provided by financing activities for the first six months of fiscal 2025 included net proceeds from issuance of short-term debt of $188.4 million, net proceeds from the issuance of long-term debt of $750.0 million, dividends paid of $330.5 million and share repurchases of $314.2 million. Net cash flows provided by financing activities for the first six months of fiscal 2024 included net proceeds from issuance of short-term debt of $350.0 million, proceeds from the 2033 Notes of $500.0 million, dividends paid of $315.7 million and share repurchases of $323.9 million. Dividends declared by our Board of Directors totaled $2.80 and $2.62 per share for the first six months of fiscal 2025 and 2024, respectively.

Current wording

Net cash flows used in financing activities from continuing operations were $123.9 million for the first nine months of fiscal 2025, compared to net cash used in financing activities of $158.5 million for the first nine months of fiscal 2024. Net cash flows used in financing activities for the first nine months of fiscal 2025 included repayment of commercial paper of $28.6 million, net proceeds from the issuance of long-term debt of $750.0 million, dividends paid of $494.6 million and share repurchases of $367.2 million. Net cash flows used in financing activities for the first nine months of fiscal 2024 included net proceeds from issuance of short-term debt of $158.7 million, net proceeds from the 2033 Notes of $500.0 million, dividends paid of $472.1 million and share repurchases of $356.6 million. Dividends declared by our Board of Directors totaled $4.20 and $3.93 per share for the first nine months of fiscal 2025 and 2024, respectively.

Previous wording

On March 20, 2024, our Board of Directors authorized a new share repurchase program under which we may repurchase up to $1 billion of our outstanding common stock. This repurchase program does not have an expiration and replaced the prior share repurchase authorization. During the quarter and six months ended November 24, 2024, we repurchased 0.9 million and 2.1 million shares of our common stock, respectively, compared to 1.2 million and 2.1 million shares of our common stock, respectively, during the quarter and six months ended November 26, 2023.

Current wording

On March 20, 2024, our Board of Directors authorized a new share repurchase program under which we may repurchase up to $1 billion of our outstanding common stock. This repurchase program does not have an expiration and replaced the prior share repurchase authorization. During the quarter and nine months ended February 23, 2025, we repurchased 0.3 million and 2.4 million shares of our common stock, respectively, compared to 0.2 million and 2.3 million shares of our common stock, respectively, during the quarter and nine months ended February 25, 2024.

Previous wording

Our current assets totaled $879.6 million as of November 24, 2024, compared to $822.8 million as of May 26, 2024. The increase was primarily due to an increase in inventories and prepaid expenses and other current assets, partially offset by a decrease in receivable and prepaid income tax.

Current wording

Our current assets totaled $880.6 million as of February 23, 2025, compared to $822.8 million as of May 26, 2024. The increase was primarily due to an increase in inventories, cash and cash equivalents and prepaid income tax, partially offset by a decrease in receivables, net.

Previous wording

Our current liabilities totaled $2.40 billion as of November 24, 2024, compared to $2.19 billion as of May 26, 2024. The increase was primarily driven by an increase in short-term debt.

Current wording

Our current liabilities totaled $2.28 billion as of February 23, 2025, compared to $2.19 billion as of May 26, 2024. The increase was primarily driven by an increase in unearned revenues associated with gift card sales in excess of gift card redemptions and other current liabilities.

Previous wording

•Economic and business factors and their impacts on the restaurant industry and general macroeconomic factors including unemployment, energy prices and interest rates;

Current wording

•Economic and business factors and their impacts on the restaurant industry and general macroeconomic factors including unemployment, energy prices, tariffs and interest rates;