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 months ended August 24, 2025 and August 25, 2024.

Current wording

To facilitate the 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 23, 2025 and November 24, 2024, respectively.

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 first quarter of fiscal 2026, compared with the number open at the end of fiscal 2025 and the end of the first quarter of fiscal 2025.

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 second quarter of fiscal 2026, compared with the number of company-owned restaurants open at the end of fiscal 2025 and at the end of the second quarter of fiscal 2025.

Previous wording

1 During the first quarter of fiscal 2026, we sold eight Olive Garden Canada locations.

Current wording

1 During the first quarter of fiscal 2026, we sold all eight of our Olive Garden Canada locations.

Previous wording

Our business operates in the full-service dining segment of the restaurant industry. At August 24, 2025, through subsidiaries, we owned and operated 2,165 restaurants in the United States under the Olive Garden®, LongHorn Steakhouse®, Cheddar’s Scratch Kitchen®, Chuy’s®, Yard House®, Ruth’s Chris Steak House® (Ruth’s Chris), The Capital Grille®, Seasons 52®, Eddie V’s Prime Seafood® (Eddie V’s), Bahama Breeze®, and The Capital Burger® trademarks. We own and operate all of our restaurants in the United States, except for 5 restaurants we manage through joint venture or other contractual agreements and 85 franchised restaurants. We also have 77 franchised restaurants in operation located in Canada, Latin America, the Caribbean, Asia, and the Middle East

Current wording

Our business operates in the full-service dining segment of the restaurant industry. At November 23, 2025, through subsidiaries, we owned and operated 2,182 restaurants in the United States under the Olive Garden®, LongHorn Steakhouse®, Cheddar’s Scratch Kitchen®, Chuy’s®, Yard House®, Ruth’s Chris Steak House® (Ruth’s Chris), The Capital Grille®, Seasons 52®, Eddie V’s Prime Seafood® (Eddie V’s), Bahama Breeze®, and The Capital Burger® trademarks. We own and operate all of our restaurants in the United States, except for five restaurants we manage through joint venture or other contractual agreements and 86 franchised restaurants. We also have 78 international franchised restaurants in operation located in Canada, Latin America, the Caribbean, Asia, and the Middle East.

Previous wording

On July 14, 2025, we closed on the sale of eight Olive Garden locations in Canada to Recipe Unlimited Corporation (Recipe). All gains and losses on disposition have been aggregated in impairments and (gain) loss on disposal of assets, net on our consolidated statement of earnings. See Note 8 to our unaudited consolidated financial statements in Part I, Item 1 of Form

Current wording

On July 14, 2025, we closed on the sale of eight Olive Garden locations in Canada to Recipe Unlimited Corporation (Recipe). All gains and losses on disposition have been aggregated in impairments and (gain) loss on disposal of assets, net on our consolidated statement of earnings. See Note 7 to our unaudited consolidated financial statements in Part I, Item 1 of this Form 10-Q for additional information. At closing, Darden and Recipe entered into an area development agreement and franchise agreements, pursuant to which Recipe will operate current and any new restaurants contemplated thereunder under the Olive Garden trade name and will pay royalties for use of the trade name.

Previous wording

•Total sales increased 10.4 percent to $3.04 billion for the first three months of fiscal 2026 compared to $2.76 billion for the first three months of fiscal 2025 driven by sales from 125 net new restaurants, including the acquisition of 103 Chuy’s restaurants on October 11, 2024, and a blended same-restaurant sales increase of 4.7 percent.1

Current wording

•Total sales increased 7.3 percent and 8.9 percent to $3.10 billion and $6.15 billion for the second quarter and first six months of fiscal 2026, respectively, compared to $2.89 billion and $5.65 billion for the second quarter and first six months of fiscal 2025, respectively, driven by sales from the acquisition of 103 Chuy’s locations during the second quarter of fiscal 2025 and 30 net new restaurants and a blended same-restaurant sales increase of 4.3 percent 1 and 4.5 percent.1

Previous wording

•Reported diluted net earnings per share from continuing operations were $2.19 for the first three months of fiscal 2026 compared to $1.74 for the first three months of fiscal 2025.

Current wording

•Reported diluted net earnings per share from continuing operations were $2.03 and $4.23 for the second quarter and first six months of fiscal 2026, respectively, compared to $1.82 and $3.57 for the second quarter and first six months of fiscal 2025, respectively.

Previous wording

We expect sales growth for fiscal 2026 to be between 7.5 and 8.5 percent, driven by growth of 2.0 percent related to the fifty-third week, same-restaurant sales growth to be between 2.5 and 3.5 percent 2 and approximately 65 new restaurant openings. Additionally, we expect capital expenditures incurred to build new restaurants, remodel and maintain existing restaurants and for technology initiatives to be between $700 and $750 million. These amounts 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 growth for fiscal 2026 to be between 8.5 and 9.3 percent, driven by growth of 2.0 percent related to the fifty-third week in fiscal 2026; same-restaurant sales growth to be between 3.5 and 4.3 percent 2; and new restaurant openings to be between 65 to 70. Additionally, we expect capital expenditures incurred to build new restaurants, remodel and maintain existing restaurants and for technology initiatives to be between $750 and $775 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

Olive Garden’s sales increase for the first quarter of fiscal 2026 was primarily driven by same-restaurant sales increases, as well as revenue from new restaurants, partially offset by the sale of eight Olive Garden Canada locations. The increase in U.S. same-restaurant sales for the first quarter of fiscal 2026 resulted from a 2.8 percent increase in same-restaurant guest counts, combined with a 3.1 percent increase in average check, which includes a 0.8 increase in off premise catering sales.

Current wording

Olive Garden’s sales increase for the second quarter of fiscal 2026 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 2026 resulted from a 1.7 percent increase in same-restaurant guest counts, combined with a 3.0 percent increase in average check, which includes a 1.1 percent increase in off-premise catering sales. Olive Garden’s sales increase for the six months of fiscal 2026 was primarily driven by same-restaurant sales increases, as well as revenue from new restaurants, partially offset by the sale of all eight of our Olive Garden Canada locations. The increase in U.S. same-restaurant sales for the six months of fiscal 2026 resulted from a 2.2 percent increase in same-restaurant guest counts, combined with a 3.0 percent increase in average check, which includes a 0.9 percent increase in off-premise catering sales.

Previous wording

LongHorn Steakhouse’s sales increase for the first quarter of fiscal 2026 was primarily driven by same-restaurant sales increases combined with revenue from new restaurants. The increase in same-restaurant sales for the first quarter of fiscal 2026 resulted from a 2.3 percent increase in average check combined with a 3.2 percent increase in same-restaurant guest counts.

Current wording

LongHorn Steakhouse’s sales increase for the second quarter of fiscal 2026 was primarily driven by same-restaurant sales increases, as well as revenue from new restaurants. The increase in same-restaurant sales for the second quarter of fiscal 2026 resulted from a 2.1 percent increase in average check combined with a 3.8 percent increase in same-restaurant guest counts. LongHorn Steakhouse’s sales increase for the six months of fiscal 2026 was primarily driven by same-restaurant sales increases combined with revenue from new restaurants. The increase in same-restaurant sales for the six months of fiscal 2026 resulted from a 2.1 percent increase in average check combined with a 3.5 percent increase in same-restaurant guest counts.

Previous wording

Fine Dining’s sales increase for the first quarter of fiscal 2026 was primarily driven by an increase in average check combined with revenue from new restaurants. The decrease in same-restaurant sales for the first quarter of fiscal 2026 resulted from a 1.0 percent decrease in same-restaurant guest counts, offset by a 0.8 percent increase in average check.

Current wording

Fine Dining’s sales increase for the second quarter of fiscal 2026 was primarily driven by revenue from new restaurants, as well as same-restaurant sales increases. The increase in same-restaurant sales for the second quarter of fiscal 2026 resulted from a 0.9 percent increase in same-restaurant guest counts, offset by a 0.1 percent decrease in average check. Fine Dining’s sales increase for the six months of fiscal 2026 was primarily driven by revenue from new restaurants, as well as same-restaurant sales increases. The increase in same-restaurant sales for the six months of fiscal 2026 resulted from a 0.3 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 August 24, 2025 and August 25, 2024.

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 three and six months ended November 23, 2025 and November 24, 2024.

Previous wording

•Restaurant labor costs increased as a percent of sales primarily due to a 1.0% impact from inflation and a 0.3% impact from higher performance-based compensation expense including a higher 401k match for our restaurant teams, partially offset by a 0.7% impact from pricing leverage, a 0.2% impact from productivity and a 0.2% impact from brand mix.

Current wording

•Restaurant labor costs increased as a percent of sales primarily due to a 1.0% impact from inflation and a 0.1% impact from higher performance-based compensation expense, partially offset by a 0.8% impact from pricing leverage and a 0.2% impact from productivity.

Previous wording

•Restaurant expenses increased as a percent of sales primarily due to a 0.5% impact from inflation, a 0.3% impact from Uber direct fees and a 0.3% impact from brand mix, partially offset by a 0.7% impact from sales leverage and a 0.2% impact from other.

Current wording

•Restaurant expenses increased as a percent of sales primarily due to a 0.5% impact from inflation, a 0.3% impact from Uber direct fees and a 0.2% impact from brand mix, partially offset by a 0.7% impact from sales leverage and a 0.2% impact from other.

Previous wording

•General and administrative expenses decreased as a percent of sales primarily due to a 0.5% impact from sales leverage including synergies realized from the Chuy’s transaction, partially offset by a 0.2% impact from Chuy’s transaction and integration costs, a 0.1% impact from mark to market adjustments and a 0.1% impact from inflation.

Current wording

•General and administrative expenses decreased as a percent of sales primarily due to a 0.5% impact from Chuy’s transaction and integration costs incurred in fiscal 2025, 0.3% impact from sales leverage including synergies realized from the Chuy’s transaction, a 0.1% impact from mark to market adjustments, and a 0.1% impact from other, partially offset by a 0.2% impact from Chuy’s transaction and integration costs incurred in fiscal 2026, and a 0.1% impact from inflation.

Previous wording

•Impairment and (gain) loss on disposal of assets, net increased as a percent of sales due to the gain on sale of the eight Olive Garden Canada locations.

Current wording

•Impairment and (gain) loss on disposal of assets, net increased as a percent of sales primarily due to the gain on sale of the eight Olive Garden Canada locations.

Previous wording

The effective income tax rate for continuing operations for the three months ended August 24, 2025 was 12.2 percent compared to an effective income tax rate for the three months ended August 25, 2024 of 10.6 percent. The increase in the tax rate is primarily driven by higher net earnings from continuing operations, offset by the mark to market impacts on hedges related to our deferred compensation programs.

Current wording

The effective income tax rate for continuing operations for the three months ended November 23, 2025 was 12.8 percent compared to an effective income tax rate for the three months ended November 24, 2024 of 12.3 percent. The effective income tax rate for continuing operations for the six months ended November 23, 2025 was 12.5 percent compared to an effective income tax rate for the six months ended November 24, 2024 of 11.4 percent. The increase in tax rate is primarily driven by impacts from stock market volatility, primarily offset by valuation allowance releases.

Previous wording

H.R. 1., also known as the One Big Beautiful Bill Act (OBBBA), was enacted on July 4, 2025. The legislation included several provisions that impact the timing and magnitude of certain tax deductions, including restoring 100% bonus depreciation for qualifying property and the immediate expensing of domestic research and development costs. We have applied the key provisions impacting our financial position for the three months ended August 24, 2025, and will continue to assess the potential impacts on our financial position, results of operations and cash flows as additional guidance from the OBBBA is issued.

Current wording

H.R. 1., also known as the One Big Beautiful Bill Act (OBBBA), was enacted on July 4, 2025. The legislation included several provisions that impact the timing and magnitude of certain tax deductions, including restoring 100% bonus depreciation for qualifying property and the immediate expensing of domestic research and development costs. We have applied the key provisions impacting our financial position for the six months ended November 23, 2025, and will continue to assess the potential impacts on our financial position, results of operations and cash flows as additional guidance from the OBBBA is issued.

Previous wording

On an after-tax basis, losses from discontinued operations for the first three months of fiscal 2026 were $0.1 million ($0.00 per diluted share) compared with losses from discontinued operations for the first three months of fiscal 2025 of $0.4 million ($0.00 per diluted share).

Current wording

On an after-tax basis, losses from discontinued operations for the second quarter and first six months of fiscal 2026 were $0.2 million ($0.00 per diluted share) and $0.3 million ($0.01 per diluted share), respectively, compared with losses from discontinued operations for the second quarter and first six months of fiscal 2025 of $0.6 million ($0.00 per diluted share) and $1.0 million ($0.01 per diluted share), respectively.

Previous wording

We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Chuy’s, Yard House, Ruth’s Chris, The Capital Grille, Seasons 52, Eddie V’s, Bahama Breeze and The Capital Burger in North America as operating segments. 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. Our four reportable segments are: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining and (4) Other Business (see Note 7 to our unaudited consolidated financial statements in Part I, Item 1 of Form 10-Q).

Current wording

We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Chuy’s, Yard House, Ruth’s Chris, The Capital Grille, Seasons 52, Eddie V’s, Bahama Breeze and The Capital Burger, in North America as operating segments. 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. Our four reportable segments are: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining and (4) Other Business (see Note 6 to our unaudited consolidated financial statements in Part I, Item 1 of this Form 10-Q).

Previous wording

The decrease in Olive Garden’s segment profit margin for the first quarter of fiscal 2026 was driven primarily by increased restaurant labor costs and restaurant expenses, partially offset by decreased food and beverage costs. The decrease in Longhorn Steakhouse’s segment profit margin for the first quarter of fiscal 2026 was driven primarily by increased restaurant labor and food and beverage costs, primarily due to pricing approximately 100 bps below inflation, partially offset by decreased restaurant expenses and marketing costs. The decrease in Fine Dining’s segment profit margin for the first quarter of fiscal 2026 was driven primarily by increased restaurant labor costs and negative same-restaurant sales, partially offset by lower restaurant expenses and food and beverage costs. The increase in Other Business’ segment profit margin for the first quarter of fiscal 2026 was driven primarily by the addition of Chuy’s operating results and lower food and beverage and restaurant labor costs, partially offset by higher restaurant expenses and marketing costs.

Current wording

The increases in Olive Garden’s segment profit margin for the second quarter and first six months of fiscal 2026 were driven primarily by lower food and beverage and marketing costs, partially offset by higher restaurant expenses. The decrease in Longhorn Steakhouse’s segment profit margin for the second quarter of fiscal 2026 was driven by higher food and beverage costs, primarily due to setting menu pricing approximately 320 basis points below inflation, and restaurant labor costs, partially offset by lower restaurant expenses. The decrease in Longhorn Steakhouse’s segment profit margin for the first six months of fiscal 2026 was driven by higher food and beverage costs, primarily due to setting menu pricing approximately 210 basis points below inflation, and restaurant labor costs, partially offset by lower restaurant expenses. The decrease in Fine Dining’s segment profit margin for the second quarter and first six months of fiscal 2026 was driven primarily by higher food and beverage costs and restaurant labor. The decrease in Other Business’ segment profit margin for the second quarter of fiscal 2026 was driven primarily by higher food and beverage and restaurant labor costs. The increase in Other Business’ segment profit margin for the first six months of fiscal 2026 was driven primarily by the addition of Chuy’s operating results and lower food and beverage 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 August 24, 2025, we had no outstanding balances and were in compliance with all covenants under the Revolving Credit Agreement. As of August 24, 2025, $142.0 million of commercial paper and $0.2 million of letters of credit were outstanding, and were both backed by this facility. After consideration of commercial paper and letters of credit backed by the Revolving Credit Agreement, as of August 24, 2025, we had $1.10 billion 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 November 23, 2025, we had no outstanding balances and were in compliance with all covenants under the Revolving Credit Agreement. As of November 23, 2025, $438.0 million of commercial paper was outstanding and backed by this facility. After consideration of commercial paper and letters of credit backed by the Revolving Credit Agreement, as of November 23, 2025, we had $812 million of credit available under the Revolving Credit Agreement.

Previous wording

On September 16, 2024, we entered into Amendment No. 1 (Amendment) to the Revolving Credit Agreement, which replaced the prior financial covenant (which provided for a maximum consolidated total debt to total capitalization ratio) with a new financial covenant requiring us to maintain, measured as of the end of each fiscal quarter, a maximum consolidated leverage ratio of 3.50 to 1.00 (which may be temporarily increased to 4.00 to 1.00 upon our the election as a result of a covered acquisition, subject to customary limitations set forth in the Revolving Credit Agreement). All other material terms and conditions of the Revolving Credit Agreement were unchanged.

Current wording

On September 16, 2024, we entered into Amendment No. 1 (Amendment) to the Revolving Credit Agreement, which replaced the prior financial covenant (which provided for a maximum consolidated total debt to total capitalization ratio) with a new financial covenant requiring us to maintain, measured as of the end of each fiscal quarter, a maximum consolidated leverage ratio of 3.50 to 1.00 (which may be temporarily increased to 4.00 to 1.00 upon our election as a result of a covered acquisition, subject to customary limitations set forth in the Revolving Credit Agreement). All other material terms and conditions of the Revolving Credit Agreement were unchanged.

Previous wording

The interest rate on our $42.8 million senior notes due in October 2037 is subject to adjustment from time to time if the debt rating assigned to such series of notes is downgraded below a certain rating level (or subsequently upgraded). The maximum adjustment is 2.000 percent above the initial interest rate and the interest rate cannot be reduced below the initial interest rate. As of August 24, 2025, no such adjustments are made to this rate.

Current wording

The interest rate on our $42.8 million senior notes due in October 2037 is subject to adjustment from time to time if the debt rating assigned to such series of notes is downgraded below a certain rating level (or subsequently upgraded). The maximum adjustment is 2.000 percent above the initial interest rate and the interest rate cannot be reduced below the initial interest rate. As of November 23, 2025, no such adjustments were made to this rate.

Previous wording

From time to time, we enter into interest rate derivative instruments. See Note 11 to our unaudited consolidated financial statements in Part I, Item 1 of this report, which is incorporated by reference.

Current wording

From time to time, we enter into interest rate derivative instruments. See Note 10 to our unaudited consolidated financial statements in Part I, Item 1 of this Form 10-Q, which is incorporated by reference.

Previous wording

Net cash flows provided by operating activities from continuing operations increased to $342.5 million for the first three months of fiscal 2026, from $273.2 million for the first three months of fiscal 2025. Net cash flows provided by operating activities include net earnings from continuing operations of $257.9 million and $207.6 million in the first three months of fiscal 2026 and 2025, respectively. Net cash flows provided by operating activities increased in fiscal 2026 primarily due to higher net earnings in fiscal 2026 and the timing of federal income tax payments.

Current wording

Net cash flows provided by operating activities from continuing operations increased to $663.2 million for the first six months of fiscal 2026, from $661.8 million for the first six months of fiscal 2025. Net cash flows provided by operating activities include net earnings from continuing operations of $495.3 million and $423.3 million in the first six months of fiscal 2026 and 2025, respectively. Net cash flows provided by operating activities increased in fiscal 2026 primarily due to higher net earnings in fiscal 2026 and the timing of federal income tax payments, offset by changes in working capital.

Previous wording

Net cash flows used in investing activities from continuing operations were $159.3 million for the first three months of fiscal 2026, compared to $149.7 million for the first three months of fiscal 2025. Capital expenditures increased to $174.1 million for the first three months of fiscal 2026 from $145.2 million for the first three months of fiscal 2025, reflecting an increase in new restaurant construction and remodel spend during fiscal 2026. Additionally, the first three months of fiscal 2026 include a portion of the proceeds from the sale of eight Olive Garden Canada locations.

Current wording

Net cash flows used in investing activities from continuing operations were $363.9 million for the first six months of fiscal 2026, compared to $939.3 million for the first six months of fiscal 2025. Net cash used in the acquisition of Chuy’s was $613.7 million during the second quarter of fiscal 2025. Capital expenditures increased to $375.0 million for the first six months of fiscal 2026 from $314.5 million for the first six months of fiscal 2025, reflecting an increase in new restaurant construction and remodel spend during fiscal 2026. Additionally, the first six months of fiscal 2026 include a portion of the proceeds from the sale of all eight of our Olive Garden Canada locations.

Previous wording

Net cash flows used in financing activities from continuing operations were $212.2 million for the first three months of fiscal 2026, compared to net cash used in financing activities of $126.7 million for the first three months of fiscal 2025. Net cash flows used in financing activities for the first three months of fiscal 2026 included borrowings of commercial paper of $142.0 million, net, dividends paid of $175.1 million and share repurchases of $182.7 million. Net cash flows used in financing activities for the first three months of fiscal 2025 included dividends paid of $166.0 million and share repurchases of $172.4 million. Dividends declared by our Board of Directors totaled $1.50 and $1.40 per share for the first three months of fiscal 2026 and 2025, respectively.

Current wording

Net cash flows used in financing activities from continuing operations were $314.9 million for the first six months of fiscal 2026, compared to net cash provided by financing activities of $298.9 million for the first six months of fiscal 2025. Net cash flows used in financing activities for the first six months of fiscal 2026 included borrowings of commercial paper of $438.0 million, net, offset by dividends paid of $349.0 million and share repurchases of $407.1 million. Net cash flows provided by financing activities for the first six months of fiscal 2025 included borrowings of commercial paper 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. Dividends declared by our Board of Directors totaled $3.00 and $2.80 per share for the first six months of fiscal 2026 and 2025, respectively.

Previous wording

On June 18, 2025, 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 three months ended August 24, 2025, we repurchased 0.9 million shares of our common stock compared to 1.2 million shares of our common stock during the three months ended August 25, 2024.

Current wording

On June 18, 2025, 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 23, 2025, we repurchased 1.1 million and 2 million shares of our common stock, respectively, compared to 0.9 million and 2.1 million shares of our common stock, respectively, during the quarter and six months ended November 24, 2024.

Previous wording

Our current assets totaled $932.8 million as of August 24, 2025, compared to $937.7 million as of May 25, 2025. The decrease was primarily due to a decrease in cash and cash equivalents partially offset by an increase in prepaid income tax.

Current wording

Our current assets totaled $1.04 billion as of November 23, 2025, compared to $937.7 million as of May 25, 2025. The increase was primarily due to an increase in prepaid income taxes and inventories.

Previous wording

Our current liabilities totaled $2.35 billion as of August 24, 2025, compared to $2.25 billion as of May 25, 2025. The increase was primarily driven by an increase in short term debt partially offset by unearned revenues associated with gift card redemptions in excess of gift card activations.

Current wording

Our current liabilities totaled $2.65 billion as of November 23, 2025, compared to $2.25 billion as of May 25, 2025. The increase was primarily driven by an increase in short term debt partially offset by unearned revenues associated with gift card redemptions in excess of gift card activations.

Previous wording

Information regarding application of new accounting standards is incorporated by reference from Note 1 to our unaudited consolidated financial statements in Part I, Item 1 of this report.

Current wording

Information regarding application of new accounting standards is incorporated by reference from Note 1 to our unaudited consolidated financial statements in Part I, Item 1 of this Form 10-Q.

Previous wording

Statements set forth in or incorporated into this report regarding the expected increase in the number of our restaurants and capital expenditures in fiscal 2026, projections for sales and all other statements that are not historical facts, including without limitation statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of Darden Restaurants, Inc. and its subsidiaries that are preceded by, followed by or that include words such as “may,” “will,” “expect,” “intend,” “anticipate,” “continue,” “estimate,” “project,” “believe,” “plan,” “outlook” or similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are included, along with this statement, for purposes of complying with the safe harbor provisions of that Act. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements for any reason to reflect events or circumstances arising after such date. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. In addition to the risks and uncertainties of ordinary business obligations, and those described in information incorporated into this report, the forward-looking statements contained in this report are subject to the risks and uncertainties described in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended May 25, 2025 and in our Forms 10-Q (including this report), which are summarized as follows:

Current wording

Statements set forth in or incorporated into this report regarding the expected increase in the number of our restaurants and capital expenditures in fiscal 2026, projections for sales and all other statements that are not historical facts, including without limitation statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of Darden Restaurants, Inc. and its subsidiaries that are preceded by, followed by or that include words such as “may,” “will,” “expect,” “intend,” “anticipate,” “continue,” “could,” “estimate,” “project,” “believe,” “plan,” “outlook” or similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are included, along with this statement, for purposes of complying with the safe harbor provisions of that Act. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements for any reason to reflect events or circumstances arising after such date. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. In addition to the risks and uncertainties of ordinary business obligations, and those described in information incorporated into this report, the forward-looking statements contained in this report are subject to the risks and uncertainties described in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended May 25, 2025 and in our Forms 10-Q (including this report), which are summarized as follows: