INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Management Responsibilities 42 Management’s Report on Internal Control over Financial Reporting 42 Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting 43 Report of Independent Registered Public Accounting Firm (KPMG LLP, Orlando, FL, Auditor Firm ID: 185) 44 Consolidated Statements of Earnings for the fiscal years ended May 31, 2026, May 25, 2025 and May 26, 2024 46 Consolidated Statements of Comprehensive Income for the fiscal years ended May 31, 2026, May 25, 2025 and May 26, 2024 47 Consolidated Balance Sheets at May 31, 2026 and May 25, 2025 48 Consolidated Statements of Changes in Stockholders’ Equity for the fiscal years ended May 31, 2026, May 25, 2025 and May 26, 2024 49 Consolidated Statements of Cash Flows for the fiscal years ended May 31, 2026, May 25, 2025 and May 26, 2024 50 Notes to Consolidated Financial Statements 52 41 REPORT OF MANAGEMENT’S RESPONSIBILITIES The management of Darden Restaurants, Inc. is responsible for the fairness and accuracy of the consolidated financial statements. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, using management’s best estimates and judgments where appropriate. The financial information throughout this report is consistent with our consolidated financial statements. Management has established a system of internal controls over financial reporting that provides reasonable assurance that assets are adequately safeguarded and transactions are recorded accurately, in all material respects, in accordance with management’s authorization. Our internal controls provide for appropriate segregation of duties and responsibilities and there are documented policies regarding utilization of our assets and proper financial reporting. These formally stated and regularly communicated policies set high standards of ethical conduct for all employees. We also maintain a strong audit program that independently evaluates the adequacy of the design and operating effectiveness of these internal controls. The Audit Committee of the Board of Directors meets at least quarterly to determine that management, internal auditors and the independent registered public accounting firm are properly discharging their duties regarding internal control and financial reporting. Management, internal auditors and the independent registered public accounting firm have full and free access to the Audit Committee at any time. KPMG LLP, an independent registered public accounting firm, is retained to audit our consolidated financial statements and the effectiveness of our internal control over financial reporting. Their reports follow. MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). The Company’s internal control over financial reporting is designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and fair presentation of published financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Management assessed the effectiveness of the Company’s internal control over financial reporting as of May 31, 2026. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework (2013). Management has concluded that, as of May 31, 2026, the Company’s internal control over financial reporting was effective based on these criteria. The Company’s independent registered public accounting firm, KPMG LLP, has issued an audit report on the effectiveness of our internal control over financial reporting, which follows. /s/ Ricardo Cardenas Ricardo Cardenas President and Chief Executive Officer 42 Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Darden Restaurants, Inc.: Opinion on Internal Control Over Financial Reporting We have audited Darden Restaurants, Inc. and subsidiaries' (the Company) internal control over financial reporting as of May 31, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of May 31, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of May 31, 2026 and May 25, 2025, the related consolidated statements of earnings, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the three-year period ended May 31, 2026, and the related notes (collectively, the consolidated financial statements), and our report dated July 24, 2026 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP Orlando, Florida July 24, 2026 43 Report of Independent Registered Public Accounting Firm To the Stockholders and Board of Directors Darden Restaurants, Inc.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of Darden Restaurants, Inc. and subsidiaries (the Company) as of May 31, 2026 and May 25, 2025, the related consolidated statements of earnings, comprehensive income, changes in stockholders’ equity, and cash flows for each of the years in the three-year period ended May 31, 2026, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of May 31, 2026 and May 25, 2025, and the results of its operations and its cash flows for each of the years in the three-year period ended May 31, 2026, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of May 31, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated July 24, 2026 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Evaluation of Long-Lived Assets for Impairment As discussed in Notes 1, 5, and 11 to the consolidated financial statements, land, buildings and equipment, net and operating lease right-of-use assets were $8.5 billion as of May 31, 2026. The Company tests for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Such indicators may include, among others: a significant decline in expected future cash flows and changes in the expected useful life which relates to the Company’s intent and ability to hold its asset groups for a period that recovers their carrying value. We identified the evaluation of indicators of potential long-lived assets impairment as a critical audit matter. Subjective auditor judgment was required to evaluate certain assumptions in the Company’s analysis, including expected future cash flows and the expected useful life. Adverse changes in these assumptions could have a significant impact on whether an indicator has been identified and could have a material impact on the Company’s consolidated financial statements. 44 The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls over the Company’s long-lived asset impairment process, including controls over the identification of indicators of impairment and the assumptions listed above. For certain asset groups, we compared the expected future cash flows used by the Company in its evaluation of indicators of potential long-lived asset impairment to historical results. We evaluated the expected useful life for certain asset groups by inspecting underlying documents, such as real estate meeting minutes and other documents to assess the Company’s plans to dispose or close asset groups. We corroborated the Company’s plans with others in the organization who are responsible for, and have authority over, disposition and closure activities. /s/ KPMG LLP We have served as the Company’s auditor since 1996. Orlando, Florida July 24, 2026 45 DARDEN RESTAURANTS, INC. CONSOLIDATED STATEMENTS OF EARNINGS (In millions, except per share data) Fiscal Year Ended May 31, 2026 May 25, 2025 May 26, 2024 Sales $ 13,210.9 $ 12,076.7 $ 11,390.0 Costs and expenses: Food and beverage 4,038.8 3,657.0 3,523.9 Restaurant labor 4,182.4 3,833.1 3,619.3 Restaurant expenses 2,127.2 1,944.0 1,812.3 Marketing expenses 180.4 169.9 144.5 Pre-opening costs 34.5 24.8 24.3 General and administrative expenses 514.4 520.3 479.2 Depreciation and amortization 561.1 516.1 459.9 Impairments and disposal of assets, net (10.7) 49.2 12.4 Total operating costs and expenses $ 11,628.1 $ 10,714.4 $ 10,075.8 Operating income $ 1,582.8 $ 1,362.3 $ 1,314.2 Interest, net 194.2 175.1 138.7 Earnings before income taxes $ 1,388.6 $ 1,187.2 $ 1,175.5 Income tax expense 174.9 136.2 145.0 Earnings from continuing operations $ 1,213.7 $ 1,051.0 $ 1,030.5 Losses from discontinued operations, net of tax benefit of $2.9, $0.8, and $1.7, respectively (7.0) (1.4) (2.9) Net earnings $ 1,206.7 $ 1,049.6 $ 1,027.6 Basic net earnings per share: Earnings from continuing operations $ 10.51 $ 8.94 $ 8.59 Losses from discontinued operations (0.06) (0.01) (0.02) Net earnings $ 10.45 $ 8.93 $ 8.57 Diluted net earnings per share: Earnings from continuing operations $ 10.44 $ 8.88 $ 8.53 Losses from discontinued operations (0.06) (0.02) (0.02) Net earnings $ 10.38 $ 8.86 $ 8.51 Average number of common shares outstanding: Basic 115.5 117.5 119.9 Diluted 116.3 118.4 120.8 See accompanying notes to consolidated financial statements. 46 DARDEN RESTAURANTS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In millions) Fiscal Year Ended May 31, 2026 May 25, 2025 May 26, 2024 Net earnings $ 1,206.7 $ 1,049.6 $ 1,027.6 Foreign currency adjustment (4.5) — 0.1 Change in fair value of derivatives and amortization of unrecognized gains and losses on derivatives, net of taxes of $(0.6), $(1.0), and $9.4, respectively (7.7) 5.9 20.6 Net unamortized gain arising during period, including amortization of unrecognized net actuarial loss, net of taxes of $0.2, $0.2, and $0.6, respectively — 0.3 1.7 Other comprehensive (loss) income $ (12.2) $ 6.2 $ 22.4 Total comprehensive income $ 1,194.5 $ 1,055.8 $ 1,050.0 See accompanying notes to consolidated financial statements. 47 DARDEN RESTAURANTS, INC. CONSOLIDATED BALANCE SHEETS (In millions) May 31, 2026 May 25, 2025 ASSETS Current assets: Cash and cash equivalents $ 219.5 $ 240.0 Receivables, net 129.9 93.8 Inventories 326.3 311.6 Prepaid income taxes 139.8 135.6 Prepaid expenses and other current assets 127.4 156.7 Total current assets $ 942.9 $ 937.7 Land, buildings and equipment, net 5,048.6 4,716.0 Operating lease right-of-use assets 3,433.1 3,555.9 Goodwill 1,658.2 1,659.4 Trademarks 1,346.4 1,346.4 Other assets 433.2 371.6 Total assets $ 12,862.4 $ 12,587.0 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 427.7 $ 439.6 Short-term debt and current portion of long-term debt 693.6 — Accrued payroll 236.1 207.5 Accrued taxes 87.0 87.7 Unearned revenues 606.0 599.4 Other current liabilities 955.0 913.3 Total current liabilities $ 3,005.4 $ 2,247.5 Long-term debt 1,637.7 2,128.9 Deferred income taxes 343.6 278.8 Operating lease liabilities - non-current 3,722.3 3,816.9 Other liabilities 1,945.9 1,803.6 Total liabilities $ 10,654.9 $ 10,275.7 Stockholders’ equity: Common stock and surplus, no par value. Authorized 500.0 shares; issued 114.1 and 117.0 shares, respectively; outstanding 114.1 and 117.0 shares, respectively 2,296.3 2,295.6 Preferred stock, no par value. Authorized 25.0 shares; none issued and outstanding — — Retained earnings (deficit) (108.4) (16.1) Accumulated other comprehensive income 19.6 31.8 Total stockholders’ equity $ 2,207.5 $ 2,311.3 Total liabilities and stockholders’ equity $ 12,862.4 $ 12,587.0 See accompanying notes to consolidated financial statements. 48 DARDEN RESTAURANTS, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (In millions, except per share data) Common Stock And Surplus Shares Amount Retained Earnings (Deficit) Accumulated Other Comprehensive Income (Loss) Total Stockholders’ Equity Balances at May 28, 2023 121.1 $ 2,230.8 $ (32.5) $ 3.2 $ 2,201.5 Net earnings — — 1,027.6 — 1,027.6 Other comprehensive income — — — 22.4 22.4 Dividends declared ($5.24 per share) — — (631.9) — (631.9) Stock option exercises 0.4 31.8 — — 31.8 Stock-based compensation — 36.6 — — 36.6 Repurchases of common stock, inclusive of applicable excise taxes (2.9) (58.6) (398.7) — (457.3) Issuance of stock under Employee Stock Purchase Plan and other plans 0.3 11.8 — — 11.8 Balances at May 26, 2024 118.9 $ 2,252.4 $ (35.5) $ 25.6 $ 2,242.5 Net earnings — — 1,049.6 — 1,049.6 Other comprehensive income — — — 6.2 6.2 Dividends declared ($5.60 per share) — — (663.1) — (663.1) Stock option exercises 0.5 42.8 — — 42.8 Stock-based compensation — 41.8 — — 41.8 Repurchases of common stock, inclusive of applicable excise taxes (2.6) (54.2) (366.8) — (421.0) Issuance of stock under Employee Stock Purchase Plan and other plans 0.2 12.8 — — 12.8 Other — — (0.3) — (0.3) Balances at May 25, 2025 117.0 $ 2,295.6 $ (16.1) $ 31.8 $ 2,311.3 Net earnings — — 1,206.7 — 1,206.7 Other comprehensive loss — — — (12.2) (12.2) Dividends declared ($6.00 per share) — — (697.7) — (697.7) Stock option exercises 0.1 11.3 — — 11.3 Stock-based compensation — 48.9 — — 48.9 Repurchases of common stock, inclusive of applicable excise taxes (3.4) (73.2) (601.3) — (674.5) Issuance of stock under Employee Stock Purchase Plan and other plans 0.4 13.7 — — 13.7 Balances at May 31, 2026 114.1 $ 2,296.3 $ (108.4) $ 19.6 $ 2,207.5 See accompanying notes to consolidated financial statements. 49 DARDEN RESTAURANTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Fiscal Year Ended May 31, 2026 May 25, 2025 May 26, 2024 Cash flows - operating activities Net earnings $ 1,206.7 $ 1,049.6 $ 1,027.6 Losses from discontinued operations, net of tax 7.0 1.4 2.9 Adjustments to reconcile net earnings from continuing operations to cash flows: Depreciation and amortization 561.1 516.1 459.9 Impairments and (gain) loss on disposal of assets, net (10.7) 49.2 12.4 Stock-based compensation expense 79.1 79.1 68.5 Change in current assets and liabilities (24.8) 11.5 95.4 Deferred income taxes 71.3 5.0 (3.2) Change in other assets and liabilities (0.4) — (23.4) (Increase) Decrease in trust-owned life insurance value (42.6) (9.2) (24.8) Other, net 6.4 4.3 6.4 Net cash provided by operating activities of continuing operations $ 1,853.1 $ 1,707.0 $ 1,621.7 Cash flows - investing activities Purchases of land, buildings and equipment (734.0) (644.6) (601.2) Proceeds from disposal of land, buildings and equipment 45.5 2.5 3.3 Cash used in business acquisitions, net of cash acquired — (613.7) (701.1) Purchases of capitalized software and other assets (26.4) (27.3) (27.1) Other, net 3.5 4.8 1.5 Net cash used in investing activities of continuing operations $ (711.4) $ (1,278.3) $ (1,324.6) Cash flows - financing activities Net proceeds from issuance of common stock 25.0 55.6 43.6 Dividends paid (693.0) (658.5) (628.4) Repurchases of common stock, inclusive of applicable excise taxes (671.7) (418.2) (453.9) Proceeds from (repayment of) commercial paper, net 194.0 (86.8) 86.8 Proceeds from the issuance of long-term debt — 750.0 1,100.0 Repayments of long-term debt — — (600.0) Principal payments on finance leases, net (18.1) (21.0) (19.9) Payment of debt issuance costs — (6.9) (11.6) Net cash used in financing activities of continuing operations $ (1,163.8) $ (385.8) $ (483.4) Cash flows - discontinued operations Net cash used in operating activities of discontinued operations (4.8) (8.5) (9.8) Net cash used in discontinued operations $ (4.8) $ (8.5) $ (9.8) Increase (Decrease) in cash, cash equivalents, and restricted cash (26.9) 34.4 (196.1) Cash, cash equivalents, and restricted cash - beginning of year 254.5 220.1 416.2 Cash, cash equivalents and restricted cash - end of year $ 227.6 $ 254.5 $ 220.1 Reconciliation of cash, cash equivalents, and restricted cash: May 31, 2026 May 25, 2025 May 26, 2024 Cash and cash equivalents $ 219.5 $ 240.0 $ 194.8 Restricted cash included in prepaid and other current assets 8.1 14.5 25.3 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 227.6 $ 254.5 $ 220.1 50 DARDEN RESTAURANTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (In millions) Fiscal Year Ended May 31, 2026 May 25, 2025 May 26, 2024 Cash flows from changes in current assets and liabilities Receivables, net $ (36.2) $ (13.2) $ 9.3 Inventories (14.7) (20.5) 5.6 Prepaid expenses and other current assets (2.6) (6.7) (1.4) Accounts payable (22.6) 26.6 (11.3) Accrued payroll 28.6 13.3 7.7 Prepaid/accrued income taxes (6.7) (15.2) 5.1 Other accrued taxes 2.8 8.0 4.6 Unearned revenues 6.6 5.0 12.9 Other current liabilities 20.0 14.2 62.9 Change in current assets and liabilities $ (24.8) $ 11.5 $ 95.4 See accompanying notes to consolidated financial statements. 51 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements include the operations of Darden Restaurants, Inc. and its wholly owned subsidiaries. We own and operate the Olive Garden®, LongHorn Steakhouse®, Yard House®, Ruth’s Chris Steak House®, Cheddar’s Scratch Kitchen®, The Capital Grille®, Chuy’s®, Seasons 52®, Eddie V’s Prime Seafood®, Bahama Breeze®, and The Capital Burger® restaurant brands located in the United States and Canada. Through subsidiaries, we own and operate all of our restaurants in the United States, except for four restaurants operating under contractual agreements, one restaurant that we jointly own with a third party and operate independently, and 87 franchised restaurants. We also have 80 franchised restaurants located in Canada, Latin America, the Caribbean, Asia, the Middle East, and Europe. All significant intercompany balances and transactions have been eliminated in consolidation. Certain prior-period amounts have been reclassified to conform to the current period’s presentation. On July 14, 2025, we closed on the sale of the Olive Garden Canada Restaurants to Recipe. All gains and losses on disposition have been aggregated in impairments and disposal of assets, net on our consolidated statement of earnings. See Note 4 for additional information. At the closing, Darden and Recipe entered into an area development agreement and franchise agreements, pursuant to which Recipe will operate current and any new restaurants contemplated thereunder under the Olive Garden trade name and will pay royalties for use of the trade name. On our June 2025 earnings call, we announced the decision to explore strategic alternatives for the Bahama Breeze brand, which, at that time, included 28 company-owned restaurants and one franchised restaurant. As part of this review, we evaluated a potential sale of the brand as well as the conversion of certain restaurants to other Darden brands. On February 3, 2026, we announced the completion of this process and our decision to permanently close approximately half of the Bahama Breeze restaurants, which we completed on or about April 5, 2026, and our expectation to convert the remaining restaurants to other Darden brands over the next 12–18 months. As of the end of fiscal 2026, we have completed one conversion. During the third and fourth quarters of fiscal 2026, we impaired the assets related to the 14 Bahama Breeze restaurants that were permanently closed. See Note 4 for additional information. For fiscal 2026, 2025, and 2024, impairment charges and disposal costs, along with the sales, costs, expenses, and income taxes attributable to previously disposed brands, have been classified as discontinued locations, and have been aggregated in a single caption entitled “Losses from discontinued operations, net of tax benefit” in our consolidated statements of earnings for all periods presented. Neither the sale of the Olive Garden Canada Restaurants nor the closings and conversions of Bahama Breeze restaurants meet the requirements to be classified as discontinued operations. Fiscal Year We operate on a 52/53-week fiscal year, which ends on the last Sunday in May. Fiscal 2026, which ended May 31, 2026, consisted of 53 weeks. Fiscal 2025, which ended May 25, 2025, consisted of 52 weeks, and fiscal 2024, which ended May 26, 2024, consisted of 52 weeks. Use of Estimates We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles (“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 expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents include highly liquid investments such as bank deposits and money market funds that have an original maturity of three months or less. Amounts receivable from credit card companies are also considered cash equivalents because they are both short-term and highly liquid in nature and are typically converted to cash within three days of the sales transaction. 52 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) The components of cash and cash equivalents are as follows: (in millions) May 31, 2026 May 25, 2025 Short-term investments $ 0.7 $ 21.3 Credit card receivables 180.5 176.8 Depository accounts 38.3 41.9 Total cash and cash equivalents $ 219.5 $ 240.0 As of May 31, 2026, and May 25, 2025, we had cash and cash equivalent accounts in excess of insured limits. We manage the credit risk of our positions through utilizing multiple financial institutions and monitoring the credit quality of those financial institutions that hold our cash and cash equivalents. We had restricted cash of $8.1 million as of May 31, 2026 and $14.5 million as of May 25, 2025, which represents cash held as security for a standby letter of credit. Restricted cash is included in Prepaid Expenses and Other Current Assets on the balance sheet. See Note 16, Commitments and Contingencies. Receivables, Net Receivables, net of the allowance for doubtful accounts, represent their estimated net realizable value. Provisions for doubtful accounts are recorded based on historical collection experience and the age of the receivables. Receivables are written off when they are deemed uncollectible. See Note 12 for additional information. Inventories Inventories consist of food and beverages and are valued at the lower of weighted-average cost or net realizable value. Land, Buildings, and Equipment, Net Land, buildings, and equipment are recorded at cost less accumulated depreciation. Building components are depreciated over estimated useful lives ranging from 3 to 30 years using the straight-line method. Leasehold improvements, which are reflected on our consolidated balance sheets as a component of buildings in land, buildings, and equipment, net, are amortized over the lesser of the expected lease term or the estimated useful lives of the related assets using the straight-line method. Equipment is depreciated over estimated useful lives ranging from 2 to 20 years also using the straight-line method. See Note 5 for additional information. Gains and losses on the disposal of land, buildings, and equipment are included in impairments and disposal of assets, net, while the write-off of net book value associated with the replacement of equipment in the normal course of business is recorded as a component of restaurant expenses in our accompanying consolidated statements of earnings. Depreciation and amortization expense from continuing operations associated with buildings and equipment and losses on replacement of equipment were as follows: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Depreciation and amortization on buildings and equipment $ 541.2 $ 496.1 $ 435.1 Losses on replacement of equipment 3.5 3.9 3.0 Capitalized Software Costs and Other Definite-Lived Intangibles Capitalized software, which is a component of other assets, is recorded at cost less accumulated amortization. Capitalized software is amortized using the straight-line method over estimated useful lives ranging from 1 to 10 years. The cost of capitalized software and related accumulated amortization was as follows: (in millions) May 31, 2026 May 25, 2025 Capitalized software $ 331.8 $ 314.8 Accumulated amortization (241.4) (231.8) Capitalized software, net of accumulated amortization $ 90.4 $ 83.0 53 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) We have other definite-lived intangible assets, including assets related to the value of reacquired franchise rights resulting from our acquisitions that are included as a component of other assets and definite-lived intangible liabilities related to the value of below-market agreements resulting from our acquisitions that are included in other liabilities on our consolidated balance sheets. Definite-lived intangibles are amortized on a straight-line basis over estimated useful lives of 1 to 20 years. The cost and related accumulated amortization was as follows: (in millions) May 31, 2026 May 25, 2025 Definite-lived intangible assets $ 30.7 $ 30.7 Accumulated amortization (18.2) (16.4) Definite-lived intangible assets, net of accumulated amortization $ 12.5 $ 14.3 Definite-lived intangible liabilities $ (3.0) $ (3.0) Accumulated amortization 2.7 2.4 Definite-lived intangible liabilities, net of accumulated amortization $ (0.3) $ (0.6) Amortization expense from continuing operations associated with capitalized software and other definite-lived intangibles included in depreciation and amortization in our accompanying consolidated statements of earnings was as follows: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Amortization expense - capitalized software $ 18.2 $ 18.2 $ 22.9 Amortization expense - other definite-lived intangibles 1.7 1.8 1.9 Based on the net book values of our definite-lived intangible assets and liabilities at May 31, 2026, we expect amortization of capitalized software and other definite-lived intangible assets will be approximately $26.0 million annually for fiscal 2027 through 2031. Trust-Owned Life Insurance We have a trust that purchased life insurance policies covering certain of our officers and other key employees (trust-owned life insurance or TOLI). The trust is the owner and sole beneficiary of the TOLI policies. The policies were purchased to offset a portion of our obligations under our non-qualified deferred compensation plan. The cash surrender value for each policy is included in other assets, while changes in cash surrender values are included in general and administrative expenses. Liquor Licenses The costs of obtaining non-transferable liquor licenses that are directly issued by local government agencies for nominal fees are expensed as incurred. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and included in other assets. Liquor licenses are reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. Annual liquor license renewal fees are expensed over the renewal term. 54 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Goodwill and Intangible Assets Our goodwill and trademark balances are allocated as follows: Goodwill Trademarks (in millions) May 31, 2026 May 25, 2025 May 31, 2026 May 25, 2025 Olive Garden $ 30.2 $ 30.2 $ 0.7 $ 0.7 LongHorn Steakhouse 49.3 49.3 307.8 307.8 Yard House 369.2 369.2 109.3 109.3 Ruth’s Chris 353.6 353.6 341.7 341.7 Cheddar’s Scratch Kitchen 165.1 165.1 230.1 230.1 The Capital Grille 401.6 401.6 147.4 147.4 Chuy’s 267.2 268.4 198.4 198.4 Season’s 52 — — 0.5 0.5 Eddie V’s 22.0 22.0 10.5 10.5 Total $ 1,658.2 $ 1,659.4 $ 1,346.4 $ 1,346.4 We have eleven reporting units, eight of which have goodwill and nine of which have trademarks. Goodwill and trademarks are not subject to amortization and have been assigned to reporting units for purposes of impairment testing. The reporting units are our restaurant brands. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in our expected future cash flows; a sustained, significant decline in our stock price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; the testing for recoverability of a significant asset group within a reporting unit; and slower growth rates. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on our consolidated financial statements. We review our goodwill and trademarks for impairment annually, as of the first day of our fourth fiscal quarter, or more frequently if indicators of impairment exist. In fiscal 2026, we performed a quantitative assessment as a part of our annual impairment review. We estimate the fair value of each reporting unit using the best information available, including market information (also referred to as the market approach) and discounted cash flow projections (also referred to as the income approach). A market approach estimates fair value by applying sales or cash flow multiples to the reporting unit’s operating performance. The multiples are derived from observable market data of comparable publicly traded companies with similar operating and investment characteristics of the reporting units. The income approach uses a reporting unit’s projection of estimated operating cash flows which are based on a combination of historical and current trends, organic growth expectations, and residual growth rate assumptions. These cash flows are discounted using a weighted-average cost of capital (“WACC”) that reflects current market conditions. We recognize a goodwill impairment loss when the fair value of the reporting unit is less than its carrying value. We estimate the fair value of trademarks using the relief-from-royalty method, which requires assumptions related to projected sales from the reporting unit’s projection of estimated operating cash flows; assumed royalty rates that could be payable if we did not own the trademarks; and a discount rate based on the WACC for each reporting unit. We recognize an impairment loss when the estimated fair value of the trademark is less than its carrying value. We performed our annual impairment test of our goodwill and trademarks as of February 23, 2026, the first day of our fiscal 2026 fourth quarter. Based on the results of this testing, we determined that our goodwill and trademarks were not impaired. We evaluate the useful lives of our other intangible assets to determine if they are definite or indefinite-lived. A determination on useful life requires significant judgments and assumptions regarding the future effects of obsolescence, demand, competition, other economic factors (such as the stability of the industry, legislative action that results in an uncertain or changing regulatory environment, and expected changes in distribution channels), the level of required maintenance expenditures and the expected lives of other related groups of assets. Impairment or Disposal of Long-Lived Assets Land, buildings and equipment, operating lease right-of-use assets, and certain other assets, including definite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to the future undiscounted net cash flows expected to be generated by the assets. Identifiable cash flows are measured 55 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) at the lowest level for which they are largely independent of the cash flows of other groups of assets and liabilities, generally at the restaurant level. If such assets are determined to be impaired, the recognized impairment is measured by the amount by which the carrying amount of the assets exceeds their fair value. Fair value is generally determined based on appraisals, sales prices of comparable assets or discounted future net cash flows expected to be generated by the assets. Restaurant sites and certain other assets to be disposed of are reported at the lower of their carrying amount or fair value, less estimated costs to sell, and are included in assets held for sale on our consolidated balance sheets when certain criteria are met. These criteria include, among other factors, the requirement that the likelihood of disposing of these assets within one year is probable. Assets not meeting the “held for sale” criteria remain in land, buildings and equipment until their disposal is probable within one year. We account for exit or disposal activities, including restaurant closures, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 420, Exit or Disposal Cost Obligations. Such costs include the cost of disposing of the assets as well as other facility-related expenses from previously closed restaurants. These costs are generally expensed as incurred. See Note 4 for additional information. For restaurants operated under non-cancellable leases, on the date we commit to a plan to either abandon the related right-of-use (“ROU”) asset or sublease the underlying asset, we evaluate the ROU asset for potential impairment and determine the go-forward accounting based on the requirements in FASB ASC Topic 842, Leases. Insurance Accruals Through the use of insurance program deductibles and self-insurance, we retain a significant portion of expected losses under our workers’ compensation and general liability programs. Accrued liabilities have been recorded based on our estimates of the anticipated ultimate costs to settle all claims, both reported and not yet reported. Revenue Recognition Sales, as presented in our consolidated statements of earnings, includes the sale of food and beverage products, royalties from our franchised restaurants, and royalties from the sale of consumer product goods. Revenue from restaurant sales is recognized when food and beverage products are sold and is presented net of discounts, coupons, employee meals, and complimentary meals. Revenue is presented net of sales tax. Sales taxes collected from customers are included in other accrued taxes on our consolidated balance sheets until the taxes are remitted to governmental authorities. 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. During fiscal 2026, we completed the Uber rollout to Cheddar’s Scratch Kitchen and further expanded the program with a rollout to Yard House. Revenue from orders through Company-owned platforms includes delivery fees and is recognized when the delivery partner transfers the order to the guest as the Company controls the delivery. For these sales, the Company receives payment directly from the guest at the time of sale. For all delivery sales, the Company is considered the principal and recognizes revenue on a gross basis. Franchise royalties, which are a percentage of net sales of franchised restaurants, are recognized as revenue in the period the related sales occur. Revenue from area development and franchise fees are recognized as the performance obligations are satisfied over the term of the franchise agreement, which is generally 10 years. Advertising contributions, which are a percentage of net sales of franchised restaurants, are recognized in the period the related sales occur. Additionally, franchisee purchases of our inventory through our distribution network are recognized as revenue in the period the purchases are made. Revenue from the sale of consumer packaged goods includes ongoing royalty fees based on a percentage of licensed retail product sales and is recognized upon the sale of product by our licensed manufacturers to retail outlets. Unearned Revenues Unearned revenues primarily represent our liability for gift cards that have been sold but not yet redeemed. We recognize sales from our gift cards when the gift card is redeemed by the customer. Although there are no expiration dates or dormancy fees for our gift cards, based on our analysis of our historical gift card redemption patterns, we can reasonably estimate the amount of gift cards for which redemption is remote, which is referred to as “breakage.” We recognize breakage within sales for unused gift card amounts in proportion to actual gift card redemptions. The estimated value of gift cards expected to remain unused is recognized over the expected period of redemption as the remaining gift card values are redeemed, generally over a period of 12 years. Utilizing this method, we estimate both the amount of breakage and the time period of redemption. If actual redemption patterns vary from our estimates, actual gift card breakage income may differ from the amounts recorded. We update our estimates of our redemption period and our breakage rate periodically and apply that rate prospectively to gift card redemptions. Discounts for gift cards sold by third parties are recorded to unearned revenues and are recognized as a reduction to sales over a period that approximates redemption patterns. 56 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Food and Beverage Costs Food and beverage costs include inventory, warehousing, related purchasing and distribution costs, and gains and losses on certain commodity derivative contracts. Vendor allowances received in connection with the purchase of a vendor’s products are recognized as a reduction of the related food and beverage costs as earned. For certain contracts, advance payments are made by the vendors based on estimates of volume to be purchased from the vendors and the terms of the agreement. As we make purchases from the vendors each period, we recognize the pro rata portion of allowances earned as a reduction of food and beverage costs for that period. Differences between estimated and actual purchases are settled in accordance with the terms of the agreements. Vendor agreements are generally for a period of one year or more. Pre-payments received from vendors are initially recorded as long-term liabilities. Amounts expected to be earned within one year are recorded as current liabilities. Certain agreements require payments in arrears and are recorded as current receivables. Income Taxes We provide for federal and state income taxes currently payable as well as for those deferred because of temporary differences between reporting income and expenses for financial statement purposes versus tax purposes. Federal income tax credits are recorded as a reduction of income taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period that includes the enactment date. Interest recognized on reserves for uncertain tax positions is included in income tax expense in our consolidated statements of earnings. A corresponding liability for accrued interest is included as a component of other current liabilities on our consolidated balance sheets. Interest accrued for refunds due from the taxing jurisdiction is recognized as a reduction to tax expense and a component of taxes payable. Penalties, when incurred, are recognized in general and administrative expenses. FASB ASC Topic 740, Income Taxes, requires that a position taken or expected to be taken in a tax return be recognized (or derecognized) in the financial statements when it is more likely than not (i.e., a likelihood of more than 50 percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. See Note 13 for additional information. Derivative Instruments and Hedging Activities We enter into derivative instruments for risk management purposes only, including derivatives designated as hedging instruments as required by FASB ASC Topic 815, Derivatives and Hedging, and those utilized as economic hedges. We use financial and commodities derivatives to manage interest rate, compensation and commodity and foreign exchange pricing risks inherent in our business operations. Our use of derivative instruments is currently limited to interest rate hedges, equity forward contracts and commodity swaps. These instruments are generally structured as hedges of the variability of cash flows related to forecasted transactions (cash flow hedges). However, we do at times enter into instruments designated as fair value hedges to reduce our exposure to changes in fair value of the related hedged item. We do not enter into derivative instruments for trading or speculative purposes, where changes in the cash flows or fair value of the derivative are not expected to offset changes in cash flows or fair value of the hedged item. All derivatives are recognized on the balance sheet at fair value. For those derivative instruments for which we intend to elect hedge accounting, on the date the derivative contract is entered into, we document all relationships between hedging instruments and hedged items, as well as our risk-management objective and strategy for undertaking the various hedge transactions. This process includes linking all derivatives designated as cash flow hedges to specific assets and liabilities on the consolidated balance sheet or to specific forecasted transactions. We also formally assess, both at the hedge’s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. 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. To the extent our derivatives are effective in offsetting the variability of the hedged cash flows, and otherwise meet the cash flow hedge accounting criteria required by FASB ASC Topic 815, changes in the derivatives’ fair value are not included in current earnings but are included in accumulated other comprehensive income (loss), net of tax. These changes in fair value will be reclassified into earnings at the time of the forecasted transaction. Ineffectiveness measured in the hedging relationship is recorded currently in earnings in the period in which it occurs. To the extent our derivatives are effective in mitigating changes in 57 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) fair value, and otherwise meet the fair value hedge accounting criteria required by FASB ASC Topic 815, gains and losses in the derivatives’ fair value are included in current earnings, as are the gains and losses of the related hedged item. To the extent the hedge accounting criteria are not met, the derivative contracts are utilized as economic hedges, and changes in the fair value of such contracts are recorded currently in earnings in the period in which they occur. Cash flows related to derivatives are included in operating activities. See Note 8 for additional information. Leases The majority of our restaurant locations, as well as our RSC, are subject to a lease. We evaluate our leases at the commencement of the lease to determine the classification as an operating or finance lease. Upon adoption of FASB ASC Topic 842, we recognized operating and finance lease liabilities based on the present value of minimum lease payments over the remaining expected lease term and corresponding right-of-use assets. We recognize lease expense related to operating leases on a straight-line basis. Amortization expense and interest expense related to finance leases are included in depreciation and amortization and interest, net, respectively, in our consolidated statements of earnings. Sale-leasebacks are transactions through which we sell assets (such as restaurant properties) at fair value and subsequently lease them back. The resulting leases qualify and are accounted for as operating leases. Failed sale-leaseback transactions are generally classified as finance leases and result in retention of the “sold” assets within land, buildings and equipment with a finance lease liability equal to the amount of proceeds received recorded as a component of other liabilities on our consolidated balance sheets. Within the provisions of certain of our leases, there are rent holidays and escalations in payments over the base lease term, as well as renewal periods. The effects of the holidays and escalations have been reflected in lease expense on a straight-line basis for operating leases over the expected lease term. The lease term commences on the date when we have the right to control the use of the leased property, which is typically before lease payments are due under the terms of the lease. Many of our leases have renewal periods totaling 5 to 20 years, exercisable at our option, and require payment of property taxes, insurance and maintenance costs in addition to the lease payments. At lease inception, we include option periods that we are reasonably certain to exercise as failure to renew the lease would impose an economic penalty either from the loss of our investment in leasehold improvements or future cash flows from operating the restaurant. The consolidated financial statements reflect the same lease term for amortizing leasehold improvements as we use to determine finance versus operating lease classifications. Variable lease expense is generally based on sales levels and is accrued at the point in time we determine that it is probable that such sales levels will be achieved. Landlord allowances are recorded as an adjustment to the right-of-use assets. Gains and losses on sale-leaseback transactions are recognized immediately. We elected the practical expedient to not separate lease and non-lease components for real estate leases entered into after adoption. See Note 11 for additional information. Pre-Opening Expenses Non-capital expenditures associated with opening new restaurants are expensed as incurred; these costs consist of expense incurred before the opening of a new, relocated or converted restaurant and include occupancy, labor, travel, training, food, beverage and other initial supplies and expenses. These costs are reported as pre-opening costs in our consolidated statements of earnings. Advertising Production costs of commercials are expensed in the fiscal period the advertising is first aired while the costs of programming and other advertising, promotion and marketing programs are expensed as incurred. These costs are reported as marketing expenses in our consolidated statements of earnings. Stock-Based Compensation We recognize the cost of employee service received in exchange for awards of equity instruments based on the grant date fair value of those awards. We recognize compensation expense, net of estimated forfeitures, on a straight-line basis over the employee service period for awards granted. We utilize the Black-Scholes option pricing model to estimate the fair value of stock option awards. The dividend yield has been estimated based upon our historical results and expectations for changes in dividend rates. The expected volatility was determined using historical stock prices. The risk-free interest rate was the rate available on zero coupon U.S. government obligations with a term approximating the expected life of each grant. The expected life was estimated based on the exercise history of previous grants, taking into consideration the remaining contractual period for outstanding awards. We utilize a Monte Carlo simulation to estimate the fair value of our market-based equity-settled performance awards. The dividend yield assumes reinvestment of dividends. The expected volatility was determined using historical stock prices. The risk-free interest rate was the rate available on zero coupon U.S. government obligations with a term approximating the expected life of each grant. The expected life was estimated based on the performance measurement period for outstanding awards. See Note 15 for further information. 58 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Net Earnings per Share Basic net earnings per share are computed by dividing net earnings by the weighted-average number of common shares outstanding for the reporting period. Diluted net earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Outstanding stock options, restricted stock, restricted stock units, and equity-settled performance stock units granted by us represent the only dilutive effect reflected in diluted weighted-average shares outstanding. These stock-based compensation instruments do not impact the numerator of the diluted net earnings per share computation. The following table presents the computation of basic and diluted net earnings per common share: Fiscal Year Ended (in millions, except per share data) May 31, 2026 May 25, 2025 May 26, 2024 Earnings from continuing operations $ 1,213.7 $ 1,051.0 $ 1,030.5 Losses from discontinued operations (7.0) (1.4) (2.9) Net earnings $ 1,206.7 $ 1,049.6 $ 1,027.6 Weighted average common shares outstanding – Basic 115.5 117.5 119.9 Effect of dilutive stock-based compensation 0.8 0.9 0.9 Weighted average common shares outstanding – Diluted 116.3 118.4 120.8 Basic net earnings per share: Earnings from continuing operations $ 10.51 $ 8.94 $ 8.59 Losses from discontinued operations (0.06) (0.01) (0.02) Net earnings $ 10.45 $ 8.93 $ 8.57 Diluted net earnings per share: Earnings from continuing operations $ 10.44 $ 8.88 $ 8.53 Losses from discontinued operations (0.06) (0.02) (0.02) Net earnings $ 10.38 $ 8.86 $ 8.51 Stock options, restricted stock units and equity-settled performance stock units excluded from the calculation of diluted net earnings per share because the effect would have been anti-dilutive, are as follows: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Anti-dilutive stock-based compensation awards 0.1 0.1 0.1 Foreign Currency The Canadian dollar is the functional currency for our Canadian restaurant operations. Assets and liabilities denominated in foreign currencies are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Results of operations are translated using the average exchange rates prevailing throughout the period. Translation gains and losses are reported as a separate component of other comprehensive income (loss). Aggregate cumulative translation gains (losses) were $0.1 million and $4.6 million at May 31, 2026 and May 25, 2025, respectively. Net gains (losses) from foreign currency transactions recognized in our consolidated statements of earnings were $5.4 million for fiscal 2026 and $0.0 million for each of fiscal 2025 and fiscal 2024. Recently Issued Accounting Standards Adopted As of May 25, 2025, we adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The adoption of ASU 2023-07 did not impact the Company’s results of operations, cash flow, or financial condition. See Note 6 - Segment Information for the Company’s segment disclosures. As of May 31, 2026, we adopted ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which updates income tax disclosures related to the rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The amendment also provides further disclosure comparability. We adopted this guidance retrospectively for all reporting periods presented as of May 31, 2026, and provided additional details and disclosures in Note 13 - Income Taxes. The 59 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) adoption of ASU 2023-09 did not impact the Company’s results of operations, cash flow, or financial condition. See Note 13 for additional details. Recently Issued Accounting Standards Not Yet Adopted In March 2024, the SEC adopted its final rules intended to enhance and standardize climate-related disclosures in registration statements and annual reports. The rules required disclosure of material climate-related risks, including disclosure of Board of Directors’ oversight and risk management activities, the material impacts of these risks to the Company and the quantification of material impacts to the Company as a result of severe weather events and other natural conditions. The rules also required disclosure of material greenhouse gas emissions and any material climate-rated targets and goals. On April 4, 2024, the SEC issued a voluntary stay on its final rules; on March 27, 2025, the SEC voted to end its defense of the rules requiring disclosure of climate-related risk and greenhouse gas emissions and withdrew from the litigation; and on May 29, 2026, the SEC proposed to rescind the previously adopted climate-related disclosure rules. The Company will continue to monitor the formal administrative outcomes of the SEC’s rescission proposal; however, we do not currently anticipate any material operational or financial impact stemming from these rules. In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires detailed disclosure amounts for purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depreciation, depletion and amortization as part of oil and gas producing activities in each relevant expense caption on the income statement. The ASU requires companies to include amounts already required by GAAP in the same disclosure, provide a qualitative description of remaining amounts not separately disaggregated, and disclose the total selling expenses along with the definition of selling expenses in annual reports. The amendment is effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The amendment should be applied prospectively; however, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures. We plan to adopt the amendment in fiscal 2028. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software Costs (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This ASU modernizes outdated guidance for internal-use software costs to reflect current development practices, including agile and iterative methods, replacing the previous waterfall-based model. The amendment eliminates the requirement to classify costs by development stages (preliminary, application development, and post-implementation) and introduce a principles-based threshold for capitalization. Under the new guidance, capitalization begins when management authorizes and commits funding for a project and it is probable the project will be completed and the software will perform its intended function (probable-to-complete threshold). Management is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. We plan to adopt the amendment in fiscal 2028. NOTE 2 - ACQUISITION OF CHUY’S On October 11, 2024, we acquired 100 percent of the equity interest of Chuy’s in an all-cash transaction of $649.1 million in total consideration, $613.7 million in net cash consideration, inclusive of the $35.4 million of cash on 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 and a $350.0 million aggregate principal amount of 4.550 percent senior notes due 2029, which were issued on October 3, 2024. See Note 7 for additional information. The acquired operations of Chuy’s included 103 company-owned locations. The results of Chuy’s operations are included in our consolidated financial statements from the date of acquisition. The assets and liabilities of Chuy’s were recorded at their respective fair values as of the date of acquisition. We have determined the fair value of these assets, including land, buildings and equipment, and intangible assets, and liabilities, through internal studies and third-party valuations. The fair values set forth below are based on the results of those valuations. 60 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) The final allocation of the purchase price as of fiscal year ended May 31, 2026 is as follows: Balances at Fiscal 2026 Adjustments Balances at (in millions) May 25, 2025 May 31, 2026 Cash and cash equivalents $ 35.4 $ — $ 35.4 Other current assets 10.5 — 10.5 Land, buildings and equipment 197.3 — 197.3 Operating lease right-of-use assets 331.9 — 331.9 Trademark 198.4 — 198.4 Other assets 6.1 — 6.1 Goodwill 268.4 (1.2) 267.2 Total assets acquired $ 1,048.0 $ (1.2) $ 1,046.8 Current liabilities 34.4 (0.4) 34.0 Deferred income taxes 42.9 (0.8) 42.1 Operating lease liabilities - non-current 321.6 — 321.6 Total liabilities assumed $ 398.9 $ (1.2) $ 397.7 Net assets acquired $ 649.1 $ — $ 649.1 The excess of the purchase price over the aggregate fair value of net assets acquired was allocated to goodwill in the amount of $267.2 million. 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 Chuy’s 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 continue 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 1-30 years. As a result of the acquisition and related integration efforts, we incurred expenses of $9.5 million ($7.1 million, net of tax) during the twelve months ended May 31, 2026 and $44.6 million ($36.7 million, net of tax) during the twelve months ended May 25, 2025, which, in each instance, are primarily 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 Chuy’s on our consolidated financial statements. NOTE 3 - REVENUE RECOGNITION Deferred revenue liabilities from contracts with customers included on our accompanying consolidated balance sheets is comprised of the following: (in millions) May 31, 2026 May 25, 2025 Unearned revenues Deferred gift card revenue $ 636.7 $ 628.8 Deferred gift card discounts (31.6) (30.1) Other 0.9 0.7 Total $ 606.0 $ 599.4 Other liabilities Deferred franchise fees - non-current $ 11.4 $ 5.3 61 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) The following table presents a rollforward of deferred gift card revenue: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 Beginning balance $ 628.8 $ 620.6 Sale of Olive Garden Canada gift card balances (0.4) — Acquired deferred gift card revenue — 2.6 Activations 760.2 737.0 Redemptions and breakage (751.9) (731.4) Ending balance $ 636.7 $ 628.8 NOTE 4 - IMPAIRMENTS AND DISPOSAL OF ASSETS, NET Impairments and disposal of assets, net, in our accompanying consolidated statements of earnings are comprised of the following: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Restaurant impairments $ 23.0 $ 0.1 $ 0.3 Disposal (gains) losses (38.2) 48.1 13.1 Other 4.5 1.0 (1.0) Impairments and disposal of assets, net $ (10.7) $ 49.2 $ 12.4 Restaurant impairments for fiscal 2026 were primarily related to the expected closures of restaurants and conversions of certain Bahama Breeze restaurants to other Darden brands. Restaurant impairments and disposal losses for fiscal 2025 were primarily related to the decision to close twenty-two restaurant locations due to underperformance. Restaurant impairments and disposal losses for fiscal 2024 were related to the decision to close nine restaurant locations and the write-off of acquired Ruth’s Chris assets. Disposal (gains) losses for fiscal 2026 were primarily related to the sale of the assets of the Olive Garden Canada Restaurants and certain liabilities related thereto. Other impacts for fiscal 2026, 2025, and 2024 were primarily related to the right-of-use asset adjustments on early lease terminations and write-off of inventory from closed restaurant locations. Impairment charges were measured based on the amount by which the carrying amount of these assets exceeded their fair value. Fair value is generally determined based on appraisals or sales prices of comparable assets and estimates of discounted future cash flows (see Note 9). These amounts are included in impairments and disposal of assets, net as a component of earnings from continuing operations in the accompanying consolidated statements of earnings. NOTE 5 - LAND, BUILDINGS AND EQUIPMENT, NET The components of land, buildings and equipment, net, are as follows: (in millions) May 31, 2026 May 25, 2025 Land $ 178.1 $ 158.8 Buildings 4,673.2 4,328.9 Equipment 2,780.0 2,569.6 Assets under finance leases 1,640.6 1,490.3 Construction in progress 243.5 234.8 Total land, buildings and equipment $ 9,515.4 $ 8,782.4 Less accumulated depreciation and amortization (4,222.0) (3,870.3) Less amortization associated with assets under finance leases (244.8) (196.1) Land, buildings and equipment, net $ 5,048.6 $ 4,716.0 62 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTE 6 - SEGMENT INFORMATION We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris, Cheddar’s Scratch Kitchen, The Capital Grille, Chuy’s, Seasons 52, Eddie V’s, Bahama Breeze, and The Capital Burger, as operating segments. The brands operate principally in the U.S. within full-service dining. We aggregate our operating segments into reportable segments based on a combination of the size, economic characteristics, and sub-segment of full-service dining within which each brand operates. We have four reportable segments: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining, and (4) Other Business. The Olive Garden segment includes the results of our company-owned Olive Garden restaurants in the U.S. The LongHorn Steakhouse segment includes the results of our company-owned LongHorn Steakhouse restaurants in the U.S. The Fine Dining segment aggregates our premium brands that operate within the fine-dining sub-segment of full-service dining and includes the results of our company-owned 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 Yard House, Cheddar’s Scratch Kitchen, Chuy’s, Seasons 52, Bahama Breeze, and The Capital Burger restaurants in the U.S and ongoing royalties and other fees from our franchise operations and contractually managed locations. External sales are derived principally from food and beverage sales. We do 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. Resources are allocated and performance is assessed by the Company’s President and Chief Executive Officer, whom the Company has determined to be its Chief Operating Decision Maker (“CODM”). Our CODM 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). Non-cash lease-related expenses from our operating segments are recorded to the corporate level as restaurant expenses (which is a component of segment profit) and depreciation and amortization. Additionally, our lease-related right-of-use assets are not managed or evaluated at the operating segment level, but rather at the corporate level. During the fourth quarter of 2025, we changed our reporting of segment profit to exclude pre-opening costs in order to better align with our internal reporting and provide a better representation of restaurant-level operating costs. Fiscal 2024 figures were recast for comparability. The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP: (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 31, 2026 and for the year ended Sales $ 5,594.8 $ 3,423.0 $ 1,375.7 $ 2,817.4 $ — $ 13,210.9 Food and beverage 1,327.9 1,445.1 441.6 824.2 — 4,038.8 Restaurant labor 1,949.4 878.0 394.9 960.1 — 4,182.4 Restaurant expenses 930.3 452.3 286.6 557.1 (99.1) 2,127.2 Marketing $ 129.3 $ 12.5 $ 9.5 $ 29.1 — 180.4 Segment profit $ 1,257.9 $ 635.1 $ 243.1 $ 446.9 $ 99.1 $ 2,682.1 Depreciation and amortization $ 199.6 $ 96.3 $ 71.6 $ 125.3 $ 68.3 $ 561.1 Impairments and disposal of assets, net — — — (0.4) (10.3) (10.7) Pre-opening costs 8.8 9.3 4.5 7.2 4.7 34.5 Segment assets 2,922.8 2,244.0 2,636.4 3,811.7 1,247.5 12,862.4 Purchases of land, buildings, and equipment 254.1 197.3 91.3 190.7 0.6 734.0 63 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 25, 2025 and for the year ended Sales $ 5,212.9 $ 3,025.5 $ 1,304.8 $ 2,533.5 $ — $ 12,076.7 Food and beverage 1,253.8 1,244.6 414.5 744.1 — 3,657.0 Restaurant labor 1,822.1 780.7 367.7 862.6 — 3,833.1 Restaurant expenses 846.4 408.2 270.8 504.8 (86.2) 1,944.0 Marketing 126.7 9.3 9.3 24.6 — 169.9 Segment profit $ 1,163.9 $ 582.7 $ 242.5 $ 397.4 $ 86.2 $ 2,472.7 Depreciation and amortization $ 186.0 $ 84.3 $ 70.0 $ 119.0 $ 56.8 $ 516.1 Impairments and disposal of assets, net (1.5) — 8.0 42.0 0.7 49.2 Pre-opening costs 6.5 6.1 3.8 5.4 3.0 24.8 Segment assets 2,880.5 2,077.1 2,623.5 3,821.0 1,184.9 12,587.0 Purchases of land, buildings, and equipment 252.0 144.7 96.3 146.8 4.8 644.6 (in millions) Olive Garden LongHorn Steakhouse Fine Dining Other Business Corporate Consolidated At May 26, 2024 and for the year ended Sales $ 5,067.0 $ 2,806.2 $ 1,291.5 $ 2,225.3 $ — $ 11,390.0 Food and beverage 1,242.7 1,180.6 425.2 675.4 — 3,523.9 Restaurant labor 1,783.1 725.1 351.9 759.2 — 3,619.3 Restaurant expenses 812.6 377.3 259.7 433.2 (70.5) 1,812.3 Marketing 111.2 6.4 9.7 17.2 — 144.5 Segment profit $ 1,117.4 $ 516.8 $ 245.0 $ 340.3 $ 70.5 $ 2,290.0 Depreciation and amortization $ 167.7 $ 75.8 $ 65.9 $ 102.5 $ 48.0 $ 459.9 Impairments and disposal of assets, net 0.2 0.7 — — 11.5 12.4 Pre-opening costs 7.2 5.7 4.0 3.3 4.1 24.3 Purchases of land, buildings, and equipment 260.7 127.4 118.1 97.9 (2.9) 601.2 Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Segment profit $ 2,682.1 $ 2,472.7 $ 2,290.0 Less general and administrative expenses (514.4) (520.3) (479.2) Less depreciation and amortization (561.1) (516.1) (459.9) Less impairments and disposal of assets, net 10.7 (49.2) (12.4) Less pre-opening costs (34.5) (24.8) (24.3) Less interest, net (194.2) (175.1) (138.7) Earnings before income taxes $ 1,388.6 $ 1,187.2 $ 1,175.5 64 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTE 7 - DEBT The components of long-term debt are as follows: (in millions) May 31, 2026 May 25, 2025 3.850% senior notes due May 2027 $ 500.0 $ 500.0 4.350% senior notes due October 2027 400.0 400.0 4.550% senior notes due October 2029 350.0 350.0 6.300% senior notes due October 2033 500.0 500.0 6.000% senior notes due August 2035 96.3 96.3 6.800% senior notes due October 2037 42.8 42.8 4.550% senior notes due February 2048 300.0 300.0 Total long-term debt $ 2,189.1 $ 2,189.1 Less current portion: 3.850% senior notes due May 20271 (500.0) — Fair value hedge (36.0) (40.0) Less unamortized discount and issuance costs (15.4) (20.2) Total long-term debt less unamortized discount and issuance costs $ 1,637.7 $ 2,128.9 1 Excludes $0.4 million in unamortized discount and issuance costs The aggregate contractual maturities of long-term debt, including the current portion, for each of the five fiscal years subsequent to May 31, 2026, and thereafter are as follows: (in millions) Fiscal Year 2027 2028 2029 2030 2031 Thereafter Debt repayments $ 500.0 $ 400.0 $ — $ 350.0 $ — $ 939.1 On October 23, 2023, we entered into a $1.25 billion Revolving Credit Agreement with BOA, as administrative agent, and the lenders and other agents party thereto. The Revolving Credit Agreement is a senior unsecured credit commitment to the Company and contains customary representations and affirmative and negative covenants (including limitations on liens and subsidiary debt and a maximum consolidated lease adjusted total debt to total capitalization ratio of 0.75 to 1.00) and events of default usual for credit facilities of this type, and consistent with our prior Revolving Credit Agreement. As of May 31, 2026, we had no outstanding balances under the Revolving Credit Agreement. As of May 31, 2026, $194.0 million of commercial paper was outstanding, which was supported by the Revolving Credit Agreement. After giving effect to the outstanding commercial paper, as of May 31, 2026, we had $1.06 billion of available borrowing capacity under the Revolving Credit Agreement. Loans under the Revolving Credit Agreement bear 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 0.100 percent plus the 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 1.000 percent) plus the relevant Applicable Margin. Assuming a “BBB” equivalent credit rating level, the Applicable Margin under the Revolving Credit Agreement is 1.000 percent for Term SOFR loans and 0.000 percent for base rate loans. On September 16, 2024, we entered into the 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 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. The Revolving Credit Agreement matures on October 23, 2028, and the proceeds may be used for working capital and capital expenditures, the refinancing of certain indebtedness, certain acquisitions and general corporate purposes. 65 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) On September 16, 2024, we entered into a senior unsecured $600 million 2-year Term Loan Credit Agreement (“Term Loan Agreement”) with BOA, as administrative agent, the lenders and other agents party thereto, the material terms of which were consistent with the Revolving Credit Agreement. The intended use of the proceeds was to finance our acquisition of Chuy’s, and we subsequently terminated the Term Loan Agreement on October 3, 2024, in connection with the closing of our senior notes issuance discussed below. We did not draw any funds and there were never any outstanding borrowings under the Term Loan Agreement. On October 3, 2024, we issued and sold $400.0 million aggregate principal amount of 4.350 percent Senior Notes due 2027 (“2027 Notes”) and $350 million aggregate principal amount of 4.550 percent Senior Notes due 2029 (“2029 Notes” and, together with the 2027 Notes, the “Notes”), pursuant to the provisions of the Underwriting Agreement, dated September 30, 2024, among the Company and BofA Securities, Inc., Truist Securities, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC, as representatives of the several underwriters named therein. The Notes were issued under the Company’s Indenture, dated as of January 1, 1996, between the Company and Computershare Trust Company, National Association (as successor to Wells Fargo Bank, National Association, successor to Wells Fargo Bank Minnesota, National Association, formerly known as Norwest Bank Minnesota, National Association), as trustee (“Base Trustee”), as amended and supplemented by the Second Supplemental Indenture, dated as of October 4, 2023, among the Company, the Base Trustee and U.S. Bank Trust Company, National Association, as a successor trustee with respect to the Notes. We used the proceeds from our issuance of the Notes to finance our acquisition of Chuy’s and for general corporate purposes. 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. The interest rate on our $42.8 million 6.800 percent senior notes due 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 May 31, 2026, no such adjustments are made to this rate. NOTE 8 - DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES We designate commodity contracts, equity forward contracts, and foreign exchange forward contracts as cash flow hedging instruments. Our interest rate swap agreements are designated as fair value hedges of the related debt. During fiscal 2026, 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. Refer to Note 1 for further details on the derivative instruments and hedging activities accounting policy. Fair Values (in millions) Notional Values Assets (Liabilities) (1) May 31, 2026 May 31, 2026 May 25, 2025 Equity forwards Designated (0.1 million shares) $ 24.4 $ 1.1 $ (0.8) Not designated (0.4 million shares) 58.7 3.1 (2.2) Total equity forwards $ 4.2 $ (3.0) Commodity contracts (Designated) $ 0.9 $ — $ (0.9) Interest rate related (Designated) 300.0 (36.0) (40.0) Foreign exchange forwards (Designated) — $ — $ (0.2) Total derivative contracts $ (31.8) $ (44.1) (1)Derivative assets and liabilities are included in receivables, net, and other current liabilities, as applicable, on our consolidated balance sheets. 66 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) The fair value of any derivative instruments, individually and in the aggregate, including equity forward, commodity, or interest rate contracts, did not have a material impact on our consolidated balance sheets for fiscal 2026 and 2025. Designated and undesignated equity forwards extend through July 2029, and commodity contracts extend through November 2026. For derivative instruments designated as cash flow hedges, the amount of gains and losses recognized in AOCI and the amounts of gains and losses reclassified from AOCI into earnings in fiscal 2026, 2025, and 2024 were not material, individually or in the aggregate, to AOCI, earnings, or the consolidated statements of earnings line items in which such amounts were recorded, including general and administrative expenses, food and beverage costs, restaurant expenses, interest, net and impairments, and disposal of assets, net. For derivative instruments designated as fair value hedges, the amount of gains and losses recognized in earnings on the derivative instruments and the related hedged items in fiscal 2026, 2025, and 2024 were not material, individually or in the aggregate, to earnings or the consolidated statements of earnings line items in which such amounts were recorded, including interest, net, or the carrying amounts of the hedged assets and liabilities presented in our consolidated balance sheets. For derivative instruments not designated as hedging instruments, the amount of gains and losses recognized in earnings in fiscal 2026, 2025, and 2024 were not material, individually or in the aggregate, to earnings or to consolidated statements of earnings line items in which such amounts are recorded, including food and beverage costs, restaurant expenses, and general and administrative expenses. For derivative instruments designated as cash flow hedges as of May 31, 2026, although the amounts ultimately realized in earnings will be dependent on the fair value of the contracts at their settlement dates, net gains expected to be reclassified from AOCI to earnings over the next 12 months, based on the maturity of equity forward and commodity contracts are not expected to be material to AOCI, earnings, or the consolidated statements of earnings line items in which such amounts are expected to be recorded, including general and administrative expenses, food and beverage costs, restaurant expenses, and interest, net. NOTE 9 - FAIR VALUE MEASUREMENTS The fair values of cash equivalents, receivables, net, accounts payable and short-term debt approximate their carrying amounts due to their short duration. The following tables summarize the fair values of financial instruments measured at fair value on a recurring basis at May 31, 2026 and May 25, 2025: Items Measured at Fair Value at May 31, 2026 (in millions) Fair Value of Assets (Liabilities) Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivatives: Commodities futures, swaps & options (1) $ — $ — $ — $ — Equity forwards (2) 4.2 — 4.2 — Interest rate swaps (3) (36.0) — (36.0) — Total $ (31.8) $ — $ (31.8) $ — 67 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Items Measured at Fair Value at May 25, 2025 (in millions) Fair Value of Assets (Liabilities) Quoted Prices in Active Market for Identical Assets (Liabilities) (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Derivatives: Commodities futures, swaps & options (1) $ (0.9) $ — $ (0.9) $ — Equity forwards (2) (3.0) — (3.0) — Interest rate swaps (3) (40.0) — (40.0) — Foreign exchange forwards (4) (0.2) $ (0.2) Total $ (44.1) $ — $ (44.1) $ — (1)The fair value of our commodities futures, swaps, and options is based on closing market prices of the contracts, inclusive of the risk of nonperformance. (2)The fair value of equity forwards is based on the closing market value of Darden stock, inclusive of the risk 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. (4)The fair value of our foreign exchange forwards is based on closing forward exchange market prices, inclusive of the risk of nonperformance. The carrying value and fair value of long-term debt, including the amounts classified as current, as of May 31, 2026, was $2.14 billion and $2.17 billion, respectively. The carrying value and fair value of long-term debt as of May 25, 2025, was $2.13 billion. The fair value of long-term debt, which is 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 generally determined based on third-party market appraisals which includes market data for similar assets. As of May 31, 2026 and May 25, 2025, 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 May 31, 2026, adjustments to the fair values of non-financial assets specifically right-of-use assets, classified as Level 3, were determined to have a fair value of $39.7 million. As of May 25, 2025, adjustments to the fair values of non-financial assets, specifically right-of-use assets, classified as Level 3, were determined to have a fair value of $8.0 million. NOTE 10 - STOCKHOLDERS’ EQUITY Share Repurchase Program All of the shares purchased during the fiscal year ended May 31, 2026 were purchased as part of our repurchase program authorized by our Board of Directors. On June 24, 2026, our Board of Directors authorized a new share repurchase program under which we may repurchase up to $1.5 billion of our outstanding common stock. This repurchase program, which was announced publicly in a press release issued on June 25, 2026, does not have an expiration date and replaces the previously existing share repurchase authorization. Share Retirements As of May 31, 2026, of the 216.7 million cumulative shares repurchased under the current and previous authorizations, 205.3 million shares were retired and restored to authorized but unissued shares of common stock and there are no remaining treasury shares. We expect that all shares of common stock acquired in the future will also be retired and restored to authorized but unissued shares of common stock. 68 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Accumulated Other Comprehensive Income (Loss) As of May 31, 2026, the components of accumulated other comprehensive income (loss), net of tax, are foreign currency translation adjustment ($0.1 million gain), unrealized gains (losses) on derivatives ($22.7 million gain), and benefit plan funding position ($3.2 million loss). As of May 25, 2025, the components of accumulated other comprehensive income (loss), net of tax, are foreign currency translation adjustment ($4.6 million gain), unrealized gains (losses) on derivatives ($30.4 million gain), and benefit plan funding position ($3.2 million loss). Amounts reclassified from AOCI into net earnings in fiscal 2026 and 2025 did not, individually or in the aggregate, have a material impact on the components of AOCI, net earnings, or individual line items in our consolidated statements of earnings. NOTE 11 - LEASES The components of lease expense for continuing operations in the consolidated statements of earnings for the fiscal years ended May 31, 2026, May 25, 2025, and May 26, 2024 are as follows: (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Operating lease expense $ 445.8 $ 413.7 $ 404.6 Finance lease expense Amortization of leased assets 64.7 57.2 48.1 Interest on lease liabilities 78.2 67.7 54.2 Variable lease expense 39.8 35.6 34.6 Total lease expense $ 628.5 $ 574.2 $ 541.5 The components of lease assets and liabilities on the consolidated balance sheet as of May 31, 2026 and May 25, 2025 are as follows: (in millions) Balance Sheet Classification May 31, 2026 May 25, 2025 Operating lease right-of-use assets Operating lease right-of-use assets $ 3,433.1 $ 3,555.9 Finance lease right-of-use assets Land, buildings and equipment, net 1,395.9 1,294.2 Total lease assets, net $ 4,829.0 $ 4,850.1 Operating lease liabilities - current Other current liabilities $ 216.5 $ 220.1 Finance lease liabilities - current Other current liabilities 18.7 23.8 Operating lease liabilities - non-current Operating lease liabilities - non-current 3,722.3 3,816.9 Finance lease liabilities - non-current Other liabilities 1,721.7 1,583.8 Total lease liabilities $ 5,679.2 $ 5,644.6 Supplemental cash flow information related to leases for the fiscal years ended May 31, 2026, May 25, 2025, and May 26, 2024: (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases (1) $ 434.4 $ 410.4 $ 397.2 Operating cash flows from finance leases 82.8 67.7 54.2 Financing cash flows from finance leases (1) 25.4 22.8 22.0 Right-of-use assets obtained in exchange for new operating lease liabilities (2) 90.2 373.0 341.2 Right-of-use assets obtained in exchange for new finance lease liabilities 120.4 152.8 97.3 Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance 91.6 81.5 49.8 (1) Excludes cash received for any lease incentives. 69 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (2) Right-of-use assets obtained in fiscal 2025 and fiscal 2024 include $331.9 million from the acquisition of Chuy’s and $303.4 million from the acquisition of Ruth’s Chris, respectively. The weighted-average remaining lease terms and discount rates as of May 31, 2026 and May 25, 2025 are as follows: (in millions) May 31, 2026 May 25, 2025 Weighted-Average Remaining Lease Term (Years) Operating leases 14.5 14.8 Finance leases 22.2 22.3 Weighted-Average Discount Rate (1) Operating leases 4.7 % 4.6 % Finance leases 4.8 % 4.7 % (1)We cannot determine the interest rate implicit in our leases. Therefore, the weighted average discount rate represents our incremental borrowing rate and is determined based on the risk-free rate, adjusted for the risk premium attributed to our corporate credit rating for a secured or collateralized instrument. The annual maturities of our lease liabilities as of May 31, 2026 are as follows: (in millions) Fiscal Year Operating Leases Finance Leases 2027 440.2 114.6 2028 444.6 118.5 2029 438.2 121.0 2030 425.3 123.1 2031 400.5 125.7 Thereafter 3,523.3 2,395.3 Total future lease commitments (1) $ 5,672.1 $ 2,998.2 Less imputed interest (1,733.3) (1,257.8) Present value of lease liabilities (2) $ 3,938.8 $ 1,740.4 (1)Of the $5,672.1 million of total future operating lease commitments and $2,998.2 million of total future finance lease commitments, $2,041.5 million and $821.3 million, respectively, are non-cancelable. (2)Excludes approximately $156.3 million of net present value of lease payments related to 42 real estate leases signed, but not yet commenced. 70 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTE 12 - ADDITIONAL FINANCIAL INFORMATION The tables below provide additional financial information related to our consolidated financial statements: Balance Sheets (in millions) May 31, 2026 May 25, 2025 Receivables, net Gift card sales $ 44.6 $ 42.2 Miscellaneous 85.8 52.2 Allowance for doubtful accounts (0.5) (0.6) Total $ 129.9 $ 93.8 Other Current Liabilities Non-qualified deferred compensation plan $ 349.7 $ 301.9 Sales and other taxes 144.7 124.3 Insurance-related 41.6 41.6 Employee benefits 55.9 60.0 Accrued interest 22.9 21.4 Lease liabilities - current 235.3 243.9 Derivatives 36.0 44.1 Miscellaneous 68.9 76.1 Total $ 955.0 $ 913.3 Statements of Earnings Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Interest, net Interest expense $ 126.5 $ 115.9 $ 93.5 Imputed interest on finance leases 78.2 67.7 54.2 Capitalized interest (8.4) (5.1) (4.5) Interest income (2.1) (3.4) (4.5) Total $ 194.2 $ 175.1 $ 138.7 Statements of Cash Flows Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Cash paid during the fiscal year for: Interest, net of amounts capitalized $ 188.6 $ 171.9 $ 135.1 Non-cash investing activities: Land, buildings and equipment accrued but unpaid $ 57.7 $ 47.0 $ 40.0 71 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) NOTE 13 - INCOME TAXES Total income tax expense was allocated as follows: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Earnings from continuing operations $ 174.9 $ 136.2 $ 145.0 Loss from discontinued operations (2.9) (0.8) (1.7) Total consolidated income tax expense $ 172.0 $ 135.4 $ 143.3 The components of earnings from continuing operations before income taxes and the provision for income taxes thereon are as follows: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Earnings from continuing operations before income taxes: U.S. $ 1,387.3 $ 1,180.6 $ 1,169.2 Foreign 1.3 6.6 6.3 Earnings from continuing operations before income taxes $ 1,388.6 $ 1,187.2 $ 1,175.5 Income taxes: Current: Federal $ 60.0 $ 80.9 $ 99.2 State and local 42.5 54.4 43.5 Foreign 2.7 — 3.0 Total current $ 105.2 $ 135.3 $ 145.7 Deferred (principally U.S.): Federal $ 62.8 $ 0.2 $ (0.7) State and local 6.9 0.7 — Total deferred $ 69.7 $ 0.9 $ (0.7) Total income tax expense $ 174.9 $ 136.2 $ 145.0 72 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) The following table is a reconciliation of the U.S. statutory income tax rate to the effective income tax rate from continuing operations included in the accompanying consolidated statements of earnings, pursuant to the disclosure requirements of ASU 2023-09 for the years ended May 31, 2026, May 25, 2025, and May 26, 2024. See Note 1 - Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements for additional details about the adoption of ASU 2023-09. Fiscal Year Ended May 31, 2026 May 25, 2025 May 26, 2024 (in millions) Amount Percent Amount Percent Amount Percent Tax provision at the U.S. federal statutory rate $ 291.6 21.0 % $ 249.3 21.0 % $ 246.9 21.0 % State and local income taxes (net of federal benefit) 1 43.7 3.1 % 46.8 3.9 % 38.1 3.2 % Foreign tax effects: Canada 9.4 0.7 % 1.0 0.1 % 0.8 0.1 % Other foreign jurisdictions 2.3 0.2 % 2.0 0.2 % 2.2 0.2 % Effect of cross-border tax laws (3.4) (0.2) % (0.5) — % (0.5) — % Tax credits: FICA tax tip credit2 (164.5) (11.8) % (151.4) (12.8) % (144.0) (12.3) % Other (25.0) (1.8) % (16.2) (1.4) % (12.2) (1.0) % Changes in valuation allowances (3.7) (0.3) % (1.6) (0.1) % 0.8 0.1 % Nontaxable or nondeductible items: FICA taxes paid on tips subject to tax credit2 34.6 2.5 % 31.8 2.7 % 30.2 2.6 % Other (11.5) (0.8) % (9.7) (0.8) % (7.4) (0.6) % Changes in unrecognized tax benefits (5.0) (0.4) % (4.8) (0.4) % (3.5) (0.3) % Other adjustments 6.4 0.4 % (10.5) (0.9) % (6.4) (0.7) % Total $ 174.9 12.6 % $ 136.2 11.5 % $ 145.0 12.3 % 1 State taxes in California, Florida, Illinois, New Jersey, and New York comprise the majority (greater than 50%) of the tax effect in this category for the year ended May 31, 2026. State taxes in California, Florida, Illinois, Massachusetts, New Jersey, and New York made up the majority (greater than 50%) of the tax effect in this category for the years ended May 25, 2025 and May 26, 2024. 2 The FICA tax tip credit represents the gross credit amount attributable to Company-paid FICA taxes related to gratuities provided to our employees by our guests. FICA taxes paid on tips subject to tax credit represents the tax deduction that would otherwise be available, if not for the FICA tax tip credit. The net effect of these two amounts eliminates the financial impact of FICA expenses paid by the Company on gratuities provided to our employees by our guests. As of May 31, 2026, we had estimated current prepaid state and federal income taxes of $19.4 million and $120.4 million, respectively, which is included on our accompanying consolidated balance sheets as prepaid income taxes and estimated current state income taxes payable of $1.3 million which is included on our accompanying consolidated balance sheets as accrued taxes. As of May 31, 2026, we had unrecognized tax benefits of $20.1 million, which represent the aggregate tax effect of the differences between tax return positions and benefits recognized in our consolidated financial statements, all of which would favorably affect the effective tax rate, if resolved in our favor. A reconciliation of the beginning and ending amount of unrecognized tax benefits follows: (in millions) Balances at May 25, 2025 $ 21.4 Additions related to current-year tax positions 5.0 Reductions related to prior-year tax positions (1.5) Net reductions due to settlements with taxing authorities (1.2) Reductions to tax positions due to statute expiration (3.6) Balances at May 31, 2026 $ 20.1 73 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Interest included in income tax expense in our consolidated statements of earnings is as follows: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Interest recorded on unrecognized tax benefits $ 1.8 $ 1.6 $ 1.7 Interest recorded on income tax receivables $ (4.2) $ (6.3) $ (6.9) Total (benefit) expense $ (2.4) $ (4.7) $ (5.2) At May 31, 2026, we had $2.8 million accrued for the payment of interest associated with unrecognized tax benefits and $24.8 million accrued as interest receivable on accrued refunds. For U.S. federal income tax purposes, we participate in the IRS’s Compliance Assurance Process, whereby our U.S. federal income tax returns are reviewed by the IRS both prior to and after their filing. Income tax returns are subject to audit by state and local governments, generally years after the returns are filed. These returns could be subject to material adjustments or differing interpretations of the tax laws. The major jurisdictions in which the Company files income tax returns include the U.S. federal jurisdiction, Canada, and all states in the U.S. that have an income tax. With a few exceptions, the Company is no longer subject to U.S. federal income tax examinations by tax authorities for years before fiscal 2025, and state and local, or non-U.S. income tax examinations by tax authorities for years before fiscal 2021. The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows: (in millions) May 31, 2026 May 25, 2025 Accrued liabilities $ 131.6 $ 149.8 Compensation and employee benefits 146.9 136.2 Lease liabilities 1,441.1 1,430.1 Net operating loss, credit and charitable contribution carryforwards 80.3 84.1 Other 4.6 — Gross deferred tax assets $ 1,804.5 $ 1,800.2 Valuation allowance (13.2) (19.8) Deferred tax assets, net of valuation allowance $ 1,791.3 $ 1,780.4 Trademarks and other acquisition related intangibles (335.7) (330.1) Buildings and equipment (487.3) (409.2) Capitalized software and other assets (35.2) (33.3) Lease assets (1,263.2) (1,266.1) Other (13.5) (20.5) Gross deferred tax liabilities $ (2,134.9) $ (2,059.2) Net deferred tax liabilities $ (343.6) $ (278.8) We have deferred tax assets of $22.4 million reflecting the benefit of federal credit carryforwards, before valuation allowance, which expire at various dates between fiscal 2027 and fiscal 2046. We have deferred tax assets of $57.9 million reflecting the benefit of state net operating loss, credit, and charitable contribution carryforwards, before federal benefit and valuation allowance, which expire at various dates between fiscal 2027 and fiscal 2046. We have taken current and potential future expirations into consideration when evaluating the need for valuation allowances against these deferred tax assets. A valuation allowance for deferred tax assets is provided when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization is dependent upon the generation of future taxable income or the reversal of deferred tax liabilities during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which our deferred tax assets are deductible, we believe it is more likely than not that we will realize the benefits of these deductible differences, net of the existing valuation allowances at May 31, 2026. 74 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Cash paid for income taxes, net of refunds, was as follows: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Federal 41.7 101.6 91.0 State California 10.4 7.0 6.4 New Jersey 6.0 4.6 4.9 Other 40.3 33.9 34.1 Foreign Canada 9.6 1.5 — Other1 2.4 2.1 2.2 Cash paid for income taxes, net of refunds 1 $ 110.4 $ 150.7 $ 138.6 1 Foreign withholding taxes were previously excluded from disclosures. Fiscal 2025 and 2024 figures were recast for comparability. NOTE 14 - RETIREMENT PLANS Defined Benefit Plan and Postretirement Benefit Plan We sponsor an unfunded non-contributory postretirement benefit plan that provides health care benefits to certain eligible salaried retirees as a subsidy credit to a health care reimbursement account. This benefit is not impacted by future changes in health care cost trend rates. As of May 31, 2026 and May 25, 2025, the benefit obligation was $10.1 million and $10.8 million, respectively. We fund on a pay-as-you go basis with approximately $1.1 million in annual fundings. We also sponsor a supplemental defined benefit pension plan, which is an unfunded nonqualified plan separate from our terminated primary pension plan which was settled in fiscal 2020. The supplemental plan is frozen and therefore no longer accruing benefits for participants. As of May 31, 2026 and May 25, 2025, the benefit obligation was $2.7 million and $3.2 million, respectively. We fund on a pay-as-you-go basis with $0.4 million funded annually. Defined Contribution Plan We have a defined contribution (401(k)) plan ( the “Darden Savings Plan”) covering most employees age 18 and older. We match contributions for participants with at least one year of service up to 6 percent of compensation, based on our performance. The match ranges from a minimum of $0.25 to $1.20 for each dollar contributed by the participant. The Darden Savings Plan also provides for a profit sharing contribution for eligible participants equal to 1.5 percent of the participant’s compensation. Expense recognized in fiscal 2026, 2025, and 2024 was $47.4 million, $35.5 million, and $45.6 million, respectively. Employees classified as “highly compensated” under the IRC are not eligible to participate in the Darden Savings Plan. Instead, highly compensated employees are eligible to participate in a separate non-qualified deferred compensation (the “FlexComp”) plan. The FlexComp plan allows eligible employees to defer the payment of part of their annual salary and all or part of their annual bonus and provides for awards that approximate the matching contributions that participants would have received had they been eligible to participate in the Darden Savings Plan, as well as an additional retirement contribution amount. Amounts payable to highly compensated employees under the FlexComp plan totaled $349.7 million and $301.9 million at May 31, 2026 and May 25, 2025, respectively. These amounts are included in other current liabilities on our accompanying consolidated balance sheets. NOTE 15 - STOCK-BASED COMPENSATION In September 2024, our shareholders approved the Amended and Restated Darden Restaurants, Inc. 2015 Omnibus Incentive Plan (the “A&R 2015 Plan”), which, among other things, increased the number of shares of our common stock authorized for issuance by 2.6 million shares, extended the plan’s termination date to September 18, 2034, and made certain other administrative and non-material changes. All equity grants subject to FASB ASC Topic 718 after the date of approval are made under the A&R 2015 Plan. No further equity grants after that date are permitted under the Darden Restaurants, Inc. 2002 Stock Incentive Plan, the RARE Hospitality International, Inc. Amended and Restated 2002 Long-Term Incentive Plan or any other prior stock option and/or stock grant plans (collectively, the “Prior Plans”). The A&R 2015 Plan and the Prior Plans are administered by the Compensation Committee of the Board of Directors. The A&R 2015 Plan provides for the issuance of up to 10.2 million common shares in connection with the granting of non-qualified stock options, restricted stock, restricted stock units 75 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (“RSUs”), performance-based restricted stock units (“PRSUs”), and other stock-based awards, such as Darden stock units to employees, consultants, and non-employee directors. As of May 31, 2026, approximately 10.0 thousand shares may be issued under outstanding awards that were granted under the Prior Plans and may still vest and be exercised in accordance with their terms. Stock-based compensation expense included in continuing operations was as follows: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Stock options $ 8.5 $ 7.5 $ 6.8 Restricted stock units 10.4 9.8 8.6 Darden stock units 30.2 37.3 31.9 Equity-settled performance-based restricted stock units 24.4 19.4 16.1 Employee stock purchase plan 3.5 3.2 3.0 Director compensation program/other 2.1 1.9 2.1 Total $ 79.1 $ 79.1 $ 68.5 Excess income tax benefits related to the exercise of stock options and vesting of other equity-settled stock-based compensation recognized in income tax expense from continuing operations was as follows: Fiscal Year Ended (in millions) May 31, 2026 May 25, 2025 May 26, 2024 Income tax benefits $ 9.5 $ 11.8 $ 12.7 The weighted-average fair value of non-qualified stock options and the related assumptions used in the Black-Scholes model to record stock-based compensation are as follows: Granted in Fiscal Year Ended May 31, 2026 May 25, 2025 May 26, 2024 Weighted-average fair value $ 72.10 $ 44.79 $ 55.56 Dividend yield 2.9 % 3.6 % 3.4 % Expected volatility of stock 41.3 % 40.8 % 42.2 % Risk-free interest rate 4.0 % 4.1 % 4.0 % Expected option life (in years) 6.3 6.3 5.9 Weighted-average exercise price per share $ 208.51 $ 139.43 $ 169.02 The following table presents a summary of our stock option activity as of and for the year ended May 31, 2026: Options (in millions) Weighted-Average Exercise Price Per Share Weighted-Average Remaining Contractual Life (Yrs) Aggregate Intrinsic Value (in millions) Outstanding beginning of period 1.03 $125.30 6.16 $80.9 Options granted 0.11 208.51 Options exercised (0.12) 93.62 Options canceled (0.01) 173.10 Outstanding end of period 1.01 $138.13 5.78 $67.2 Exercisable 0.60 $122.47 4.37 $49.1 The total intrinsic value of options exercised during fiscal 2026, 2025, and 2024 was $14.2 million, $43.5 million and $33.6 million, respectively. Cash received from option exercises during fiscal 2026, 2025, and 2024 was $11.3 million, $42.8 million, 76 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) and $31.8 million, respectively. Stock options generally vest over 4 years and have a maximum contractual period of 10 years from the date of grant. We settle employee stock option exercises with authorized but unissued shares of Darden common stock. As of May 31, 2026, there was $4.1 million of unrecognized compensation cost related to unvested stock options granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 2.3 years. The total fair value of stock options that vested during fiscal 2026 was $8.5 million. Restricted stock and RSUs are granted at a value equal to the market price of our common stock on the date of grant, and are amortized over their service periods which generally range from one to three years. Restrictions with regard to restricted stock and RSUs lapse at the end of their service periods at which time employees receive unrestricted shares of Darden stock. The following table presents a summary of our restricted stock and RSU activity1 as of and for the fiscal year ended May 31, 2026: Shares (in millions) Weighted-Average Grant Date Fair Value Per Share Outstanding beginning of period 0.26 $135.67 Shares granted 0.06 208.14 Shares vested (0.07) 133.13 Shares canceled (0.01) 165.84 Outstanding end of period 0.24 $183.85 1 Includes RSUs issued under Director compensation program As of May 31, 2026, there was $7.1 million of unrecognized compensation cost related to unvested RSUs granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 1.9 years. The total fair value of RSUs that vested during fiscal 2026, 2025, and 2024 was $9.9 million, $9.9 million, and $7.9 million, respectively. Darden stock units are granted at a value equal to the market price of our common stock on the date of grant and will be settled in cash at the end of their vesting periods, which typically range from three to five years, at the then market price of our common stock. Compensation expense is measured based on the market price of our common stock each period, is amortized over the vesting period and the vested portion is carried as a liability on our accompanying consolidated balance sheets. We also enter into equity forward contracts to hedge the risk of changes in future cash flows associated with the unvested Darden stock units granted (see Note 8 for additional information). The following table presents a summary of our Darden stock unit activity as of and for the fiscal year ended May 31, 2026: (All units settled in cash) Units (in millions) Weighted-Average Fair Value Per Unit Outstanding beginning of period 0.64 $204.02 Units granted 0.13 207.47 Units vested (0.21) 203.09 Units canceled (0.03) 160.08 Outstanding end of period 0.53 $203.91 As of May 31, 2026, our total Darden stock unit liability was $69.0 million, including $33.3 million recorded in other current liabilities and $35.8 million recorded in other liabilities on our consolidated balance sheets. As of May 25, 2025, our total Darden stock unit liability was $83.5 million, including $40.0 million recorded in other current liabilities and $43.5 million recorded in other liabilities on our consolidated balance sheets. Based on the value of our common stock as of May 31, 2026, there was $27.5 million of unrecognized compensation cost related to Darden stock units granted under our incentive plans. This cost is expected to be recognized over a weighted-average period of 2.1 years, but the amount that vests is ultimately dependent on the value of Darden stock at the vesting date. The total fair value of Darden stock units that vested during fiscal 2026 was $44.9 million. 77 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) Relative total shareholder return PRSUs are equity-settled awards that vest over the service period which generally ranges from three to four years, and the number of units that actually vest is determined based on the achievement of performance criteria set forth in the award agreement. The awards vest based on the achievement of market-based targets, are measured based on estimated fair value as of the date of grant using a Monte Carlo simulation, and are amortized over the service period. The weighted-average grant date fair value of equity-settled PRSUs and the related assumptions used in the Monte Carlo simulation to record stock-based compensation are as follows: Granted in Fiscal Year Ended May 31, 2026 May 25, 2025 May 26, 2024 Dividend yield (1) 0.0 % 0.0 % 0.0 % Expected volatility of stock 25.8 % 26.5 % 32.3 % Risk-free interest rate 3.7 % 4.2 % 4.5 % Expected option life (in years) 3.8 2.9 2.9 Weighted-average grant date fair value per unit $ 244.14 $ 181.65 $ 217.11 (1)Assumes a reinvestment of dividends. The following table presents a summary of our equity-settled PRSU activity as of and for the fiscal year ended May 31, 2026: Units (in millions) Weighted-Average Grant Date Fair Value Per Unit Outstanding beginning of period 0.33 $175.95 Units granted 0.16 244.14 Units granted/canceled performance impact 0.10 137.73 Units vested (0.15) 147.08 Units canceled — — Outstanding end of period 0.44 $200.84 As of May 31, 2026, there was $23.9 million of unrecognized compensation cost related to unvested equity-settled PRSUs granted under our stock plans. This cost is expected to be recognized over a weighted-average period of 3.4 years. The total fair value of equity-settled PRSUs that vested during fiscal 2026 was $21.6 million. We maintain an Employee Stock Purchase Plan to provide eligible employees who have completed one year of service (excluding certain employees who are employed less than full time or own 5.0 percent or more of our capital stock or that of any subsidiary) an opportunity to invest up to $5.0 thousand per calendar quarter to purchase shares of our common stock, subject to certain limitations. Under the plan, up to an aggregate of 6.2 million shares are available for purchase by employees at a purchase price that is 85.0 percent of the fair market value of our common stock on either the first or last trading day of each calendar quarter, whichever is lower. Cash received from employees pursuant to the plan during fiscal 2026, 2025, and 2024 was $13.7 million, $12.8 million, and $11.8 million, respectively. Shares issued to employees under the Employee Stock Purchase Plan during fiscal 2026, 2025, and 2024 were 0.1 million. NOTE 16 - COMMITMENTS AND CONTINGENCIES As collateral for performance on contracts and as credit guarantees to banks and insurers, we were contingently liable for guarantees of subsidiary obligations under standby letters of credit. At May 31, 2026 and May 25, 2025, we had $71.9 million and $80.0 million, respectively, of standby letters of credit related to workers’ compensation and general liabilities accrued in our consolidated financial statements. At both May 31, 2026 and May 25, 2025, we had $16.7 million of surety bonds related to other payments. Most surety bonds are renewable annually. 78 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) At May 31, 2026 and May 25, 2025, we had $83.3 million and $76.5 million, respectively, of guarantees associated with leased properties that have been assigned to third parties, primarily related to the disposition of Red Lobster in fiscal 2015 and the sale of the Olive Garden Canada Restaurants during the first quarter of 2026. These amounts represent the maximum potential amount of future payments under the guarantees. The fair value of the maximum potential payments discounted at our weighted-average cost of capital at May 31, 2026 and May 25, 2025, amounted to $64.7 million and $61.2 million, respectively. In the event of default by a third party, the indemnity and default clauses in our assignment agreements govern our ability to recover from and pursue the third party for damages incurred as a result of its default. We do not hold any third-party assets as collateral related to these assignment agreements, except to the extent the agreements permit us to recapture the related leasehold interest. The liability recorded for our expected credit losses under these leases as of May 31, 2026 and May 25, 2025 was $10.4 million and $10.6 million, respectively. These guarantees expire over their respective lease terms, which range from fiscal 2027 through fiscal 2035. 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 and copyrights or the trademarks and copyrights of others. 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. NOTE 17 - SUBSEQUENT EVENTS On June 24, 2026, the Board of Directors declared a cash dividend of $1.62 per share to be paid August 3, 2026 to all shareholders of record as of the close of business on July 10, 2026. 79