Darden Restaurants Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 19 March 2026: press release. Guidance figures: 3 raised, 2 lowered, 3 kept. The quarter’s numbers.

Key takeaways

Sales rose 5.9% on comparable growth: Quarter sales rose 5.9% to $3.3 billion, from blended same-restaurant sales growth of 4.2% and 31 net new restaurants. Source
Adjusted EPS rose 5.4%: Adjusted diluted EPS from continuing operations was $2.95, up 5.4% from $2.80. Reported diluted EPS was $2.68, against $2.74 a year earlier. Source
Full-year sales and comparable guidance raised: Full-year sales growth guidance moved to about 9.5% and same-restaurant sales growth to about 4.5%; reported diluted EPS guidance moved to $10.40 to $10.50. Source
LongHorn and Olive Garden comparable sales: LongHorn same-restaurant sales rose 7.2% and Olive Garden 3.2%. Consolidated Darden comparable sales were 4.2%. Source
Share repurchases of $127 million: The company repurchased about 0.7 million shares for $127 million in the quarter. $516 million remained under the $1 billion authorization. Source
Bahama Breeze strategic review underway: Management said it is exploring strategic alternatives for the Bahama Breeze brand. Related costs were excluded from adjusted results. Source

“We continue to outperform the industry same-restaurant sales benchmark, and this quarter we widened that gap as Olive Garden, LongHorn Steakhouse, Yard House, and Cheddar’s Scratch Kitchen each significantly exceeded the benchmark.”
Rick Cardenas, Darden President & CEO

Guidance

Area	Period	Figure	Against last quarter
Total sales growth Source	Fiscal 2026 (53 weeks)	approximately 9.5%	Raised from 8.5% to 9.3%
Same-restaurant sales growth Source	Fiscal 2026	approximately 4.5%	Raised from 3.5% to 4.3%
New restaurant openings Source	Fiscal 2026	approximately 70
Total capital spending Source	Fiscal 2026	$750 to $775 million	Kept
Total inflation Source	Fiscal 2026	approximately 3.5%	Kept
Effective tax rate Source	Fiscal 2026	approximately 12.5%	Lowered from approximately 13%
Adjusted diluted EPS from continuing operations Source	Fiscal 2026	$10.57 to $10.67
Reported diluted EPS from continuing operations Source	Fiscal 2026	$10.40 to $10.50	Lowered from $10.62 to $10.82
53rd week contribution to adjusted EPS Source	Fiscal 2026	approximately $0.25	Raised from approximately $0.20
Weighted average diluted shares Source	Fiscal 2026	approximately 116.5 million	Kept

What changed from last quarter

Guidance raised: Full-year total sales growth moved to about 9.5% from 8.5% to 9.3%, and same-restaurant sales growth to about 4.5% from 3.5% to 4.3%. Source
Guidance raised: The expected contribution of the 53rd week to adjusted diluted EPS rose to about $0.25 from about $0.20. Source
Guidance lowered: Full-year reported diluted EPS from continuing operations moved to $10.40 to $10.50 from $10.62 to $10.82. Source
Guidance lowered: Expected full-year effective tax rate moved to about 12.5% from about 13%. Source
Guidance kept: Full-year capital spending of $750 to $775 million and total inflation of about 3.5% are unchanged from the prior update. Source
New: Costs of exploring strategic alternatives for the Bahama Breeze brand appear as an adjustment in the current quarter; the prior release did not show them. Source
Ended: The About Darden paragraph no longer lists Bahama Breeze among the company's brands.

Results and growth drivers

Sales rose 5.9% on comparable growth: Quarter sales rose 5.9% to $3.3 billion, from blended same-restaurant sales growth of 4.2% and 31 net new restaurants. Source
Adjusted EPS rose 5.4%: Adjusted diluted EPS from continuing operations was $2.95, up 5.4% from $2.80. Reported diluted EPS was $2.68, against $2.74 a year earlier. Source
Full-year sales and comparable guidance raised: Full-year sales growth guidance moved to about 9.5% and same-restaurant sales growth to about 4.5%; reported diluted EPS guidance moved to $10.40 to $10.50. Source
Nine-month diluted EPS higher: Nine-month diluted EPS from continuing operations was $6.91, against $6.30 a year earlier. Source

Segments and brands

LongHorn and Olive Garden comparable sales: LongHorn same-restaurant sales rose 7.2% and Olive Garden 3.2%. Consolidated Darden comparable sales were 4.2%. Source
Olive Garden comparable growth slowed: Olive Garden same-restaurant sales were 3.2%, against 4.7% in the second quarter. LongHorn was 7.2%, against 5.9%.
Olive Garden and LongHorn segment profit higher: Olive Garden segment profit rose to $320.0 million from $307.5 million, and LongHorn's to $159.0 million from $151.6 million. Source
Fine Dining sales and profit higher: Fine Dining sales were $402.0 million, against $385.3 million, and segment profit $88.5 million, against $86.8 million. Fine Dining comparable sales rose 2.1%. Source
Other Business includes Chuy's from acquisition: Other Business sales were $696.1 million, against $674.3 million. The segment includes Chuy's from the acquisition date, and its comparable sales rose 3.9%. Source

“Across all our brands, we’re seeing historically high team member and manager retention, which is enabling consistent execution”
Rick Cardenas, Darden President & CEO

Restaurant base and openings

Company restaurant count up by 31: Olive Garden had 944 restaurants and LongHorn 608 at February 22, 2026. Continuing-operations restaurants totaled 2,196, against 2,165 a year earlier. Source
Bahama Breeze count reduced: Bahama Breeze restaurants numbered 27 at February 22, 2026, against 43 a year earlier and 28 at November 23, 2025. Source
Chuy's count up by two: Chuy's had 108 restaurants at February 22, 2026, up from 106 a year earlier. Source

Costs and expenses

Food and labor costs rose: Food and beverage costs were $1,026.7 million, against $953.6 million. Restaurant labor was $1,046.9 million, against $995.0 million. Source
Restaurant expenses and marketing higher: Restaurant expenses were $528.7 million, against $501.0 million. Marketing expenses were $39.4 million, against $35.4 million. Source
Pre-opening and G&A costs higher: Pre-opening costs were $8.8 million, against $6.1 million. General and administrative expenses were $121.5 million, against $116.7 million. Source
Depreciation and amortization higher: Depreciation and amortization was $141.8 million for the quarter, against $131.9 million a year earlier. Source

“I’m proud of our teams, as we continue to execute our proven strategy to grow sales, manage costs, and deliver value for guests and shareholders.”
Rick Cardenas, Darden President & CEO

Reported to adjusted earnings

Adjustments totaled $0.27 per share: Reported diluted EPS of $2.68 excluded $0.27 of adjustments. Items named include $0.05 of closed restaurant and strategic review costs, $0.16 of closure impairment and $0.06 of income tax items. Source
Olive Garden Canada gain excluded from guidance: The full-year reconciliation excludes a $0.26 gain on the Olive Garden Canada sale from adjusted EPS. Source
Prior-year Chuy's costs excluded: Last year's third quarter excluded $0.06 of Chuy's integration costs, and this quarter shows none. Source

Capital, cash and shareholder returns

Share repurchases of $127 million: The company repurchased about 0.7 million shares for $127 million in the quarter. $516 million remained under the $1 billion authorization. Source
Nine-month dividends and buybacks higher: Nine-month dividends paid were $521.5 million, against $494.6 million. Repurchases including excise tax were $534.4 million, against $367.2 million. Source
Operating cash flow nine months higher: Nine-month operating cash flow from continuing operations was $1,281.0 million, against $1,250.0 million. Purchases of land, buildings and equipment were $540.9 million. Source
Short-term debt drawn: Short-term debt was $290.0 million at February 22, 2026, against none at May 25, 2025. Cash and cash equivalents were $240.4 million. Source
Quarterly dividend declared at $1.50: The Board declared a quarterly cash dividend of $1.50 per share on the company's outstanding common stock. Source

Strategy, portfolio and team

Bahama Breeze strategic review underway: Management said it is exploring strategic alternatives for the Bahama Breeze brand. Related costs were excluded from adjusted results. Source
Team retention described as high: Management said team member and manager retention is historically high across all brands, enabling consistent execution. Source
Chuy's excluded until 16-month ownership: Segment figures will not include Chuy's until it has been owned and operated by Darden for 16 months, which the document places in Q4 fiscal 2026. Source

Coming up, as management said on 19 March 2026

Dividend payment date: The $1.50 quarterly dividend is payable May 1, 2026, to shareholders of record at the close of business on April 10, 2026. Source

Figures management reported

Figure	Reported
Comparable sales, consolidated Darden Source	4.2%
Comparable sales, Olive Garden Source	3.2%
Comparable sales, LongHorn Steakhouse Source	7.2%
Comparable sales, Fine Dining Source	2.1%
Comparable sales, Other Business Source	3.9%
Net new restaurants in quarter Source	31
Company-owned restaurants, continuing operations Source	2,196
Inventories Source	$345.3 million
Bahama Breeze restaurants Source	27

Risks management discussed

Financial: Non-cash impairment charges are tied to Bahama Breeze location closures expected in the fourth quarter of fiscal 2026. Source
Operational: Costs tied to closing underperforming restaurants and reviewing the Bahama Breeze brand are recorded as adjustments to reported results. Source

Earlier plans management reported on

Not stated: Management expects all Bahama Breeze locations to be closed or converted between Q3 fiscal 2026 and Q4 fiscal 2027. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Darden Restaurants Reports Fiscal 2026 Third Quarter Results;

Declares Quarterly Dividend;

And Updates Fiscal 2026 Financial Outlook

ORLANDO, Fla., March 19, 2026 /PRNewswire/ -- Darden Restaurants, Inc. (NYSE:DRI) today reported its financial results for the third quarter ended February 22, 2026.

Third Quarter 2026 Financial Highlights, Comparisons Versus Same Fiscal Quarter Last Year

Total sales increased 5.9% to $3.3 billion, driven by a blended same-restaurant sales increase of 4.2% and sales from 31 net new restaurants
Same-restaurant sales:

Consolidated Darden	4.2%
Olive Garden	3.2%
LongHorn Steakhouse	7.2%
Fine Dining	2.1%
Other Business	3.9%

Reported diluted net earnings per share from continuing operations were $2.68
Excluding $0.05 of closed restaurant and other costs related to the exploration of strategic alternatives for the Bahama Breeze brand, $0.16 of impairment due to restaurant closures and $0.06 of income tax adjustments and benefits, adjusted diluted net earnings per share from continuing operations were $2.95, an increase of 5.4%
The Company repurchased $127 million of its outstanding common stock

“We delivered a strong quarter,” said Darden President & CEO Rick Cardenas. “We continue to outperform the industry same-restaurant sales benchmark, and this quarter we widened that gap as Olive Garden, LongHorn Steakhouse, Yard House, and Cheddar’s Scratch Kitchen each significantly exceeded the benchmark. Across all our brands, we’re seeing historically high team member and manager retention, which is enabling consistent execution and strong guest satisfaction. I’m proud of our teams, as we continue to execute our proven strategy to grow sales, manage costs, and deliver value for guests and shareholders.”

Segment Performance

During the fourth quarter of fiscal 2025, the Company changed its reporting of segment profit to exclude pre-opening costs. Fiscal 2025 figures were recast for comparability. Segment profit represents sales, less costs for food and beverage, restaurant labor, restaurant expenses and marketing expenses. Segment profit excludes non-cash real estate related expenses. Sales and profits from Chuy's restaurants are included within the Other Business segment from the date of acquisition forward.

	Q3 Sales		Q3 Segment Profit
($ in millions)	2026	2025	2026	2025
Consolidated Darden	$3,345.3	$3,158.0
Olive Garden	$1,393.0	$1,330.3	$320.0	$307.5
LongHorn Steakhouse	$854.2	$768.1	$159.0	$151.6
Fine Dining	$402.0	$385.3	$88.5	$86.8
Other Business	$696.1	$674.3	$108.8	$105.5

	YTD Sales		YTD Segment Profit
($ in millions)	2026	2025	2026	2025
Consolidated Darden	$9,492.1	$8,805.0
Olive Garden	$4,056.8	$3,831.9	$884.9	$835.4
LongHorn Steakhouse	$2,406.5	$2,191.7	$419.9	$414.9
Fine Dining	$1,004.7	$970.2	$174.1	$179.6
Other Business	$2,024.1	$1,811.2	$304.8	$271.1

Will not include Chuy's until they have been owned and operated by Darden for a 16-month period (Q4 fiscal 2026) and does not include Bahama Breeze as all locations are expected to be closed or converted to other brands (between Q3 fiscal 2026 and Q4 fiscal 2027).

Primarily costs related to the closure of 22 underperforming restaurants that were permanently closed during the fourth quarter of fiscal 2025 and other costs related to the strategic review of the Bahama Breeze brand.

Non-cash asset impairment charges primarily related to the closures of Bahama Breeze locations expected to occur in the fourth quarter of fiscal 2026.

See the "Non-GAAP Information" below for more details.

Dividend Declared

Darden's Board of Directors declared a quarterly cash dividend of $1.50 per share on the Company's outstanding common stock. The dividend is payable on May 1, 2026, to shareholders of record at the close of business on April 10, 2026.

Share Repurchase Program

During the quarter, the Company repurchased approximately 0.7 million shares of its common stock for a total of $127 million. As of the end of the third quarter of fiscal 2026, the Company had $516 million remaining under the current $1 billion repurchase authorization.

Fiscal 2026 Financial Outlook

The Company updated its full year financial outlook for fiscal 2026, which includes a 53rd week. This outlook includes the impact of the additional week. We will provide additional details during our investor conference call scheduled for this morning at 8:30 am ET.

Total sales growth of approximately 9.5%, including approximately 2% growth related to the 53rd week
Same-restaurant sales growth of approximately 4.5%
New restaurant openings of approximately 70
Total capital spending of $750 to $775 million
Total inflation of approximately 3.5%
An effective tax rate of approximately 12.5%
Adjusted diluted net earnings per share from continuing operations of $10.57 to $10.67, including:
Approximately $0.25 related to the addition of the 53rd week
Approximately 116.5 million weighted average diluted shares outstanding

Annual same-restaurant sales is a 52-week metric and excludes the impact of Chuy’s, which will not have been owned and operated by Darden for a 16-month period prior to the beginning of fiscal 2026, as well as Bahama Breeze as all locations are expected to be closed or converted to other brands (between Q3 fiscal 2026 and Q4 fiscal 2027).

Investor Conference Call

The Company will host a conference call today, Thursday, March 19, 2026, at 8:30 am ET to review its recent financial performance, which will be available via a live webcast through the Company's Investor Relations website at investor.darden.com. Please allow extra time prior to the call to visit the site and download any software required to listen to the webcast. Supplemental materials will be available on the Investor Relations website prior to the start of the conference call. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.

About Darden

Darden is a restaurant company featuring a portfolio of differentiated brands that include Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Chuy's, Seasons 52, and Eddie V’s. For more information, please visit www.darden.com.

Information About Forward-Looking Statements

Forward-looking statements notice

Forward-looking statements in this communication regarding our expected earnings performance and all other statements that are not historical facts, including without limitation statements concerning our future economic performance, are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Any forward-looking statements speak only as of the date on which such statements are first made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. We wish to caution investors not to place undue reliance on any such forward-looking statements. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to materially differ from those anticipated in the statements. The most significant of these uncertainties are described in Darden's Form 10-K, Form 10-Q and Form 8-K reports. These risks and uncertainties include: a failure to address cost pressures and a failure to effectively deliver cost management activities and achieve some economies of scale in purchasing, certain economic and business factors and their impacts on the restaurant industry and other general macroeconomic factors including unemployment, energy prices, tariffs and interest rates, the inability to hire, train, reward and retain restaurant team members and determine and maintain adequate staffing, a failure to recruit, develop and retain effective leaders or the loss or shortage of personnel with key capacities and skills that could impact our strategic direction, increased labor and insurance costs, health concerns arising from food-related pandemics, outbreaks of flu, viruses or other diseases, food safety and food-borne illness concerns, insufficient guest or employee facing technology or a failure to maintain a continuous and secure cyber network, compliance with privacy and data protection laws and risks of failures or breaches of our data protection systems, the inability to successfully complete our integration of Chuy's Holdings operations into our business, risks relating to public policy changes and federal, state and local regulation of our business, intense competition, changing consumer preferences, an inability or failure to recognize, respond to and effectively manage the accelerated impact of social media, a failure to identify and execute innovative marketing and guest relationship tactics, ineffective or improper use of other marketing initiatives and increased advertising and marketing costs, climate change, adverse weather conditions and natural disasters, long-term and non-cancelable property leases, inability or failure to execute a business continuity plan following a major natural disaster, shortages, delays or interruptions in the delivery of food and other products and services from our third-party vendors and suppliers, failure to drive profitable sales growth, a lack of availability of suitable locations for new restaurants or a decline in the quality of locations of our current restaurants, higher-than-anticipated costs associated with the opening of new restaurants or with the closing, relocating or remodeling of existing restaurants, risks associated with doing business with franchisees, licensees and vendors in foreign markets, volatility in the market value of derivatives, volatility in the U.S. equity markets affecting our ability to efficiently hedge exposures, failure to protect our intellectual property, our reporting on environmental, social and governance matters or our sustainability ratings, litigation, unfavorable publicity or failure to respond effectively to adverse publicity, disruptions in the financial and credit markets, impairment of the carrying value of our goodwill or other intangible assets, changes in tax laws or unanticipated tax liabilities, failure of our internal controls over financial reporting and future changes in accounting standards, and other factors and uncertainties discussed from time to time in reports filed by Darden with the Securities and Exchange Commission.

Non-GAAP Information

The information in this press release includes financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”), such as adjusted diluted net earnings per share from continuing operations. The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. The Company believes that the presentation of certain non-GAAP measures provides useful supplemental information that is essential to a proper understanding of the operating results of the Company’s businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP measures are included in this release.

(Analysts) Courtney Aquilla, (407) 245-5054; (Media) Rich Jeffers, (407) 245-4189

	Q3 2026					Q3 2025
Fiscal Q3 Reported to Adjusted Earnings Reconciliation
$ in millions, except per share amounts	Earnings Before Income Tax	Income Tax Expense	Net Earnings	Diluted Net Earnings Per Share		Earnings Before Income Tax	Income Tax Expense	Net Earnings	Diluted Net Earnings Per Share
Reported Earnings from Continuing Operations	$356.8	$46.2	$310.6	$2.68		$372.7	$49.0	$323.7	$2.74
% Change vs Prior Year					(2.2)%
Total Adjustments:	$31.3	$0.7	$30.6	$0.27		$8.4	$1.9	$6.5	$0.06
Closed restaurant and other strategic review costs	6.6	1.6	5.0	0.05		-	-	-	-
General and administrative expenses	5.8	1.4	4.4	0.04		-	-	-	-
Depreciation and amortization	0.8	0.2	0.6	0.01		-	-	-	-
Impairment due to restaurant closures	24.7	6.2	18.5	0.16		-	-	-	-
Income tax adjustments and benefits	-	(7.1)	7.1	0.06		-	-	-	-
Chuy's integration related one-time costs	$ -	$ -	$ -	$ -		$8.4	$1.9	$6.5	$0.06
Adjusted Earnings from Continuing Operations	$388.1	$46.9	$341.2	$2.95		$381.1	$50.9	$330.2	$2.80
% Change vs Prior Year					5.4%

	2026
Reconciliation of Fiscal 2026 Reported to Adjusted Earnings Outlook
Reported diluted net earnings per share from continuing operations	$10.40	to	$10.50
Chuy's transaction and integration related costs	0.06		0.06
Closed restaurant and other strategic review costs	0.15		0.15
Impairment due to restaurant closures	0.16		0.16
Gain on Olive Garden Canada sale	(0.26)		(0.26)
Income tax adjustments and benefits	$0.06		$0.06
Adjusted diluted net earnings per share from continuing operations	$10.57	to	$10.67

Darden Restaurants, Inc.

Number of Company-Owned Restaurants

	2/22/26	2/23/25
Olive Garden	944	927
LongHorn Steakhouse	608	586
Cheddar's Scratch Kitchen	184	182
Chuy's	108	106
Yard House	92	89
Ruth's Chris Steak House	82	82
The Capital Grille	73	71
Seasons 52	45	45
Eddie V's	30	30
Bahama Breeze	27	43
The Capital Burger	3	4
Darden Continuing Operations	2,196	2,165

CONSOLIDATED STATEMENTS OF EARNINGS

(In millions, except per share data)

(Unaudited)

	Three Months Ended		Nine Months Ended
	2/22/2026	2/23/2025	2/22/2026	2/23/2025
Sales	$3,345.3	$3,158.0	$9,492.1	$8,805.0
Costs and expenses:
Food and beverage	1,026.7	953.6	2,919.5	2,673.1
Restaurant labor	1,046.9	995.0	3,035.0	2,811.1
Restaurant expenses	528.7	501.0	1,541.2	1,426.9
Marketing expenses	39.4	35.4	137.2	128.9
Pre-opening costs	8.8	6.1	22.8	16.1
General and administrative expenses	121.5	116.7	375.4	387.2
Depreciation and amortization	141.8	131.9	414.8	381.1
Impairments and (gain) loss on disposal of assets, net	25.1	0.1	(19.8)	1.1
Total operating costs and expenses	$2,938.9	$2,739.8	$8,426.1	$7,825.5
Operating income	406.4	418.2	1,066.0	979.5
Interest, net	49.6	45.5	143.0	128.8
Earnings before income taxes	356.8	372.7	923.0	850.7
Income tax expense	46.2	49.0	117.1	103.7
Earnings from continuing operations	$310.6	$323.7	$805.9	$747.0
Losses from discontinued operations, net of tax benefit of $1.3, $0.2, $1.6, and $0.7, respectively	(3.8)	(0.3)	(4.1)	(1.2)
Net earnings	$306.8	$323.4	$801.8	$745.8
Basic net earnings per share:
Earnings from continuing operations	$2.70	$2.76	$6.95	$6.35
Losses from discontinued operations	(0.03)	-	(0.04)	(0.01)
Net earnings	$2.67	$2.76	$6.91	$6.34
Diluted net earnings per share:
Earnings from continuing operations	$2.68	$2.74	$6.91	$6.30
Losses from discontinued operations	(0.03)	-	(0.04)	(0.01)
Net earnings	$2.65	$2.74	$6.87	$6.29
Average number of common shares outstanding:
Basic	115.0	117.2	115.9	117.7
Diluted	115.8	118.0	116.7	118.5

CONSOLIDATED BALANCE SHEETS

(In millions)

	2/22/2026	5/25/2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$240.4	$240.0
Receivables, net	107.7	93.8
Inventories	345.3	311.6
Prepaid income taxes	179.3	135.6
Prepaid expenses and other current assets	145.8	156.7
Total current assets	$1,018.5	$937.7
Land, buildings and equipment, net	4,984.4	4,716.0
Operating lease right-of-use assets	3,478.1	3,555.9
Goodwill	1,658.2	1,659.4
Trademarks	1,346.4	1,346.4
Other assets	403.2	371.6
Total assets	$12,888.8	$12,587.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$451.4	$439.6
Short-term debt	290.0	-
Accrued payroll	203.5	207.5
Accrued income taxes	1.4	4.7
Other accrued taxes	79.7	83.0
Unearned revenues	654.9	599.4
Other current liabilities	927.4	913.3
Total current liabilities	$2,608.3	$2,247.5
Long-term debt	2,141.0	2,128.9
Deferred income taxes	354.2	278.8
Operating lease liabilities - non-current	3,754.3	3,816.9
Other liabilities	1,927.0	1,803.6
Total liabilities	$10,784.8	$10,275.7
Stockholders’ equity:
Common stock and surplus	$2,297.0	$2,295.6
Retained earnings (deficit)	(217.4)	(16.1)
Accumulated other comprehensive income	24.4	31.8
Total stockholders’ equity	$2,104.0	$2,311.3
Total liabilities and stockholders’ equity	$12,888.8	$12,587.0

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Nine Months Ended
	2/22/2026	2/23/2025
Cash flows - operating activities
Net earnings	$801.8	$745.8
Losses from discontinued operations, net of tax	4.1	1.2
Adjustments to reconcile net earnings from continuing operations to cash flows:
Depreciation and amortization	414.8	381.1
Impairments and (gain) loss on disposal of assets, net	(19.8)	1.1
Stock-based compensation expense	66.5	64.5
Change in current assets and liabilities and other, net	13.6	56.3
Net cash provided by operating activities of continuing operations	$1,281.0	$1,250.0
Cash flows - investing activities
Purchases of land, buildings and equipment	(540.9)	(472.6)
Proceeds from disposal of land, buildings and equipment	33.0	-
Cash used in business acquisitions, net of cash acquired	-	(613.7)
Purchases of capitalized software and changes in other assets, net	(15.2)	(13.3)
Net cash used in investing activities of continuing operations	$(523.1)	$(1,099.6)
Cash flows - financing activities
Net proceeds from issuance of common stock	18.2	38.9
Dividends paid	(521.5)	(494.6)
Repurchases of common stock, inclusive of excise tax	(534.4)	(367.2)
Proceeds from short-term debt, net	290.0	(28.6)
Proceeds from issuance of long-term debt, net	-	750.0
Principal payments on finance leases, net	(13.8)	(15.5)
Payments of debt issuance costs	-	(6.9)
Net cash used in financing activities of continuing operations	$(761.5)	$(123.9)
Cash flows - discontinued operations
Net cash used in operating activities of discontinued operations	(2.4)	(7.9)
Net cash used in discontinued operations	$(2.4)	$(7.9)
Increase (decrease) in cash, cash equivalents, and restricted cash	(6.0)	18.6
Cash, cash equivalents, and restricted cash - beginning of period	254.5	220.1
Cash, cash equivalents, and restricted cash - end of period	$248.5	$238.7

Reconciliation of cash, cash equivalents, and restricted cash:	2/22/2026	2/23/2025
Cash and cash equivalents	$240.4	$224.2
Restricted cash included in prepaid expenses and other current assets	8.1	14.5
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$248.5	$238.7