| LEASES |
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. (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.
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| LEASES |
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. (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.
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