v3.26.1
INCOME TAXES (Tables)
 12 Months Ended
May 31, 2026
Income Tax Disclosure [Abstract]  
Schedule of Allocation of Total Income Tax Expense
Total income tax expense was allocated as follows:
Fiscal Year Ended
(in millions)May 31, 2026May 25, 2025May 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 
Schedule of Components of Earnings Before Income Tax And Provision For Income Taxes
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, 2026May 25, 2025May 26, 2024
Earnings from continuing operations before income taxes:
U.S.$1,387.3 $1,180.6 $1,169.2 
Foreign1.3 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 local42.5 54.4 43.5 
Foreign2.7 — 3.0 
Total current$105.2 $135.3 $145.7 
Deferred (principally U.S.):
Federal$62.8 $0.2 $(0.7)
State and local6.9 0.7 — 
Total deferred$69.7 $0.9 $(0.7)
Total income tax expense$174.9 $136.2 $145.0 
Schedule of Effective Income Tax Rate Reconciliation
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, 2026May 25, 2025May 26, 2024
(in millions)AmountPercentAmountPercentAmountPercent
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
43.73.1 %46.83.9 %38.13.2 %
Foreign tax effects:
     Canada9.40.7 %1.00.1 %0.80.1 %
     Other foreign jurisdictions2.3 0.2 %2.00.2 %2.20.2 %
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
34.62.5 %31.82.7 %30.22.6 %
    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 adjustments6.40.4 %(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.
Schedule of Unrecognized Tax Benefits
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 positions5.0 
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 
Schedule of Interest Expense on Income Tax Expense (Benefits)
Interest included in income tax expense in our consolidated statements of earnings is as follows:
Fiscal Year Ended
(in millions)May 31, 2026May 25, 2025May 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)
Schedule of Tax Effects on Deferred Tax Assets And Liabilities
The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows:
(in millions)May 31, 2026May 25, 2025
Accrued liabilities$131.6 $149.8 
Compensation and employee benefits146.9 136.2 
Lease liabilities1,441.1 1,430.1 
Net operating loss, credit and charitable contribution carryforwards80.3 84.1 
Other4.6 — 
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)
Schedule of Cash Paid for Income Taxes, Net of Refunds
Statements of Cash Flows
Fiscal Year Ended
(in millions)May 31, 2026May 25, 2025May 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 
Cash paid for income taxes, net of refunds, was as follows:
Fiscal Year Ended
(in millions)May 31, 2026May 25, 2025May 26, 2024
Federal41.7101.691.0
State
     California10.47.06.4
     New Jersey6.04.64.9
     Other40.333.934.1
Foreign
     Canada9.61.5— 
     Other1
2.42.12.2
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.