v3.26.3
Fair Value Measurements
 3 Months Ended
Aug. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date under market conditions. Fair value measurements are categorized in three levels based on the types of significant inputs used, as follows:
Level 1Quoted prices in active markets for identical assets or liabilities
Level 2Observable inputs other than quoted prices in active markets for identical assets or liabilities
Level 3Unobservable inputs that cannot be corroborated by observable market data
The fair values of cash equivalents, receivables, net, accounts payable and short-term debt approximate their carrying amounts due to their short duration or market-based interest rates.

Financial Instruments

The following tables summarize the fair values of financial instruments measured at fair value on a recurring basis as of August 30, 2026 and May 31, 2026.
Items Measured at Fair Value at August 30, 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)0.7 $— $0.7 $— 
Equity forwards(2)(5.1)— (5.1)— 
Total$(4.4)$— $(4.4)$— 
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:
Equity forwards(2)4.2 — 4.2 — 
Interest rate swaps(3)(36.0)— (36.0)— 
Total$(31.8)— $(31.8)— 
(1)The fair value of our commodities futures, swaps, and options is based on closing market prices of commodity 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.

The carrying value and fair value of long-term debt as of August 30, 2026, was $2.14 billion and $2.15 billion, respectively. 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 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.

Non-Financial Instruments

We review the carrying amounts of non-financial assets of goodwill and trademarks annually or when events or circumstances indicate that the fair value may not exceed the carrying amount. We review the carrying amounts of our other non-financial assets, primarily land, building, equipment, finance lease assets, operating lease assets, definite-lived intangible assets and transferable liquor licenses when events or circumstances indicate that the carrying amount may not be recoverable. We record an impairment charge for the excess of the carrying amount over the fair value. The fair values of land, buildings, equipment, finance lease assets, operating lease assets, and definite-lived intangible assets are determined utilizing Level 3 inputs, including appraisals, sales prices of comparable assets, and estimates of discounted future cash flows.The fair values of transferable liquor licenses are determined utilizing Level 2 inputs, including prices in the open market for licenses in the same or similar jurisdictions.
As of August 30, 2026 and May 31, 2026, 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.

As of August 30, 2026, adjustments to the fair values of non-financial assets measured at fair value on a non-recurring basis, classified as Level 3, were not material. 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.

All impairment charges were included in Impairments and (gain) loss on disposal of assets, net in the Consolidated Statements of Earnings for the periods presented. Refer to Note 7 for more information.