DARDEN RESTAURANTS INCDRI
DARDEN RESTAURANTS INC Segments Disclosure
SEGMENT INFORMATION
We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Chuy’s, Yard House, Ruth’s Chris, The Capital Grille, Seasons 52, Eddie V’s, Bahama Breeze and The Capital Burger in North America 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. and Canada. 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 Cheddar’s Scratch Kitchen, Chuy’s, Yard House, 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 and 2023 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 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 | |||||||||||||||||
| Segment assets | 2,862.4 | 2,025.7 | 2,596.5 | 2,901.1 | 937.3 | 11,323.0 | |||||||||||||||||
| Purchases of land, buildings and equipment | 260.7 | 127.4 | 118.1 | 97.9 | (2.9) | 601.2 | |||||||||||||||||
| (in millions) | Olive Garden | LongHorn Steakhouse | Fine Dining | Other Business | Corporate | Consolidated | |||||||||||||||||
| At May 28, 2023 and for the year ended | |||||||||||||||||||||||
| Sales | $ | 4,877.8 | $ | 2,612.3 | $ | 830.8 | $ | 2,166.9 | $ | — | $ | 10,487.8 | |||||||||||
| Food and beverage | 1,243.1 | 1,126.8 | 290.7 | 695.3 | — | 3,355.9 | |||||||||||||||||
| Restaurant labor | 1,716.8 | 682.0 | 217.5 | 730.0 | — | 3,346.3 | |||||||||||||||||
| Restaurant expenses | 788.1 | 361.4 | 159.2 | 422.5 | (54.9) | 1,676.3 | |||||||||||||||||
| Marketing | 96.1 | 5.1 | 3.6 | 13.5 | — | 118.3 | |||||||||||||||||
| Segment profit | $ | 1,033.7 | $ | 437.0 | $ | 159.8 | $ | 305.6 | $ | 54.9 | $ | 1,991.0 | |||||||||||
| Depreciation and amortization | $ | 146.5 | $ | 67.7 | $ | 35.6 | $ | 96.8 | $ | 41.2 | $ | 387.8 | |||||||||||
| Impairments and disposal of assets, net | — | (3.3) | — | — | (7.3) | (10.6) | |||||||||||||||||
| Pre-opening costs | 7.9 | 6.1 | 1.3 | 5.0 | 5.6 | 25.9 | |||||||||||||||||
| Purchases of land, buildings and equipment | 252.5 | 114.0 | 57.2 | 119.6 | 21.6 | 564.9 | |||||||||||||||||
| Fiscal Year Ended | ||||||||||||||||||||
| (in millions) | May 25, 2025 | May 26, 2024 | May 28, 2023 | |||||||||||||||||
| Segment profit | $ | 2,472.7 | $ | 2,290.0 | $ | 1,991.0 | ||||||||||||||
| Less general and administrative expenses | (520.3) | (479.2) | (386.1) | |||||||||||||||||
| Less depreciation and amortization | (516.1) | (459.9) | (387.8) | |||||||||||||||||
| Less impairments and disposal of assets, net | (49.2) | (12.4) | 10.6 | |||||||||||||||||
| Less pre-opening costs | (24.8) | (24.3) | (25.9) | |||||||||||||||||
| Less interest, net | (175.1) | (138.7) | (81.3) | |||||||||||||||||
| Earnings before income taxes | $ | 1,187.2 | $ | 1,175.5 | $ | 1,120.5 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 18, 2025 | Showing above |
| 2024 | Jul 19, 2024 | |
| 2023 | Jul 21, 2023 | |
| 2022 | Jul 22, 2022 | |
| 2021 | Jul 23, 2021 | |
| 2020 | Jul 24, 2020 | |
| 2019 | Jul 19, 2019 | |
| 2018 | Jul 20, 2018 | |
| 2017 | Jul 21, 2017 | |
| 2016 | Jul 25, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.