Darden Restaurants : Fourth Quarter 2026 Presentation

About this update from Darden Restaurants, Inc.

Supplemental Materials Fiscal 2026: Fourth Quarter Results June 25, 2026 Full-service restaurant company with a winning strategy Clear roadmap to grow our portfolio of iconic brands Strong commitment to disciplined capital stewardship Category Outperformance ⎜ History of Industry leading margins and traffic Strong, Consistent Return ⎜ Long track record of delivering 10-15% Total Shareholder Return 1 Unique Platform Advantages ⎜ Supply chain and technology stack enable the portfolio of brands to deliver stronger performance than they could independently Broad Portfolio ⎜ Spanning numerous segments and demographics to capture greater share of dining occasions Differentiated Brands ⎜ Clear, unique value propositions give each brand a competitive edge and strategic focus Two Dominant Brands ⎜ Focused on durable traffic growth and increasing unit growth at Olive Garden and LongHorn Steakhouse High-Potential Growth Brands ⎜ Ability to grow units faster at Yard House, Cheddar's & Chuy's 2 Balanced Brands ⎜ Capitalizing on growth opportunities as category leaders Durable Free Cash Flow ⎜ Thoughtfully deploying excess cash flow Strategic Capital Allocation ⎜ 4-5% cash returns to shareholders, balanced across dividends (targeted payout ratio of 50- 60%) & opportunistic share repurchases 3 Strong Balance Sheet ⎜ Committed to a healthy investment grade, with a long-term leverage target of 2-2.5x adjusted Debt/EBITDAR 4 Rigorous Portfolio Management ⎜ Allocating dollars, talent & time based on clear portfolio roles Performance-Driven Leadership: Best-in-Class Operations • Deeply Experienced Management Team • Incentives Aligned with Shareholders 1 Based on the Company's performance over its 31-year history as a public company for any 10 fiscal year period when considering Darden's stock appreciation plus dividend yield. 2 As compared to the Company's Long-Term Framework for New Restaurant growth. 3 As set forth in the Company's Long-Term Framework. 4 Adjusted Debt = funded debt + 6x minimum annual leases + guarantees; Adjusted EBITDAR = EBITDA + minimum annual lease addback. Certain statements made on this page contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Legal Reform Act of 1995. For more information, please refer to the "Disclaimer" page at the beginning of this presentation or the Safe Harbor Notice posted to the Governance page of the Investors section of our website at darden.com. 3 Be financially successful through great people consistently delivering outstanding food, drinks and service in an inviting atmosphere making every guest loyal. Brilliant with the Basics Culinary Innovation & Execution Attentive Service Engaging Atmosphere Enabled by Our People Data & Insights Significant Scale Extensive Rigorous Strategic Planning Quality of Our Employees "The greatest edge we have on our competitors is the quality of our employees reflected each day in the job they do." - Bill Darden 4 New Restaurant Growth Same-Restaurant Sales EAT Margin Expansion Annual Target (Over Time) 3% - 4% 1.5% - 3.5% 0 - 20 bps Business Performance (EAT Growth) 6% - 10% Dividend Payout Ratio Share Repurchase 50% - 60% 1% - 2.5% Return of Cash 4% - 5% Total Shareholder Return (EPS Growth + Dividend Yield) 10% - 15% 5 Ten-Year Average Annual Total Shareholder Return Never Below 10% for Any 10-Fiscal Year Period as a Public Company 24% 17% 17% 14% 11% 14% 12% 10% 14% 11% 11% 12% 10% 16% 18% 11% 16% 14% 17% 16% 17% 15% 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016- 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Calculated as Darden's stock appreciation plus dividend yield. Each 10-fiscal year period ending May. 6 Portfolio of Differentiated and Iconic Brands FY26 Total Sales 1 Average Annual Restaurant Sales 2 Restaurants 3 $5.6 B $5.8 M 949 $3.4 B $5.6 M 618 $655 M $462 M $8.8 M $5.5 M 74 83 Fine Dining $258 M $8.5 M 31 Ot her Business $974 M $10.5 M 93 184 $4.3 M $796 M 110 $4.4 M $489 M $317 M $7.1 M 44 1 Twelve months ending May 31, 2026, includes 53rd week. 2 Average annual sales are calculated as trailing twelve months sales divided by total restaurant operating weeks multiplied by 52 weeks. 3 Company owned and operated restaurants at the end of Fiscal 2026. 7 Abundant, craveable Italian food including never-ending servings of freshly baked breadsticks and homemade soup or garden salad with every meal. Appeal spans all age ranges and income groups. Dominant brand in Darden portfolio expected to trend toward low end of new restaurant growth within our Long-Term Framework over time. 949 company-owned restaurants in the U.S. $5.6 billion in annual sales $5.8 million AUV As of May 31, 2026 8 OUR BRANDS Fresh, never frozen steaks perfectly seasoned and expertly grilled. Appeal spans all age ranges and income groups. Dominant brand in Darden portfolio expected to trend toward high end of new restaurant growth within our Long-Term Framework over time. 618 company-owned restaurants in the U.S. $3.4 billion in annual sales $5.6 million AUV As of May 31, 2026 9 OUR BRANDS Great food, classic rock and over 100 beers on tap. Broadly appealing with a diverse guest base that tends to skew younger and higher income. High-potential growth brand expected to trend at high end of new restaurant growth within our Long-Term Framework over time. 93 company-owned restaurants in the U.S. $974 million in annual sales $10.5 million AUV As of May 31, 2026 10 OUR BRANDS Approachable fine dining steak house with perfectly seasoned steaks served sizzling on 500-degree plates. Appeals to a broad guest base, spanning age ranges and income levels. Balanced growth brand with opportunistic expansion over time. 83 company-owned restaurants in the U.S. $462 million in annual sales $5.5 million AUV 51 US franchise locations As of May 31, 2026 11 OUR BRANDS American classics and homestyle comfort food at wallet-pleasing prices. Appeal spans all age ranges and income groups. High-potential growth brand expected to trend at high end of new restaurant growth within our Long-Term Framework over time. 184 company-owned restaurants in the U.S. $796 million in annual sales $4.3 million AUV As of May 31, 2026 12 OUR BRANDS Hand cut, dry-aged steaks. Award-winning wine list. Personalized service. Affluent guest base with a balance of urban and suburban locations. Balanced growth brand with opportunistic expansion over time. 74 company-owned restaurants in the U.S. $655 million in annual sales $8.8 million AUV As of May 31, 2026 13 OUR BRANDS Fresh, authentic Tex-Mex, served in a fun and eclectic setting. Appeal spans all age ranges and income groups. High-potential growth brand expected to trend at high end of new restaurant growth within our Long-Term Framework over time. 110 company-owned restaurants in the U.S. $489 million in annual sales $4.4 million AUV As of May 31, 2026 14 OUR BRANDS Seasonally-inspired menu of craveable offerings all under 595 calories served in a casually-sophisticated atmosphere. Broadly appealing with a diverse guest base that tends to skew older and higher income. Balanced growth brand with opportunistic expansion over time. 44 company-owned restaurants in the U.S. $317 million in annual sales $7.1 million AUV As of May 31, 2026 15 OUR BRANDS The finest seafood and steaks. World-class wine and service. Live music trios in the V lounge. Affluent guest base with predominately suburban locations. Balanced growth brand with opportunistic expansion over time. 31 company-owned restaurants in the U.S. $258 million in annual sales $8.5 million AUV As of May 31, 2026 16 OUR BRANDS Region Locations Continental US 64 Latin America 36 Hawaii, Puerto Rico, Guam 23 Asia 23 Canada 14 Middle East 4 Caribbean 2 Europe 1 Total 167 As of May 31, 2026 17 OUR BRANDS Financial Results Fiscal 2026 Fourth Quarter Financial Highlights $ 3.7 Billion TOTAL SALES 13.7% TOTAL SALES GROWTH 4.6% SAME-RESTAURANT SALES GROWTH 1 $ 678 Million ADJUSTED EBITDA 2 $ 3.66 ADJUSTED DILUTED NET EPS FROM CONTINUING OPERATIONS 2 $ 310 Million CASH RETURN 3 Fourth quarter fiscal 2026 includes a 14th week of operations compared to 13 weeks last year. 1 Quarter same-restaurant sales is a 13-week metric and excludes the impact of Bahama Breeze as all locations are expected to be closed or converted to other brands (between Q3 fiscal 2026 and Q4 fiscal 2027). 2 A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of t his presentation. 3 Includes cash dividends paid and repurchases of common stock, inclusive of 1% excise tax incurred on net repurchases, resulting from the Inflation Reduction Act of 2022. 19 Margin Analysis vs. Prior Year As Reported As Adjusted 1 Q4 2026 Q4 2026 Q4 2026 vs Q4 2025 (bps) Sales ($ millions) $3,718.8 ($ millions) $3,718.8 % of Sales Favorable/(Unfavorable) Food and Beverage $1,119.3 $1,119.3 30.1 % - Restaurant Labor $1,147.4 $1,147.4 30.9 % 40 Restaurant Expenses $586.0 $586.0 15.8 % - Marketing Expenses $43.2 $43.2 1.2 % 10 Restaurant-Level EBITDA $822.9 $822.9 22.1 % 50 Pre-opening Costs $11.7 $11.7 0.3 % - General and Administrative Expenses $139.0 $133.6 3.6 % - Depreciation and Amortization $146.3 $143.4 3.9 % 30 Impairment and Disposal of Assets, Net $9.1 $(0.6) - % - Operating Income $516.8 $534.8 14.4 % 70 Interest Expense $51.2 $51.2 1.4 % - Earnings Before Income Tax $465.6 $483.6 13.0 % 80 Income Tax Expense $57.8 $62.0 1.7 % (20) Note: Effective Tax Rate 12.4% 12.8% Earnings From Continuing Operations $407.8 $421.6 11.3 % 60 Note: Continuing operations, values may not foot due to rounding. 1 A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation. 20 Fourth Quarter Segment Performance Segment Sales ($ millions) 11.4% 9.8% Fine Dining Other Business $1,017 $834 $1,381 $1,538 21.9% 10.9% $335 $371 $722 794 FY25 Q4 FY26 Q4 FY25 Q4 FY26 Q4 FY25 Q4 FY26 Q4 FY25 Q4 FY26 Q4 Segment Profit Margin 1 Fine Dining Other Business 23.8% 24.3% FY25 Q4 FY26 Q4 20.1% 21.2% FY25 Q4 FY26 Q4 18.8% 18.6% FY25 Q4 FY26 Q4 17.5% 17.9% FY25 Q4 FY26 Q4 1 Segment profit margin calculated as (sales less costs of food & beverage, restaurant labor, restaurant expenses and marketing expenses) / sales. 21 Fiscal 2026 Financial Highlights $ 13.2 Billion TOTAL SALES 9.4 % TOTAL SALES GROWTH 4.5 % SAME-RESTAURANT SALES GROWTH 1 $2.2 Billion Adjusted EBITDA 2 $10.64 ADJUSTED DILUTED NET EPS FROM CONTINUING OPERATIONS 2 $ 1.4 Billion CASH RETURN 3 Fiscal 2026 includes a 53rd week of operations compared to 52 weeks last year. 1 Annual same-restaurant sales is a 52-week metric and excludes the impact of Chuy's, as they were not 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). 2 A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation. 3 Includes dividends paid and repurchases of common stock, inclusive of 1% excise tax incurred on net repurchases, resulting from the Inflation Reduction Act of 2022. 22 Margin Analysis vs. Prior Year As Reported As Adjusted 1 Fiscal 2026 Fiscal 2026 Fiscal 2026 vs Fiscal 2026 (bps) ($ millions) ($ millions) % of Sales Favorable/(Unfavorable) Sales $13,210.9 $13,210.9 Food and Beverage $4,038.8 $4,038.8 30.6 % (30) Restaurant Labor $4,182.4 $4,182.4 31.7 % 10 Restaurant Expenses $2,127.2 $2,127.2 16.1 % - Marketing Expenses $180.4 $180.4 1.4 % - Restaurant-Level EBITDA $2,682.1 $2,682.1 20.3 % (20) Pre-opening Costs $34.5 $34.5 0.3 % (10) General and Administrative Expenses $514.4 $489.0 3.7 % 20 Depreciation and Amortization $561.1 $557.4 4.2 % 10 Impairment and Disposal of Assets, Net $(10.7) $(3.2) - % - Operating Income $1,582.8 $1,604.4 12.1 % 0 Interest Expense $194.2 $194.2 1.5 % - Earnings Before Income Tax $1,388.6 $1,410.2 10.7 % 0 Income Tax Expense $174.9 $172.8 1.3 % - Note: Effective Tax Rate 12.6% 12.3% Earnings From Continuing Operations $1,213.7 $1,237.4 9.4 % 0 Note: Continuing operations, values may not foot due to rounding. 1 A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation. 23 Achieved Long-Term Framework TSR Over Past 7 Years New Restaurant Growth Same-Restaurant Sales EAT Margin Expansion Framework (Over Time) 3% - 4% 1.5% - 3.5% 0 - 20 bps FY19 - FY26 Annualized Return 1 3.1% 2 3.1% 3 10 bps Business Performance (EAT Growth) 6% - 10% 7.5% Dividend Payout Ratio 50% - 60% 58% Share Repurchase 1% - 2.5% 1.2% Return of Cash 4% - 5% 4.2% Total Shareholder Return (EPS Growth + Dividend Yield) 10% - 15% 11.7% 1 Represents performance adjusted figure. A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation. 2 Includes the acquisition of Ruth's Chris and Chuy's as well as Bahama Breeze closures. 3 Does not include Chuy's as they were not owned and operated by Darden for a 16-month period at the beginning of fiscal 2026. 24 Strong Business Model Generates Durable Cash Flows $2,162 $1,825 $1,977 $1,531 $1,590 $1,184 COVID $1,039 $794 9% CAGR Adjusted EBITDA 1,2 from Continuing Operations ($ in millions) Fiscal 2019 CapEx 3 $478 Fiscal 2020 $485 Fiscal 2021 $270 Fiscal 2022 $403 Fiscal 2023 $594 Fiscal 2024 $628 Fiscal 2025 $672 Fiscal 2026 $760 Adjusted 2.5x 1.6x 3.8x 3.8x 2.7x 2.9x 2.9x 2.8x Dividend $374 $325 $204 $565 $590 $628 $659 $693 Adjusted 1,2 2.2x 3.1x 2.4x 1.8x 1.8x 1.9x 2.1x 2.1x EBITDA 1,2 / CapEx Debt / EBITDAR 1 A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation. 2 Fiscal 2020 and Fiscal 2026 include a 53rd week of operations. 3 Purchases of land, building, equipment and purchases of capitalized software. 25 Fiscal 2027 Annual Outlook Total Sales $13.6 billion to $13.75 billion Same-Restaurant Sales Growth 1 2.5% to 3.5% SALES Restaurant Openings 75 to 80 Capital Spending approximately $875 million DEVELOPMENT Total Inflation approximately 3.0% Commodities: approx. 3.0% EBITDA 2 $2.26 billion to $2.29 billion Effective Tax Rate approximately 13.5% MARGIN Diluted Net Earnings per Share $11.10 to $11.35 (Approximately 114 million Weighted Average Diluted Shares Outstanding) 1 Annual same-restaurant sales is a 52-week metric and excludes the impact of Bahama Breeze as all locations are expected to be closed or converted to other brands (between Q3 fiscal 2026 and Q4 fiscal 2027). 2 A reconciliation of Non-GAAP measures can be found in the Non-GAAP Information section of this presentation. 26 Commodities Outlook - First Half Spend by category June - November FY2027 Coverage Outlook Beef 28% 70% Low single digit inflation Dairy / Oil 1 13% 75% Low single digit deflation Produce 12% 90% Low single digit inflation Seafood 8% 90% High single digit inflation Chicken 8% 100% Flat Wheat 2 6% 95% Low single digit inflation Non-Perishable / Other 25% 45% Mid single digit inflation Weighted average coverage 100% 70% 1 Includes cheese, cream, butter, and shortening. 2 Includes breadsticks and pasta. 27 Non-GAAP Information Q4 Reported to Adjusted Earnings Reconciliations Q4 2026 Q4 2025 $ in millions, except EPS 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 $ 465.6 $ 57.8 $ 407.8 $ 3.54 $ 336.5 $ 32.5 $ 304.0 $ 2.58 Total Adjustments: $ 18.0 $ 4.2 $ 13.8 $ 0.12 $ 63.9 $ 16.3 $ 47.6 $ 0.40 Closed restaurant and other strategic review costs 1 7.2 1.5 5.7 0.05 9.2 2.3 6.9 0.06 General and administrative expenses 4.3 0.7 3.6 0.03 9.2 2.3 6.9 0.06 Depreciation and amortization 2.9 0.8 2.1 0.02 - - - - Impairment due to restaurant closures 2 9.7 2.4 7.3 0.06 47.7 11.9 35.8 0.30 Chuy's integration related one-time costs 1.1 0.3 0.8 0.01 7.0 2.1 4.9 0.04 Adjusted Earnings from Continuing Operations $ 483.6 $ 62.0 $ 421.6 $ 3.66 $ 400.4 $ 48.8 $ 351.6 $ 2.98 Interest 51.2 46.3 Adjusted Income Tax 62.0 48.8 Adjusted Operating Income $ 534.8 $ 446.7 Adjusted Depreciation and Amortization 143.4 135.0 Adjusted EBITDA $ 678.2 $ 581.7 1 Closed restaurant costs and costs related to the exploration of strategic alternatives for the Bahama Breeze brand. 2 Impairment costs due to restaurant closures primarily related to the closure of 22 underperforming restaurants that were permanently closed during the fourth quarter of fiscal 2025 and non-cash asset impairment charges primarily related to the closures of Bahama Breeze locations and another underperforming location in the fourth quarter of fiscal 2026. 29 Annual Reported to Adjusted Earnings Reconciliations Fiscal 2026 Fiscal 2025 Earnings Income Diluted Net Earnings Income Diluted Net Before Tax Net Earnings Per Before Tax Net Earnings Per $ in millions, except EPS Income Tax Expense Earnings Share Income Tax Expense Earnings Share Reported Earnings from Continuing Operations $ 1,388.6 $ 174.9 $ 1,213.7 $ 10.44 $ 1,187.2 $ 136.2 $ 1,051.0 $ 8.88 Closed restaurant and other strategic review costs 1 19.4 4.5 14.9 0.13 9.2 2.3 6.9 0.06 General & Administrative Expenses 15.7 3.6 12.1 0.10 9.2 2.3 6.9 0.06 Depreciation and amortization 3.7 0.9 2.8 0.03 - - - - Impairment due to restaurant closures 2 34.8 8.6 26.2 0.22 47.7 11.9 35.8 0.30 Income tax adjustments and benefits - (7.1) 7.1 0.06 - - - - Chuy's integration related one-time costs 9.5 2.4 7.1 0.06 44.6 7.9 36.7 0.31 General & Administrative Expenses 9.5 2.4 7.1 0.06 41.9 7.3 34.6 0.29 Interest 3 - - - - 2.7 0.6 2.1 0.02 Gain on Olive Garden Canada sale (42.1) (10.5) (31.6) (0.27) - - - - Impairment and restaurant disposals, net (42.3) (10.5) (31.8) (0.27) - - - - General & Administrative Expenses 0.2 - 0.2 - - - - - Adjusted Earnings from Continuing Operations $ 1,410.2 $ 172.8 $ 1,237.4 $ 10.64 $ 1,288.7 $ 158.3 $ 1,130.4 $ 9.55 Adjusted Interest 194.2 172.4 Adjusted Income Tax 172.8 158.3 Adjusted Operating Income $ 1,604.4 $ 1,461.1 Adjusted Depreciation and Amortization 557.4 516.1 Adjusted EBITDA $ 2,161.8 $ 1,977.2 1 Closed restaurant costs and costs related to the exploration of strategic alternatives for the Bahama Breeze brand. 2 Impairment costs due to restaurant closures primarily related to the closure of 22 underperforming restaurants that were permanently closed during the fourth quarter of fiscal 2025 and non-cash asset impairment charges primarily related to the closures of Bahama Breeze locations and another underperforming location in the fourth quarter of fiscal 2026. 3 In Q2 Fiscal 2025, Chuy's associated costs relate to write-off of term loan issuance and interest rate hedge settlement. 30 Adjusted EBITDA and EBITDAR Reconciliations 1 $ in millions 5/26/2019 5/31/2020 5/30/2021 5/29/2022 5/28/2023 5/26/2024 5/25/2025 5/31/2026 Sales $8,510.4 $7,806.9 $7,196.1 $9,630.0 $10,487.8 $11,390.0 $12,076.7 $13,210.9 Net Earnings (Loss) from Continuing Operations $718.6 $(49.2) $632.4 $954.7 $983.5 $1,030.5 $1,051.0 $1,213.7 Interest, Net 50.2 57.3 63.5 68.7 81.3 138.7 175.1 194.2 Income Tax Expense (Benefit) 63.7 (111.8) (55.9) 138.8 137.0 145.0 136.2 174.9 Depreciation and Amortization 336.7 355.9 350.9 368.4 387.8 459.9 516.1 561.1 EBITDA $1,169.2 $252.2 $990.9 $1,530.6 $1,589.6 $1,774.1 $1,878.4 $2,143.9 Adjustments: Pension settlement charge (adjustment) 2 - 145.5 - - - - - - Goodwill impairment 3 - 169.2 - - - - - - Trademark impairment 3 - 145.0 - - - - - - Other asset impairment 4 - 28.8 - - - - - - International entity liquidation - 6.2 - - - - - - Restaurant impairments 5 14.6 47.0 - - - - 47.7 34.8 Corporate restructuring 6 - - 47.8 - - - - - Transaction and integration costs 7 - - - - - 50.5 41.9 9.5 Restaurant closing costs 8 - - - - - - 9.2 15.7 Gain on Olive Garden Canada sale - - - - - - - (42.1) Adjusted EBITDA $1,183.8 $793.9 $1,038.7 $1,530.6 $1,589.6 $1,824.6 $1,977.2 $2,161.8 Adjusted EBITDA Margin 13.9% 10.2% 14.4% 15.9% 15.2% 16.0% 16.4% 16.4% Minimum Rent $359.5 $392.6 $385.7 $409.8 $424.3 $464.3 $498.1 $530.8 Adjusted EBITDA excluding minimum rent (EBITDAR) $1,543.3 $1,186.5 $1,424.4 $1,940.4 $2,013.9 $2,288.9 $2,475.3 $2,692.6 Adjusted Total Debt $3,331.7 $3,716.0 $3,374.6 $3,499.1 $3,566.9 $4,382.8 $5,254.5 $5,651.2 Adjusted Debt/EBITDAR Ratio 2.2 3.1 2.4 1.8 1.8 1.9 2.1 2.1 See footnotes on following page. 31 Non-GAAP Reconciliations 1 See slide 25 for non-GAAP figures presented. 2 In April 2018, our Benefits Plans Committee approved the termination of our primary non-contributory defined benefit pension plan. In fiscal 2020, the benefit obligation to plan participants was settled, resulting in a pension settlement charge. 3 Non-cash goodwill and trademark impairments were related to the economic impact of COVID-19 on Darden's overall market capitalization and the impact on Cheddar's Scratch Kitchen cash flows, coupled with the relative recency of the addition of Cheddar's to our portfolio. 4 Non-cash other asset impairments were related to the economic impact of COVID-19, approximately $15 million of which is related to inventory obsolescence and $14 million related to receivables we deemed uncollectible. 5 Fiscal 2019 non-cash asset impairment charges related to four underperforming restaurants whose projected cash flows were not sufficient to cover their respective carrying values. Fiscal 2020 non-cash impairments were related to the economic impact of COVID-19 on 11 underperforming restaurants we permanently closed during the fourth quarter of fiscal 2020 and nine other restaurants whose projected cash flows were not sufficient to cover their respective carrying values. Fiscal 2025 non-cash asset impairment charges related to 22 underperforming restaurants that were permanently closed during the fourth quarter of fiscal 2025. Fiscal 2026 non-cash asset impairment charges primarily related to the closures of Bahama Breeze locations and another underperforming location in the fourth quarter of fiscal 2026. 6 Includes cash expenses of approximately $38 million, primarily related to severance and benefits, paid over an 18-month period, and non-cash expenses of approximately $10 million related to acceleration of equity-settled awards and expense associated with the postretirement benefit plan. 7 In Fiscal 2025 and 2026, Chuy's associated costs. In Fiscal 2024, Ruth's Chris associated costs. 8 Includes cash expenses of approximately $8 million for severance and benefits related to 22 underperforming restaurants that were permanently closed during the fourth quarter. 32 Adjusted Total Debt Reconciliations 1 $ in millions 5/26/2019 5/31/2020 5/30/2021 5/29/2022 5/28/2023 5/26/2024 5/25/2025 5/31/2026 Short-term debt 2 - $270.0 - - - $86.8 - $694.0 Capital lease obligation $84.0 - - - - - - - Long-term debt 2 $939.1 $939.1 $939.1 $939.1 $939.1 $1,439.1 $2,189.1 $1,689.1 Total Debt $1,023.1 $1,209.1 $939.1 $939.1 $939.1 $1,525.9 $2,189.1 $2,383.1 Lease-debt equivalent 3 $2,157.0 $2,355.4 $2,314.2 $2,459.0 $2,545.8 $2,786.4 $2,988.9 $3,184.8 Guarantees 4 $151.6 $151.5 $121.5 $101.0 $82.0 $70.5 $76.5 $83.3 Adjusted Total Debt $3,331.7 $3,716.0 $3,374.8 $3,499.1 $3,566.9 $4,382.8 $5,254.5 $5,651.2 1 See slide 25 for non-GAAP figure presented. 2 Excluding unamortized discount and issuance costs. 3 6x minimum rent. 4 Consists solely of guarantees associated with leased properties that have been assigned to third parties and are primarily related to the disposition of Red Lobster. 33 Fiscal 2027 EBITDA Outlook Reconciliation 1 Net Earnings from Continuing Operations $1.26 billion to $1.29 billion Interest, Net Income Tax Expense Depreciation and Amortization $0.21 billion $0.19 billion $0.60 billion $0.20 billion $0.20 billion $0.60 billion EBITDA $2.26 billion to $2.29 billion 1 See slide 26 for non-GAAP figure presented. 34 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .

View stock analysis, news, and events for Darden Restaurants, Inc.