Subsequent Events

9 Months Ended

Feb. 23, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

In March 2020, the COVID-19 outbreak was declared a National Public Health Emergency and resulted in a significant reduction in guest traffic at our restaurants due to changes in consumer behavior as individuals are being encouraged to practice social distancing, reduced restaurant seating capacity and other restrictions mandated by state and local governments. As of March 20, 2020, we have closed the dining rooms in all of our restaurants and almost all continue to operate on a “To Go” only or, for some restaurants, “To Go plus delivery” model. We have been in discussions with our major suppliers and currently have not experienced disruptions in our supply chain. Given the level of volatility and uncertainty surrounding the future impact of the COVID-19 outbreak, measures taken to control its spread, the broader US economy and any specific impact on our financial results, our Board of Directors has suspended the quarterly cash dividend and intends to review our dividend policy as developments warrant. Additionally, to secure our liquidity position and provide financial flexibility given uncertain

market conditions we have fully drawn on our $750.0 million Revolving Credit Agreement and suspended our current share repurchase activity.

Given the present uncertainty surrounding the global economy due to the COVID-19 outbreak, including but not limited to stock price volatility in general, the volatility of our stock price as well as our competitors, declining sales at our restaurants and the challenging environment for the restaurant industry, it is possible that non-cash impairments could be identified in our assets, including goodwill. However, the likelihood or the amount of an impairment charge cannot be reasonably estimated at this time.