Stock-Based Compensation (Tables)

3 Months Ended

Aug. 25, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The weighted-average fair value of non-qualified stock options and the related assumptions used in the Black-Scholes option pricing model for options granted during the periods presented, were as follows:

	Three Months Ended
	August 25, 2024			August 27, 2023
Weighted-average fair value	$	44.79		$	55.56
Dividend yield	3.6		%	3.4		%
Expected volatility of stock	40.8		%	42.2		%
Risk-free interest rate	4.1		%	4.0		%
Expected option life (in years)	6.3			5.9
Weighted-average exercise price per share	$	139.43		$	169.02

The weighted-average grant date fair value of market-based performance stock units and the related assumptions used in the Monte Carlo simulation to record stock-based compensation for units granted during the periods presented, were as follows:

	Three Months Ended
	August 25, 2024			August 27, 2023
Dividend yield (1)	0.0		%	0.0		%
Expected volatility of stock	26.5		%	32.3		%
Risk-free interest rate	4.2		%	4.5		%
Expected life (in years)	2.9			2.9
Weighted-average grant date fair value per unit	$	181.65		$	217.11

(1)Assumes a reinvestment of dividends.

Schedule of Stock-Based Compensation Activity

The following table presents a summary of our stock-based compensation activity for the three months ended August 25, 2024.

(in millions)	Stock Options	Restricted Stock/ Restricted Stock Units	Equity-Settled Performance Stock Units	Cash-Settled Darden Stock Units
Outstanding beginning of period	1.34	0.26	0.35	0.76
Awards granted	0.17	0.05	0.11	0.17
Awards granted performance impact	—	—	0.02	—
Awards exercised/vested	(0.09)	(0.04)	(0.15)	(0.25)
Awards forfeited	—	—	—	(0.01)
Outstanding end of period	1.42	0.27	0.33	0.67

Schedule of Recognized Expense From Stock-Based Compensation

We recognized expense from stock-based compensation as follows: 

	Three Months Ended
(in millions)	August 25, 2024		August 27, 2023
Stock options	$	4.8	$	4.2
Restricted stock/restricted stock units	5.5		4.6
Equity-settled performance stock units	12.5		10.5
Cash-settled Darden stock units	10.6		9.7
Employee stock purchase plan	0.8		0.7
Director compensation program/other	0.5		0.6
Total stock-based compensation expense	$	34.7	$	30.3