Income Taxes

6 Months Ended

Nov. 24, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The effective income tax rate for continuing operations for the quarter ended November 24, 2024 was 12.3 percent compared to an effective income tax rate for the quarter ended November 26, 2023 of 12.1 percent. The increase in the tax rate is primarily driven by nondeductible transaction costs related to Chuy’s. The effective income tax rate for continuing operations for the six months ended November 24, 2024 was 11.4 percent compared to an effective income tax rate for the six months ended November 26, 2023 of 12.4 percent. The decrease in the tax rate is primarily driven by the release of federal tax reserves and the favorable impact of mark to market hedges.

Included in our remaining balance of unrecognized tax benefits is $2.0 million related to tax positions for which it is reasonably possible that the total amounts could change within the next 12 months based on the outcome of examinations or as a result of the expiration of the statute of limitations for specific jurisdictions.