Revenue Recognition

9 Months Ended

Feb. 23, 2025

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition  

Deferred revenue liabilities from contracts with customers included on our accompanying consolidated balance sheets was comprised of the following:

(in millions)	February 23, 2025		May 26, 2024
Unearned revenues
Deferred gift card revenue	$	672.7	$	620.6
Deferred gift card discounts	(33.4)		(29.5)
Other	0.7		0.7
Total	$	640.0	$	591.8
Other liabilities
Deferred franchise fees - non-current	$	4.9	$	4.9

The following table presents a rollforward of deferred gift card revenue.

	Three Months Ended				Nine Months Ended
(in millions)	February 23, 2025		February 25, 2024		February 23, 2025		February 25, 2024
Beginning balance	$	576.9	$	580.7	$	620.6	$	537.0
Acquired deferred gift card revenue	—		—		2.6		61.8
Activations	346.5		350.6		599.9		626.4
Redemptions and breakage	(250.7)		(264.7)		(550.4)		(558.6)
Ending balance	$	672.7	$	666.6	$	672.7	$	666.6

During the second quarter of fiscal 2025, we entered into an exclusive multi-year delivery arrangement with Uber Technologies, Inc. (Uber). The agreement enables our guests to order delivery via Darden restaurant channels, with delivery handled by Uber. During the third quarter of fiscal 2025, we rolled the program out to nearly all Olive Garden locations. Revenue from orders through Company-owned platforms includes delivery fees and is recognized when the delivery partner transfers the order to the guest as the Company controls the delivery. For these sales, the Company receives payment directly from the guest at the time of sale. For all delivery sales, the Company is considered the principal and recognizes revenue on a gross basis.