LEASES

12 Months Ended

May 25, 2025

Leases [Abstract]

LEASES

LEASES

The components of lease expense for continuing operations in the consolidated statements of earnings for the fiscal years ended May 25, 2025, May 26, 2024 and May 28, 2023 are as follows:

(in millions)	May 25, 2025		May 26, 2024		May 28, 2023
Operating lease expense	$	413.7	$	404.6	$	377.9
Finance lease expense
Amortization of leased assets	57.2		48.1		41.2
Interest on lease liabilities	67.7		54.2		44.3
Variable lease expense	35.6		34.6		22.6
Total lease expense	$	574.2	$	541.5	$	486.0

The components of lease assets and liabilities on the consolidated balance sheet as of May 25, 2025 and May 26, 2024 are as follows:

(in millions)	Balance Sheet Classification	May 25, 2025		May 26, 2024
Operating lease right-of-use assets	Operating lease right-of-use assets	$	3,555.9	$	3,429.3
Finance lease right-of-use assets	Land, buildings and equipment, net	1,294.2		1,106.3
Total lease assets, net		$	4,850.1	$	4,535.6
Operating lease liabilities - current	Other current liabilities	$	220.1	$	198.8
Finance lease liabilities - current	Other current liabilities	23.8		15.3
Operating lease liabilities - non-current	Operating lease liabilities - non-current	3,816.9		3,704.7
Finance lease liabilities - non-current	Other liabilities	1,583.8		1,357.1
Total lease liabilities		$	5,644.6	$	5,275.9

Supplemental cash flow information related to leases for the fiscal years ended May 25, 2025, May 26, 2024 and May 28, 2023:

(in millions)	May 25, 2025		May 26, 2024		May 28, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases (1)	$	410.4	$	397.2	$	367.6
Operating cash flows from finance leases	67.7		54.2		44.3
Financing cash flows from finance leases (1)	22.8		22.0		19.8
Right-of-use assets obtained in exchange for new operating lease liabilities (2)	373.0		341.2		131.5
Right-of-use assets obtained in exchange for new finance lease liabilities	152.8		97.3		75.1
Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance	81.5		49.8		86.3

(1) Excludes cash received for any lease incentives.

(2) Right-of-use assets obtained in fiscal 2025 and fiscal 2024 includes $331.9 million from the acquisition of Chuy’s and $303.4 million from the acquisition of Ruth’s Chris, respectively.

The weighted-average remaining lease terms and discount rates as of May 25, 2025 and May 26, 2024 are as follows:

(in millions)	May 25, 2025		May 26, 2024
Weighted-Average Remaining Lease Term (Years)
Operating leases	14.8		14.8
Finance leases	22.3		22.2
Weighted-Average Discount Rate (1)
Operating leases	4.6	%	4.5	%
Finance leases	4.7	%	4.4	%

(1)We cannot determine the interest rate implicit in our leases. Therefore, the discount rate represents our incremental borrowing rate and is determined based on the risk-free rate, adjusted for the risk premium attributed to our corporate credit rating for a secured or collateralized instrument.

The annual maturities of our lease liabilities as of May 25, 2025 are as follows:

(in millions)
Fiscal Year	Operating Leases		Finance Leases
2026	438.0		102.9
2027	443.5		107.6
2028	435.8		109.4
2029	420.0		111.2
2030	403.7		113.2
Thereafter	3,648.7		2,200.6
Total future lease commitments (1)	$	5,789.7	$	2,744.9
Less imputed interest	(1,752.7)		(1,137.3)
Present value of lease liabilities (2)	$	4,037.0	$	1,607.6

(1)Of the $5,789.7 million of total future operating lease commitments and $2,744.9 million of total future finance lease commitments, $2,250.1 million and $815.9 million, respectively, are non-cancelable.

(2)Excludes approximately $194.4 million of net present value of lease payments related to 52 real estate leases signed, but not yet commenced.

LEASES

LEASES

The components of lease expense for continuing operations in the consolidated statements of earnings for the fiscal years ended May 25, 2025, May 26, 2024 and May 28, 2023 are as follows:

(in millions)	May 25, 2025		May 26, 2024		May 28, 2023
Operating lease expense	$	413.7	$	404.6	$	377.9
Finance lease expense
Amortization of leased assets	57.2		48.1		41.2
Interest on lease liabilities	67.7		54.2		44.3
Variable lease expense	35.6		34.6		22.6
Total lease expense	$	574.2	$	541.5	$	486.0

The components of lease assets and liabilities on the consolidated balance sheet as of May 25, 2025 and May 26, 2024 are as follows:

(in millions)	Balance Sheet Classification	May 25, 2025		May 26, 2024
Operating lease right-of-use assets	Operating lease right-of-use assets	$	3,555.9	$	3,429.3
Finance lease right-of-use assets	Land, buildings and equipment, net	1,294.2		1,106.3
Total lease assets, net		$	4,850.1	$	4,535.6
Operating lease liabilities - current	Other current liabilities	$	220.1	$	198.8
Finance lease liabilities - current	Other current liabilities	23.8		15.3
Operating lease liabilities - non-current	Operating lease liabilities - non-current	3,816.9		3,704.7
Finance lease liabilities - non-current	Other liabilities	1,583.8		1,357.1
Total lease liabilities		$	5,644.6	$	5,275.9

Supplemental cash flow information related to leases for the fiscal years ended May 25, 2025, May 26, 2024 and May 28, 2023:

(in millions)	May 25, 2025		May 26, 2024		May 28, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases (1)	$	410.4	$	397.2	$	367.6
Operating cash flows from finance leases	67.7		54.2		44.3
Financing cash flows from finance leases (1)	22.8		22.0		19.8
Right-of-use assets obtained in exchange for new operating lease liabilities (2)	373.0		341.2		131.5
Right-of-use assets obtained in exchange for new finance lease liabilities	152.8		97.3		75.1
Net change in right-of-use assets mainly due to lease modifications resulting in reclassification of leases from operating to finance	81.5		49.8		86.3

(1) Excludes cash received for any lease incentives.

(2) Right-of-use assets obtained in fiscal 2025 and fiscal 2024 includes $331.9 million from the acquisition of Chuy’s and $303.4 million from the acquisition of Ruth’s Chris, respectively.

The weighted-average remaining lease terms and discount rates as of May 25, 2025 and May 26, 2024 are as follows:

(in millions)	May 25, 2025		May 26, 2024
Weighted-Average Remaining Lease Term (Years)
Operating leases	14.8		14.8
Finance leases	22.3		22.2
Weighted-Average Discount Rate (1)
Operating leases	4.6	%	4.5	%
Finance leases	4.7	%	4.4	%

(1)We cannot determine the interest rate implicit in our leases. Therefore, the discount rate represents our incremental borrowing rate and is determined based on the risk-free rate, adjusted for the risk premium attributed to our corporate credit rating for a secured or collateralized instrument.

The annual maturities of our lease liabilities as of May 25, 2025 are as follows:

(in millions)
Fiscal Year	Operating Leases		Finance Leases
2026	438.0		102.9
2027	443.5		107.6
2028	435.8		109.4
2029	420.0		111.2
2030	403.7		113.2
Thereafter	3,648.7		2,200.6
Total future lease commitments (1)	$	5,789.7	$	2,744.9
Less imputed interest	(1,752.7)		(1,137.3)
Present value of lease liabilities (2)	$	4,037.0	$	1,607.6

(1)Of the $5,789.7 million of total future operating lease commitments and $2,744.9 million of total future finance lease commitments, $2,250.1 million and $815.9 million, respectively, are non-cancelable.

(2)Excludes approximately $194.4 million of net present value of lease payments related to 52 real estate leases signed, but not yet commenced.