v3.24.2
SEGMENT INFORMATION
 12 Months Ended
May 26, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, Ruth’s Chris, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s and The Capital Burger in North America as operating segments. The brands operate principally in the U.S. within full-service dining. We aggregate our operating segments into reportable segments based on a combination of the size, economic characteristics and sub-segment of full-service dining within which each brand operates. We have four reportable segments: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining and (4) Other Business.

The Olive Garden segment includes the results of our company-owned Olive Garden restaurants in the U.S. and Canada. The LongHorn Steakhouse segment includes the results of our company-owned LongHorn Steakhouse restaurants in the U.S. The Fine Dining segment aggregates our premium brands that operate within the fine-dining sub-segment of full-service dining and includes the results of our company-owned Ruth’s Chris, The Capital Grille and Eddie V’s restaurants in the U.S. The Other Business segment aggregates our remaining brands and includes the results of our company-owned Cheddar’s Scratch Kitchen, Yard House, Seasons 52, Bahama Breeze and The Capital Burger restaurants in the U.S and ongoing royalties and other fees from our franchise operations and contractually managed locations.

External sales are derived principally from food and beverage sales. We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our reportable segments are predominantly in the U.S. There were no material transactions among reportable segments.

Our management uses segment profit as the measure for assessing performance of our segments. Segment profit includes revenues and expenses directly attributable to restaurant-level results of operations (sometimes referred to as restaurant-level
earnings). These expenses include food and beverage costs, restaurant labor costs, restaurant expenses and marketing expenses (collectively, restaurant and marketing expenses). Non-cash lease-related expenses from our operating segments are allocated to the corporate level for restaurant expenses (which is a component of segment profit) and depreciation and amortization. Additionally, our lease-related right-of-use assets are not managed or evaluated at the operating segment level, but rather at the corporate level. For fiscal 2023, and 2022, restaurant and marketing expenses included approximately $0.2 million, and $9.0 million, respectively, of costs net of retention credits associated with the CARES Act, related to special team member and manager bonuses as well as emergency and furlough pay for restaurant employees due to COVID-19, reflected at the corporate level as they are costs for which our operating segments are not being evaluated.

The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:

(in millions)Olive GardenLongHorn SteakhouseFine DiningOther BusinessCorporateConsolidated
At May 26, 2024 and for the year ended
Sales$5,067.0 $2,806.2 $1,291.5 $2,225.3 $— $11,390.0 
Restaurant and marketing expenses3,956.8 2,295.1 1,050.5 1,888.3 (66.4)9,124.3 
Segment profit$1,110.2 $511.1 $241.0 $337.0 $66.4 $2,265.7 
Depreciation and amortization$167.7 $75.8 $65.9 $102.5 $48.0 $459.9 
Impairments and disposal of assets, net0.2 0.7 — — 11.5 12.4 
Segment assets2,862.4 2,025.7 2,596.5 2,901.1 937.3 11,323.0 
Purchases of land, buildings and equipment260.7 127.4 118.1 97.9 (2.9)601.2 
(in millions)Olive GardenLongHorn SteakhouseFine DiningOther BusinessCorporateConsolidated
At May 28, 2023 and for the year ended
Sales$4,877.8 $2,612.3 $830.8 $2,166.9 $— $10,487.8 
Restaurant and marketing expenses3,852.0 2,181.4 672.3 1,866.3 (49.3)8,522.7 
Segment profit$1,025.8 $430.9 $158.5 $300.6 $49.3 $1,965.1 
Depreciation and amortization$146.5 $67.7 $35.6 $96.8 $41.2 $387.8 
Impairments and disposal of assets, net— (3.3)— — (7.3)(10.6)
Segment assets2,835.5 1,978.3 1,345.4 2,968.9 1,113.4 10,241.5 
Purchases of land, buildings and equipment252.5 114.0 57.2 119.6 21.6 564.9 
(in millions)Olive GardenLongHorn SteakhouseFine DiningOther BusinessCorporateConsolidated
At May 29, 2022 and for the year ended
Sales$4,503.9 $2,374.3 $776.2 $1,975.6 $— $9,630.0 
Restaurant and marketing expenses3,510.2 1,955.9 611.2 1,675.4 (24.5)7,728.2 
Segment profit$993.7 $418.4 $165.0 $300.2 $24.5 $1,901.8 
Depreciation and amortization$141.0 $64.7 $33.7 $98.1 $30.9 $368.4 
Impairments and disposal of assets, net4.9 0.1 — 1.6 (8.6)(2.0)
Purchases of land, buildings and equipment154.5 91.0 42.2 86.8 2.4 376.9 
Reconciliation of segment profit to earnings from continuing operations before income taxes:
Fiscal Year Ended
(in millions)May 26, 2024May 28, 2023May 29, 2022
Segment profit$2,265.7 $1,965.1 $1,901.8 
Less general and administrative expenses(479.2)(386.1)(373.2)
Less depreciation and amortization(459.9)(387.8)(368.4)
Less impairments and disposal of assets, net(12.4)10.6 2.0 
Less interest, net(138.7)(81.3)(68.7)
Earnings before income taxes$1,175.5 $1,120.5 $1,093.5