Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The discussion and analysis below for the Company, which contains forward-looking statements, should be read in conjunction with the unaudited financial statements, the notes to such financial statements and the “Forward-Looking Statements” included elsewhere in this Form 10-Q.

To facilitate review of our discussion and analysis, the following table sets forth our financial results for the periods indicated. All information is derived from the unaudited consolidated statements of earnings for the quarters and nine months ended February 27, 2022 and February 28, 2021.

			Three Months Ended																		Nine Months Ended
(in millions)			February 27, 2022						February 28, 2021						% Chg						February 27, 2022						February 28, 2021						% Chg
Sales			$	2,448.9					$	1,733.0					41.3%						$	7,027.1					$	4,916.9					42.9%
Costs and expenses:
Food and beverage			752.7						499.4						50.7						2,132.2						1,409.0						51.3
Restaurant labor			798.7						559.4						42.8						2,279.5						1,595.6						42.9
Restaurant expenses			395.7						336.8						17.5						1,158.8						958.2						20.9
Marketing expenses			27.2						19.2						41.7						73.0						66.8						9.3
General and administrative expenses			83.1						78.9						5.3						289.0						298.8						(3.3)
Depreciation and amortization			94.3						88.2						6.9						275.4						261.8						5.2
Impairments and disposal of assets, net			(3.8)						3.1						NM						(5.5)						1.4						NM
Total costs and expenses			$	2,147.9					$	1,585.0					35.5						$	6,202.4					$	4,591.6					35.1
Operating income			301.0						148.0						NM						824.7						325.3						NM
Interest, net			17.5						15.2						15.1						49.8						46.4						7.3
Other (income) expense, net			0.2						0.5						(60.0)						0.7						8.4						(91.7)
Earnings before income taxes			283.3						132.3						NM						$	774.2					$	270.5					NM
Income tax expense (1)			35.4						3.1						NM						101.2						7.1						NM
Earnings from continuing operations			$	247.9					$	129.2					91.9						$	673.0					$	263.4					NM
Losses from discontinued operations, net of tax			(0.9)						(0.5)						80.0						(1.9)						(2.6)						(26.9)
Net earnings			$	247.0					$	128.7					91.9%						$	671.1					$	260.8					NM
Diluted net earnings per share:
Earnings from continuing operations			$	1.93					$	0.98					96.9%						$	5.17					$	2.00					NM
Losses from discontinued operations			—						—						NM						(0.01)						(0.02)						(50.0)
Net earnings			$	1.93					$	0.98					96.9%						$	5.16					$	1.98					NM
(1) Effective tax rate			12.5		%				2.3		%										13.1		%				2.6		%
NM- Percentage not considered meaningful.

The following table details the number of company-owned restaurants currently reported in continuing operations that were open at the end of the third quarter of fiscal 2022, compared with the number open at the end of fiscal 2021 and the end of the third quarter of fiscal 2021.

						February 27, 2022						May 30, 2021						February 28, 2021
Olive Garden						881						875						874
LongHorn Steakhouse						539						533						528
Cheddar’s Scratch Kitchen						173						170						170
Yard House						85						81						81
The Capital Grille						61						60						58
Seasons 52						44						44						43
Bahama Breeze						42						42						41
Eddie V’s						27						26						25
The Capital Burger						3						3						2
Total						1,855						1,834						1,822

OVERVIEW OF OPERATIONS

COVID-19 Pandemic

For much of fiscal 2021, the COVID-19 pandemic resulted in a significant reduction in guest traffic at our restaurants due to changes in consumer behavior as public health officials encouraged social distancing and required personal protective equipment. Also, some state and local governments mandated restrictions including suspension of dine-in operations, reduced restaurant seating capacity, table spacing requirements, bar closures and additional physical barriers. Once COVID-19 vaccines were approved and moved into wider distribution in the United States in early 2021, public health conditions improved and almost all of the COVID-19 restrictions on businesses have eased. During fiscal 2022, increases in the numbers of cases of COVID-19 throughout the United States including the Omicron variant which significantly impacted our restaurants in the third quarter, mostly in January 2022, subjected some of our restaurants to other COVID-19-related restrictions such as mask requirements or vaccine requirements for team members, guests or both. Exclusions and quarantines of restaurant team members or groups thereof disrupt an individual restaurant’s operations and often come with little or no notice to the local restaurant management. We continue to monitor the progression of the COVID-19 pandemic and state, local and federal government regulatory and public health responses thereto. As of the date of this report, most of our restaurants were operating with few, if any, restrictions.

Financial Highlights - Consolidated

Our sales from continuing operations were $2.45 billion and $7.03 billion for the third quarter and first nine months of fiscal 2022, respectively, compared to $1.73 billion and $4.92 billion for the third quarter and first nine months of fiscal 2021, respectively. The 41.3 percent and 42.9 percent increases in sales for the third quarter and first nine months of fiscal 2022 were driven by combined Darden same-restaurant sales increases of 38.1 percent and 39.7 percent for the third quarter and first nine months of fiscal 2022, respectively, in addition to revenue from the addition of 33 net new company-owned restaurants since the third quarter of fiscal 2021. Fiscal 2021 sales for the third quarter and first nine months were more negatively impacted by COVID-19, than our sales for the third quarter and first nine months of fiscal 2022.

For the third quarter of fiscal 2022, our net earnings from continuing operations were $247.9 million compared to $129.2 million for the third quarter of fiscal 2021, and our diluted net earnings per share from continuing operations were $1.93 for the third quarter of fiscal 2022 compared to $0.98 for the third quarter of fiscal 2021. For the first nine months of fiscal 2022, our net earnings from continuing operations were $673.0 million compared to $263.4 million for the first nine months of fiscal 2021, and our diluted net earnings per share from continuing operations were $5.17 for the first nine months of fiscal 2022 compared to $2.00 for the first nine months of fiscal 2021. Our diluted per share results from continuing operations for the first nine months of fiscal 2021 were adversely impacted by approximately $0.28 due to charges associated with our corporate restructuring plan.

Outlook

We expect sales for fiscal 2022 to be between $9.55 and $9.62 billion, driven by same-restaurant sales growth of 29 to 30 percent and 35 net new restaurants. Additionally, we expect capital expenditures incurred to build new restaurants, remodel and maintain existing restaurants and for technology initiatives to be approximately $425 million.

SALES

The following table presents our sales by segment for the periods indicated.

			Three Months Ended															Nine Months Ended
(in millions)			February 27, 2022			February 28, 2021			% Chg			SRS (1)						February 27, 2022			February 28, 2021			% Chg			SRS (1)
Olive Garden			$	1,142.6		$	872.0		31.0		%	29.9		%				$	3,310.2		$	2,489.7		33.0		%	32.0		%
LongHorn Steakhouse			$	612.7		$	454.3		34.9		%	31.6		%				$	1,727.0		$	1,238.4		39.5		%	36.1		%
Fine Dining			$	208.2		$	103.7		100.8		%	85.8		%				$	565.7		$	293.6		92.7		%	76.6		%
Other Business			$	485.4		$	303.0		60.2		%	55.2		%				$	1,424.2		$	895.2		59.1		%	54.3		%

(1)Same-restaurant sales is a year-over-year comparison of each period’s sales volumes for a 52-week year and is limited to restaurants open at least 16 months.

Olive Garden’s sales increase for the third quarter and first nine months of fiscal 2022 was primarily driven by U.S. same-restaurant sales increases combined with revenue from new restaurants. The increase in U.S. same-restaurant sales for the third quarter of fiscal 2022 resulted from a 23.5 percent increase in same-restaurant guest counts and a 5.2 percent increase in average check. The increase in U.S. same-restaurant sales for the first nine months of fiscal 2022 resulted from a 27.7 percent increase in same-restaurant guest counts and a 3.3 percent increase in average check.

LongHorn Steakhouse’s sales increase for the third quarter and first nine months of fiscal 2022 was primarily driven by same-restaurant sales increases combined with revenue from new restaurants. The increase in same-restaurant sales for the third quarter of fiscal 2022 resulted from a 24.6 percent increase in same-restaurant guest counts and a 5.6 percent increase in average check. The increase in U.S. same-restaurant sales for the first nine months of fiscal 2022 resulted from a 31.1 percent increase in same-restaurant guest counts and a 3.8 percent increase in average check.

Fine Dining’s sales increase for the third quarter and first nine months of fiscal 2022 was primarily driven by same-restaurant sales increases combined with revenue from new restaurants. The increase in same-restaurant sales for the third quarter of fiscal 2022 resulted from a 73.8 percent increase in same-restaurant guest counts combined with a 6.9 percent increase in average check. The increase in same-restaurant sales for the first nine months of fiscal 2022 resulted from a 68.5 percent increase in same-restaurant guest counts and a 4.8 percent increase in average check.

Other Business’ sales increase for the third quarter and first nine months of fiscal 2022 was primarily driven by same-restaurant sales increases combined with revenue from new restaurants. The increase in same-restaurant sales for the third quarter of fiscal 2022 resulted from a 36.7 percent increase in same-restaurant guest counts and a 13.5 percent increase in average check. The increase in same-restaurant sales for the first nine months of fiscal 2022 resulted from a 40.1 percent increase in same-restaurant guest counts and a 10.1 percent increase in average check.

COSTS AND EXPENSES

The following table sets forth selected operating data as a percent of sales for the periods indicated. All information is derived from the unaudited consolidated statements of earnings for the quarters and nine months ended February 27, 2022 and February 28, 2021.

			Three Months Ended												Nine Months Ended
			February 27, 2022						February 28, 2021						February 27, 2022						February 28, 2021
Sales			100.0		%				100.0		%				100.0		%				100.0		%
Costs and expenses:
Food and beverage			30.7						28.8						30.3						28.7
Restaurant labor			32.6						32.3						32.4						32.5
Restaurant expenses			16.2						19.4						16.5						19.5
Marketing expenses			1.1						1.1						1.0						1.4
General and administrative expenses			3.4						4.6						4.1						6.1
Depreciation and amortization			3.9						5.1						3.9						5.3
Impairments and disposal of assets, net			(0.2)						0.2						(0.1)						—
Total operating costs and expenses			87.7		%				91.5		%				88.3		%				93.4		%
Operating income			12.3						8.5						11.7						6.6
Interest, net			0.7						0.9						0.7						0.9
Other (income) expense, net			—						—						—						0.2
Earnings before income taxes			11.6						7.6						11.0						5.5
Income tax expense			1.4						0.2						1.4						0.1
Earnings from continuing operations			10.1		%				7.5		%				9.6		%				5.4		%

Quarter Ended February 27, 2022 Compared to Quarter Ended February 28, 2021

• Food and beverage costs increased as a percent of sales primarily due to a 4.5% impact from inflation and unfavorable menu mix, offset by a 2.6% impact from pricing leverage.

• Restaurant labor costs increased as a percent of sales primarily due to 2.9% impact from inflation and a 3.1% impact from decreased productivity, offset by a 5.9% impact from sales leverage.

• Restaurant expenses decreased as a percent of sales primarily due to a 4.6% impact from sales and pricing leverage, partially offset by a 0.4% impact from higher utility costs, a 0.5% impact from higher repairs and maintenance expenses and a 0.4% impact from worker’s compensation, public liability and other costs.

• Marketing expenses remained the same as a percent of sales primarily due to higher television and production marketing, offset by sales leverage.

• General and administrative expenses decreased as a percent of sales primarily due to a 1.4% impact from sales leverage and a 0.5% impact related to mark to market on deferred compensation plans, offset by a 0.9% impact from a legal recovery in the quarter ended February 28, 2021.

• Depreciation and amortization expenses decreased as a percent of sales due to sales leverage.

• Impairment and disposal of assets, net decreased as a percent of sales due to gains on disposal of assets.

Nine Months Ended February 27, 2022 Compared to Nine Months Ended February 28, 2021

• Food and beverage costs increased as a percent of sales primarily due to a 3.6% impact from inflation and unfavorable menu mix, offset by a 1.9% impact from pricing leverage.

• Restaurant labor costs decreased as a percent of sales primarily due to 5.7% impact from sales and pricing leverage, partially offset by a 3.4% impact from decreased productivity and a 2.2% impact from inflation.

• Restaurant expenses decreased as a percent of sales primarily due to a 4.7% impact from sales and pricing leverage, partially offset by a 0.6% impact from higher repairs and maintenance expenses, a 0.5% impact from higher utility costs and a 0.6% impact from all other costs.

• Marketing expenses decreased as a percent of sales due to a 0.4% impact from sales leverage.

• General and administrative expenses decreased as a percent of sales primarily due to a 1.8% impact from sales leverage and a 0.8% impact related to mark to market on deferred compensation plans and costs associated with our

corporate restructuring in the first quarter of fiscal 2021, offset by a 0.5% impact from travel and labor costs and a 0.3% impact from a legal recovery in the quarter ended February 28, 2021.

• Depreciation and amortization expenses decreased as a percent of sales due to sales leverage.

• Impairment and disposal of assets, net decreased as a percent of sales due to gains on disposal of assets.

INTEREST EXPENSE

Net interest expense decreased as a percent of sales for the third quarter and first nine months of fiscal 2022 primarily due to sales leverage.

OTHER (INCOME) EXPENSE, NET

Other (income) expense, net decreased as a percent of sales for the first nine months of fiscal 2022 primarily due to a postretirement benefit plan valuation adjustment resulting from our corporate restructuring in the first quarter of fiscal 2021.

INCOME TAXES

The effective income tax rate for continuing operations for the quarter ended February 27, 2022 was 12.5 percent, reflecting income tax expense of $35.4 million compared to an effective income tax rate for the quarter ended February 28, 2021 of 2.3 percent, reflecting income tax expense of $3.1 million. The effective tax rate for continuing operations for the nine months ended February 27, 2022 was 13.1 percent, reflecting income tax expense of $101.2 million compared to an effective income tax rate of 2.6 percent for the nine months ended February 28, 2021, reflecting income tax expense of 7.1 million. The change was primarily driven by higher net earnings from continuing operations in the quarter and nine months ended February 27, 2022 compared to the quarter and nine months ended February 28, 2021 and the impact of certain tax credits on earnings before income taxes.

LOSSES FROM DISCONTINUED OPERATIONS

On an after-tax basis, losses from discontinued operations for the third quarter and first nine months of fiscal 2022 were $0.9 million ($0.00 per diluted share) and $1.9 million ($0.01 per diluted share) compared with losses from discontinued operations for the third quarter and first nine months of fiscal 2021 of $0.5 million ($0.00 per diluted share) and $2.6 million ($0.02 per diluted share).

SEGMENT RESULTS

We manage our restaurant brands, Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s and The Capital Burger in North America as operating segments. 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. Our four reportable segments are: (1) Olive Garden, (2) LongHorn Steakhouse, (3) Fine Dining and (4) Other Business (see Note 6 to our unaudited consolidated financial statements in Part I, Item 1 of this report).

Our management uses segment profit as the measure for assessing performance of our segments. The following table presents segment profit margin for the periods indicated.

						Three Months Ended																		Nine Months Ended
Segment						February 27, 2022						February 28, 2021						Change						February 27, 2022						February 28, 2021						Change
Olive Garden						21.0%						23.2%						(220) BPS						22.0%						22.1%						(10)		BPS
LongHorn Steakhouse						18.2%						18.1%						10 BPS						17.5%						16.6%						90		BPS
Fine Dining						22.9%						16.0%						690 BPS						21.4%						16.0%						540		BPS
Other Business						13.8%						10.4%						340 BPS						15.0%						11.9%						310		BPS

The decrease in Olive Garden’s segment profit margin for the third quarter and first nine months of fiscal 2022 was driven primarily by higher restaurant labor and food and beverage costs, partially offset by lower restaurant expenses. The increase in LongHorn Steakhouse’s segment profit margin for the third quarter and first nine months of fiscal 2022 was driven by positive same-restaurant sales and decreased restaurant expenses, partially offset by increased food and beverage costs. The increase in Fine Dining’s segment profit margin for the third quarter and first nine months of fiscal 2022 was driven primarily by positive same-restaurant sales as well as decreased labor and restaurant expenses. The increase in Other Business’ segment

profit margin for the third quarter and first nine months of fiscal 2022 was driven primarily by positive same-restaurant sales as well as decreased restaurant expenses.

SEASONALITY

Our sales volumes fluctuate seasonally. Typically, our average sales per restaurant are highest in the winter and spring, followed by the summer, and lowest in the fall. Holidays, changes in the economy, severe weather and similar conditions may impact sales volumes seasonally in some operating regions. Because of the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year. We are not able to predict the impact that the COVID-19 pandemic may have on the seasonality of our business.

LIQUIDITY AND CAPITAL RESOURCES

Typically, cash flows generated from operating activities are our principal source of liquidity, which we use to finance capital expenditures for new restaurants and to remodel and maintain existing restaurants, to pay dividends to our shareholders and to repurchase shares of our common stock. Since substantially all of our sales are for cash and cash equivalents, and accounts payable are generally paid in 5 to 90 days, we are typically able to carry current liabilities in excess of current assets.

We currently manage our business and financial ratios to target an investment-grade bond rating, which has historically allowed flexible access to financing at reasonable costs. Our publicly issued long-term debt currently carries the following ratings:

• Moody’s Investors Service “Baa2”;

• Standard & Poor’s “BBB”; and

• Fitch “BBB”.

Our commercial paper has ratings of:

• Moody’s Investors Service “P-2”;

• Standard & Poor’s “A-2”; and

• Fitch “F-2”.

These ratings are as of the date of the filing of this Form 10-Q and have been obtained with the understanding that Moody’s Investors Service, Standard & Poor’s and Fitch will continue to monitor our credit and make future adjustments to these ratings to the extent warranted. The ratings are not a recommendation to buy, sell or hold our securities, may be changed, superseded or withdrawn at any time and should be evaluated independently of any other rating.

On September 10, 2021, we entered into a $1 billion Revolving Credit Agreement (Revolving Credit Agreement) with Bank of America, N.A. (BOA), as administrative agent, and the lenders and other agents party thereto. The Revolving Credit Agreement is a senior unsecured credit commitment to the Company and contains customary representations and affirmative and negative covenants (including limitations on liens and subsidiary debt and a maximum consolidated lease adjusted total debt to total capitalization ratio of 0.75 to 1.00) and events of default usual for credit facilities of this type. The Revolving Credit Agreement replaced our prior $750.0 million revolving credit agreement, dated as of October 27, 2017 and amended as of March 25, 2020. As of February 27, 2022, we had no outstanding balances and we were in compliance with all covenants under the Revolving Credit Agreement.

The Revolving Credit Agreement matures on September 10, 2026, and the proceeds may be used for working capital and capital expenditures, the refinancing of certain indebtedness, certain acquisitions and general corporate purposes. Loans under the Revolving Credit Agreement bear interest at a rate of LIBOR plus a margin determined by reference to a ratings-based pricing grid (Applicable Margin), or the base rate (which is defined as the highest of the BOA prime rate, the Federal Funds rate plus 0.500 percent, and the Eurodollar Rate plus 1.00 percent) plus the Applicable Margin. Assuming a “BBB” equivalent credit rating level, the Applicable Margin under the Revolving Credit Agreement will be 1.000 percent for LIBOR loans and 0.000 percent for base rate loans.

As of February 27, 2022, our outstanding long-term debt consisted principally of:

• $500.0 million of unsecured 3.850 percent senior notes due in May 2027;

• $96.3 million of unsecured 6.000 percent senior notes due in August 2035;

• $42.8 million of unsecured 6.800 percent senior notes due in October 2037; and

• $300.0 million of unsecured 4.550 percent senior notes due in February 2048.

The interest rate on our $42.8 million senior notes due in October 2037 is subject to adjustment from time to time if the debt rating assigned to such series of notes is downgraded below a certain rating level (or subsequently upgraded). The maximum adjustment is 2.000 percent above the initial interest rate and the interest rate cannot be reduced below the initial interest rate. As of February 27, 2022, no such adjustments are made to this rate.

We may from time to time repurchase our remaining outstanding debt in privately negotiated transactions. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements and other factors.

From time to time we enter into interest rate derivative instruments. See Note 9 to our unaudited consolidated financial statements in Part I, Item 1 of this report, which is incorporated by reference.

Net cash flows provided by operating activities of continuing operations increased to $916.5 million for the first nine months of fiscal 2022, from $746.0 million for the first nine months of fiscal 2021. Net cash flows provided by operating activities include net earnings from continuing operations of $673.0 million and $263.4 million in the first nine months of fiscal 2022 and 2021, respectively. Net cash flows provided by operating activities increased in fiscal 2022 primarily due to higher net earnings from continuing operations, offset by the change in working capital compared to fiscal 2021.

Net cash flows used in investing activities of continuing operations were $280.9 million for the first nine months of fiscal 2022, compared to $181.4 million for the first nine months of fiscal 2021. Capital expenditures increased to $275.6 million for the first nine months of fiscal 2022 from $177.3 million for the first nine months of fiscal 2021 reflecting an increase in new restaurant construction and remodel activity during fiscal 2022.

Net cash flows used in financing activities of continuing operations were $1.24 billion for the first nine months of fiscal 2022, compared to $335.5 million for the first nine months of fiscal 2021. Net cash flows used in financing activities for the first nine months of fiscal 2022 included dividends paid of $426.2 million and share repurchases of $834.1 million partially offset by proceeds from the exercise of employee stock options. Net cash flows used in financing activities for the first nine months of fiscal 2021 included repayment of a 364-day term loan of $270.0 million prior to maturity as well as dividends paid of $87.3 million partially offset by proceeds from the exercise of employee stock options. Dividends declared by our Board of Directors totaled $3.30 and $0.67 per share for the first nine months of fiscal 2022 and 2021, respectively.

On September 22, 2021, our Board of Directors authorized a new share repurchase program under which we may repurchase up to $750.0 million of our outstanding common stock in addition to any amount remaining under the prior authorization. This repurchase program does not have an expiration. During the quarter and nine months ended February 27, 2022, we repurchased 2.7 million and 5.8 million shares of our common stock, respectively, compared to 0.0 million and 0.1 million shares of our common stock, respectively, during the quarter and nine months ended February 28, 2021.

We are not a party to any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our financial condition, changes in financial condition, sales, costs or expenses, results of operations, liquidity, capital expenditures or capital resources.

Impairment of our assets, including goodwill or trademarks, adversely affects our financial position and results of operations, and our leverage ratio for purposes of our Revolving Credit Agreement. A leverage ratio exceeding the maximum permitted under our Revolving Credit Agreement would be a default under our Revolving Credit Agreement. At February 27, 2022, write-downs of goodwill, other indefinite-lived intangible assets, or any other assets in excess of approximately $1.13 billion would have been required to cause our leverage ratio to exceed the permitted maximum. As our leverage ratio is determined on a quarterly basis, and due to the seasonal nature of our business, a lesser amount of impairment in future quarters could cause our leverage ratio to exceed the permitted maximum.

FINANCIAL CONDITION

Our current assets totaled $1.28 billion as of February 27, 2022, compared to $1.87 billion as of May 30, 2021. The decrease was primarily due to a decrease in cash and cash equivalents.

Our current liabilities totaled $1.82 billion as of February 27, 2022, compared to $1.85 billion as of May 30, 2021. The decrease was primarily driven by a decrease in other current liabilities, partially offset by an increase in unearned revenues associated with gift card sales in excess of gift card redemptions.

CRITICAL ACCOUNTING ESTIMATES

We prepare our consolidated financial statements in conformity with U.S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of

assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales, costs and expenses during the reporting period. Actual results could differ from those estimates. We have discussed the development, selection and disclosure of those estimates with the Audit Committee. Our critical accounting estimates have not changed materially from those previously reported in our Annual Report on Form 10-K for the fiscal year ended May 30, 2021.

APPLICATION OF NEW ACCOUNTING STANDARDS

Information regarding application of new accounting standards is incorporated by reference from Note 1 to our unaudited consolidated financial statements in Part I, Item 1 of this report.

FORWARD-LOOKING STATEMENTS

Statements set forth in or incorporated into this report regarding the expected increase in the number of our restaurants and capital expenditures in fiscal 2022, projections for sales and all other statements that are not historical facts, including without limitation statements with respect to the financial condition, results of operations, plans, objectives, future performance and business of Darden Restaurants, Inc. and its subsidiaries that are preceded by, followed by or that include words such as “may,” “will,” “expect,” “intend,” “anticipate,” “continue,” “estimate,” “project,” “believe,” “plan,” “outlook” or similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are included, along with this statement, for purposes of complying with the safe harbor provisions of that Act. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements for any reason to reflect events or circumstances arising after such date. By their nature, forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward-looking statements. In addition to the risks and uncertainties of ordinary business obligations, and those described in information incorporated into this report, the forward-looking statements contained in this report are subject to the risks and uncertainties described in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended May 30, 2021 and in our Forms 10-Q (including this report), which are summarized as follows:

• The impacts of the novel coronavirus (COVID-19) pandemic on our business, including the response of governments and of our company to the pandemic and the effectiveness, acceptance, availability, timing and distribution of approved vaccines;

• Health concerns arising from food-related pandemics, outbreaks of flu viruses or other diseases;

• Insufficient guest or employee facing technology, or a failure to maintain a continuous and secure cyber network, free from material failure, interruption or security breach;

• Food safety and food-borne illness concerns throughout the supply chain;

• The inability to hire, train, reward and retain restaurant team members;

• A failure to recruit, develop and retain effective leaders or the loss or shortage of key personnel;

• Insufficient or ineffective response to legislation or government regulation may impact our cost structure, operational efficiencies and talent availability;

• Litigation, including allegations of illegal, unfair or inconsistent employment practices;

• Unfavorable publicity, or a failure to respond effectively to adverse publicity;

• An inability or failure to recognize, respond to and effectively manage the accelerated impact of social media;

• The inability to cancel long-term, non-cancelable leases that we may want to cancel or the inability to renew the leases that we may want to extend at the end of their terms;

• Labor and insurance costs;

• Our inability or failure to execute a comprehensive business continuity plan following a major natural disaster such as a hurricane or manmade disaster, including terrorism;

• Intense competition, or an insufficient focus on competition and the consumer landscape;

• Changes in consumer preferences that may adversely affect demand for food at our restaurants;

• Our failure to drive both short-term and long-term profitable sales growth through brand relevance, operating excellence, opening new restaurants of existing brands and developing or acquiring new dining brands;

• A lack of suitable new restaurant locations or a decline in the quality of the locations of our current restaurants;

• Higher-than-anticipated costs to open, close, relocate or remodel restaurants;

• A failure to identify and execute innovative marketing and guest relationship tactics and ineffective or improper use of other marketing initiatives and increased advertising and marketing costs;

• A failure to address cost pressures, including rising costs for commodities, labor, health care and utilities used by our restaurants, and a failure to effectively deliver cost management activities and achieve economies of scale in purchasing;

• The impact of shortages or interruptions in the delivery of food and other products from third-party vendors and suppliers;

• Adverse weather conditions and natural disasters;

• Volatility in the market value of derivatives we may use to hedge commodity and broader market prices;

• Volatility in the United States equity markets that may affect our ability to efficiently hedge exposures to our market risk related to equity-based compensation awards;

• Economic and business factors specific to the restaurant industry and other general macroeconomic factors including energy prices and interest rates that are largely out of our control;

• Disruptions in the financial markets that may impact consumer spending patterns, affect the availability and cost of credit;

• Risks associated with doing business with franchisees and licensees;

• Risks associated with doing business with business partners and vendors in foreign markets;

• Failure to protect our service marks or other intellectual property;

• Impairment of the carrying value of our goodwill or other intangible assets;

• Changes in tax laws or treaties and unanticipated tax liabilities; and

• A failure of our internal controls over financial reporting and future changes in accounting standards.

Any of the risks described above or elsewhere in this report or our other filings with the SEC could have a material impact on our business, financial condition or results of operations. It is not possible to predict or identify all risk factors. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also impair our business operations. Therefore, the above is not intended to be a complete discussion of all potential risks or uncertainties.