The Company acquired 100% of Chuy's Holdings, Inc., including 103 restaurants, for $649.1 million in an all-cash transaction on October 11, 2024. This acquisition significantly expanded the 'Other Business' segment, which saw a 22.5% sales increase and a 90 basis point segment profit margin improvement.

Darden completed the sale of eight Olive Garden Canada locations on July 14, 2025, resulting in a $42.0 million gain on disposal of assets. Additionally, the Company is exploring strategic alternatives for its Bahama Breeze brand, including a potential sale or conversion of its 28 owned and one franchised locations, indicating active portfolio management.

The exclusive multi-year delivery arrangement with Uber Technologies, Inc. has been rolled out to nearly all Olive Garden and Cheddar's Scratch Kitchen locations. This initiative aims to enhance guest convenience and expand off-premise sales channels, contributing to the overall sales growth.

Food and beverage costs decreased by 0.7% as a percent of sales, primarily due to pricing leverage, partially offsetting a 0.5% impact from inflation. This demonstrates management's ability to mitigate rising input costs through strategic pricing.

Despite a 1.0% increase in restaurant labor costs due to inflation and higher performance-based compensation, a 0.7% impact from pricing leverage and a 0.2% impact from productivity helped offset these increases. Similarly, restaurant expenses saw a 0.7% positive impact from sales leverage.

General and administrative expenses decreased as a percent of sales primarily due to a 0.5% impact from sales leverage, including synergies realized from the Chuy's transaction. This indicates management's progress in integrating the acquired business and achieving cost efficiencies.

The Company continues to face risks related to 'cost pressures, including rising costs for commodities, labor, health care and utilities' and the 'failure to effectively deliver cost management activities and achieve economies of scale in purchasing,' as highlighted in the forward-looking statements.

A significant risk factor identified is 'the inability to hire, train, reward and retain restaurant team members and determine and maintain adequate staffing,' alongside 'a failure to recruit, develop and retain effective leaders or the loss or shortage of personnel with key capacities and skills,' indicating potential labor market difficulties.

The filing explicitly lists 'a failure to successfully complete our integration of Chuy's operations into our business' as a risk factor. While synergies are being realized, the complexity of integrating 103 new restaurants presents ongoing operational and financial risks.

Olive Garden reported a 5.9% same-restaurant sales increase, LongHorn Steakhouse achieved 5.5%, and Other Business grew by 3.3%. These figures indicate strong brand performance and customer appeal in a competitive full-service dining market.

Olive Garden's U.S. same-restaurant sales increase included a 3.1% rise in average check, while LongHorn Steakhouse saw a 2.3% increase and Other Business a 2.4% increase. This suggests the Company has been able to pass on some cost increases to consumers without significantly impacting guest counts.

The Company acknowledges 'intense competition, or an insufficient strategy or focus, on competition and the consumer landscape' as a risk factor. Despite strong performance, the restaurant industry is highly competitive, requiring continuous strategic adaptation.

Food and beverage costs as a percentage of sales decreased from 30.7% to 30.5% year-over-year. This 0.7% improvement was primarily driven by pricing leverage, partially offsetting inflationary pressures, indicating effective cost control measures.

Restaurant labor costs increased by 1.0% as a percentage of sales due to inflation and higher performance-based compensation. However, this was partially mitigated by a 0.2% impact from productivity, suggesting ongoing efforts to optimize labor efficiency.

Restaurant expenses as a percentage of sales increased by 0.1% to 16.6%, driven by a 0.5% impact from inflation and a 0.3% impact from Uber direct fees. While partially offset by sales leverage, these factors indicate rising operational overheads.

The Company entered into an exclusive multi-year delivery arrangement with Uber Technologies, Inc., rolling out the program to nearly all Olive Garden and Cheddar's Scratch Kitchen locations. This initiative leverages technology to enhance customer access and off-premise sales.

Management expects capital expenditures for fiscal 2026 to be between $700 million and $750 million, which includes investments in 'technology initiatives.' This indicates a commitment to leveraging technology for future growth and operational improvements.

The Company identifies 'insufficient guest or employee facing technology or a failure to maintain a continuous or secure cyber network' as a risk factor. This highlights the ongoing need for investment and vigilance in technological infrastructure and innovation to maintain competitiveness.

Capital expenditures for the three months ended August 24, 2025, increased to $174.1 million from $145.2 million in the prior year. This reflects an increase in new restaurant construction and remodel spend, supporting future growth and maintaining existing assets.

The Board of Directors declared a cash dividend of $1.50 per share, an increase from $1.40 per share in the prior year. Additionally, a new $1 billion share repurchase program was authorized, and the Company repurchased $182.7 million in common stock during the quarter, indicating a commitment to returning value to shareholders.

The Revolving Credit Agreement was amended to replace the prior financial covenant with a new maximum consolidated leverage ratio of 3.50 to 1.00, providing more flexibility. Net cash flows used in financing activities included $142.0 million in net borrowings of commercial paper, partially financing the Chuy's acquisition.

The SEC adopted new rules in March 2024 requiring disclosure of material climate-related risks, including greenhouse gas emissions. While the SEC issued a voluntary stay on these rules, Darden 'continues to monitor the status of these rules,' indicating an awareness of evolving environmental reporting expectations.

The Company lists 'Environmental, social and governance risk, including disclosure expectations and the impact of third party ratings' as a general risk factor. This acknowledges the increasing importance of ESG considerations for the business and its stakeholders.

The filing identifies 'impacts of climate change, adverse weather conditions and natural disasters' as a potential risk factor. This highlights the Company's recognition of external environmental factors that could affect its operations and financial performance.

The Company operates in the full-service dining segment and achieved a blended same-restaurant sales increase of 4.7%. This suggests a resilient demand environment for its brands, even as 'economic and business factors' and 'general macroeconomic factors' are listed as potential risks.

Darden notes that 'sales volumes have historically fluctuated seasonally,' with average sales per restaurant highest in winter and spring. This inherent seasonality means that 'results for any fiscal quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.'

The 'One Big Beautiful Bill Act (OBBBA)' enacted on July 4, 2025, impacts tax deductions, and new FASB ASUs (2023-09, 2024-03) are being evaluated for their impact on income tax and expense disclosures. This indicates a dynamic regulatory environment requiring ongoing assessment.