BRINKER INTERNATIONAL, INC (EAT)

CIK: 0000703351. SIC: 5812 Retail-Eating Places. Latest 10-K as of: 2025-08-15.

SIC breadcrumb: Retail Trade > Eating And Drinking Places > SIC 5812 Retail-Eating Places

SEC company page: https://www.sec.gov/edgar/browse/?CIK=703351. Latest filing source: 0000703351-25-000035.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-08-15. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000703351.json. Derived margins are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Missing metrics are omitted rather than fabricated.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000703351.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0000703351-26-000015.

Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high. Filing date: 2026-04-29. Report date: 2026-03-25.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help you understand our Company, our operations and our current operating environment. For an understanding of the significant factors that influenced our performance during the thirteen and thirty-nine week periods ended March 25, 2026 and March 26, 2025. The MD&A should be read in conjunction with the Consolidated Financial Statements (Unaudited) and related Notes to Consolidated Financial Statements (Unaudited) included in this quarterly report. All amounts within the MD&A are presented in millions unless otherwise specified.

Overview

We own, develop, operate and franchise the Chili’s® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy® (“Maggiano’s”) restaurant brands. As of March 25, 2026, we owned, operated or franchised 1,632 restaurants, consisting of 1,162 Company-owned restaurants and 470 franchised restaurants, located in the United States, 28 other countries and two United States territories. Our operating segments are Chili’s and Maggiano’s.

Operating Environment

Geopolitical and other macroeconomic events have led, and in the future may lead to, wage inflation, staffing challenges, product cost inflation (inclusive of tariffs) and/or disruptions in the supply chain that impact our restaurants’ ability to obtain the products needed to support their operation. Such events could also negatively affect consumer spending potentially reducing guest traffic and/or reducing the average amount guests spend in our restaurants.

Operations Strategy

We are committed to strategies and a Company culture that we believe will grow sales, increase profits, bring back guests and engage team members. Our strategies and culture are intended to strengthen our position in casual dining and grow our core business over time. Our primary brand strategy is to make our guests feel special through great food and quality service so that they return to our restaurants.

Chili’s - Our strategy is to make everyone feel special through a fun atmosphere, delicious food and drinks and Chilihead hospitality. We are making work at Chili’s easier, more fun and more rewarding for our team members so that they are more engaged and provide a better experience for our guests. One way we have done this is by eliminating tasks that were unnecessary and did not add value to our guests. We have also simplified our menu to focus on core equities we believe can help grow sales—burgers, fajitas, Chicken Crispers®, margaritas, and the Triple Dipper®. Our team members can make our core menu items better and more consistently because we have fewer menu items that need to be perfected.

We have a flexible platform of value offerings at both lunch and dinner that we believe is compelling to our guests. Our “3 for Me”® platform allows guests to enjoy a non-alcoholic drink, an appetizer and certain entrées starting at just $10.99. We believe our value offerings will continue to be an important traffic driver in the current economic circumstances and we will continue to highlight this value in our marketing efforts. We have increased menu pricing in other areas in light of the inflationary challenges and we have also improved menu offerings and merchandising to incentivize our guests to purchase higher priced items.

In addition, Chili’s has focused on a seamless digital experience as our guests’ preferences and expectations around dining convenience have evolved in recent years. Investments in our technology and off-premise options have enabled us to provide a faster, more convenient dine-in experience and to offer more To-Go and delivery options for our guests. Our To-Go menu is available through the Chili’s mobile app, chilis.com, our delivery partners DoorDash, Uber Eats and Grubhub, Google Food Ordering or by calling the restaurant directly.

19

Table of Contents

In dining rooms, we use tabletop devices with functionality for guests to pay at the table, provide guest feedback and interact with our My Chili’s rewards program. Our My Chili’s rewards program offers free chips and salsa or a non-alcoholic beverage to members any time they visit our restaurants and allows us to communicate and advertise to our guests through email and text. Our servers use handheld tablets to place orders for our guests, increasing the efficiency of our team members and allowing orders to reach our kitchen quicker for better service to our guests.

Maggiano’s - At Maggiano’s, the focus is executing to improve performance and operations through the Company’s Back to Maggiano’s strategy. The strategy includes in-flight initiatives across food, service and atmosphere with the aim of revitalizing the brand’s core, serving Italian American favorites with warm and attentive service. While our dining rooms support the majority of our business, we also offer carry-out and delivery options through partnerships with delivery service providers that have made our restaurants more accessible to guests. Our restaurants also have banquet rooms to host large special events, particularly during the holiday season in the second and third quarters of the fiscal year.

Franchise Partnerships - During the thirty-nine week period ended March 25, 2026, there were 20 new franchise restaurant openings and two new development agreements. We plan to strategically pursue expansion of Chili’s internationally through development agreements with new and existing franchise partners.

Company Development - The following table details the number of restaurant openings during the thirteen and thirty-nine week periods ended March 25, 2026 and March 26, 2025, respectively, total full year projected openings in fiscal 2026 and the total restaurants open at each period end:

Openings During the

Openings During the

Full Year Projected Openings

Thirteen Week Periods Ended

Thirty-Nine Week Periods Ended

Total Open Restaurants at

March 25, 2026

March 26, 2025

March 25, 2026

March 26, 2025

Fiscal 2026

March 25, 2026

March 26, 2025

Company-owned restaurants

Chili’s domestic

2 

1 

5 

2 

6 

1,110 

1,109 

Chili’s international

— 

— 

— 

— 

— 

4 

4 

Maggiano’s domestic

— 

— 

— 

— 

— 

48 

50 

Total Company-owned

2 

1 

5 

2 

6 

1,162 

1,163 

Franchise restaurants

Chili’s domestic

3 

— 

3 

2 

3 

100 

99 

Chili’s international

7 

6 

17 

24 

24-27

367 

361 

Maggiano’s domestic

— 

— 

— 

1 

— 

3 

3 

Total franchise

10 

6 

20 

27 

27-30

470 

463 

Total restaurants

Chili’s domestic

5 

1 

8 

4 

9 

1,210 

1,208 

Chili’s international

7 

6 

17 

24 

24-27

371 

365 

Maggiano’s domestic

— 

— 

— 

1 

— 

51 

53 

Total

12 

7 

25 

29 

33-36

1,632 

1,626 

Additionally, the Company is relocating one Maggiano’s restaurant with an expected opening in the current year.

During the thirty-nine week period ended March 25, 2026, we purchased the land and buildings for two restaurants that were previously leased. As of March 25, 2026, we own property for 56 of the 1,162 Company-owned restaurants and one closed restaurant. The net book values associated with these restaurants included land of $46.0 million and buildings of $24.5 million.

20

Table of Contents

Revenues

Thirteen and Thirty-Nine Week Periods Ended March 25, 2026 compared to March 26, 2025

Revenues are presented in two separate captions in the Consolidated Statements of Comprehensive Income (Unaudited) to provide more clarity around Company-owned restaurant revenues and operating expenses trends:

•Company sales include revenues generated by the operation of Company-owned restaurants including food and beverage sales, net of discounts, delivery service fee income, gift card breakage, digital entertainment revenues, merchandise income, Maggiano’s banquet service charge income, and are net of gift card discount costs from third-party gift card sales.

•Franchise revenues include royalties, franchise advertising fees, franchise and development fees, and other service fees.

The following is a summary of the change in Total revenues:

Total Revenues

Chili’s

Maggiano’s

Total Revenues

Thirteen Week Period Ended March 26, 2025

$

1,304.1 

$

121.0 

$

1,425.1 

Change from:

Comparable restaurant sales

50.7 

(5.2)

45.5 

Restaurant openings

9.3 

— 

9.3 

Delivery service fee income

0.2 

— 

0.2 

Merchandise income

0.1 

— 

0.1 

Digital entertainment revenues

(0.1)

— 

(0.1)

Gift card breakage

(0.9)

(0.1)

(1.0)

Maggiano's banquet income(1)

— 

(3.2)

(3.2)

Restaurant closures

(3.4)

(4.9)

(8.3)

Company sales

55.9 

(13.4)

42.5 

Franchise revenues(2)

2.6 

— 

2.6 

Thirteen Week Period Ended March 25, 2026

$

1,362.6 

$

107.6 

$

1,470.2 

21

Table of Contents

Total Revenues

Chili’s

Maggiano’s

Total Revenues

Thirty-Nine Week Period Ended March 26, 2025

$

3,543.3 

$

379.0 

$

3,922.3 

Change from:

Comparable restaurant sales

366.7 

(14.9)

351.8 

Restaurant openings

24.9 

— 

24.9 

Delivery service fee income

0.6 

— 

0.6 

Digital entertainment revenues

0.2 

— 

0.2 

Merchandise income

0.1 

— 

0.1 

Gift card discounts

(0.3)

— 

(0.3)

Gift card breakage

(1.6)

(0.2)

(1.8)

Maggiano's banquet income(1)

— 

(8.9)

(8.9)

Restaurant closures

(10.2)

(13.1)

(23.3)

Company sales

380.4 

(37.1)

343.3 

Franchise revenues(2)

5.9 

0.1 

6.0 

Thirty-Nine Week Period Ended March 25, 2026

$

3,929.6 

$

342.0 

$

4,271.6 

(1)Maggiano's banquet income decreased primarily due to management’s decision to substantially eliminate banquet service charges at the end of the first quarter of fiscal 2026.

(2)Franchise revenues increased in the thirteen and thirty-nine week periods ended March 25, 2026 compared to March 26, 2025 primarily because of higher royalties. The table below presents sales from our franchisees:

Thirteen Week Periods Ended

Thirty-Nine Week Periods Ended

March 25, 2026

March 26, 2025

March 25, 2026

March 26, 2025

Chili's franchisee sales

$

274.1 

$

237.4 

$

817.6 

$

700.1 

Maggiano's franchisee sales

4.3 

5.0 

13.0 

12.2 

The table below presents the percentage change in comparable restaurant sales and restaurant capacity for the thirteen and thirty-nine week periods ended March 25, 2026 compared to March 26, 2025:

Percentage Change in the Thirteen Week Period Ended March 25, 2026 versus March 26, 2025

Comparable Restaurant Sales(1)

Price Impact

Mix-Shift Impact(2)

Traffic Impact

Restaurant Capacity(3)

Company-owned

3.3 

%

4.7 

%

0.6 

%

(2.0)

%

(0.1)

%

Chili’s

4.0 

%

4.6 

%

0.6 

%

(1.2)

%

— 

%

Maggiano’s

(4.6)

%

5.2 

%

0.6 

%

(10.4)

%

(4.0)

%

Franchise(4)

5.7 

%

U.S.

5.6 

%

International

5.7 

%

Chili’s domestic(5)

4.1 

%

System-wide(6)

3.6 

%

22

Table of Contents

Percentage Change in the Thirty-Nine Week Period Ended March 25, 2026 versus March 26, 2025

Comparable Restaurant Sales(1)

Price Impact

Mix-Shift Impact(2)

Traffic Impact

Restaurant Capacity(3)

Company-owned

9.2 

%

4.5 

%

1.8 

%

2.9 

%

(0.4)

%

Chili’s

10.6 

%

4.4 

%

1.8 

%

4.4 

%

(0.2)

%

Maggiano’s

(4.3)

%

5.7 

%

0.5 

%

(10.5)

%

(3.3)

%

Franchise(4)

9.5 

%

U.S.

11.7 

%

International

8.2 

%

Chili’s domestic(5)

10.7 

%

System-wide(6)

9.3 

%

(1)Comparable Restaurant Sales include all restaurants that have been in operation for more than 18 full months. Restaurants temporarily closed 14 days or more are excluded from Comparable Restaurant Sales. Percentage amounts are calculated based on the comparable periods year-over-year.

(2)Mix-Shift is calculated as the year-over-year percentage change in Company sales resulting from the change in menu items ordered by guests.

(3)Restaurant Capacity is measured by sales weeks and is calculated bas

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high. Filing date: 2025-08-15. Report date: 2025-06-25.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help you understand our Company, our operations and our current operating environment. For an understanding of the significant factors that influenced our performance, the MD&A should be read in conjunction with the Consolidated Financial Statements and related Notes to Consolidated Financial Statements included in Part II, Item 8 - Financial Statements and Supplementary Data of this report. Our MD&A consists of the following sections:

•Overview - a brief description of our business and a discussion on the external trends impacting our business;

•Results of Operations - an analysis of the Consolidated Statements of Comprehensive Income included in the Consolidated Financial Statements;

•Liquidity and Capital Resources - an analysis of cash flows, including capital expenditures, aggregate contractual obligations, financing activity, and known trends that may impact liquidity, including off-balance sheet arrangements; and

•Critical Accounting Estimates - a discussion of accounting policies that require critical judgments and estimates, including recent accounting pronouncements.

The following MD&A includes a discussion comparing our results in fiscal 2025 to fiscal 2024. For a discussion comparing our results from fiscal 2024 to fiscal 2023, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended June 26, 2024, filed with the SEC on August 21, 2024.

The Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States, and include the accounts of Brinker International, Inc. and our wholly-owned subsidiaries. All

24

Table of Contents

intercompany accounts and transactions have been eliminated in consolidation. We have a 52 or 53 week fiscal year ending on the last Wednesday in June. We utilize a 13 week accounting period for quarterly reporting purposes, except in years containing 53 weeks when the fourth quarter contains 14 weeks. Fiscal 2025, Fiscal 2024, and Fiscal 2023 which ended on June 25, 2025, June 26, 2024, and June 28, 2023, respectively, each contained 52 weeks. All amounts within the MD&A are presented in millions unless otherwise specified.

OVERVIEW

The Company is principally engaged in the ownership, operation, development, and franchising of the Chili’s® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy® (“Maggiano’s”) restaurant brands. Our two restaurant brands, Chili’s and Maggiano’s, are both operating segments and reporting units. Refer to Part I, Item 1 - Business of this document for additional information about our business and operational strategies.

Operating Environment

During the recent years, our operating results were impacted by geopolitical and other macroeconomic events, leading to higher than usual inflation on wages and food and beverage costs. Geopolitical and other macroeconomic events have led, and in the future may lead to, wage inflation, staffing challenges, product cost inflation and/or disruptions in the supply chain that impact our restaurants’ ability to obtain the products needed to support their operation. Such events could also negatively affect consumer spending potentially reducing guest traffic and/or reducing the average amount guests spend in our restaurants.

RESULTS OF OPERATIONS

The following table sets forth selected operating data:

Fiscal Years Ended

June 25, 2025

June 26, 2024

Dollars

As a percentage(1)

Dollars

As a percentage(1)

Revenues

Company sales

$

5,335.3 

99.1 

%

$

4,371.1 

99.0 

%

Franchise revenues

48.9 

0.9 

%

44.0 

1.0 

%

Total revenues

5,384.2 

100.0 

%

4,415.1 

100.0 

%

Operating costs and expenses

Food and beverage costs

1,350.6 

25.3 

%

1,107.6 

25.3 

%

Restaurant labor

1,717.3 

32.2 

%

1,467.3 

33.6 

%

Restaurant expenses

1,333.9 

25.0 

%

1,212.9 

27.8 

%

Depreciation and amortization

206.6 

3.8 

%

170.8 

3.9 

%

General and administrative

222.0 

4.1 

%

183.7 

4.2 

%

Other (gains) and charges

41.8 

0.8 

%

43.2 

1.0 

%

Total operating costs and expenses

4,872.2 

90.5 

%

4,185.5 

94.8 

%

Operating income

512.0 

9.5 

%

229.6 

5.2 

%

Interest expenses

53.1 

1.0 

%

65.0 

1.5 

%

Other income, net

(1.1)

— 

%

(0.3)

— 

%

Income before income taxes

460.0 

8.5 

%

164.9 

3.7 

%

Provision (benefit) for income taxes

76.9 

1.4 

%

9.6 

0.2 

%

Net income

$

383.1 

7.1 

%

$

155.3 

3.5 

%

(1)Food and beverage costs, Restaurant labor and Restaurant expenses are calculated based on a percentage of Company sales. All others are calculated as a percentage of Total revenues.

25

Table of Contents

Revenues

Revenues are presented in two separate captions in the Consolidated Statements of Comprehensive Income to provide more clarity around Company-owned restaurant revenues and operating expenses trends:

•Company sales include revenues generated by the operation of Company-owned restaurants including food and beverage sales, net of discounts, Maggiano’s banquet service charge income, delivery, gift card breakage, digital entertainment revenues, merchandise income and are net of gift card discount costs from third-party gift card sales.

•Franchise revenues include royalties, franchise advertising fees, franchise and development fees, and other service fees.

The following is a summary of the change in Total revenues:

Total Revenues

Chili’s

Maggiano’s

Total Revenues

Fiscal year ended June 26, 2024

$

3,919.3 

$

495.8 

$

4,415.1 

Change from:

Comparable restaurant sales(1)

958.3 

7.0 

965.3 

Restaurant openings

36.3 

— 

36.3 

Maggiano's banquet income

— 

(0.3)

(0.3)

Gift card breakage

(1.0)

(0.1)

(1.1)

Merchandise income

0.1 

— 

0.1 

Digital entertainment revenues

2.1 

— 

2.1 

Delivery service fee income

1.0 

0.1 

1.1 

Restaurant closures

(38.0)

(1.3)

(39.3)

Company sales

958.8 

5.4 

964.2 

Franchise revenues(2)

4.8 

0.1 

4.9 

Fiscal year ended June 25, 2025

$

4,882.9 

$

501.3 

$

5,384.2 

(1)Comparable restaurant sales increased due to higher traffic, favorable menu item mix, and menu price increases.

(2)Franchise revenues increased primarily due to higher royalties. Our Chili’s and Maggiano’s franchisees generated sales of approximately $967.4 million and $16.9 million respectively in fiscal 2025 compared to $856.2 million and $11.8 million respectively in fiscal 2024.

The table below presents the percentage change in comparable restaurant sales and restaurant capacity for fiscal 2025 compared to fiscal 2024:

Comparable

Sales(1)

Price Impact

Mix-Shift Impact(2)

Traffic Impact

Restaurant Capacity(3)

Company-owned

22.7 

%

4.8 

%

4.4 

%

13.5 

%

(1.1)

%

Chili’s

25.3 

%

4.5 

%

4.8 

%

16.0 

%

(1.2)

%

Maggiano’s

1.5 

%

7.8 

%

1.2 

%

(7.5)

%

(0.3)

%

Franchise(4)

11.7 

%

U.S.

19.9 

%

International

6.8 

%

Chili’s domestic(5)

25.0 

%

System-wide(6)

21.0 

%

26

Table of Contents

(1)Comparable Restaurant Sales include all restaurants that have been in operation for more than 18 full months. Restaurants temporarily closed 14 days or more are excluded from Comparable Restaurant Sales. Percentage amounts are calculated based on the comparable periods year-over-year.

(2)Mix-Shift is calculated as the year-over-year percentage change in Company sales resulting from the change in menu items ordered by guests.

(3)Restaurant Capacity is measured by sales weeks and is calculated based on comparable periods year-over-year. No adjustments have been made to capacity for temporary closures.

(4)Franchise sales generated by franchisees are not included in Total revenues in the Consolidated Statements of Comprehensive Income; however, we generate royalty revenues and advertising fees based on franchisee revenues, where applicable. We believe presenting Franchise Comparable Restaurant Sales provides investors relevant information regarding total brand performance.

(5)Chili’s domestic Comparable Restaurant Sales percentages are derived from sales generated by Company-owned and franchise-operated Chili’s restaurants in the United States.

(6)System-wide Comparable Restaurant Sales are derived from sales generated by Chili’s and Maggiano’s Company-owned and franchise-operated restaurants.

Costs and Expenses

The following is a summary of the changes in Costs and Expenses:

Fiscal Years Ended

Favorable (Unfavorable) Variance

June 25, 2025

June 26, 2024

Dollars

% of Company Sales

Dollars

% of Company Sales

Dollars

% of Company Sales

Food and beverage costs

$

1,350.6 

25.3 

%

$

1,107.6 

25.3 

%

$

(243.0)

— 

%

Restaurant labor

1,717.3 

32.2 

%

1,467.3 

33.6 

%

(250.0)

1.4 

%

Restaurant expenses

1,333.9 

25.0 

%

1,212.9 

27.8 

%

(121.0)

2.8 

%

Depreciation and amortization

206.6 

170.8 

(35.8)

General and administrative

222.0 

183.7 

(38.3)

Other (gains) and charges

41.8 

43.2 

1.4 

Interest expenses

53.1 

65.0 

11.9 

Other income, net

(1.1)

(0.3)

0.8 

As a percentage of Company sales:

•Food and beverage costs were flat, due to 1.5% of favorable menu pricing, offset by 1.1% of unfavorable menu item mix and 0.4% of unfavorable commodity costs driven by poultry, meat, produce, and dairy.

•Restaurant labor was favorable 1.4%, due to 4.0% of sales leverage and 0.2% of lower other labor expenses, partially offset by 2.1% of higher hourly labor driven by increased staffing levels and wage rates, 0.4% of higher manager salaries, and 0.3% of higher manager bonus.

•Restaurant expenses were favorable 2.8%, due to 3.8% of sales leverage and 0.1% of lower other restaurant expenses, partially offset by 0.5% of higher repairs and maintenance, 0.4% of higher advertising, and 0.2% of higher rent.

27

Table of Contents

Depreciation and amortization increased $35.8 million as follows:

Depreciation and Amortization

Fiscal year ended June 26, 2024

$

170.8 

Change from:

Additions for existing and new restaurant assets

28.0 

Finance leases(1)

11.8 

Corporate assets

2.2 

Retirements and fully depreciated restaurant assets

(14.5)

Other(2)

8.3 

Fiscal year ended June 25, 2025

$

206.6 

(1)Finance lease amortization increased primarily due to new tabletop and tablet devices in our restaurants.

(2)Other includes accelerated depreciation of certain equipment over the remaining expected useful life as a result of management’s decision to abandon and replace the equipment.

General and administrative expenses increased $38.3 million as follows:

General and Administrative

Fiscal year ended June 26, 2024

$

183.7 

Change from:

Corporate technology initiatives(1)

8.6 

Payroll expenses

7.4 

Performance-based compensation

6.5 

Stock-based compensation

5.4 

Defined contribution plan employer expenses and other benefits

4.0 

Professional fees

3.3 

Other

3.1 

Fiscal year ended June 25, 2025

$

222.0 

(1)Corporate technology initiatives increased primarily due to ERP system subscription costs and amortization of software implementation costs.

28

Table of Contents

Other (gains) and charges consisted of the following (for further details refer to Note 13 - Other Gains and Charges):

Fiscal Years Ended

June 25, 2025

June 26, 2024

Litigation & claims, net(1)

$

22.4 

$

6.6 

Enterprise system implementation costs

14.1 

14.0 

Restaurant-level impairment charges

4.6 

12.3 

Restaurant closure asset write-offs and charges

4.1 

10.1 

Severance and other benefit charges

2.4 

0.5 

Lease contingencies

1.7 

0.8 

Gain on sale of assets, net

(0.5)

(2.7)

Loss from natural disasters, net (of insurance recoveries)

(3.7)

(0.4)

Lease modification gain, net

(5.1)

(0.3)

Other

1.8 

2.3 

$

41.8 

$

43.2 

(1)Litigation & claims, net in the current year primarily relates to legal contingencies, inclusive of certain extraordinary one-time settlements related to employment and intellectual property claims, and alcohol service-related cases.

Interest expenses decreased $11.9 million primarily due to lower average outstanding debt balances, partially offset by higher interest on financed leased equipment.

Income Taxes

Fiscal Years Ended

June 25, 2025

June 26, 2024

Effective income tax rate

16.7 

%

5.8 

%

The change in the effective income tax rate from fiscal 2024 to fiscal 2025 is primarily due to higher Income before income taxes and the resulting deleverage of the FICA tip tax credit. Refer to Note 9 - Income Taxes for more information.

H.R. 1., also known as the One Big Beautiful Bill Act (“OBBBA”), was enacted on July 4, 2025. The legislation includes several provisions that may impact the timing and magnitude of certain tax deductions. Key provisions include the permanent extension of several business tax benefits originally introduced under the 2017 Tax Cuts and Jobs Act. We are currently evaluating the provisions of the OBBBA to assess their potential impact on our financial position, results of operations and cash flows.

29

Table of Contents

Segment Results

Chili’s Segment

Fiscal Years Ended

Favorable (Unfavorable) Variance

June 25, 2025

June 26, 2024

Dollars

%

Company sales

$

4,834.8 

$

3,876.0 

$

958.8 

24.7 

%

Franchise revenues

48.1 

43.3 

4.8 

11.1 

%

Total revenues

$

4,882.9 

$

3,919.3 

$

963.6 

24.6 

%

Chili’s Total revenues increased 24.6% primarily due to favorable comparable restaurant sales driven by higher traffic, favorable menu item mix, and menu pricing. Refer to the “Revenues” section above for further details about Chili’s revenues changes.

The following is a summary of the changes in Chili’s operating costs and expenses:

Fiscal Years Ended

Favorable (Unfavorable) Variance

June 25, 2025

June 26, 2024

Dollars

% of Company Sales

Dollars

% of Company Sales

Dollars

% of Company Sales

Food and beverage costs

$

1,233.1 

25.5 

%

$

990.7 

25.5 

%

$

(242.4)

— 

%

Restaurant labor

1,561.4 

32.3 

%

1,309.0 

33.8 

%

(252.4)

1.5 

%

Restaurant expenses

1,187.8 

24.6 

%

1,073.2 

27.7 

%

(114.6)

3.1 

%

Depreciation and amortization

182.5 

147.7 

(34.8)

General and administrative

50.4 

42.8 

(7.6)

Other (gains) and charges

23.7 

26.9 

3.2 

As a percentage of Company sales:

•Chili’s Food and beverage costs were flat, due to 1.5% of favorable menu pricing, offset by 1.1% of unfavorable menu item mix, and 0.4% of unfavorable commodity costs driven by higher poultry, meat, produce, and dairy.

•Chili’s Restaurant labor was favorable 1.5%, due to 4.5% of sales leverage, partially offset by 2.3% of higher hourly labor driven by increased staffing levels and wage rates and 0.4% of higher manager salaries and 0.3% of higher manager bonus.

•Chili’s Restaurant expenses were favorable 3.1%, due to 4.2% of sales leverage, partially offset by 0.5% of higher repairs and maintenance, 0.4% of higher advertising, and 0.2% of higher rent.

30

Table of Contents

Chili’s Depreciation and amortization increased $34.8 million as follows:

Depreciation and Amortization

Fiscal year ended June 26, 2024

$

147.7 

Change from:

Additions for new and existing restaurant assets

25.1 

Finance leases(1)

11.9 

Retirements and fully depreciated restaurant assets

(10.6)

Other(2)

8.4 

Fiscal year ended June 25, 2025

$

182.5 

(1)Finance lease amortization increased primarily due to new tabletop and tablet devices in our restaurants.

(2)Other includes accelerated depreciation of certain equipment over the remaining expected useful life as a result of management’s decision to abandon and replace the equipment.

Chili’s General and administrative increased $7.6 million as follows:

General and Administrative

Fiscal year ended June 26, 2024

$

42.8 

Change from:

Performance-based compensation

2.1 

Defined contribution plan employer expenses and other benefits

1.9 

Payroll expenses

1.4 

Stock-based compensation

1.4 

Other

0.8 

Fiscal year ended June 25, 2025

$

50.4 

Chili’s Other (gains) and charges consisted of the following (for further details, refer to Note 13 - Other Gains and Charges):

Fiscal Years Ended

June 25, 2025

June 26, 2024

Litigation & claims, net

$

20.0 

$

6.2 

Restaurant-level impairment charges

4.6 

11.9 

Restaurant closure asset write-offs and charges

3.6 

10.1 

Loss from natural disasters, net (of insurance recoveries)

(3.5)

(0.4)

Lease modification gain, net

(1.6)

(0.3)

Gain on sale of assets, net

(0.5)

(2.6)

Other

1.1 

2.0 

$

23.7 

$

26.9 

31

Table of Contents

Maggiano’s Segment

Fiscal Years Ended

Favorable (Unfavorable) Variance

June 25, 2025

June 26, 2024

Dollars

%

Company sales

$

500.5 

$

495.1 

$

5.4 

1.1 

%

Franchise revenues

0.8 

0.7 

0.1 

14.3 

%

Total revenues

$

501.3 

$

495.8 

$

5.5 

1.1 

%

Maggiano’s Total revenues increased 1.1% primarily due to favorable comparable restaurant sales driven by increased menu pricing and favorable menu item mix, partially offset by lower traffic. Refer to the “Revenues” section above for further details about Maggiano’s revenues changes.

The following is a summary of the changes in Maggiano’s operating costs and expenses:

Fiscal Years Ended

Favorable (Unfavorable) Variance

June 25, 2025

June 26, 2024

Dollars

% of Company Sales

Dollars

% of Company Sales

Dollars

% of Company Sales

Food and beverage costs

$

117.5 

23.5 

%

$

116.9 

23.6 

%

$

(0.6)

0.1 

%

Restaurant labor

155.9 

31.2 

%

158.3 

32.0 

%

2.4 

0.8 

%

Restaurant expenses

145.3 

29.0 

%

139.2 

28.1 

%

(6.1)

(0.9)

%

Depreciation and amortization

14.6 

13.1 

(1.5)

General and administrative

9.7 

10.2 

0.5 

Other (gains) and charges

(1.8)

0.6 

2.4 

As a percentage of Company sales:

•Maggiano’s Food and beverage costs were favorable 0.1%, due to 1.3% of favorable menu pricing partially offset by 0.8% of unfavorable commodity costs driven by dairy and poultry and 0.4% of unfavorable menu item mix.

•Maggiano’s Restaurant labor was favorable 0.8%, due to 0.5% of lower hourly labor, 0.4% of lower manager bonus, 0.2% of sales leverage, and 0.1% of lower other labor expenses, partially offset by 0.4% of higher manager salaries.

•Maggiano’s Restaurant expenses were unfavorable 0.9%, due to 0.5% of higher advertising, 0.3% of higher repairs and maintenance, 0.3% higher rent, and 0.1% of higher other restaurant expenses, partially offset by 0.3% of sales leverage.

CRITICAL ACCOUNTING ESTIMATES

Our significant accounting policies are disclosed in Note 1 - Nature of Operations and Summary of Significant Accounting Policies in Part II, Item 8 - Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements. The following discussion addresses our most critical accounting estimates, which are those that are most important to the portrayal of our financial condition and results, and that require significant judgment.

Gift Card Revenues Recognition

Proceeds from the sale of gift cards are recorded as deferred revenues and recognized as revenues when the gift cards are redeemed by the holders. Breakage income represents the value associated with the portion of gift cards sold that will most likely never be redeemed and is estimated based on our historical gift card redemption patterns and actuarial estimates. Breakage revenues are recognized proportionate to the pattern of related gift card redemptions. We recognize breakage income in Company sales in the Consolidated Statements of Comprehensive Income.

32

Table of Contents

We update our breakage rate estimate periodically and, if necessary, adjust the deferred revenues balance accordingly. If actual redemption patterns vary from our estimate, actual gift card breakage income may differ from the amounts recorded. Changing our breakage-rate assumption used to record breakage attributable to gift cards sold in fiscal 2025 by 50 basis points would result in an impact to the Consolidated Statements of Comprehensive Income of approximately $0.6 million on the current year.

Valuation of Long-Lived Assets

We review the carrying amount of property, equipment and lease assets on an annual basis or more often if events or circumstances indicate that the carrying amount may not be recoverable. The impairment test is a two-step process. Step one includes comparing the operating cash flows of each restaurant (asset group) over its remaining service life to the carrying value of the asset group. If the cash flows exceed the carrying value, then the asset group is not impaired, and no further evaluation is required. If the carrying value of the asset group exceeds its cash flows, impairment may exist and performing step two is necessary to determine the impairment loss. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value of the asset group. We determine fair value based on discounted projected future operating cash flows of each restaurant over its remaining service life using a risk adjusted discount rate. This process requires the use of estimates and assumptions, which are subject to a high degree of judgment.

Effect of New Accounting Standards

The impact of new accounting pronouncements can be found at Note 1 - Nature of Operations and Summary of Significant Accounting Policies in Part II, Item 8 - Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements.

LIQUIDITY AND CAPITAL RESOURCES

Our principal sources of liquidity are net cash provided by operating activities and borrowings if any, under our $1.0 billion revolving credit facility as further discussed below. Our main requirements for liquidity are to support our working capital, capital expenditures for new and existing restaurants, obligations under our operating leases, and interest payments on our debt. Our operations have typically not required significant working capital. Substantially all of our sales are tendered in cash and cash equivalents, which are received before related trade payables for food and beverage products, supplies, labor and services become due.

Changes in our cash flows from operating, investing and financing activities during fiscal 2025 compared to fiscal 2024 are outlined below.

Cash Flows from Operating Activities

Fiscal Years Ended

Favorable (Unfavorable) Variance

June 25, 2025

June 26, 2024

Net cash provided by operating activities

$

679.0 

$

421.9 

$

257.1 

Net cash provided by operating activities increased due to an increase in operating income partially offset by an increase in payments of income taxes and the timing of other operational receipts and payments.

Cash Flows from Investing Activities

Fiscal Years Ended

Favorable (Unfavorable) Variance

June 25, 2025

June 26, 2024

Net cash used in investing activities

$

(263.4)

$

(192.2)

$

(71.2)

Net cash used in investing activities increased primarily due to new equipment purchases and increased spend on Chili’s capital maintenance.

33

Table of Contents

Cash Flows from Financing Activities

Fiscal Years Ended

Favorable (Unfavorable) Variance

June 25, 2025

June 26, 2024

Net cash used in financing activities

$

(461.3)

$

(180.2)

$

(281.1)

Net cash used in financing activities increased primarily due to the payoff of the $350.0 million 5.00% notes and an increase in share repurchases in fiscal 2025 compared to net repayment activity on the revolving credit facility of $161.3 million in fiscal 2024.

Debt

On May 1, 2025, we amended our $900.0 million revolving credit facility to increase the capacity to $1.0 billion. The Company incurred and capitalized $3.6 million of debt issuance costs associated with the revolving credit facility during fiscal 2025, which are included in Other assets in the Consolidated Balance Sheets.

The $1.0 billion revolving credit facility, as amended, matures on May 1, 2030 and bears interest at a rate of SOFR plus an applicable margin of 1.25% to 2.00% and an undrawn commitment fee of 0.20% to 0.30%, both based on a function of our debt-to-cash-flow ratio. As of June 25, 2025, our interest rate was 5.82% consisting of SOFR of 4.32% plus the applicable margin and spread adjustment of 1.50%. As of June 25, 2025, there were no amounts outstanding under the revolving credit facility.

Our $350.0 million 8.25% notes mature July 15, 2030, and require semi-annual interest payments in arrears, on each January 15 and July 15.

In October 2024, the $350.0 million of 5.00% senior notes matured and were repaid in full using borrowings under the revolving credit facility.

As of June 25, 2025, we were in compliance with our covenants pursuant to the $1.0 billion revolving credit facility and under the terms of the indentures governing our 8.25% notes. Refer to Note 7 - Debt within Part II, Item 8 - Financial Statements and Supplementary Data for further information about our notes and revolving credit facility.

Share Repurchase Program

Our Board of Directors approved a $300.0 million share repurchase program in August 2021. Our share repurchase program is used to return capital to shareholders and to minimize the dilutive impact of stock options and other share-based awards. We evaluate potential share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, proceeds from divestitures, borrowings and planned investment and financing needs. As part of our share repurchase program, we repurchased 1.0 million shares of our common stock for $76.0 million in fiscal 2025 and 0.7 million shares of our common stock for $21.0 million in fiscal 2024. As of June 25, 2025, we had $107.0 million of authorized repurchases remaining under the share repurchase program.

Subsequent to fiscal 2025 year end, our Board of Directors authorized an additional $400.0 million under our share repurchase program, allowing for a total available authority of $507.0 million.

Dividend Program

There were no dividends declared in fiscal 2025 or fiscal 2024. The Company’s decision to pay dividends in the future is at the discretion of the Board of Directors and will be dependent on our operating performance, financial condition, capital expenditure requirements, limitations on cash distributions pursuant to the terms and conditions of our revolving credit facility and applicable law, and such other factors that the Board of Directors considers relevant.

Cash Flow Outlook

In light of an unpredictable macroeconomy, including commodity and labor inflation and supply chain disruptions, we continue to focus on cash flow generation and maintaining a solid and flexible financial position to execute our

34

Table of Contents

long-term strategy of investing in our business. We continue to assess the macro environment and will adjust our overall approach to capital allocation, including share repurchases, based on market conditions and trends.

Based on the current level of operations, we believe that our current cash and cash equivalents, coupled with cash generated from operations and availability under our existing revolving credit facility will be adequate to meet our capital expenditure and working capital needs for at least the next twelve months, including the repayment of current debt obligations.

Future Commitments and Contractual Obligations

Payments due under our contractual obligations for outstanding indebtedness, leases and purchase obligations as of June 25, 2025 are as follows:

Payments Due by Period

Less than 1 Year

1-3 Years

3-5 Years

More than 5 Years

Total

Long-term debt(1)

$

— 

$

— 

$

— 

$

350.0 

$

350.0 

Interest(2)

28.9 

57.7 

57.8 

14.4 

158.8 

Finance leases(3)

22.7 

52.5 

14.5 

27.9 

117.6 

Operating leases(3)

186.1 

334.1 

296.3 

952.4 

1,768.9 

Purchase obligations(4)

21.5 

22.1 

2.5 

— 

46.1 

(1)Long-term debt consists of principal amounts owed on the 8.25% notes which mature on July 15, 2030. As of June 25, 2025, there was no outstanding balance on the $1.0 billion revolving credit facility.

(2)Interest consists of remaining interest payments on the 8.25% fixed rate notes.

(3)Finance leases and Operating leases total future lease payments represent the contractual obligations due under the lease agreements, including cancellable option periods where we are reasonably assured to exercise the options.

(4)Purchase obligations are defined as an agreement to purchase goods or services that is enforceable and legally binding on us and that specifies all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Our purchase obligations primarily consist of long-term obligations for software and professional services contracts, as well as non-cancellable insurance premiums, and exclude agreements that are cancellable without significant penalty.

Off -Balance Sheet Arrangements

We have entered into certain pre-commencement leases as disclosed in Note 6 - Leases and have obligations for guarantees on certain lease agreements and letters of credit as disclosed in Note 8 - Commitments and Contingencies included within Part II, Item 8 - Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements of this Annual Report on Form 10-K.

35

Table of Contents