Brinker International (EAT) 10-Q 29 Jan 25 2025 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 25, 2024	Jan. 23, 2025
Entity Information [Line Items]
Document Type	10-Q
Document Period End Date	Dec. 25, 2024
Entity File Number	1-10275
Entity Registrant Name	BRINKER INTERNATIONAL, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-1914582
Entity Address, Address Line One	3000 Olympus Blvd
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75019
City Area Code	(972)
Local Phone Number	980-9917
Title of 12(b) Security	Common Stock, $0.10 par value
Trading Symbol	EAT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0000703351
Current Fiscal Year End Date	--06-25
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q2
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		44,406,857

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Dec. 25, 2024	Dec. 27, 2023	Dec. 25, 2024	Dec. 27, 2023
Revenues
Total revenues	$ 1,358.2	$ 1,074.1	$ 2,497.2	$ 2,086.6
Operating costs and expenses
Food and beverage costs	343.9	273.1	628.2	531.9
Restaurant labor	421	356.1	798.4	704.2
Restaurant expenses	324.4	294.7	638.3	585.5
Depreciation and amortization	47.7	41.3	94	83.2
General and administrative	53.1	43.2	104.9	85.6
Other (gains) and charges	12.1	3.3	21	9.6
Total operating costs and expenses	1,202.2	1,011.7	2,284.8	2,000
Operating income	156	62.4	212.4	86.6
Interest expenses	14.7	16.7	29	33.7
Other income, net	(0.4)	(0.1)	(0.6)	(0.1)
Income before income taxes	141.7	45.8	184	53
Provision for income taxes	23.2	3.7	27	3.7
Net income	$ 118.5	$ 42.1	$ 157	$ 49.3
Basic net income per share	$ 2.67	$ 0.95	$ 3.52	$ 1.11
Diluted net income per share	$ 2.61	$ 0.94	$ 3.44	$ 1.09
Basic weighted average shares outstanding	44.4	44.2	44.7	44.4
Diluted weighted average shares outstanding	45.5	44.9	45.7	45.1
Other comprehensive income (loss)
Foreign currency translation adjustment	$ (0.5)	$ 0.2	$ (0.4)	$ 0
Other comprehensive income (loss)	(0.5)	0.2	(0.4)	0
Comprehensive income	118	42.3	156.6	49.3
Company sales [Member]
Revenues
Revenues	1,346.1	1,063.7	2,473.4	2,065.7
Franchise revenues [Member]
Revenues
Revenues	$ 12.1	$ 10.4	$ 23.8	$ 20.9

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) shares in Millions, $ in Millions	Dec. 25, 2024	Jun. 26, 2024
Current assets
Cash and cash equivalents	$ 14.8	$ 64.6
Accounts receivable, net	82.7	60.6
Inventories	36.7	34.5
Restaurant supplies	53.5	53.8
Prepaid expenses	21.6	20.6
Income taxes receivable	1.4	0
Total current assets	210.7	234.1
Property and equipment, at cost
Land	41.7	41.6
Buildings and leasehold improvements	1,708.4	1,670.2
Furniture and equipment	836.4	830.6
Construction-in-progress	67.6	41
Gross property and equipment	2,654.1	2,583.4
Less accumulated depreciation and amortization	(1,760.8)	(1,703.7)
Net property and equipment	893.3	879.7
Other assets
Operating lease assets	1,082.3	1,095.2
Goodwill	194.5	194.8
Deferred income taxes, net	105.6	113.9
Intangibles, net	18.7	19.9
Other	55.2	55.5
Total other assets	1,456.3	1,479.3
Total assets	2,560.3	2,593.1
Current liabilities
Accounts payable	163.5	160.6
Gift card liability	80.7	64.8
Accrued payroll	126	130.8
Operating lease liabilities	116.6	114.1
Other accrued liabilities	152	144.7
Income taxes payable, net	5.5	7.3
Total current liabilities	644.3	622.3
Long-term debt and finance leases, less current installments	652	786.3
Long-term operating lease liabilities, less current portion	1,068	1,084.5
Other liabilities	64.5	60.6
Commitments and contingencies (Note 7)
Shareholders’ equity
Common stock, shares authorized	250	250
Common stock, par value per share	$ 0.10	$ 0.10
Common stock, shares issued	60.3	60.3
Common stock, shares outstanding	44.4	45
Common stock (250.0 million authorized shares; $0.10 par value; 60.3 million shares issued and 44.4 million shares outstanding at December 25, 2024 and 60.3 million shares issued and 45.0 million shares outstanding at June 26, 2024)	$ 6	$ 6
Additional paid-in capital	704.5	707.8
Accumulated other comprehensive loss	(6.7)	(6.3)
Accumulated deficit	$ (39.6)	$ (196.6)
Treasury stock, shares	15.9	15.3
Treasury stock, at cost (15.9 million shares at December 25, 2024, and 15.3 million shares at June 26, 2024)	$ (532.7)	$ (471.5)
Total shareholders’ equity	131.5	39.4
Total liabilities and shareholders’ equity	$ 2,560.3	$ 2,593.1

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Dec. 25, 2024	Dec. 27, 2023
Cash flows from operating activities
Net income	$ 157	$ 49.3
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation and amortization	94	83.2
Stock-based compensation	14.3	10.1
Deferred income taxes, net	8.3	(8.4)
Non-cash other (gains) and charges	7.9	4.3
Net loss on disposal of assets	6.1	1.5
Other	1.3	1.3
Changes in assets and liabilities:
Accounts receivable, net	(23)	(20.2)
Inventories	(2.6)	0
Restaurant supplies	(0.3)	(0.2)
Prepaid expenses	(1.2)	(10.9)
Income taxes	(3.5)	1.4
Operating lease assets, net of liabilities	(0.6)	(3.9)
Other assets	(0.3)	(6.5)
Accounts payable	11.5	19.4
Gift card liability	16	17.3
Accrued payroll	(4.5)	(6.1)
Other accrued liabilities	(1.3)	16.5
Other liabilities	1.9	2.2
Net cash provided by operating activities	281	150.3
Cash flows from investing activities
Payments for property and equipment	(105.8)	(89.5)
Proceeds from note receivable	0	1.3
Proceeds from sale of assets	0	0.7
Insurance recoveries	0	0.7
Net cash used in investing activities	(105.8)	(86.8)
Cash flows from financing activities
Borrowings on revolving credit facility	515	199
Payments on revolving credit facility	(300)	(224)
Payments on long-term debt	(362.1)	(5.6)
Purchases of treasury stock	(85.2)	(25.1)
Proceeds from issuance of treasury stock	7.4	0.5
Payments for debt issuance costs	(0.1)	(0.7)
Net cash used in financing activities	(225)	(55.9)
Net change in cash and cash equivalents	(49.8)	7.6
Cash and cash equivalents at beginning of period	64.6	15.1
Cash and cash equivalents at end of period	14.8	22.7
Supplemental disclosure of cash flow information:
Income taxes paid, net	22.1	10.7
Interest paid, net of amounts capitalized	32.6	18.8
Accrued capital expenditures	$ 7.6	$ 16

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity (Deficit) (Unaudited) - USD ($) $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning balance at Jun. 28, 2023	$ (144.3)	$ 6	$ 690	$ (351.9)	$ (482.4)	$ (6)
Net income	7.2	0	0	7.2	0	0
Other comprehensive income (loss)	(0.2)	0	0	0	0	(0.2)
Stock-based compensation	5.7	0	5.7	0	0	0
Purchases of treasury stock	(24.7)	0	(0.2)	0	(24.5)	0
Issuances of treasury stock	0	0	(11.7)	0	11.7	0
Ending balance at Sep. 27, 2023	(156.3)	6	683.8	(344.7)	(495.2)	(6.2)
Beginning balance at Jun. 28, 2023	(144.3)	6	690	(351.9)	(482.4)	(6)
Net income	49.3
Other comprehensive income (loss)	0
Ending balance at Dec. 27, 2023	(109.5)	6	687	(302.6)	(493.9)	(6)
Beginning balance at Sep. 27, 2023	(156.3)	6	683.8	(344.7)	(495.2)	(6.2)
Net income	42.1	0	0	42.1	0	0
Other comprehensive income (loss)	0.2	0	0	0	0	0.2
Stock-based compensation	4.4	0	4.4	0	0	0
Purchases of treasury stock	(0.4)	0	(0.1)	0	(0.3)	0
Issuances of treasury stock	0.5	0	(1.1)	0	1.6	0
Ending balance at Dec. 27, 2023	(109.5)	6	687	(302.6)	(493.9)	(6)
Beginning balance at Jun. 26, 2024	39.4	6	707.8	(196.6)	(471.5)	(6.3)
Net income	38.5	0	0	38.5	0	0
Other comprehensive income (loss)	0.1	0	0	0	0	0.1
Stock-based compensation	7.1	0	7.1	0	0	0
Purchases of treasury stock	(75.1)	0	(4.8)	0	(70.3)	0
Issuances of treasury stock	2.7	0	(12.2)	0	14.9	0
Ending balance at Sep. 25, 2024	12.7	6	697.9	(158.1)	(526.9)	(6.2)
Beginning balance at Jun. 26, 2024	39.4	6	707.8	(196.6)	(471.5)	(6.3)
Net income	157
Other comprehensive income (loss)	(0.4)
Ending balance at Dec. 25, 2024	131.5	6	704.5	(39.6)	(532.7)	(6.7)
Beginning balance at Sep. 25, 2024	12.7	6	697.9	(158.1)	(526.9)	(6.2)
Net income	118.5	0	0	118.5	0	0
Other comprehensive income (loss)	(0.5)	0	0	0	0	(0.5)
Stock-based compensation	7.2	0	7.2	0	0	0
Purchases of treasury stock	(10.4)	0	(0.3)	0	(10.1)	0
Issuances of treasury stock	4	0	(0.3)	0	4.3	0
Ending balance at Dec. 25, 2024	$ 131.5	$ 6	$ 704.5	$ (39.6)	$ (532.7)	$ (6.7)

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Dec. 25, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	References to “Brinker,” the “Company,” “we,” “us,” and “our” in this Form 10-Q refer to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc. Our Consolidated Financial Statements (Unaudited) as of December 25, 2024 and June 26, 2024, and for the thirteen and twenty-six week periods ended December 25, 2024 and December 27, 2023, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). We own, develop, operate and franchise the Chili’s ® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy ® (“Maggiano’s”) restaurant brands. As of December 25, 2024, we owned, operated or franchised 1,624 restaurants, consisting of 1,164 Company-owned restaurants and 460 franchised restaurants, located in the United States, 27 other countries and two United States territories. Use of Estimates The preparation of the Consolidated Financial Statements (Unaudited) is in conformity with generally accepted accounting principles in the United States (“GAAP”) and requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements (Unaudited), and the reported amounts of revenues and costs and expenses in the reporting periods. Actual results could differ from those estimates. The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results, financial position and cash flows for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with GAAP, have been omitted pursuant to SEC rules and regulations. The Notes to Consolidated Financial Statements (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements contained in our June 26, 2024 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes. All amounts in the Notes to Consolidated Financial Statements (Unaudited) are presented in millions unless otherwise specified. Foreign Currency Translation The Foreign currency translation adjustment represents the unrealized impact of translating the financial statements of our Canadian restaurants from their respective functional currency (Canadian dollars) to United States dollars and are reported as a component of Comprehensive income and recorded in Accumulated other comprehensive loss on our Consolidated Balance Sheets (Unaudited). Recently Issued Accounting Standards or Disclosure Rules In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, which require us to adopt the provisions in our fiscal 2025 Form 10-K. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management does not expect this ASU to have a material impact on our disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated information about a company’s effective tax rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024, which require us to adopt the provisions in our fiscal 2026 Form 10-K. The amendments should be applied prospectively; however, retrospective application is permitted. Management does not expect this ASU to have a material impact on our disclosures. In March 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule will require registrants to disclose certain climate-related information in registration statements and annual reports. In April 2024, the SEC voluntarily stayed the final rule as a result of pending legal challenges. The disclosure requirements will apply to our fiscal year beginning June 26, 2025 (fiscal 2026 Form 10-K), pending resolution of the stay. Management is currently evaluating the final rule to determine its impact on our disclosures.

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Dec. 25, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	Deferred Franchise and Development Fees Our deferred franchise and development fees consist of the unrecognized fees received from franchisees. Recognition of these fees in subsequent periods is based on satisfaction of the contractual performance obligations of the active contracts with franchisees. We also expect to earn subsequent period royalties and advertising fees related to our franchise contracts; however, due to the variability and uncertainty of these future revenues based upon a sales-based measure, these future revenues are not yet estimable as the performance obligations remain unsatisfied. Deferred franchise and development fees are classified within Other accrued liabilities for the current portion expected to be recognized within the next 12 months, and Other liabilities for the long-term portion in the Consolidated Balance Sheets (Unaudited). The following table reflects the changes in deferred franchise and development fees between June 26, 2024 and December 25, 2024: Deferred Franchise and Development Fees Balance as of June 26, 2024 $ 9.7 Additions 0.8 Amount recognized to Franchise revenues (0.7) Balance as of December 25, 2024 $ 9.8 The following table illustrates franchise and development fees expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of December 25, 2024: Fiscal Year Franchise and Development Fees Revenue Recognition Remainder of 2025 $ 0.4 2026 0.8 2027 0.8 2028 0.7 2029 0.6 Thereafter 6.5 $ 9.8 Deferred Gift Card Revenues Total deferred revenues related to our gift cards include the full value of unredeemed gift card balances less recognized breakage and the unamortized portion of third party fees. The following table reflects the changes in the Gift card liability between June 26, 2024 and December 25, 2024: Gift Card Liability Balance as of June 26, 2024 $ 64.8 Gift card sales 70.8 Gift card redemptions recognized to Company sales (48.2) Gift card breakage recognized to Company sales (5.4) Other (1.3) Balance as of December 25, 2024 $ 80.7

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Dec. 25, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair value is the price that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date under market conditions. Fair value measurements are categorized in three levels based on the types of significant inputs used, as follows: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than quoted prices in active markets for identical assets or liabilities Level 3 Unobservable inputs that cannot be corroborated by observable market data Financial Instruments Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The fair values of cash and cash equivalents, accounts receivable and accounts payable approximate their carrying amounts because of the short maturity of these items. The carrying amount of debt outstanding related to our revolving credit facility approximates fair value as the interest rate on this instrument approximates current market rates (Level 2). The fair values of our notes are based on quoted market prices and are considered Level 2 fair value measurements. The carrying amounts of the notes, which are net of unamortized debt issuance costs and discounts, and fair values are as follows: December 25, 2024 June 26, 2024 Carrying Amount Fair Value Carrying Amount Fair Value 8.250% notes $ 345.6 $ 369.3 $ 345.2 $ 367.8 5.000% notes (1) — — 349.8 349.6 (1) On October 1, 2024, the 5.000% notes matured and were repaid in full using borrowings under our revolving credit facility. Non-Financial Assets The fair values of transferable liquor licenses are based on prices in the open market for licenses in the same or similar jurisdictions and are categorized as Level 2. The fair values of other non-financial assets are determined based on appraisals, sales prices of comparable assets or estimates of discounted cash flow and are categorized as Level 3. We review the carrying amounts of non-financial assets, primarily long-lived property and equipment, finance lease assets, operating lease assets, reacquired franchise rights, goodwill and transferable liquor licenses annually or when events or circumstances indicate that the fair value may not substantially exceed the carrying amount. We record an impairment charge for the excess of the carrying amount over the fair value. Any impairment charges are included in Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Unaudited). During the thirteen and twenty-six week periods ended December 25, 2024 and December 27, 2023, no indicators of impairment were identified. Intangibles, net in the Consolidated Balance Sheets (Unaudited) includes both indefinite-lived intangible assets such as transferable liquor licenses and definite-lived intangible assets such as reacquired franchise rights. Accumulated amortization associated with definite-lived intangible assets at December 25, 2024 and June 26, 2024, was $17.7 million and $16.6 million, respectively.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	6 Months Ended
	Dec. 25, 2024
Payables and Accruals [Abstract]
Accrued Liabilities	Other accrued liabilities consist of the following: December 25, June 26, Insurance $ 33.5 $ 31.4 Property tax 27.5 24.6 Sales tax 25.5 18.4 Current installments of finance lease obligations 18.7 14.1 Interest 13.3 18.1 Utilities and services 10.5 10.0 Other 23.0 28.1 $ 152.0 $ 144.7

LEASES

LEASES	6 Months Ended
	Dec. 25, 2024
Leases [Abstract]
Leases	We typically lease our restaurant facilities through ground leases (where we lease land only, but construct the building and improvements) or retail leases (where we lease the land/retail space and building). In addition to our restaurant facilities, we also lease our corporate headquarters location and certain equipment. The components of lease expenses included in the Consolidated Statements of Comprehensive Income (Unaudited) were as follows: Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 25, December 27, December 25, December 27, Operating lease cost $ 45.8 $ 45.6 $ 91.4 $ 91.2 Variable lease cost 17.5 15.5 33.6 31.1 Finance lease amortization 6.8 2.6 12.5 5.8 Finance lease interest 1.6 0.9 3.1 1.8 Short-term lease cost 0.2 — 0.3 0.1 Sublease income (0.4) (0.4) (0.8) (0.8) Total lease costs, net $ 71.5 $ 64.2 $ 140.1 $ 129.2 Supplemental cash flow information related to leases: Twenty-Six Week Periods Ended December 25, December 27, Operating lease assets obtained in exchange for operating lease liabilities $ 43.4 $ 21.3 Finance lease assets obtained in exchange for finance lease liabilities 16.6 0.1 Finance lease assets are recorded in Property and equipment, at cost, and the net balance as of December 25, 2024 and June 26, 2024 was $97.7 million and $93.4 million, respectively.

DEBT

DEBT	6 Months Ended
	Dec. 25, 2024
Debt Disclosure [Abstract]
Debt	Long-term debt consists of the following: December 25, June 26, Revolving credit facility $ 215.0 $ — 8.250% notes 350.0 350.0 5.000% notes (1) — 350.0 Finance lease obligations 110.1 105.4 Total long-term debt 675.1 805.4 Less: unamortized debt issuance costs and discounts (4.4) (5.0) Total long-term debt, less unamortized debt issuance costs and discounts 670.7 800.4 Less: current installments of long-term debt and finance leases (2) (18.7) (14.1) Total long-term debt, less current portion $ 652.0 $ 786.3 (1) On October 1, 2024, the 5.000% notes matured and were repaid in full using borrowings under our revolving credit facility. (2) Current installments of long-term debt consist of finance leases and are recorded within Other accrued liabilities in the Consolidated Balance Sheets (Unaudited). Refer to Note 4 - Accrued Liabilities for further details. Revolving Credit Facility In the twenty-six week period ended December 25, 2024, net borrowings of $215.0 million were drawn on our revolving credit facility. As of December 25, 2024, $685.0 million of credit was available under the revolving credit facility. The $900.0 million revolving credit facility matures on August 18, 2026 and bears interest at a rate of SOFR plus an applicable margin of 1.60% to 2.35% and an undrawn commitment fee of 0.25% to 0.35%, both based on a function of our debt-to-cash-flow ratio. As of December 25, 2024, our interest rate was 5.94% consisting of SOFR of 4.34% plus the applicable margin and spread adjustment of 1.60%. Financial Covenants The indenture for our 8.250% notes contains certain covenants, including, but not limited to, limitations and restrictions on the ability of the Company and its Restricted Subsidiaries (as defined in the indentures) to (i) create liens on Principal Property (as defined in the indenture) and (ii) merge, consolidate or amalgamate with or into any other person or sell, transfer, assign, lease, convey or otherwise dispose of all or substantially all of their property. These covenants are subject to a number of important conditions, qualifications, exceptions, and limitations.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 25, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Lease Commitments and Guarantees We have, in certain cases, divested brands or sold restaurants to franchisees and have not been released from lease guarantees for the related restaurants. As of December 25, 2024 and June 26, 2024, we have outstanding lease guarantees or are secondarily liable for an estimated $14.2 million and $15.7 million, respectively. These amounts represent the maximum known potential liability of rent payments under the leases, but outstanding rent payments can exist outside of our knowledge as a result of the landlord and tenant relationship being between two third parties. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from fiscal 2025 through fiscal 2035. In the event of default under a lease by an owner of a divested brand, the indemnity and default clauses in our agreements with such third parties and applicable laws govern our ability to pursue and recover amounts we may pay on behalf of such parties. We have received notices of default and have been named a party in lawsuits pertaining to some of these leases in circumstances where the current lessee did not pay its rent obligations and management is closely monitoring any exposure. Letters of Credit We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of December 25, 2024, we had $5.8 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable within the next 10 months. Cyber Security Litigation In fiscal 2018, we discovered malware at certain Chili’s restaurants that may have resulted in unauthorized access or acquisition of customer payment card data. We settled all claims from payment card companies related to this incident and do not expect material claims from payment card companies in the future. In connection with this event, the Company was also named as a defendant in a putative class action lawsuit in the United States District Court for the Middle District of Florida (the “Litigation”) relating to this incident. In the Litigation, plaintiffs assert various claims at the Company’s Chili’s restaurants involving customer payment card information and seek monetary damages in excess of $5.0 million, injunctive and declaratory relief, and attorney’s fees and costs. On April 29, 2024, the US Supreme Court denied our petition for certiorari concerning review of the Eleventh Circuit’s decision to uphold plaintiff’s damages calculation. Accordingly, the parties continue to await the trial court’s ruling on the issue of predominance as it relates to class certification in light of the Eleventh Circuit’s ruling on this issue. We believe we have defenses and intend to continue defending the Litigation. As such, as of December 25, 2024, we have concluded that a loss, or range of loss, from this matter is not determinable, therefore, we have not recorded a liability related to the Litigation. We will continue to evaluate this matter based on new information as it becomes available. Legal Proceedings Evaluating contingencies related to litigation is a process involving judgment on the potential outcome of future events, and the ultimate resolution of litigated claims may differ from our current analysis. Accordingly, we review the adequacy of accruals and disclosures pertaining to litigated matters each quarter in consultation with legal counsel and we assess the probability and range of possible losses associated with contingencies for potential accrual in the Consolidated Financial Statements (Unaudited). We are engaged in various legal proceedings and have certain unresolved claims pending. Liabilities have been established based on our best estimates of our potential liability in certain of these matters. Based upon consultation with legal counsel, management is of the opinion that there are no matters pending or threatened which are expected to have a material adverse effect, individually or in the aggregate, on the consolidated financial condition or results of operations.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 25, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Twenty-Six Week Periods Ended December 25, December 27, Effective income tax rate 14.7 % 7.0 % The federal statutory tax rate was 21.0% for the twenty-six week periods ended December 25, 2024 and December 27, 2023.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Dec. 25, 2024
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Share Repurchases Our Board of Directors approved a $300.0 million share repurchase program during fiscal 2022. Our share repurchase program is used to return capital to shareholders and to minimize the dilution to our shares outstanding that results from equity compensation grants. 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. Repurchased shares are reflected as an increase in Treasury stock within Shareholder’s equity in the Consolidated Balance Sheets (Unaudited). In the twenty-six week period ended December 25, 2024, we repurchased 1.2 million shares of our common stock for $85.2 million, including 1.0 million shares purchased for $76.0 million as part of our share repurchase program and 0.2 million shares purchased from team members to satisfy tax withholding obligations on the vesting of restricted shares. These withheld shares of common stock are not considered common stock repurchases under our authorized common stock repurchase plan. As of December 25, 2024, approximately $107.0 million of share repurchase authorization remains under the current share repurchase program. Stock-based Compensation In November 2024, our stockholders approved the Brinker International, Inc. 2024 Stock Option and Incentive Plan (the “2024 Plan”) for employees and authorized approximately 3.5 million shares for issuance under the 2024 Plan. The 2024 Plan replaced our stockholder-approved 1998 Stock Option and Incentive Plan (as amended, the “1998 Plan”) for employees, and no further awards will be granted under the 1998 Plan. Our 1999 Stock Option and Incentive Plan for Non-Employee Directors and Consultants (the “1999 Plan”) remains in effect. In November 2024, the Board of Directors approved the 2025 Executive Performance Share Retention Plan and the granting of performance-based restricted share awards to Kevin Hochman, our CEO and President of the Company and President of Chili’s Grill & Bar, and certain other executives of the Company at a total grant date fair value of $25.0 million. Shares earned range from 0% to 200% of the target number of performance shares granted based on the Company’s total shareholder return (“TSR”) over a five The following table presents restricted share awards granted under the Company’s various equity compensation plans and the related weighted average fair value per share amounts. Twenty-Six Week Periods Ended December 25, December 27, Restricted share awards Restricted share awards granted 0.6 0.6 Weighted average fair value per share $ 85.45 $ 33.44

NET INCOME PER SHARE

NET INCOME PER SHARE	6 Months Ended
	Dec. 25, 2024
Earnings Per Share [Abstract]
Net Income Per Share	Basic net income per share is computed by dividing Net income by the Basic weighted average shares outstanding for the reporting period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of Diluted net income per share, the Basic weighted average shares outstanding is increased by the dilutive effect of stock options and restricted share awards. Stock options and restricted share awards with an anti-dilutive effect are not included in the Diluted net income per share calculation. Basic weighted average shares outstanding are reconciled to Diluted weighted average shares outstanding as follows: Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 25, December 27, December 25, December 27, Basic weighted average shares outstanding 44.4 44.2 44.7 44.4 Dilutive stock options 0.1 — 0.1 — Dilutive restricted shares 1.0 0.7 0.9 0.7 Total dilutive impact 1.1 0.7 1.0 0.7 Diluted weighted average shares outstanding 45.5 44.9 45.7 45.1 Awards excluded due to anti-dilutive effect — 0.8 — 0.8

OTHER GAINS AND CHARGES

OTHER GAINS AND CHARGES	6 Months Ended
	Dec. 25, 2024
Other Gains and Charges [Abstract]
Other Gains and Charges	Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Unaudited) consist of the following: Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 25, December 27, December 25, December 27, Litigation & claims, net $ 6.1 $ 1.0 $ 8.6 $ 3.2 Enterprise system implementation costs 5.2 2.1 9.6 4.1 Restaurant closure asset write-offs and charges 0.8 0.2 1.5 0.8 Loss from natural disasters, net (of insurance recoveries) 0.7 (0.6) 0.7 (0.4) Lease modification gain, net (0.7) — (1.0) (0.1) Other — 0.6 1.6 2.0 $ 12.1 $ 3.3 $ 21.0 $ 9.6 • Litigation & claims, net primarily relates to legal contingencies and claims on alcohol service cases. • Enterprise system implementation costs primarily consists of software subscription fees and certain other costs prior to implementation and support of our new cloud-based Enterprise Resource Planning (“ERP”) system after implementation. • Restaurant closure asset write-offs and charges includes costs associated with the closure of certain Chili’s restaurants. • Loss from natural disasters, net (of insurance recoveries) in the current quarter consists of costs incurred related to Hurricane Helene and Hurricane Milton. • Lease modification gain, net relates to the reduction of lease liabilities of certain closed Chili’s restaurants.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Dec. 25, 2024
Segment Reporting [Abstract]
Segment Information	Our operating segments are Chili’s and Maggiano’s. The Chili’s segment includes the results of our Company-owned Chili’s restaurants, which are principally located in the United States, within the full-service casual dining segment of the industry. The Chili’s segment also includes results of our Canadian Company-owned restaurants and royalties and other fees from our franchised locations in the United States, 27 other countries and two United States territories. The Maggiano’s segment includes the results of our Company-owned Maggiano’s restaurants in the United States as well as royalties and other fees from our domestic franchise business. Costs related to our restaurant support teams for the Chili’s and Maggiano’s brands, including operations, finance, franchise, marketing, human resources and culinary innovation are included in the results of our operating segments. The Corporate segment includes costs related to the common and shared infrastructure, including accounting, information technology, purchasing, guest relations, legal and restaurant development. Company sales for each segment 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 service fee income, gift card breakage, digital entertainment revenues, merchandise income and are net of gift card discounts from third-party gift card sales. Franchise revenues for each operating segment include royalties, franchise advertising fees, franchise and development fees and gift card equalization. We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our operating segments are predominantly located in the United States. There were no material transactions amongst our operating segments. Our chief operating decision maker uses Operating income as the measure for assessing performance of our segments. Operating income includes revenues and expenses directly attributable to segment-level results of operations. Restaurant expenses during the periods presented primarily include restaurant rent, repairs and maintenance, supplies, advertising, utilities, delivery fees, payment processing fees, to-go supplies, and workers’ compensation and general liability insurance. The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP: Thirteen Week Period Ended December 25, 2024 Chili's Maggiano's Corporate Consolidated Company sales $ 1,196.9 $ 149.2 $ — $ 1,346.1 Franchise revenues 11.9 0.2 — 12.1 Total revenues 1,208.8 149.4 — 1,358.2 Food and beverage costs 310.1 33.8 — 343.9 Restaurant labor 378.4 42.6 — 421.0 Restaurant expenses 285.0 39.0 0.4 324.4 Depreciation and amortization 41.8 3.4 2.5 47.7 General and administrative 12.2 2.4 38.5 53.1 Other (gains) and charges 6.2 — 5.9 12.1 Total operating costs and expenses 1,033.7 121.2 47.3 1,202.2 Operating income (loss) 175.1 28.2 (47.3) 156.0 Interest expenses 1.6 — 13.1 14.7 Other income, net — — (0.4) (0.4) Income (loss) before income taxes $ 173.5 $ 28.2 $ (60.0) $ 141.7 Thirteen Week Period Ended December 27, 2023 Chili's Maggiano's Corporate Consolidated Company sales $ 916.9 $ 146.8 $ — $ 1,063.7 Franchise revenues 10.3 0.1 — 10.4 Total revenues 927.2 146.9 — 1,074.1 Food and beverage costs 239.2 33.9 — 273.1 Restaurant labor 313.0 43.1 — 356.1 Restaurant expenses 258.3 36.2 0.2 294.7 Depreciation and amortization 35.5 3.2 2.6 41.3 General and administrative 10.2 2.1 30.9 43.2 Other (gains) and charges 0.9 0.2 2.2 3.3 Total operating costs and expenses 857.1 118.7 35.9 1,011.7 Operating income (loss) 70.1 28.2 (35.9) 62.4 Interest expenses 0.9 — 15.8 16.7 Other income, net (0.1) — — (0.1) Income (loss) before income taxes $ 69.3 $ 28.2 $ (51.7) $ 45.8 Twenty-Six Week Period Ended December 25, 2024 Chili’s Maggiano's Corporate Consolidated Company sales $ 2,215.8 $ 257.6 $ — $ 2,473.4 Franchise revenues 23.4 0.4 — 23.8 Total revenues 2,239.2 258.0 — 2,497.2 Food and beverage costs 569.2 59.0 — 628.2 Restaurant labor 720.0 78.4 — 798.4 Restaurant expenses 565.6 72.0 0.7 638.3 Depreciation and amortization 82.3 6.8 4.9 94.0 General and administrative 24.0 5.4 75.5 104.9 Other (gains) and charges 9.1 0.4 11.5 21.0 Total operating costs and expenses 1,970.2 222.0 92.6 2,284.8 Operating income (loss) 269.0 36.0 (92.6) 212.4 Interest expenses 2.9 0.1 26.0 29.0 Other income, net (0.1) — (0.5) (0.6) Income (loss) before income taxes $ 266.2 $ 35.9 $ (118.1) $ 184.0 Twenty-Six Week Period Ended December 27, 2023 Chili’s Maggiano's Corporate Consolidated Company sales $ 1,814.7 $ 251.0 $ — $ 2,065.7 Franchise revenues 20.6 0.3 — 20.9 Total revenues 1,835.3 251.3 — 2,086.6 Food and beverage costs 472.3 59.6 — 531.9 Restaurant labor 624.0 80.2 — 704.2 Restaurant expenses 516.8 68.4 0.3 585.5 Depreciation and amortization 71.7 6.4 5.1 83.2 General and administrative 20.2 4.5 60.9 85.6 Other (gains) and charges 4.6 0.4 4.6 9.6 Total operating costs and expenses 1,709.6 219.5 70.9 2,000.0 Operating income (loss) 125.7 31.8 (70.9) 86.6 Interest expenses 1.7 0.1 31.9 33.7 Other income, net (0.1) — — (0.1) Income (loss) before income taxes $ 124.1 $ 31.7 $ (102.8) $ 53.0

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Dec. 25, 2024	Sep. 25, 2024	Dec. 27, 2023	Sep. 27, 2023	Dec. 25, 2024	Dec. 27, 2023
Pay vs Performance Disclosure
Net income	$ 118.5	$ 38.5	$ 42.1	$ 7.2	$ 157	$ 49.3

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 25, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Dec. 25, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Use of Estimates	Use of Estimates The preparation of the Consolidated Financial Statements (Unaudited) is in conformity with generally accepted accounting principles in the United States (“GAAP”) and requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements (Unaudited), and the reported amounts of revenues and costs and expenses in the reporting periods. Actual results could differ from those estimates. The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results, financial position and cash flows for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with GAAP, have been omitted pursuant to SEC rules and regulations. The Notes to Consolidated Financial Statements (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements contained in our June 26, 2024 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes. All amounts in the Notes to Consolidated Financial Statements (Unaudited) are presented in millions unless otherwise specified.
Foreign Currency Translation	Foreign Currency Translation The Foreign currency translation adjustment represents the unrealized impact of translating the financial statements of our Canadian restaurants from their respective functional currency (Canadian dollars) to United States dollars and are reported as a component of Comprehensive income and recorded in Accumulated other comprehensive loss on our Consolidated Balance Sheets (Unaudited).
Recently Issued Accounting Standards or Disclosure Rules	Recently Issued Accounting Standards or Disclosure Rules In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective for fiscal years beginning after December 15, 2023, which require us to adopt the provisions in our fiscal 2025 Form 10-K. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management does not expect this ASU to have a material impact on our disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated information about a company’s effective tax rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The amendments are effective for fiscal years beginning after December 15, 2024, which require us to adopt the provisions in our fiscal 2026 Form 10-K. The amendments should be applied prospectively; however, retrospective application is permitted. Management does not expect this ASU to have a material impact on our disclosures. In March 2024, the SEC adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule will require registrants to disclose certain climate-related information in registration statements and annual reports. In April 2024, the SEC voluntarily stayed the final rule as a result of pending legal challenges. The disclosure requirements will apply to our fiscal year beginning June 26, 2025 (fiscal 2026 Form 10-K), pending resolution of the stay. Management is currently evaluating the final rule to determine its impact on our disclosures.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Dec. 25, 2024
Revenue from Contract with Customer [Abstract]
Changes in Deferred Franchise and Development Fees	The following table reflects the changes in deferred franchise and development fees between June 26, 2024 and December 25, 2024: Deferred Franchise and Development Fees Balance as of June 26, 2024 $ 9.7 Additions 0.8 Amount recognized to Franchise revenues (0.7) Balance as of December 25, 2024 $ 9.8
Remaining Deferred Franchise and Development Fees to be Recognized	The following table illustrates franchise and development fees expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of December 25, 2024: Fiscal Year Franchise and Development Fees Revenue Recognition Remainder of 2025 $ 0.4 2026 0.8 2027 0.8 2028 0.7 2029 0.6 Thereafter 6.5 $ 9.8
Changes in the Gift Card Liability	Deferred Gift Card Revenues Total deferred revenues related to our gift cards include the full value of unredeemed gift card balances less recognized breakage and the unamortized portion of third party fees. The following table reflects the changes in the Gift card liability between June 26, 2024 and December 25, 2024: Gift Card Liability Balance as of June 26, 2024 $ 64.8 Gift card sales 70.8 Gift card redemptions recognized to Company sales (48.2) Gift card breakage recognized to Company sales (5.4) Other (1.3) Balance as of December 25, 2024 $ 80.7

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Dec. 25, 2024
Fair Value Disclosures [Abstract]
Debt Instruments - Carrying Values and Estimated Fair Values Schedule	The carrying amounts of the notes, which are net of unamortized debt issuance costs and discounts, and fair values are as follows: December 25, 2024 June 26, 2024 Carrying Amount Fair Value Carrying Amount Fair Value 8.250% notes $ 345.6 $ 369.3 $ 345.2 $ 367.8 5.000% notes (1) — — 349.8 349.6 (1) On October 1, 2024, the 5.000% notes matured and were repaid in full using borrowings under our revolving credit facility.

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	6 Months Ended
	Dec. 25, 2024
Payables and Accruals [Abstract]
Other Accrued Liabilities Schedule	Other accrued liabilities consist of the following: December 25, June 26, Insurance $ 33.5 $ 31.4 Property tax 27.5 24.6 Sales tax 25.5 18.4 Current installments of finance lease obligations 18.7 14.1 Interest 13.3 18.1 Utilities and services 10.5 10.0 Other 23.0 28.1 $ 152.0 $ 144.7

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Dec. 25, 2024
Leases [Abstract]
Lease Expenses Included in the Consolidated Statements of Comprehensive Income	The components of lease expenses included in the Consolidated Statements of Comprehensive Income (Unaudited) were as follows: Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 25, December 27, December 25, December 27, Operating lease cost $ 45.8 $ 45.6 $ 91.4 $ 91.2 Variable lease cost 17.5 15.5 33.6 31.1 Finance lease amortization 6.8 2.6 12.5 5.8 Finance lease interest 1.6 0.9 3.1 1.8 Short-term lease cost 0.2 — 0.3 0.1 Sublease income (0.4) (0.4) (0.8) (0.8) Total lease costs, net $ 71.5 $ 64.2 $ 140.1 $ 129.2
Supplemental Cash Flow Information Related to Leases	Supplemental cash flow information related to leases: Twenty-Six Week Periods Ended December 25, December 27, Operating lease assets obtained in exchange for operating lease liabilities $ 43.4 $ 21.3 Finance lease assets obtained in exchange for finance lease liabilities 16.6 0.1

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Dec. 25, 2024
Debt Disclosure [Abstract]
Long-term Debt Schedule	Long-term debt consists of the following: December 25, June 26, Revolving credit facility $ 215.0 $ — 8.250% notes 350.0 350.0 5.000% notes (1) — 350.0 Finance lease obligations 110.1 105.4 Total long-term debt 675.1 805.4 Less: unamortized debt issuance costs and discounts (4.4) (5.0) Total long-term debt, less unamortized debt issuance costs and discounts 670.7 800.4 Less: current installments of long-term debt and finance leases (2) (18.7) (14.1) Total long-term debt, less current portion $ 652.0 $ 786.3 (1) On October 1, 2024, the 5.000% notes matured and were repaid in full using borrowings under our revolving credit facility. (2) Current installments of long-term debt consist of finance leases and are recorded within Other accrued liabilities in the Consolidated Balance Sheets (Unaudited). Refer to Note 4 - Accrued Liabilities for further details.

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Dec. 25, 2024
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Schedule	Twenty-Six Week Periods Ended December 25, December 27, Effective income tax rate 14.7 % 7.0 %

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
	Dec. 25, 2024
Stockholders' Equity Note [Abstract]
Stock-based Compensation Schedule	The following table presents restricted share awards granted under the Company’s various equity compensation plans and the related weighted average fair value per share amounts. Twenty-Six Week Periods Ended December 25, December 27, Restricted share awards Restricted share awards granted 0.6 0.6 Weighted average fair value per share $ 85.45 $ 33.44

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	6 Months Ended
	Dec. 25, 2024
Earnings Per Share [Abstract]
Basic to Diluted Weighted Average Number of Shares Reconciliation	Basic weighted average shares outstanding are reconciled to Diluted weighted average shares outstanding as follows: Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 25, December 27, December 25, December 27, Basic weighted average shares outstanding 44.4 44.2 44.7 44.4 Dilutive stock options 0.1 — 0.1 — Dilutive restricted shares 1.0 0.7 0.9 0.7 Total dilutive impact 1.1 0.7 1.0 0.7 Diluted weighted average shares outstanding 45.5 44.9 45.7 45.1 Awards excluded due to anti-dilutive effect — 0.8 — 0.8

OTHER GAINS AND CHARGES (Tables

OTHER GAINS AND CHARGES (Tables)	6 Months Ended
	Dec. 25, 2024
Other Gains and Charges [Abstract]
Other Gains And Charges	Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Unaudited) consist of the following: Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 25, December 27, December 25, December 27, Litigation & claims, net $ 6.1 $ 1.0 $ 8.6 $ 3.2 Enterprise system implementation costs 5.2 2.1 9.6 4.1 Restaurant closure asset write-offs and charges 0.8 0.2 1.5 0.8 Loss from natural disasters, net (of insurance recoveries) 0.7 (0.6) 0.7 (0.4) Lease modification gain, net (0.7) — (1.0) (0.1) Other — 0.6 1.6 2.0 $ 12.1 $ 3.3 $ 21.0 $ 9.6

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Dec. 25, 2024
Segment Reporting [Abstract]
Segment Information Tables	The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP: Thirteen Week Period Ended December 25, 2024 Chili's Maggiano's Corporate Consolidated Company sales $ 1,196.9 $ 149.2 $ — $ 1,346.1 Franchise revenues 11.9 0.2 — 12.1 Total revenues 1,208.8 149.4 — 1,358.2 Food and beverage costs 310.1 33.8 — 343.9 Restaurant labor 378.4 42.6 — 421.0 Restaurant expenses 285.0 39.0 0.4 324.4 Depreciation and amortization 41.8 3.4 2.5 47.7 General and administrative 12.2 2.4 38.5 53.1 Other (gains) and charges 6.2 — 5.9 12.1 Total operating costs and expenses 1,033.7 121.2 47.3 1,202.2 Operating income (loss) 175.1 28.2 (47.3) 156.0 Interest expenses 1.6 — 13.1 14.7 Other income, net — — (0.4) (0.4) Income (loss) before income taxes $ 173.5 $ 28.2 $ (60.0) $ 141.7 Thirteen Week Period Ended December 27, 2023 Chili's Maggiano's Corporate Consolidated Company sales $ 916.9 $ 146.8 $ — $ 1,063.7 Franchise revenues 10.3 0.1 — 10.4 Total revenues 927.2 146.9 — 1,074.1 Food and beverage costs 239.2 33.9 — 273.1 Restaurant labor 313.0 43.1 — 356.1 Restaurant expenses 258.3 36.2 0.2 294.7 Depreciation and amortization 35.5 3.2 2.6 41.3 General and administrative 10.2 2.1 30.9 43.2 Other (gains) and charges 0.9 0.2 2.2 3.3 Total operating costs and expenses 857.1 118.7 35.9 1,011.7 Operating income (loss) 70.1 28.2 (35.9) 62.4 Interest expenses 0.9 — 15.8 16.7 Other income, net (0.1) — — (0.1) Income (loss) before income taxes $ 69.3 $ 28.2 $ (51.7) $ 45.8 Twenty-Six Week Period Ended December 25, 2024 Chili’s Maggiano's Corporate Consolidated Company sales $ 2,215.8 $ 257.6 $ — $ 2,473.4 Franchise revenues 23.4 0.4 — 23.8 Total revenues 2,239.2 258.0 — 2,497.2 Food and beverage costs 569.2 59.0 — 628.2 Restaurant labor 720.0 78.4 — 798.4 Restaurant expenses 565.6 72.0 0.7 638.3 Depreciation and amortization 82.3 6.8 4.9 94.0 General and administrative 24.0 5.4 75.5 104.9 Other (gains) and charges 9.1 0.4 11.5 21.0 Total operating costs and expenses 1,970.2 222.0 92.6 2,284.8 Operating income (loss) 269.0 36.0 (92.6) 212.4 Interest expenses 2.9 0.1 26.0 29.0 Other income, net (0.1) — (0.5) (0.6) Income (loss) before income taxes $ 266.2 $ 35.9 $ (118.1) $ 184.0 Twenty-Six Week Period Ended December 27, 2023 Chili’s Maggiano's Corporate Consolidated Company sales $ 1,814.7 $ 251.0 $ — $ 2,065.7 Franchise revenues 20.6 0.3 — 20.9 Total revenues 1,835.3 251.3 — 2,086.6 Food and beverage costs 472.3 59.6 — 531.9 Restaurant labor 624.0 80.2 — 704.2 Restaurant expenses 516.8 68.4 0.3 585.5 Depreciation and amortization 71.7 6.4 5.1 83.2 General and administrative 20.2 4.5 60.9 85.6 Other (gains) and charges 4.6 0.4 4.6 9.6 Total operating costs and expenses 1,709.6 219.5 70.9 2,000.0 Operating income (loss) 125.7 31.8 (70.9) 86.6 Interest expenses 1.7 0.1 31.9 33.7 Other income, net (0.1) — — (0.1) Income (loss) before income taxes $ 124.1 $ 31.7 $ (102.8) $ 53.0

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details)	Dec. 25, 2024 Restaurants Country territories
Franchisor Disclosure [Line Items]
Number of restaurants	1,624
Chili's Restaurants [Member]
Franchisor Disclosure [Line Items]
Number of foreign countries in which entity operates | Country	27
Number of U.S. territories in which entity operates | territories	2
Entity Operated Units [Member]
Franchisor Disclosure [Line Items]
Number of restaurants	1,164
Franchised Units [Member]
Franchisor Disclosure [Line Items]
Number of restaurants	460

REVENUE RECOGNITION (Deferred F

REVENUE RECOGNITION (Deferred Franchise and Development Fees) (Details) - Deferred Franchise and Development Fees [Member] $ in Millions	6 Months Ended
	Dec. 25, 2024 USD ($)
Changes in deferred franchise and development fees [Line Items]
Balance as of June 26, 2024	$ 9.7
Additions	0.8
Amount recognized to Franchise revenues	(0.7)
Balance as of December 25, 2024	$ 9.8

REVENUE RECOGNITION (Remaining

REVENUE RECOGNITION (Remaining Deferred Franchise and Development Fees to be Recognized) (Details) $ in Millions	Dec. 25, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 9.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-12-26
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 0.4
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-06-26
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 0.8
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-06-25
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 0.8
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-06-30
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 0.7
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-06-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 0.6
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-06-28
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 6.5
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	15 years

REVENUE RECOGNITION (Deferred G

REVENUE RECOGNITION (Deferred Gift Card Revenues) (Details) $ in Millions	6 Months Ended
	Dec. 25, 2024 USD ($)
Deferred Gift Card Revenues [Line Items]
Balance as of June 26, 2024	$ 64.8
Balance as of December 25, 2024	80.7
Gift card sales [Member]
Deferred Gift Card Revenues [Line Items]
Increase (decrease) in gift card liability	70.8
Gift card redemptions [Member]
Deferred Gift Card Revenues [Line Items]
Gift card redemptions recognized to Company sales	(48.2)
Gift card breakage [Member]
Deferred Gift Card Revenues [Line Items]
Gift card breakage recognized to Company sales	(5.4)
Gift card other [Member]
Deferred Gift Card Revenues [Line Items]
Increase (decrease) in gift card liability	$ (1.3)

FAIR VALUE MEASUREMENTS (Schedu

FAIR VALUE MEASUREMENTS (Schedule of Carrying and Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions	Dec. 25, 2024		Jun. 26, 2024
5.000% notes [Member]
Debt Instrument [Line Items]
Notes, stated percentage interest rate	5%
Carrying value of notes	$ 0	[1]	$ 349.8
Fair value of notes	$ 0	[1]	349.6
8.250% notes [Member]
Debt Instrument [Line Items]
Notes, stated percentage interest rate	8.25%
Carrying value of notes	$ 345.6		345.2
Fair value of notes	$ 369.3		$ 367.8
[1] On October 1, 2024, the 5.000% notes matured and were repaid in full using borrowings under our revolving credit facility.

FAIR VALUE MEASUREMENTS (Non-Fi

FAIR VALUE MEASUREMENTS (Non-Financial Assets Measured on a Non-Recurring Basis) (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 25, 2024	Dec. 27, 2023	Jun. 26, 2024
Additional Fair Value Elements [Abstract]
Accumulated amortization associated with definite-lived intangible assets	$ 17.7		$ 16.6
Schedule of Impairments [Line Items]
Impairment of definite lived assets	0	$ 0
Impairment of goodwill	0	0
Liquor Licenses [Member]
Schedule of Impairments [Line Items]
Impairment of liquor licenses	$ 0	$ 0

ACCRUED LIABILITIES (Schedule o

ACCRUED LIABILITIES (Schedule of Other Accrued Liabilities) (Details) - USD ($) $ in Millions	Dec. 25, 2024	Jun. 26, 2024
Other accrued liabilities [Line Items]
Insurance	$ 33.5	$ 31.4
Property tax	27.5	24.6
Sales tax	25.5	18.4
Current installments of finance lease obligations	18.7	14.1
Interest	13.3	18.1
Utilities and services	10.5	10
Other	23	28.1
Other accrued liabilities	$ 152	$ 144.7

LEASES (Disclosure of Lease Exp

LEASES (Disclosure of Lease Expenses) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 25, 2024	Dec. 27, 2023	Dec. 25, 2024	Dec. 27, 2023
Leases [Abstract]
Operating lease cost	$ 45.8	$ 45.6	$ 91.4	$ 91.2
Variable lease cost	17.5	15.5	33.6	31.1
Finance lease amortization	6.8	2.6	12.5	5.8
Finance lease interest	1.6	0.9	3.1	1.8
Short-term lease cost	0.2	0	0.3	0.1
Sublease income	(0.4)	(0.4)	(0.8)	(0.8)
Total lease costs, net	$ 71.5	$ 64.2	$ 140.1	$ 129.2

LEASES (Supplemental Informatio

LEASES (Supplemental Information Related to Leases) (Details) - USD ($) $ in Millions	6 Months Ended
	Dec. 25, 2024	Dec. 27, 2023	Jun. 26, 2024
Leases [Abstract]
Operating lease assets obtained in exchange for operating lease liabilities	$ 43.4	$ 21.3
Finance lease assets obtained in exchange for finance lease liabilities	16.6	$ 0.1
Finance lease, right-of-use asset, net	$ 97.7		$ 93.4

DEBT (Schedule of Long-Term Deb

DEBT (Schedule of Long-Term Debt) (Details) - USD ($) $ in Millions		Dec. 25, 2024		Jun. 26, 2024
Debt Instrument [Line Items]
Finance lease obligations		$ 110.1		$ 105.4
Total long-term debt		675.1		805.4
Less: unamortized debt issuance costs and discounts		(4.4)		(5)
Total long-term debt, less unamortized debt issuance costs and discounts		670.7		800.4
Less: current installments of long-term debt and finance leases	[1]	(18.7)		(14.1)
Long-term debt and finance leases, less current installments		652		786.3
8.250% notes [Member]
Debt Instrument [Line Items]
Senior notes		350		350
5.000% notes [Member]
Debt Instrument [Line Items]
Senior notes		0	[2]	350
$900.0M Revolving Credit Facility
Debt Instrument [Line Items]
Revolving credit facility		$ 215		$ 0
[1] (2) Current installments of long-term debt consist of finance leases and are recorded within Other accrued liabilities in the Consolidated Balance Sheets (Unaudited). Refer to Note 4 - Accrued Liabilities for further details. On October 1, 2024, the 5.000% notes matured and were repaid in full using borrowings under our revolving credit facility.

DEBT (Additional Information) (

DEBT (Additional Information) (Details) $ in Millions	6 Months Ended
	Dec. 25, 2024 USD ($)
Line of Credit Facility [Line Items]
Net borrowings	$ 215
$900.0M Revolving Credit Facility
Line of Credit Facility [Line Items]
Revolving credit facility, remaining borrowing capacity	685
Revolving credit facility, maximum borrowing capacity	$ 900
Revolving credit facility, expiration date	Aug. 18, 2026
Basis spread on variable rate	1.60%
Revolving credit facility, interest rate at period end	5.94%
Revolving credit facility, covenant compliance	we were in compliance with our covenants pursuant to the $900.0 million revolving credit facility and under the terms of the indentures governing our 8.250% notes
Minimum [Member] | $900.0M Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.60%
Undrawn commitment fee spread	0.25%
Maximum [Member] | $900.0M Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.35%
Undrawn commitment fee spread	0.35%
Base Rate | $900.0M Revolving Credit Facility
Line of Credit Facility [Line Items]
Revolving credit facility, variable rate basis	SOFR
Revolving credit facility, interest rate during period	4.34%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Lease Commitments) (Details) - USD ($) $ in Millions	Dec. 25, 2024	Jun. 26, 2024
Maximum [Member] | Lease Guarantees And Secondary Obligations [Member]
Guarantor Obligations [Line Items]
Loss contingency, estimate of possible loss	$ 14.2	$ 15.7

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Additional Information) (Details) $ in Millions	Dec. 25, 2024 USD ($) LegalMatter
Loss Contingencies [Line Items]
Amount of undrawn standby letters of credit outstanding	$ 5.8
Number of matters pending or threatened which are expected to have a material adverse effect | LegalMatter	0
Cyber security incident [Member]
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	$ 5

INCOME TAXES (Effective and Sta

INCOME TAXES (Effective and Statutory Tax Rates) (Details)	6 Months Ended
	Dec. 25, 2024 Rate	Dec. 27, 2023 Rate
Income Tax Disclosure [Abstract]
Effective income tax rate	14.70%	7%
Federal Statutory Income Tax Rate, Percent	21%	21%

SHAREHOLDERS' EQUITY (Share Rep

SHAREHOLDERS' EQUITY (Share Repurchases) (Details) - USD ($) shares in Millions, $ in Millions	6 Months Ended
	Dec. 25, 2024	Dec. 27, 2023	Aug. 16, 2021
Remaining amount of share repurchase authorizations available	$ 107		$ 300
Number of shares repurchased	1.2
Purchases of treasury stock	$ 85.2	$ 25.1
Withheld from Employees [Member]
Number of shares repurchased	0.2
Open Market Purchase
Number of shares repurchased	1
Purchases of treasury stock	$ 76

SHAREHOLDERS' EQUITY (Stock-bas

SHAREHOLDERS' EQUITY (Stock-based Compensation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended	6 Months Ended
	Dec. 25, 2024	Dec. 25, 2024	Dec. 27, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized for issuance under stock option and incentive plan for employees	3.5
2025 Executive Performance Share Retention Plan, grant date fair value of target shares granted	$ 25
2025 Executive Performance Share Retention Plan, performance and service period in years	5 years
Restricted share awards granted		0.6	0.6
Weighted average fair value per share		$ 85.45	$ 33.44

NET INCOME PER SHARE (Details)

NET INCOME PER SHARE (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Dec. 25, 2024	Dec. 27, 2023	Dec. 25, 2024	Dec. 27, 2023
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Basic weighted average shares outstanding	44.4	44.2	44.7	44.4
Total dilutive impact	1.1	0.7	1	0.7
Diluted weighted average shares outstanding	45.5	44.9	45.7	45.1
Awards excluded due to anti-dilutive effect	0	0.8	0	0.8
Stock Options [Member]
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0.1	0	0.1	0
Restricted Share Award [Member]
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	1	0.7	0.9	0.7

OTHER GAINS AND CHARGES (Schedu

OTHER GAINS AND CHARGES (Schedule of Other Gains and Charges) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 25, 2024	Dec. 27, 2023	Dec. 25, 2024	Dec. 27, 2023
Restructuring Cost and Reserve [Line Items]
Litigation & claims, net	$ 6.1	$ 1	$ 8.6	$ 3.2
Enterprise system implementation costs	5.2	2.1	9.6	4.1
Restaurant closure asset write-offs and charges	0.8	0.2	1.5	0.8
Loss from natural disasters, net (of insurance recoveries)	0.7	(0.6)	0.7	(0.4)
Lease modification gain, net	(0.7)	0	(1)	(0.1)
Other	0	0.6	1.6	2
Other (gains) and charges	$ 12.1	$ 3.3	$ 21	$ 9.6

SEGMENT INFORMATION (Schedule o

SEGMENT INFORMATION (Schedule of Segment Reporting) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 25, 2024 USD ($) territories Country	Dec. 27, 2023 USD ($)	Dec. 25, 2024 USD ($) territories Country	Dec. 27, 2023 USD ($)
Segment Reporting Information [Line Items]
Segment Information, disclosure of major customers			We do not rely on any major customers as a source of sales
Total revenues	$ 1,358.2	$ 1,074.1	$ 2,497.2	$ 2,086.6
Food and beverage costs	343.9	273.1	628.2	531.9
Restaurant labor	421	356.1	798.4	704.2
Restaurant expenses	324.4	294.7	638.3	585.5
Depreciation and amortization	47.7	41.3	94	83.2
General and administrative	53.1	43.2	104.9	85.6
Other (gains) and charges	12.1	3.3	21	9.6
Total operating costs and expenses	1,202.2	1,011.7	2,284.8	2,000
Operating income (loss)	156	62.4	212.4	86.6
Interest expenses	14.7	16.7	29	33.7
Other income, net	(0.4)	(0.1)	(0.6)	(0.1)
Income before income taxes	$ 141.7	45.8	$ 184	53
Chili's Restaurants [Member]
Segment Reporting Information [Line Items]
Number of foreign countries in which entity operates | Country	27		27
Number of U.S. territories in which entity operates | territories	2		2
Total revenues	$ 1,208.8	927.2	$ 2,239.2	1,835.3
Food and beverage costs	310.1	239.2	569.2	472.3
Restaurant labor	378.4	313	720	624
Restaurant expenses	285	258.3	565.6	516.8
Depreciation and amortization	41.8	35.5	82.3	71.7
General and administrative	12.2	10.2	24	20.2
Other (gains) and charges	6.2	0.9	9.1	4.6
Total operating costs and expenses	1,033.7	857.1	1,970.2	1,709.6
Operating income (loss)	175.1	70.1	269	125.7
Interest expenses	1.6	0.9	2.9	1.7
Other income, net	0	(0.1)	(0.1)	(0.1)
Income before income taxes	173.5	69.3	266.2	124.1
Maggiano's Restaurants [Member]
Segment Reporting Information [Line Items]
Total revenues	149.4	146.9	258	251.3
Food and beverage costs	33.8	33.9	59	59.6
Restaurant labor	42.6	43.1	78.4	80.2
Restaurant expenses	39	36.2	72	68.4
Depreciation and amortization	3.4	3.2	6.8	6.4
General and administrative	2.4	2.1	5.4	4.5
Other (gains) and charges	0	0.2	0.4	0.4
Total operating costs and expenses	121.2	118.7	222	219.5
Operating income (loss)	28.2	28.2	36	31.8
Interest expenses	0	0	0.1	0.1
Other income, net	0	0	0	0
Income before income taxes	28.2	28.2	35.9	31.7
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Total revenues	0	0	0	0
Food and beverage costs	0	0	0	0
Restaurant labor	0	0	0	0
Restaurant expenses	0.4	0.2	0.7	0.3
Depreciation and amortization	2.5	2.6	4.9	5.1
General and administrative	38.5	30.9	75.5	60.9
Other (gains) and charges	5.9	2.2	11.5	4.6
Total operating costs and expenses	47.3	35.9	92.6	70.9
Operating income (loss)	(47.3)	(35.9)	(92.6)	(70.9)
Interest expenses	13.1	15.8	26	31.9
Other income, net	(0.4)	0	(0.5)	0
Income before income taxes	(60)	(51.7)	(118.1)	(102.8)
Company sales [Member]
Segment Reporting Information [Line Items]
Revenues	1,346.1	1,063.7	2,473.4	2,065.7
Company sales [Member] | Chili's Restaurants [Member]
Segment Reporting Information [Line Items]
Revenues	1,196.9	916.9	2,215.8	1,814.7
Company sales [Member] | Maggiano's Restaurants [Member]
Segment Reporting Information [Line Items]
Revenues	149.2	146.8	257.6	251
Company sales [Member] | Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenues	0	0	0	0
Franchise revenues [Member]
Segment Reporting Information [Line Items]
Revenues	12.1	10.4	23.8	20.9
Franchise revenues [Member] | Chili's Restaurants [Member]
Segment Reporting Information [Line Items]
Revenues	11.9	10.3	23.4	20.6
Franchise revenues [Member] | Maggiano's Restaurants [Member]
Segment Reporting Information [Line Items]
Revenues	0.2	0.1	0.4	0.3
Franchise revenues [Member] | Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenues	$ 0	$ 0	$ 0	$ 0