SEGMENT INFORMATION

6 Months Ended

Dec. 29, 2021

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 has Company-owned restaurants in Canada, and franchised locations in the United States, 28 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 the results from our domestic franchise business. The Other segment includes 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. The Other segment also 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 gift card redemptions and revenues from our It’s Just Wings and Maggiano’s Italian Classics virtual brands. Franchise and other revenues for each operating segment include royalties, gift card breakage, Maggiano’s banquet service charge income, delivery income, digital entertainment revenue, franchise advertising fees, franchise and development fees, gift card equalization and gift card discount costs from third-party gift card sales.

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 included restaurant rent, supplies, utilities, property and equipment maintenance, delivery fees, credit card processing fees, property taxes and worker’s comp 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 29, 2021
	Chili’s(1)		Maggiano’s		Other		Consolidated
Company sales	$	791.9	$	112.6	$	—	$	904.5
Royalties	8.6		0.1		—		8.7
Franchise fees and other revenues	7.7		4.9		—		12.6
Franchise and other revenues	16.3		5.0		—		21.3
Total revenues	808.2		117.6		—		925.8
Food and beverage costs	224.8		28.0		—		252.8
Restaurant labor	277.6		37.8		—		315.4
Restaurant expenses	205.0		31.5		0.2		236.7
Depreciation and amortization	35.4		3.4		2.8		41.6
General and administrative	7.2		1.9		24.0		33.1
Other (gains) and charges	2.2		—		4.2		6.4
Total operating costs and expenses	752.2		102.6		31.2		886.0
Operating income (loss)	56.0		15.0		(31.2)		39.8
Interest expenses	1.4		0.1		9.7		11.2
Other income, net	(0.2)		—		(0.3)		(0.5)
Income (loss) before income taxes	$	54.8	$	14.9	$	(40.6)	$	29.1

	Thirteen Week Period Ended December 23, 2020
	Chili’s		Maggiano’s		Other		Consolidated
Company sales	$	683.0	$	63.2	$	—	$	746.2
Royalties	7.6		0.1		—		7.7
Franchise fees and other revenues	5.8		1.0		—		6.8
Franchise and other revenues	13.4		1.1		—		14.5
Total revenues	696.4		64.3		—		760.7
Food and beverage costs	183.7		15.2		—		198.9
Restaurant labor	233.4		22.4		—		255.8
Restaurant expenses	188.7		22.1		0.5		211.3
Depreciation and amortization	30.8		3.4		3.0		37.2
General and administrative	5.4		1.3		23.3		30.0
Other (gains) and charges	4.4		0.8		0.2		5.4
Total operating costs and expenses	646.4		65.2		27.0		738.6
Operating income (loss)	50.0		(0.9)		(27.0)		22.1
Interest expenses	1.4		0.1		12.9		14.4
Other income, net	(0.2)		—		(0.3)		(0.5)
Income (loss) before income taxes	$	48.8	$	(1.0)	$	(39.6)	$	8.2

	Twenty-Six Week Period Ended December 29, 2021
	Chili’s(1)		Maggiano’s		Other		Consolidated
Company sales	$	1,565.2	$	198.9	$	—	$	1,764.1
Royalties	17.6		0.2		—		17.8
Franchise fees and other revenues	13.0		7.3		—		20.3
Franchise and other revenues	30.6		7.5		—		38.1
Total revenues	1,595.8		206.4		—		1,802.2
Food and beverage costs	438.2		48.9		—		487.1
Restaurant labor	551.1		69.2		—		620.3
Restaurant expenses	409.6		58.1		0.3		468.0
Depreciation and amortization	68.4		6.8		5.7		80.9
General and administrative	15.2		3.9		50.5		69.6
Other (gains) and charges	5.0		0.2		5.7		10.9
Total operating costs and expenses	1,487.5		187.1		62.2		1,736.8
Operating income (loss)	108.3		19.3		(62.2)		65.4
Interest expenses	2.8		0.2		20.7		23.7
Other income, net	(0.3)		—		(0.5)		(0.8)
Income (loss) before income taxes	$	105.8	$	19.1	$	(82.4)	$	42.5
Segment assets	$	2,073.4	$	235.9	$	148.0	$	2,457.3
Segment goodwill	156.5		38.4		—		194.9
Payments for property and equipment	65.4		5.0		3.7		74.1

	Twenty-Six Week Period Ended December 23, 2020
	Chili’s		Maggiano’s		Other		Consolidated
Company sales	$	1,358.0	$	116.4	$	—	$	1,474.4
Royalties	14.2		0.1		—		14.3
Franchise fees and other revenues	10.7		1.4		—		12.1
Franchise and other revenues	24.9		1.5		—		26.4
Total revenues	1,382.9		117.9		—		1,500.8
Food and beverage costs	364.5		27.9		—		392.4
Restaurant labor	461.6		42.2		—		503.8
Restaurant expenses	370.1		42.9		0.8		413.8
Depreciation and amortization	61.4		7.0		6.2		74.6
General and administrative	10.8		2.6		47.1		60.5
Other (gains) and charges	8.0		0.9		0.3		9.2
Total operating costs and expenses	1,276.4		123.5		54.4		1,454.3
Operating income (loss)	106.5		(5.6)		(54.4)		46.5
Interest expenses	2.8		0.1		26.1		29.0
Other income, net	(0.3)		—		(0.6)		(0.9)
Income (loss) before income taxes	$	104.0	$	(5.7)	$	(79.9)	$	18.4
Payments for property and equipment	$	32.8	$	1.0	$	3.3	$	37.1

(1)Chili’s segment information for fiscal 2022 includes the results of operations and the preliminary fair value of assets related to the 60 restaurants purchased from two former franchisees subsequent to the acquisition dates. Refer to Note 2 - Chili’s Restaurant Acquisitions for further details.