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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended December 27, 2023
Commission File Number 1-10275
Brinker diamond - Hi Res.jpg
BRINKER INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
DE
75-1914582
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
3000 Olympus Blvd
Dallas
TX
75019
(Address of principal executive offices)(Zip Code)
(972)
980-9917
(Registrant’s telephone number, including area code)
Title of each class
Trading Symbol(s)
Name of exchange on which registered
Common Stock, $0.10 par value
EAT
NYSE
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    No ☒
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of January 26, 2024: 44,227,124 shares



BRINKER INTERNATIONAL, INC.
QUARTERLY REPORT ON FORM 10-Q
TABLE OF CONTENTS
Page

2

Table of Contents

PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BRINKER INTERNATIONAL, INC.
Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(In millions, except per share amounts)
Thirteen Week Periods EndedTwenty-Six Week Periods Ended
December 27,
2023
December 28,
2022
December 27,
2023
December 28,
2022
Revenues
Company sales$1,063.7 $1,009.4 $2,065.7 $1,955.5 
Franchise revenues10.4 9.6 20.9 19.0 
Total revenues1,074.1 1,019.0 2,086.6 1,974.5 
Operating costs and expenses
Food and beverage costs273.1 289.4 531.9 578.9 
Restaurant labor356.1 334.6 704.2 665.2 
Restaurant expenses294.7 268.4 585.5 537.2 
Depreciation and amortization41.3 41.8 83.2 83.7 
General and administrative43.2 35.6 85.6 75.1 
Other (gains) and charges3.3 8.5 9.6 13.5 
Total operating costs and expenses1,011.7 978.3 2,000.0 1,953.6 
Operating income62.4 40.7 86.6 20.9 
Interest expenses16.7 13.9 33.7 26.2 
Other income, net(0.1)(0.3)(0.1)(0.7)
Income (loss) before income taxes45.8 27.1 53.0 (4.6)
Provision (benefit) for income taxes3.7 (0.8)3.7 (2.3)
Net income (loss)$42.1 $27.9 $49.3 $(2.3)
Basic net income (loss) per share$0.95 $0.63 $1.11 $(0.05)
Diluted net income (loss) per share$0.94 $0.62 $1.09 $(0.05)
Basic weighted average shares outstanding44.2 44.0 44.4 44.0 
Diluted weighted average shares outstanding44.9 44.8 45.1 44.0 
Other comprehensive income (loss)
Foreign currency translation adjustment$0.2 $0.1 $0.0 $(0.9)
Comprehensive income (loss)$42.3 $28.0 $49.3 $(3.2)
See accompanying Notes to Consolidated Financial Statements (Unaudited)
3

Table of Contents

BRINKER INTERNATIONAL, INC.
Consolidated Balance Sheets
(In millions, except per share amounts)
Unaudited
December 27,
2023
June 28,
2023
ASSETS
Current assets
Cash and cash equivalents$22.7 $15.1 
Accounts receivable, net79.4 60.9 
Inventories34.3 34.5 
Restaurant supplies55.1 55.6 
Prepaid expenses19.7 17.2 
Income taxes receivable0.1  
Total current assets211.3 183.3 
Property and equipment, at cost
Land42.5 42.4 
Buildings and leasehold improvements1,665.9 1,635.7 
Furniture and equipment757.1 765.8 
Construction-in-progress33.5 30.1 
2,499.0 2,474.0 
Less accumulated depreciation and amortization(1,680.2)(1,665.7)
Net property and equipment818.8 808.3 
Other assets
Operating lease assets1,099.9 1,134.9 
Goodwill195.0 195.0 
Deferred income taxes, net101.7 93.4 
Intangibles, net22.1 23.9 
Other61.9 48.2 
Total other assets1,480.6 1,495.4 
Total assets$2,510.7 $2,487.0 
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Current liabilities
Accounts payable$148.9 $125.7 
Gift card liability90.4 73.0 
Accrued payroll100.1 106.1 
Operating lease liabilities111.7 112.4 
Other accrued liabilities134.6 116.3 
Income taxes payable4.3 2.4 
Total current liabilities590.0 535.9 
Long-term debt and finance leases, less current installments882.4 912.2 
Long-term operating lease liabilities, less current portion1,087.6 1,125.8 
Other liabilities60.2 57.4 
Commitments and contingencies (Note 7)
Shareholders’ deficit
Common stock (250.0 million authorized shares; $0.10 par value; 60.3 million shares issued; and 44.2 million shares outstanding at December 27, 2023 and 44.6 million shares outstanding at June 28, 2023)
6.0 6.0 
Additional paid-in capital687.0 690.0 
Accumulated other comprehensive loss(6.0)(6.0)
Accumulated deficit(302.6)(351.9)
Treasury stock, at cost (16.1 million shares at December 27, 2023, and 15.7 million shares at June 28, 2023)
(493.9)(482.4)
Total shareholders’ deficit(109.5)(144.3)
Total liabilities and shareholders’ deficit$2,510.7 $2,487.0 
See accompanying Notes to Consolidated Financial Statements (Unaudited)
4

Table of Contents

BRINKER INTERNATIONAL, INC.
Consolidated Statements of Cash Flows (Unaudited)
(In millions)
Twenty-Six Week Periods Ended
December 27,
2023
December 28,
2022
Cash flows from operating activities
Net income (loss)$49.3 $(2.3)
Adjustments to reconcile Net income (loss) to Net cash provided by operating activities:
Depreciation and amortization83.2 83.7 
Stock-based compensation10.1 5.9 
Deferred income taxes, net(8.4)(10.3)
Non-cash other (gains) and charges4.3 7.2 
Net loss on disposal of assets1.5 2.1 
Other1.3 0.9 
Changes in assets and liabilities:
Accounts receivable, net(20.2)(28.4)
Inventories (2.0)
Restaurant supplies(0.2)(0.4)
Prepaid expenses(10.9)(9.2)
Income taxes1.4 4.0 
Operating lease assets, net of liabilities(3.9)(1.5)
Other assets(6.5)(0.1)
Accounts payable19.4 5.0 
Gift card liability17.3 22.0 
Accrued payroll(6.1)(20.2)
Other accrued liabilities16.5 9.3 
Other liabilities2.2 2.3 
Net cash provided by operating activities150.3 68.0 
Cash flows from investing activities
Payments for property and equipment(89.5)(95.3)
Proceeds from note receivable1.3 2.1 
Proceeds from sale of assets0.7  
Insurance recoveries0.7  
Net cash used in investing activities(86.8)(93.2)
Cash flows from financing activities
Borrowings on revolving credit facility199.0 280.0 
Payments on revolving credit facility(224.0)(240.0)
Purchases of treasury stock(25.1)(2.1)
Payments on long-term debt(5.6)(11.3)
Payments for debt issuance costs(0.7) 
Proceeds from issuance of treasury stock0.5  
Payments of dividends0.0 (0.2)
Net cash (used in) provided by financing activities(55.9)26.4 
Net change in cash and cash equivalents7.6 1.2 
Cash and cash equivalents at beginning of period15.1 13.5 
Cash and cash equivalents at end of period$22.7 $14.7 
Supplemental disclosure of cash flow information:
Income taxes paid, net$10.7 $4.4 
Interest paid, net of amounts capitalized18.8 23.6 
Accrued capital expenditures16.0 17.9 
See accompanying Notes to Consolidated Financial Statements (Unaudited)
5

Table of Contents

BRINKER INTERNATIONAL, INC.
Consolidated Statements of Shareholders’ Deficit (Unaudited)
(In millions)
Twenty-Six Week Period Ended December 27, 2023
Common StockAdditional
Paid-In
Capital
Accumulated DeficitTreasury
Stock
Accumulated
Other
Comprehensive
Loss
Total
Balances at June 28, 2023$6.0 $690.0 $(351.9)$(482.4)$(6.0)$(144.3)
Net income  7.2   7.2 
Other comprehensive loss    (0.2)(0.2)
Stock-based compensation 5.7    5.7 
Purchases of treasury stock (0.2) (24.5) (24.7)
Issuances of treasury stock (11.7) 11.7   
Balances at September 27, 2023$6.0 $683.8 $(344.7)$(495.2)$(6.2)$(156.3)
Net income  42.1   42.1 
Other comprehensive income    0.2 0.2 
Stock-based compensation 4.4    4.4 
Purchases of treasury stock (0.1) (0.3) (0.4)
Issuances of treasury stock (1.1) 1.6  0.5 
Balances at December 27, 2023$6.0 $687.0 $(302.6)$(493.9)$(6.0)$(109.5)

Twenty-Six Week Period Ended December 28, 2022
Common StockAdditional
Paid-In
Capital
Accumulated DeficitTreasury
Stock
Accumulated
Other
Comprehensive
Loss
Total
Balances at June 29, 2022$7.0 $690.9 $(148.4)$(812.3)$(5.3)$(268.1)
Net loss  (30.2)  (30.2)
Other comprehensive loss    (1.0)(1.0)
Stock-based compensation 4.7    4.7 
Purchases of treasury stock 0.2  (2.2) (2.0)
Issuances of treasury stock (7.8) 7.8   
Retirement of stock(1.0) (306.1)307.1   
Balances at September 28, 2022$6.0 $688.0 $(484.7)$(499.6)$(6.3)$(296.6)
Net income  27.9   27.9 
Other comprehensive income    0.1 0.1 
Stock-based compensation 1.2    1.2 
Purchases of treasury stock 0.0  (0.1) (0.1)
Issuances of treasury stock (0.5) 0.5   
Balances at December 28, 2022$6.0 $688.7 $(456.8)$(499.2)$(6.2)$(267.5)

See accompanying Notes to Consolidated Financial Statements (Unaudited)
6

Table of Contents
Footnote Index
BRINKER INTERNATIONAL, INC.
Notes to Consolidated Financial Statements (Unaudited)
Footnote Index
Note #DescriptionPage
Basis of Presentation
Revenue Recognition
Fair Value Measurements
Accrued Liabilities
Leases
Debt
Contingencies
Income Taxes
Shareholders’ Deficit
Net Income Per Share
Other Gains and Charges
Segment Information

7

Table of Contents
Footnote Index
1. 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 27, 2023 and June 28, 2023, and for the thirteen and twenty-six week periods ended December 27, 2023 and December 28, 2022, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).
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. As of December 27, 2023, we owned, operated or franchised 1,658 restaurants, consisting of 1,184 Company-owned restaurants and 474 franchised restaurants, located in the United States, 29 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 28, 2023 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 included in the Consolidated Statements of Comprehensive Income (Loss) (Unaudited) represents the unrealized impact of translating the financial statements of our Canadian restaurants from Canadian dollars to United States dollars. This amount is not included in Net income (loss) and would only be realized upon disposition of our Canadian restaurants. The related Accumulated other comprehensive loss is presented in the Consolidated Balance Sheets (Unaudited).
New Accounting Standards Implemented in Fiscal 2024
We reviewed accounting pronouncements that became effective for our fiscal 2024 and determined that either they were not applicable or they did not have a material impact on the Consolidated Financial Statements (Unaudited). We also reviewed recently issued accounting pronouncements to be adopted in future periods and determined that they are not expected to have a material impact on the Consolidated Financial Statements (Unaudited).
2. 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 our 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.

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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 28, 2023 and December 27, 2023:
Deferred Franchise and Development Fees
Balance as of June 28, 2023$11.1 
Additions0.2 
Amount recognized to Franchise revenues(0.8)
Balance as of December 27, 2023$10.5 
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 27, 2023:
Fiscal YearFranchise and Development Fees Revenue Recognition
Remainder of 2024$0.4 
20250.9 
20260.8 
20270.8 
20280.7 
Thereafter6.9 
$10.5 
Deferred Gift Card Revenues
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 28, 2023 and December 27, 2023:
Gift Card Liability
Balance as of June 28, 2023$73.0 
Gift card sales75.7 
Gift card redemptions recognized to Company sales(50.3)
Gift card breakage recognized to Company sales(6.8)
Other(1.2)
Balance as of December 27, 2023
$90.4 
3. 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 1Quoted prices in active markets for identical assets or liabilities
Level 2Observable inputs other than quoted prices in active markets for identical assets or liabilities
Level 3Unobservable inputs that cannot be corroborated by observable market data

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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 the 5.000% and 8.250% notes are based on quoted market prices and are considered Level 2 fair value measurements.
The 5.000% notes and 8.250% notes carrying amounts, which are net of unamortized debt issuance costs and discounts, and fair values are as follows:
December 27, 2023June 28, 2023
Carrying AmountFair ValueCarrying AmountFair Value
5.000% notes
$349.4 $347.7 $349.0 $343.5 
8.250% notes344.8 364.4 344.3 348.3 
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 (Loss) (Unaudited). During the thirteen and twenty-six week periods ended December 27, 2023 and December 28, 2022, 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 27, 2023 and June 28, 2023, was $15.7 million and $15.3 million, respectively.
4. ACCRUED LIABILITIES
Other accrued liabilities consist of the following:
December 27,
2023
June 28,
2023
Insurance$28.9 $29.3 
Property tax25.9 24.5 
Interest19.9 6.4 
Sales tax18.3 17.3 
Current installments of finance lease obligations10.6 10.2 
Utilities and services10.5 10.4 
Other20.5 18.2 
$134.6 $116.3 

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5. 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 (Loss) (Unaudited) were as follows:
Thirteen Week Periods EndedTwenty-Six Week Periods Ended
December 27,
2023
December 28,
2022
December 27,
2023
December 28,
2022
Operating lease cost$45.6 $45.1 $91.2 $90.2 
Variable lease cost15.5 15.2 31.1 30.8 
Finance lease amortization2.6 4.9 5.8 10.1 
Finance lease interest0.9 1.0 1.8 2.1 
Short-term lease cost0.0 0.1 0.1 0.2 
Sublease income(0.4)(0.6)(0.8)(1.5)
Total lease costs, net$64.2 $65.7 $129.2 $131.9 
Supplemental cash flow information related to leases:
Twenty-Six Week Periods Ended
December 27,
2023
December 28,
2022
Operating lease assets obtained in exchange for operating lease liabilities
$21.3 $45.5 
Finance leases assets obtained in exchange for finance lease liabilities
0.1 0.2 
Finance lease assets are recorded in Property and equipment, at cost, and the net balance as of December 27, 2023 and June 28, 2023 was $45.9 million and $51.3 million, respectively.
6. DEBT
Long-term debt consists of the following:
December 27,
2023
June 28,
2023
Revolving credit facility$136.3 $161.3 
5.000% notes(1)
350.0 350.0 
8.250% notes350.0 350.0 
Finance lease obligations62.6 67.8 
Total long-term debt898.9 929.1 
Less: unamortized debt issuance costs and discounts(5.9)(6.7)
Total long-term debt, less unamortized debt issuance costs and discounts893.0 922.4 
Less: current installments of long-term debt and finance leases(2)
(10.6)(10.2)
Total long-term debt, less current portion$882.4 $912.2 
(1)Obligations under our 5.000% notes, which will mature in October 2024, have been classified as long-term, reflecting our intent and ability to refinance these notes through our existing 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.

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Revolving Credit Facility
In the twenty-six week period ended December 27, 2023, net repayments of $25.0 million were made on our revolving credit facility. As of December 27, 2023, $763.7 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 of SOFR plus an applicable margin of 1.50% to 2.25% 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 27, 2023, our interest rate was 7.21% consisting of SOFR of 5.36% plus the applicable margin and spread adjustment of 1.85%.
Financial Covenants
Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage ratios. As of December 27, 2023, 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 5.000% and 8.250% notes.
7. CONTINGENCIES
Lease Commitments
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 27, 2023 and June 28, 2023, we have outstanding lease guarantees or are secondarily liable for an estimated $13.5 million and $16.9 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 2024 through fiscal 2029.
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. 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. In the twenty-six week period ended December 27, 2023 we recorded a $0.5 million charge in Other (gains) and charges in the Consolidated Statements of Comprehensive Income.
Letters of Credit
We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of December 27, 2023, we had $5.8 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable within the next 12 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 December 13, 2023, we filed a petition for writ of certiorari in the United States Supreme Court seeking review of the 11th Circuit’s decision to uphold the plaintiff’s damages calculation methodology. We also sought further stay of the district court proceedings pending final adjudication of our petition and await the court’s ruling on such request. We believe we have defenses and intend to continue defending the Litigation. As such, as of December 27, 2023, we have concluded that a loss, or range of loss, from this matter is not determinable, therefore, we have not

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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.
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.
8. INCOME TAXES
Twenty-Six Week Periods Ended
December 27,
2023
December 28,
2022
Effective income tax rate7.0 %50.0 %
The federal statutory tax rate was 21.0% for the twenty-six week periods ended December 27, 2023 and December 28, 2022.
The change in the effective income tax rate in the twenty-six week period ended December 27, 2023 to the twenty-six week period ended December 28, 2022 is primarily due to a less favorable impact from the FICA tip tax credit against higher Income before income taxes.
9. SHAREHOLDERS’ DEFICIT
Retirement of Common Stock
During the first quarter of fiscal 2023, the Board of Directors approved the retirement of 10.0 million shares of Treasury stock for a weighted average price per share of $30.71. As of December 27, 2023, 16.1 million shares remain in treasury.
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 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.
In the twenty-six week period ended December 27, 2023, we repurchased 0.8 million shares of our common stock for $25.1 million, including 0.7 million shares purchased for $21.0 million as part of our share repurchase program and 0.1 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 27, 2023, approximately $183.0 million of share repurchase authorization remains under the current share repurchase program.

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Stock-based Compensation
The following table presents the restricted share awards granted and related weighted average fair value per share amounts.
Twenty-Six Week Periods Ended
December 27,
2023
December 28,
2022
Restricted share awards
Restricted share awards granted0.6 0.7 
Weighted average fair value per share$33.44 $29.48 
10. NET INCOME PER SHARE
Basic net income (loss) per share is computed by dividing Net income (loss) by the Basic weighted average shares outstanding for the reporting period. Diluted net income (loss) 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 (loss) 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 (loss) per share calculation. Basic weighted average shares outstanding are reconciled to Diluted weighted average shares outstanding as follows:
Thirteen Week Periods EndedTwenty-Six Week Periods Ended
December 27,
2023
December 28,
2022
December 27,
2023
December 28,
2022
Basic weighted average shares outstanding44.2 44.0 44.4 44.0 
Dilutive stock options(1)
0.0 0.0 0.0  
Dilutive restricted shares(1)
0.7 0.8 0.7  
Total dilutive impact0.7 0.8 0.7  
Diluted weighted average shares outstanding44.9 44.8 45.1 44.0 
Awards excluded due to anti-dilutive effect0.8 1.4 0.8 2.8 
(1)    Due to the net loss for the twenty-six week period ended December 28, 2022, zero incremental shares are included because the effect would be anti-dilutive.
11. OTHER GAINS AND CHARGES
Other (gains) and charges in the Consolidated Statements of Comprehensive Income (Loss) (Unaudited) consist of the following:
Thirteen Week Periods EndedTwenty-Six Week Periods Ended
December 27,
2023
December 28,
2022
December 27,
2023
December 28,
2022
Enterprise system implementation costs$2.1 $1.0 $4.1 $2.0 
Litigation & claims, net1.0 0.3 3.2 0.8 
Restaurant closure asset write-offs and charges0.2 3.3 0.8 4.8 
Lease contingencies  0.5  
Remodel-related asset write-offs0.1 0.2 0.3 1.0 
Loss from natural disasters, net of (insurance recoveries)(0.6)1.1 (0.4)0.9 
Gain on the disposition of restaurants(0.4) (0.4) 
Other0.9 2.6 1.5 4.0 
$3.3 $8.5 $9.6 $13.5 

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Enterprise system implementation costs primarily consists of software subscription fees, certain consulting fees, and contract labor associated with the ongoing enterprise system implementation that are not capitalized.
Litigation & claims, net primarily relates to legal contingencies and claims on alcohol service cases.
Restaurant closure asset write-offs and charges includes costs associated with the closure of certain Chili’s restaurants in the current year and both Chili’s and Maggiano’s restaurants in the prior year.
Lease contingencies includes expenses related to certain sublease receivables for divested brands when we have determined it is probable that the current lessee will default on the lease obligation. Refer to Note 7 - Contingencies for additional information about our secondarily liable lease guarantees.
Remodel-related asset write-offs relates to assets that are removed or discarded in connection with Maggiano’s and Chili’s remodel projects.
Loss from natural disasters, net of (insurance recoveries) primarily relates to the receipt of insurance proceeds for the Hurricane Ida claim in the current year and to costs incurred related to Hurricane Ian & Winter Storm in the prior year.
Gain on the disposition of restaurants relates to the net proceeds from the sale of a Canada Company-owned restaurant.
12. 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, 29 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 the results from our domestic franchise business. The Corporate 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 Corporate 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 food and beverage sales, net of discounts, Maggiano’s banquet service charge income, gift card breakage, delivery, 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, delivery fees and to-go supplies, utilities, advertising, supplies, payment processing fees, franchise and property taxes, workers’ compensation and general liability insurance and supervision expenses.
The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:

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Thirteen Week Period Ended December 27, 2023
Chili'sMaggiano'sCorporateConsolidated
Company sales$916.9 $146.8 $ $1,063.7 
Franchise revenues10.3 0.1  10.4 
Total revenues927.2 146.9  1,074.1 
Food and beverage costs239.2 33.9  273.1 
Restaurant labor313.0 43.1  356.1 
Restaurant expenses258.3 36.2 0.2 294.7 
Depreciation and amortization35.5 3.2 2.6 41.3 
General and administrative10.2 2.1 30.9 43.2 
Other (gains) and charges0.9 0.2 2.2 3.3 
Total operating costs and expenses857.1 118.7 35.9 1,011.7 
Operating income (loss)70.1 28.2 (35.9)62.4 
Interest expenses0.9  15.8 16.7 
Other income, net(0.1)  (0.1)
Income (loss) before income taxes$69.3 $28.2 $(51.7)$45.8 
Thirteen Week Period Ended December 28, 2022
Chili'sMaggiano'sCorporateConsolidated
Company sales$869.3 $140.1 $ $1,009.4 
Franchise revenues9.4 0.2  9.6 
Total revenues878.7 140.3  1,019.0 
Food and beverage costs253.7 35.7  289.4 
Restaurant labor292.3 42.3  334.6 
Restaurant expenses234.1 34.2 0.1 268.4 
Depreciation and amortization36.0 3.3 2.5 41.8 
General and administrative8.5 1.5 25.6 35.6 
Other (gains) and charges5.7 0.3 2.5 8.5 
Total operating costs and expenses830.3 117.3 30.7 978.3 
Operating income (loss)48.4 23.0 (30.7)40.7 
Interest expenses0.9 0.1 12.9 13.9 
Other income, net  (0.3)(0.3)
Income (loss) before income taxes$47.5 $22.9 $(43.3)$27.1 



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Twenty-Six Week Period Ended December 27, 2023
Chili'sMaggiano'sCorporateConsolidated
Company sales$1,814.7 $251.0 $ $2,065.7 
Franchise revenues20.6 0.3  20.9 
Total revenues1,835.3 251.3  2,086.6 
Food and beverage costs472.3 59.6  531.9 
Restaurant labor624.0 80.2  704.2 
Restaurant expenses516.8 68.4 0.3 585.5 
Depreciation and amortization71.7 6.4 5.1 83.2 
General and administrative20.2 4.5 60.9 85.6 
Other (gains) and charges4.6 0.4 4.6 9.6 
Total operating costs and expenses1,709.6 219.5 70.9 2,000.0 
Operating income (loss)125.7 31.8 (70.9)86.6 
Interest expenses1.7 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 
Segment assets$2,052.5 $246.6 $211.6 $2,510.7 
Payments for property and equipment74.6 9.4 5.5 89.5 
Twenty-Six Week Period Ended December 28, 2022
Chili'sMaggiano'sCorporateConsolidated
Company sales
$1,709.9 $245.6 $ $1,955.5 
Franchise revenues
18.7 0.3  19.0 
Total revenues1,728.6 245.9  1,974.5 
Food and beverage costs514.6 64.3  578.9 
Restaurant labor586.7 78.5  665.2 
Restaurant expenses471.0 65.9 0.3 537.2 
Depreciation and amortization72.0 6.5 5.2 83.7 
General and administrative18.0 4.0 53.1 75.1 
Other (gains) and charges8.7 0.8 4.0 13.5 
Total operating costs and expenses1,671.0 220.0 62.6 1,953.6 
Operating income (loss)57.6 25.9 (62.6)20.9 
Interest expenses1.9 0.2 24.1 26.2 
Other income, net  (0.7)(0.7)
Income (loss) before income taxes$55.7 $25.7 $(86.0)$(4.6)
Payments for property and equipment$85.1 $6.1 $4.1 $95.3 

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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 twenty-six week periods ended December 27, 2023 and December 28, 2022, 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
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. As of December 27, 2023, we owned, operated or franchised 1,658 restaurants, consisting of 1,184 Company-owned restaurants and 474 franchised restaurants, located in the United States, 29 other countries and two United States territories. Our restaurant brands, Chili’s and Maggiano’s, are both operating segments and reporting units.
External Impacts to Our Operating Environment
Our operating results were impacted by geopolitical and other macroeconomic events, leading to higher than usual inflation on wages and food and beverage costs during fiscal 2023 and to a lesser extent during the first and second quarters of fiscal 2024.
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 our Chili’s 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®, and margaritas, as well as other classic favorites. 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, a flexible value bundle provides our guests an unbeatable everyday value, while allowing us to be more flexible in terms of pricing, in light of the inflationary challenges. Additionally, we have continued our Margarita of the Month promotion that features a premium-liquor margarita every month at an every-day value price. Most of our value propositions are available for guests to enjoy in our dining rooms or off-premise.
In dining rooms, we use tabletop devices to engage our guests at the table. These devices provide functionality for guests to pay at the table, order or re-order, engage in digital entertainment, to provide guest feedback and interact with our My Chili’s Rewards program. Our My Chili’s Rewards loyalty program offers free chips and salsa or a non-alcoholic beverage to members based on their visit frequency. We customize offerings for these guests based on their purchase behavior. 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. Third-party delivery orders for our restaurants are sent directly into our point of sale system, creating efficiencies and a system that allows us to better serve our guests. The operating results for our virtual brand, It’s Just Wings®, are included in the results of our Chili’s brand, based on the restaurants that prepared and processed the food orders.

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Maggiano’s - At Maggiano’s, we are focused on making our guests feel special. This warm and generous hospitality creates an environment where guests come together to celebrate birthdays, weddings and many more special occasions. While our dining rooms support the majority of our business, we have focused on increasing our carry-out and delivery business in recent years, including through partnerships with delivery service providers that have made our restaurants more accessible to guests and helped create an additional significant revenue channel. Our restaurants also have banquet rooms to host large party events and we have begun to renovate these banquet rooms in certain restaurants to provide a better experience for this profitable revenue channel, particularly during the holiday season in the second and third quarters of the fiscal year.
Franchise Partnerships - Our franchisees continue to grow our brands around the world, opening 14 restaurants and two new development agreements for the twenty-six week period ended December 27, 2023. 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 twenty-six week periods ended December 27, 2023 and December 28, 2022, respectively, total full year projected openings in fiscal 2024 and the total restaurants open at each period end:
Openings During theOpenings During theFull Year Projected Openings
Thirteen Week Periods EndedTwenty-Six Week Periods EndedTotal Open Restaurants at
December 27,
2023
December 28,
2022
December 27,
2023
December 28,
2022
Fiscal 2024December 27,
2023
December 28,
2022
Company-owned restaurants
Chili’s domestic10 1,130 1,126 
Chili’s international— — — — — 
Maggiano’s domestic— — — — — 50 51 
Total Company-owned10 1,184 1,182 
Franchise restaurants
Chili’s domestic— — — 0-1100 101 
Chili’s international11 14 19-24372 363 
Maggiano’s domestic— — — — — 
Total franchise11 14 19-25474 466 
Total restaurants
Chili’s domestic10-111,230 1,227 
Chili’s international11 14 19-24376 368 
Maggiano’s domestic— — — — — 52 53 
Total16 10 19 13 29-351,658 1,648 
At December 27, 2023, we own property for 50 of the 1,184 Company-owned restaurants and one closed restaurant. The net book values associated with these restaurants included land of $42.5 million and buildings of $11.7 million.
Revenues
Thirteen and Twenty-Six Week Periods Ended December 27, 2023 compared to December 28, 2022
Revenues are presented in two separate captions in the Consolidated Statements of Comprehensive Income (Loss) (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, Maggiano’s banquet service charge income, gift card breakage, delivery, digital entertainment revenues, merchandise income and are net of gift card discounts from third-party gift card sales.
Franchise revenues include royalties, franchise advertising fees, franchise and development fees and gift card equalization.

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The following is a summary of the change in Total revenues:
Total Revenues
Chili’sMaggiano’sTotal Revenues
Thirteen Week Period Ended December 28, 2022$878.7 $140.3 $1,019.0 
Change from:
Comparable restaurant sales43.5 9.0 52.5 
Restaurant openings12.3 — 12.3 
Gift card discounts 0.1 0.1 0.2 
Maggiano's banquet income— 0.1 0.1 
Delivery service fee income(0.1)0.2 0.1 
Gift card breakage— (0.1)(0.1)
Digital entertainment revenues(0.3)— (0.3)
Restaurant closures
(7.9)(2.6)(10.5)
Company sales47.6 6.7 54.3 
Franchise revenues(1)
0.9 (0.1)0.8 
Thirteen Week Period Ended December 27, 2023$927.2 $146.9 $1,074.1 
Total Revenues
Chili’sMaggiano’sTotal Revenues
Twenty-Six Week Period Ended December 28, 2022$1,728.6 $245.9 $1,974.5 
Change from:
Comparable restaurant sales94.2 11.6 105.8 
Restaurant openings25.4 — 25.4 
Restaurant acquisitions
0.6 — 0.6 
Maggiano's banquet income— 0.1 0.1 
Gift card discounts — 0.1 0.1 
Gift card breakage0.2 (0.1)0.1 
Digital entertainment revenues(0.2)— (0.2)
Delivery service fee income(0.4)0.2 (0.2)
Restaurant closures(15.0)(6.5)(21.5)
Company sales104.8 5.4 110.2 
Franchise revenues(1)
1.9 — 1.9 
Twenty-Six Week Period Ended December 27, 2023$1,835.3 $251.3 $2,086.6 
(1)Franchise revenues increased in the thirteen and twenty-six week periods ended December 27, 2023 compared to December 28, 2022 primarily because of higher franchise advertising fees. Our Chili’s and Maggiano’s franchisees generated sales of approximately $216.9 million and $2.8 million and $426.2 million and $5.6 million, respectively, for the thirteen and twenty-six week periods ended December 27, 2023 compared to $213.4 million and $2.6 million and $419.0 million and $5.0 million, respectively, in for the thirteen and twenty-six week periods ended December 28, 2022.

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The table below presents the percentage change in comparable restaurant sales and restaurant capacity for the thirteen and twenty-six week periods ended December 27, 2023 compared to December 28, 2022:
Percentage Change in the Thirteen Week Period Ended December 27, 2023 versus December 28, 2022
Comparable Restaurant Sales(1)
Price Impact
Mix-Shift Impact(2)
Traffic Impact
Restaurant Capacity(3)
Company-owned5.2 %7.1 %(0.8)%(1.1)%(0.2)%
Chili’s5.0 %6.6 %(1.0)%(0.6)%(0.1)%
Maggiano’s6.7 %10.5 %0.4 %(4.2)%(2.0)%
Franchise(4)
0.3 %
U.S.6.4 %
International(2.7)%
Chili’s domestic(5)
5.1 %
System-wide(6)
4.4 %
Percentage Change in the Twenty-Six Week Period Ended December 27, 2023 versus December 28, 2022
Comparable Restaurant Sales(1)
Price Impact
Mix-Shift Impact(2)
Traffic Impact
Restaurant Capacity(3)
Company-owned5.5 %8.0 %1.0 %(3.5)%(0.3)%
Chili’s5.5 %7.7 %1.1 %(3.3)%(0.1)%
Maggiano’s5.0 %10.0 %(0.1)%(4.9)%(2.9)%
Franchise(4)
2.0 %
U.S.5.7 %
International0.0 %
Chili’s domestic(5)
5.5 %
System-wide(6)
4.9 %
(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.
(4)Franchise sales generated by franchisees are not included in Total revenues in the Consolidated Statements of Comprehensive Income (Loss) (Unaudited); 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.

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Costs and Expenses
Thirteen Week Period Ended December 27, 2023 compared to December 28, 2022
The following is a summary of the changes in Costs and Expenses:
Thirteen Week Periods EndedFavorable (Unfavorable) Variance
December 27, 2023December 28, 2022
Dollars% of Company SalesDollars% of Company SalesDollars% of Company Sales
Food and beverage costs$273.1 25.7 %$289.4 28.7 %$16.3 3.0 %
Restaurant labor356.1 33.5 %334.6 33.1 %(21.5)(0.4)%
Restaurant expenses294.7 27.7 %268.4 26.6 %(26.3)(1.1)%
Depreciation and amortization41.3 41.8 0.5 
General and administrative43.2 35.6 (7.6)
Other (gains) and charges3.3 8.5 5.2 
Interest expenses16.7 13.9 (2.8)
Other income, net(0.1)(0.3)(0.2)
As a percentage of Company sales:
Food and beverage costs were favorable 3.0%, due to 1.9% from increased menu pricing, 0.8% of favorable commodity costs driven primarily by lower poultry and produce costs, partially offset by higher beverage costs, and 0.3% of favorable menu item mix.
Restaurant labor was unfavorable 0.4%, due to 1.4% of higher hourly labor expenses driven by increased wage rates and staffing levels, and 0.6% of higher manager salaries, partially offset by 1.6% of sales leverage.
Restaurant expenses were unfavorable 1.1%, due to 2.2% of higher advertising, 0.5% of higher repairs and maintenance, 0.2% of higher rent, and 0.2% of higher other restaurant expenses, partially offset by 1.0% of sales leverage and 1.0% of lower delivery fees and to-go supplies.
Depreciation and amortization decreased $0.5 million as follows:
Depreciation and Amortization
Thirteen Week Period Ended December 28, 2022$41.8 
Change from:
Additions for new and existing restaurant assets6.3 
Corporate assets0.8 
Finance leases(2.3)
Retirements and fully depreciated restaurant assets(5.3)
Thirteen Week Period Ended December 27, 2023$41.3 


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General and administrative expenses increased $7.6 million as follows:
General and Administrative
Thirteen Week Period Ended December 28, 2022$35.6 
Change from:
Stock-based compensation(1)
3.4 
Performance-based compensation2.0 
Corporate technology initiatives1.0 
Training0.6 
Payroll expenses0.4 
Recruiting(0.4)
Other0.6 
Thirteen Week Period Ended December 27, 2023$43.2 
(1)Stock-based compensation increased compared to the prior year primarily due to the impact of reversing expense associated with a performance share award in the second quarter of fiscal 2023, when we determined the performance target was not achievable.
Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges):
Thirteen Week Periods Ended
December 27,
2023
December 28,
2022
Enterprise system implementation costs$2.1