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