Brinker International, Inc. owns, develops, operates and franchises the Chili’s Grill & Bar and Maggiano’s Little Italy restaurant brands. The casual dining segment of the restaurant industry has not seen significant growth in customer traffic in recent years, and the industry is highly competitive as to price, service, restaurant location, convenience, and type and quality of food. The Company competes within each market with locally-owned restaurants as well as national and regional restaurant chains, and also faces competition from quick service and fast casual restaurants, the convergence in grocery, deli and restaurant services, and meal kit and food delivery providers.

Primary competitors are not named individually in the filing, but the Company competes primarily on the quality, variety and value perception of its menu items, as well as the quality and efficiency of service, the attractiveness of its facilities and the effectiveness of its advertising and marketing programs. Chili’s is a recognized leader in the casual dining industry and the flagship brand of Brinker International, Inc., enjoying a global presence with restaurants in the United States, 28 other countries and two United States territories. The Company believes its focus on five core equities—burgers, fajitas, Chicken Crispers, margaritas, and the Triple Dipper—simplifying its menu, maintaining its Chilihead culture, and strong Chilihead hospitality allow Chili’s to differentiate its high-quality food and service from other casual dining restaurants.

The Company generates revenue through Company sales from Company-owned restaurants, including food and beverage sales net of discounts, delivery, gift card breakage, digital entertainment revenues, merchandise income, Maggiano’s banquet service charge income, and net of gift card discount costs from third-party gift card sales, as well as through franchise revenues including royalties, franchise advertising fees, franchise and development fees, and other service fees. The Company’s two restaurant brands, Chili’s and Maggiano’s, are both operating segments.

Chili’s menu features bold, Southwest inspired American favorites, with a reputation for big mouth burgers, sizzling fajitas, crispy Chicken Crispers, hand-shaken margaritas, and the Triple Dipper. The average annual net sales per Company-owned Chili’s restaurant during fiscal 2026 was $5.0 million ¹, and the average revenue per meal, including alcoholic beverages, was approximately $23.12 ² per guest. Food and non-alcoholic beverage sales accounted for 91.1% ³ of Chili’s Company sales in fiscal 2026 with alcoholic beverage sales accounting for the remainder. Chili’s total revenues were $5,352.6 million ⁴ in fiscal 2026, compared to $4,882.9 million ⁵ in fiscal 2025. Maggiano’s is a full-service, national restaurant brand offering Italian American favorites through both a la carte and Family Style dining, with dedicated banquet spaces. The average annual sales per Maggiano’s restaurant in fiscal 2026 was $9.5 million ⁶ and the average revenue per meal, including alcoholic beverages, was approximately $41.36 ⁷ per guest. Food and non-alcoholic beverage sales accounted for 87.4% ⁸ of Maggiano’s Company sales for fiscal 2026 with alcoholic beverage sales accounting for the remainder. Maggiano’s total revenues were $454.8 million ⁹ in fiscal 2026, compared to $501.3 million ¹⁰ in fiscal 2025.

During fiscal 2026, the Company continued to develop its restaurant brands domestically through the opening of new Company-owned restaurants, opening 6 ¹¹ new Company-owned restaurants (6 Chili’s domestic, 0 Maggiano’s) and permanently closing 5 ¹² Company-owned Chili’s restaurants that were performing below standards or where mutually agreeable lease terms could not be reached, and closing one Maggiano’s restaurant and reopening the same restaurant as part of a relocation. Chili’s initiated the “modern Greenville” re-image program designed to bring the brand back to its first Chili’s built in 1975 on Greenville Avenue, aiming to remodel approximately 60-80 ¹³ restaurants in fiscal 2027 and then approximately 10% ¹⁴ of the restaurant fleet annually. On June 1, 2026, the Company executed an asset purchase agreement with a franchisee for the acquisition of 12 ¹⁵ Chili’s restaurants located in Alabama and Mississippi, including the real estate for six of the locations, with the transaction expected to close on August 27, 2026. During fiscal 2026, the Board of Directors authorized an additional $400.0 million ¹⁶ under the existing share repurchase program, and the Company repurchased 2.9 million ¹⁷ shares of common stock for $400.0 million ¹⁸. As of June 24, 2026, $107.0 million ¹⁹ of authorized repurchases remained under the share repurchase program. Subsequent to the end of the fiscal year, the Company repurchased an additional 0.4 million ²⁰ shares for $75.0 million ²¹, and on August 10, 2026, the Board of Directors approved an increase in authorized share repurchases bringing the total to $750.0 million ²².

Total revenues for fiscal 2026 were $5,807.4 million ²³, compared to $5,384.2 million ²⁴ in fiscal 2025. Net income was $487.0 million ²⁵ in fiscal 2026, compared to $383.1 million ²⁶ in fiscal 2025. Operating income was $619.9 million ²⁷ in fiscal 2026, compared to $512.0 million ²⁸ in fiscal 2025. The effective income tax rate was 16.2% ²⁹ in fiscal 2026, compared to 16.7% ³⁰ in fiscal 2025.

Chili’s growth strategy focuses on the “modern Greenville” re-image program, which aims to remodel approximately 60-80 ³¹ restaurants in fiscal 2027 and then approximately 10% ³² of the restaurant fleet annually. Chili’s is also focused on new unit growth and is establishing a pipeline of future sites to accelerate restaurant openings beginning in fiscal 2028. The Company projects opening 4 ³³ new Company-owned Chili’s domestic restaurants in fiscal 2027. International growth is driven by development agreements with new and existing franchise partners, with 19 ³⁴ active development arrangements as of June 24, 2026, including two new development arrangements entered into during fiscal 2026. Projected new Chili’s franchise locations for fiscal 2027 are 1-2 ³⁵ domestic and 25-30 ³⁶ international.

Maggiano’s growth strategy is focused on improving performance and operations through the Company’s Back to Maggiano’s strategy, which includes ongoing initiatives across food, service and atmosphere with the aim of revitalizing the brand’s core, serving Italian American favorites with warm and attentive service. No new Company-owned Maggiano’s restaurants are projected to open in fiscal 2027.

The filing does not provide specific margin or cost outlook targets beyond the operational strategies described.

The Company upgraded its restaurant network architecture and increased bandwidth across its locations in fiscal 2026 to improve system stability, reliability, and resiliency. The Company continues to evaluate and enhance its technology capabilities in alignment with strategic and financial priorities. The employee base as of June 24, 2026, consisted of 85,003 ³⁷ team members, including 723 ³⁸ restaurant support center team members, 5,125 ³⁹ restaurant management team members, with the remainder being hourly team members. Of the hourly team members, approximately 18% ⁴⁰ are full-time and 82% ⁴¹ are part-time employees.

Capital expenditure plans are not explicitly quantified in the filing for future periods. The share repurchase program had $107.0 million ⁴² of authorized repurchases remaining as of June 24, 2026. Subsequent to year-end, the Board of Directors approved an increase in authorized share repurchases bringing the total to $750.0 million ⁴³. The Company’s decision to pay dividends in the future is at the discretion of the Board of Directors and will be dependent on operating performance, financial condition, capital expenditure requirements, limitations on cash distributions pursuant to the terms and conditions of the revolving credit facility and applicable law, and such other factors the Board considers relevant.

Geopolitical tensions and broader macroeconomic pressures have led, and in the future may lead, to wage inflation, staffing challenges, product cost inflation (inclusive of tariffs), and/or supply chain disruptions. The Company may also experience supply chain disruptions resulting from adverse weather conditions, climate change, or other catastrophic events beyond its control. These events may impact the ability to obtain products needed to support operations and/or negatively affect consumer spending, potentially reducing guest traffic and/or reducing the average amount guests spend in restaurants. The casual dining segment of the restaurant industry has not seen significant growth in customer traffic in recent years, and if these trends continue, the Company’s ability to grow customer traffic will depend on its ability to increase market share within the casual dining segment.

The Company is subject to extensive federal, state, local and international laws and regulations, which vary from jurisdiction to jurisdiction and increase exposure to litigation and governmental proceedings. Some states and localities have, and many others are contemplating, increases to their minimum wage and tip credit wage including annual adjustments tied to changes in the applicable Consumer Price Index, and such increases can have a significant impact on labor costs. For example, several states such as California have passed laws requiring employers to pay tipped employees the full minimum wage regardless of how much they earn in tips.

Management’s message emphasizes a commitment to strategies and a Company culture that will grow sales, increase profits, bring back guests and engage team members. The strategic priorities for Chili’s include making everyone feel special through a fun atmosphere, delicious food and drinks, and Chilihead hospitality; simplifying the menu to focus on core equities—burgers, fajitas, Chicken Crispers, margaritas, and the Triple Dipper; maintaining a flexible platform of value offerings such as the “3 for Me” platform starting at just $10.99; improving hospitality by scheduling more team members per shift and improving systems and technology; and focusing on a seamless digital experience through the Chili’s mobile app, chilis.com, delivery partners, and tabletop and handheld devices. For Maggiano’s, the focus is improving performance and operations through the Back to Maggiano’s strategy, with ongoing initiatives across food, service and atmosphere to revitalize the brand’s core. The Company’s strategic plan is targeted to support long-term growth objectives, with a focus on continued development of restaurant locations that have the greatest return potential for the Company and shareholders.

Total revenues were $5,807.4 million ⁴⁸ in fiscal 2026, compared to $5,384.2 million ⁴⁹ in fiscal 2025. Net income was $487.0 million ⁵⁰ in fiscal 2026, compared to $383.1 million ⁵¹ in fiscal 2025. Diluted earnings per share is not explicitly stated in the filing for fiscal 2026 or fiscal 2025 in the provided text, but basic earnings per share can be derived from net income and shares outstanding; however, the filing does not provide a per-share figure in the MD&A section. Operating income was $619.9 million ⁵² in fiscal 2026, compared to $512.0 million ⁵³ in fiscal 2025. Food and beverage costs as a percentage of Company sales were 25.9% ⁵⁴ in fiscal 2026, compared to 25.3% ⁵⁵ in fiscal 2025. Restaurant labor as a percentage of Company sales was 31.5% ⁵⁶ in fiscal 2026, compared to 32.2% ⁵⁷ in fiscal 2025. Restaurant expenses as a percentage of Company sales were 24.8% ⁵⁸ in fiscal 2026, compared to 25.0% ⁵⁹ in fiscal 2025. Depreciation and amortization was $218.7 million ⁶⁰ in fiscal 2026, compared to $206.6 million ⁶¹ in fiscal 2025. General and administrative expenses were $235.7 million ⁶² in fiscal 2026, compared to $222.0 million ⁶³ in fiscal 2025. Other (gains) and charges were $8.6 million ⁶⁴ in fiscal 2026, compared to $41.8 million ⁶⁵ in fiscal 2025. Interest expenses were $40.5 million ⁶⁶ in fiscal 2026, compared to $53.1 million ⁶⁷ in fiscal 2025. The effective income tax rate was 16.2% ⁶⁸ in fiscal 2026, compared to 16.7% ⁶⁹ in fiscal 2025. Chili’s segment Company sales were $5,297.0 million ⁷⁰ in fiscal 2026, compared to $4,834.8 million ⁷¹ in fiscal 2025. Maggiano’s segment Company sales were $454.8 million ⁷² in fiscal 2026, compared to $501.3 million ⁷³ in fiscal 2025. The Company does not report free cash flow, net debt, or cash position in the provided MD&A section, but the filing elsewhere indicates the Company had $107.0 million ⁷⁴ of authorized repurchases remaining under the share repurchase program as of June 24, 2026.

The Company faces significant risks from its ability to successfully design and execute its business strategy plan, as delays or failure could adversely affect gross sales and profitability. Changes in consumer preferences, including health or dietary preferences and weight-management medications or treatments, may decrease demand for food at its restaurants. Food safety incidents at its restaurants or in its supply chain could irreparably damage brand reputations and result in declines in guest traffic and sales, and the Company may incur significant legal costs and liabilities. The Company is highly dependent on information technology, and any material failure in the operation or security of that technology, including cybersecurity threats such as cyber-attacks, ransomware, or phishing, could impair its ability to efficiently operate its business and result in loss of revenues, increased costs, and litigation. The Company’s Company-owned restaurants are highly concentrated in Texas, Florida and California, comprising 19.2% ⁴⁴, 11.8% ⁴⁵ and 9.2% ⁴⁶ of its restaurants, respectively, as of June 24, 2026, making it particularly susceptible to adverse trends and economic conditions in those states. The operational success of the franchise system is important, as franchisees own and operate approximately 29.0% ⁴⁷ of system-wide restaurants, and franchisee defaults or failures to comply with laws could negatively impact reputation and financial results.