BRINKER INTERNATIONAL, INC
For the period ended Sep 23, 2026. Filed Oct 28, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 23, 2026 · Filed Oct 28, 2026
EAT$206.57-2.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-25; filed 2026-04-29.
0000703351-26-000015
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-23; filed 2026-10-28.
0000703351-26-000040
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 105 previous paragraphs and 83 current paragraphs.
39 unchanged; 31 reworded; 13 added; 26 removed; 9 previous and 0 current paragraphs rearranged.
Tables are not compared: 32 previous and 19 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
(1)During the first quarter of fiscal 2027, we acquired 12 Chili's domestic restaurants previously owned by a former franchisee. The acquisition of these restaurants is not reflected in the First Quarter Openings or Full Year Projected Openings totals as these are existing restaurant locations transitioning ownership. These acquired restaurants are included in the Total Restaurants Open at September 23, 2026.
Current report
During the thirteen week period ended September 23, 2026, we purchased real estate for three Chili’s restaurants that were previously leased. Additionally, we acquired real estate for six of the 12 Chili’s restaurants previously owned by a former franchisee. The value of the land and buildings was approximately $12.4 million and $17.5 million, respectively. Refer to Note 2 - Chili’s Restaurant Acquisition for further information.
Current report
(1)During the first quarter of fiscal 2027, we acquired 12 Chili’s restaurants from a former franchisee. The revenues generated by these restaurants following the acquisition date are included in Company sales. Refer to Note 2 - Chili’s Restaurant Acquisition for further information.
Current report
Depreciation and amortization increased $2.1 million as follows:
Current report
Interest expenses increased $14.1 million, primarily driven by a $17.6 million loss on extinguishment of debt resulting from the early redemption of our 8.25% notes, partially offset by lower interest expense as the 8.25% fixed-interest notes were refinanced using the revolving credit facility, which currently benefits from a lower variable index rate.
Current report
•Chili’s Food and beverage costs were unfavorable 0.2%, due to 1.0% of unfavorable commodity costs primarily driven by meat and seafood, and 0.2% of unfavorable menu item mix, partially offset by 1.0% from favorable menu pricing.
Current report
Chili’s Depreciation and amortization increased $1.4 million as follows:
Current report
•Maggiano’s Food and beverage costs were favorable 0.3%, due to 0.4% from favorable menu pricing and 0.1% favorable menu item mix, partially offset by 0.2% of unfavorable commodity costs primarily driven by meat, seafood and produce, partially offset by lower dairy.
Current report
•Maggiano’s Restaurant expenses were favorable 1.9%, due to 2.1% of lower advertising, 0.5% of lower delivery fees and to-go supplies, and 0.7% of lower other restaurant expenses partially offset by 1.0% of sales deleverage and 0.4% of higher rent.
Current report
Net cash used in investing activities increased compared to the prior year primarily due to the acquisition of 12 Chili’s restaurants from a former franchisee for cash consideration of $27.1 million on August 27, 2026 and the purchase of three Chili’s restaurants that were previously leased. Refer to Note 2 - Chili’s Restaurant Acquisition for further information.
Current report
Cash Flows from Financing Activities
Current report
On July 15, 2026, we redeemed all $350.0 million of our 8.25% notes at a redemption price equal to the sum of 104.125% of the principal amount plus accrued and unpaid interest, for a total cash outflow of $378.9 million, funded with borrowings from the revolving credit facility. Refer to Note 7 - Debt for further details.
Current report
Subsequent to the end of the first quarter fiscal 2027, we repurchased an additional 0.3 million shares of our common stock for $65.0 million.
Removed paragraphs (26)
Previous report
Additionally, the Company is relocating one Maggiano’s restaurant with an expected opening in the current year.
Previous report
During the thirty-nine week period ended March 25, 2026, we purchased the land and buildings for two restaurants that were previously leased. As of March 25, 2026, we own property for 56 of the 1,162 Company-owned restaurants and one closed restaurant. The net book values associated with these restaurants included land of $46.0 million and buildings of $24.5 million.
Previous report
Thirteen and Thirty-Nine Week Periods Ended March 25, 2026 compared to March 26, 2025
Previous report
•Food and beverage costs were unfavorable 0.6%, due to and 1.3% of unfavorable commodity costs primarily driven by higher meat, seafood, and poultry and 0.5% of unfavorable menu item mix, partially offset by 1.2% from favorable menu pricing.
Previous report
•Restaurant labor was favorable 0.6%, due to 0.5% of sales leverage, 0.4% of lower hourly labor, 0.2% of lower manager bonus, and 0.1% of lower other labor expenses, partially offset by 0.4% of higher manager salaries and 0.2% of higher health insurance.
Previous report
•Restaurant expenses were unfavorable 0.5%, due to 0.3% of higher repairs and maintenance, 0.3% of higher delivery fees and to-go supplies, 0.2% of higher rent, and 0.2% higher other restaurant expenses, partially offset by 0.5% of sales leverage.
Previous report
Depreciation and amortization increased $0.3 million as follows:
Previous report
Interest expenses decreased $3.1 million primarily due to the lower average revolver balance during the current year.
Previous report
•Food and beverage costs were unfavorable 0.5%, due to 0.9% of unfavorable menu item mix and 0.7% of unfavorable commodity costs primarily driven by meat and seafood, partially offset by 1.1% favorable menu pricing.
Previous report
Depreciation and amortization increased $14.5 million as follows:
Previous report
Interest expenses decreased $10.9 million primarily due to the lower average outstanding debt balances.
Previous report
H.R. 1., also known as the One Big Beautiful Bill Act (OBBBA), was enacted on July 4, 2025. The legislation included several provisions that impact the timing and magnitude of certain tax deductions, including restoring 100% bonus depreciation for qualifying property. We have applied the key provisions impacting our financial position for the thirteen and thirty-nine week periods ended March 25, 2026, and will continue to assess the potential impacts on our financial position, results of operations and cash flows as additional guidance from the OBBBA is issued.
Previous report
•Chili’s Food and beverage costs were unfavorable 0.6%, due to 1.4% of unfavorable commodity costs primarily driven by meat, seafood, and poultry and 0.4% of unfavorable menu item mix, partially offset by 1.2% from favorable menu pricing.
Previous report
•Chili’s Restaurant labor was favorable 0.8%, due to 0.8% of sales leverage, 0.3% of lower hourly labor, and 0.3% of lower other labor expenses, partially offset by 0.4% of higher manager salaries and 0.2% of higher health insurance.
Previous report
•Chili’s Restaurant expenses were unfavorable 0.5%, due to 0.4% of higher repairs and maintenance, 0.3% of higher delivery fees and to-go supplies, 0.2% of higher rent, and 0.4% of higher other restaurant expenses, partially offset by 0.7% of sales leverage and 0.1% of lower workers' compensation and general liability insurance.
Previous report
Chili’s Depreciation and amortization increased $1.3 million as follows:
Previous report
Chili’s Depreciation and amortization increased $10.6 million as follows:
Previous report
•Maggiano’s Food and beverage costs were unfavorable 1.3%, due to 1.5% unfavorable menu item mix and 0.8% of unfavorable commodity costs primarily driven by meat, poultry, and seafood, partially offset by lower dairy and 1.0% from favorable menu pricing.
Previous report
•Maggiano’s Restaurant labor was unfavorable 0.8%, due to 2.1% of sales deleverage and 0.2% of higher health insurance, partially offset by 0.9% of lower hourly labor and 0.6% of lower manager bonus.
Previous report
•Maggiano’s Restaurant expenses were unfavorable 2.6%, due to 2.5% of sales deleverage, 0.5% of higher delivery fees and to-go supplies, partially offset by 0.3% of lower workers' compensation and general liability insurance and 0.1% of lower other restaurant expenses.
Previous report
•Maggiano’s Food and beverage costs were unfavorable 1.9%, due to 2.5% of unfavorable menu item mix and 0.5% of unfavorable commodity costs primarily driven by higher meat and seafood, partially offset by lower dairy and 1.1% from favorable menu pricing.
Previous report
•Maggiano’s Restaurant expenses were unfavorable 3.8%, due to 2.0% of sales deleverage, 0.7% of higher delivery fees and to-go supplies, 0.5% of higher advertising, 0.3% of higher workers' compensation and general liability insurance, and 0.3% of higher repairs and maintenance.
Previous report
Net cash used in investing activities decreased compared to the prior year primarily due to decreased spend on restaurant and IT equipment and capital maintenance, partially offset by increased spend on Maggiano’s reimages and the construction of new restaurants.
Previous report
As of March 25, 2026, the Company had $350.0 million principal amount of 8.25% senior notes which mature in fiscal 2031. The notes are callable beginning July 15, 2026 at the Company’s option, at a redemption price equal to 100.0% of the principal amount redeemed plus an applicable premium if redeemed prior to July 15, 2028 ranging from 4.125% to 2.063%, and accrued and unpaid interest. Management is actively assessing the potential for an early redemption of the notes and may pursue such a transaction in the near term, subject to prevailing market conditions, available liquidity, and the Company’s strategic objectives.
Previous report
Future Commitments and Contractual Obligations
Previous report
During the first quarter of fiscal 2026, we entered into long-term purchase obligations for various marketing programs, primarily media purchases. Payments remaining under these contracts are $4.5 million in fiscal 2026, $21.2 million in fiscal 2027, $21.1 million in fiscal 2028, and $4.4 million in fiscal 2029.
Reworded paragraphs (31)
Previous wording
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 thirty-nine week periods ended March 25, 2026 and March 26, 2025. 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.
Current wording
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 week periods ended September 23, 2026 and September 24, 2025, 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.
Previous wording
We own, develop, operate and franchise the Chili’s® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy® (“Maggiano’s”) restaurant brands. As of March 25, 2026, we owned, operated or franchised 1,632 restaurants, consisting of 1,162 Company-owned restaurants and 470 franchised restaurants, located in the United States, 28 other countries and two United States territories. Our operating segments are Chili’s and Maggiano’s.
Current wording
We own, develop, operate and franchise the Chili’s® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy® (“Maggiano’s”) restaurant brands. As of September 23, 2026, we owned, operated or franchised 1,641 restaurants, consisting of 1,174 Company-owned restaurants and 467 franchised restaurants, located in the United States, 28 other countries and two United States territories. Our operating segments are Chili’s and Maggiano’s.
Previous wording
Geopolitical and other macroeconomic events have led, and in the future may lead to, wage inflation, staffing challenges, product cost inflation (inclusive of tariffs) and/or disruptions in the supply chain that impact our restaurants’ ability to obtain the products needed to support their operation. Such events could also negatively affect consumer spending potentially reducing guest traffic and/or reducing the average amount guests spend in our restaurants.
Current wording
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. We may also experience supply chain disruptions resulting from adverse weather conditions, climate change, or other catastrophic events beyond our control. These events may impact our ability to obtain the products needed to support our operation and/or negatively affect consumer spending potentially reducing guest traffic and/or reducing the average amount guests spend in our restaurants.
Previous wording
Chili’s - Our strategy is to make everyone feel special through a fun atmosphere, delicious food and drinks and Chilihead 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®, margaritas, and the Triple Dipper®. Our team members can make our core menu items better and more consistently because we have fewer menu items that need to be perfected.
Current wording
Chili’s - Our strategy is to make everyone feel special through a fun atmosphere, delicious food and drinks and Chilihead 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®, margaritas, and the Triple Dipper®. As management begins to focus on the next phase of menu innovation to drive sustainable growth, Chili’s introduced a chicken sandwich platform beginning in the fourth quarter of fiscal 2026. Our team members can make our core menu items better and more consistently because we have fewer menu items that need to be perfected.
Previous wording
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 allows guests to enjoy a non-alcoholic drink, an appetizer and certain entrées starting at just $10.99. We believe our value offerings will continue to be an important traffic driver in the current economic circumstances and we will continue to highlight this value in our marketing efforts. We have increased menu pricing in other areas in light of the inflationary challenges and we have also improved menu offerings and merchandising to incentivize our guests to purchase higher priced items.
Current wording
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 allows guests to enjoy a non-alcoholic drink, an appetizer and certain entrées starting at just $10.99. We believe our value offerings will continue to be an important traffic driver in the current economic circumstances and we will continue to highlight this value in our marketing efforts. We have increased menu pricing in other areas in light of the inflationary challenges and we have also improved menu offerings and merchandising to incentivize our guests to purchase higher priced items. Another priority is having clean and well-maintained restaurants that provide an inviting atmosphere for team members to work and guests to dine.
Previous wording
In addition, Chili’s has focused on a seamless digital experience as our guests’ preferences and expectations around dining convenience have evolved in recent years. Investments in our technology and off-premise options have enabled us to provide a faster, more convenient dine-in experience and to offer more To-Go and delivery options for our guests. Our To-Go menu is available through the Chili’s mobile app, chilis.com, our delivery partners DoorDash, Uber Eats and Grubhub, Google Food Ordering or by calling the restaurant directly.
Current wording
We are improving our hospitality by scheduling more team members per shift to serve our guests and by improving systems and technology that can help with our order accuracy and guest experience. In addition, Chili’s has focused on a seamless digital experience as our guests’ preferences and expectations around dining convenience have evolved in recent years. Investments in our technology and off-premise options have enabled us to provide a faster, more convenient dine-in experience and to offer more To-Go and delivery options for our guests. Our To-Go menu is available through the Chili’s mobile app, chilis.com, our delivery partners DoorDash, Uber Eats and Grubhub, Google Food Ordering or by calling the restaurant directly.
Previous wording
Maggiano’s - At Maggiano’s, the focus is executing to improve performance and operations through the Company’s Back to Maggiano’s strategy. The strategy includes in-flight initiatives across food, service and atmosphere with the aim of revitalizing the brand’s core, serving Italian American favorites with warm and attentive service. While our dining rooms support the majority of our business, we also offer carry-out and delivery options through partnerships with delivery service providers that have made our restaurants more accessible to guests. Our restaurants also have banquet rooms to host large special events, particularly during the holiday season in the second and third quarters of the fiscal year.
Current wording
Maggiano’s - Our focus is executing to improve performance and operations through the Company’s Back to Maggiano’s strategy. This strategy 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. Traditional dining rooms drive most of our business, while carry-out and delivery partnerships expand our guest reach. Additionally, our dedicated banquet rooms host large special events, particularly during peak holiday periods in the second and third fiscal quarters.
Previous wording
Franchise Partnerships -During the thirty-nine week period ended March 25, 2026, there were 20 new franchise restaurant openings and two new development agreements. We plan to strategically pursue expansion of Chili’s internationally through development agreements with new and existing franchise partners.
Current wording
Franchise Partnerships - We plan to strategically pursue expansion of Chili’s internationally through development agreements with new and existing franchise partners, and we continue to seek new domestic franchise locations on a case-by-case basis. As of September 23, 2026, we have 20 active development arrangements.
Previous wording
Company Development - The following table details the number of restaurant openings during the thirteen and thirty-nine week periods ended March 25, 2026 and March 26, 2025, respectively, total full year projected openings in fiscal 2026 and the total restaurants open at each period end:
Current wording
Company Development- The following table details the number of restaurant openings during the thirteen week periods ended September 23, 2026 and September 24, 2025, respectively, total full year projected openings in fiscal 2027 and the total restaurants open at each period end:
Previous wording
(1)Maggiano's banquet income decreased primarily due to management’s decision to substantially eliminate banquet service charges at the end of the first quarter of fiscal 2026.
Current wording
(2)Maggiano's banquet income decreased primarily due to management’s decision to substantially eliminate banquet service charges at the end of the first quarter of fiscal 2026.
Previous wording
(2)Franchise revenues increased in the thirteen and thirty-nine week periods ended March 25, 2026 compared to March 26, 2025 primarily because of higher royalties. The table below presents sales from our franchisees:
Current wording
(3)Franchise revenues increased in the thirteen week period ended September 23, 2026 compared to September 24, 2025 primarily because of higher royalties. The table below presents sales from our franchisees by brand:
Previous wording
The table below presents the percentage change in comparable restaurant sales and restaurant capacity for the thirteen and thirty-nine week periods ended March 25, 2026 compared to March 26, 2025:
Current wording
The table below presents the percentage change in comparable restaurant sales and restaurant capacity for the thirteen week period ended September 23, 2026 compared to September 24, 2025:
Previous wording
(3)Restaurant Capacity is measured by sales weeks and is calculated based on comparable periods year-over-year. No adjustments have been made to capacity for temporary closures.
Current wording
(3)Restaurant Capacity is measured by sales weeks and is calculated based on comparable periods year-over-year.
Previous wording
•Chili’s Food and beverage costs were unfavorable 0.3%, due to 0.8% of unfavorable commodity costs primarily driven by higher meat and seafood, 0.6% of unfavorable menu item mix, partially offset by 1.1% from favorable menu pricing.
Current wording
•Food and beverage costs were unfavorable 0.1%, due to 0.8% of unfavorable commodity costs primarily driven by higher meat and seafood and 0.2% of unfavorable menu item mix, partially offset by 0.9% from favorable menu pricing.
Previous wording
•Chili’s Restaurant labor was favorable 0.9%, due to 2.1% of sales leverage and 0.1% of lower other labor expenses, partially offset by 0.6% of higher hourly labor, 0.5% of higher manager salaries, and 0.2% of higher health insurance.
Current wording
•Restaurant labor was favorable 0.9%, due to 1.7% of sales leverage, partially offset by 0.5% of higher hourly labor, 0.2% of higher manager salaries, and 0.1% of higher other labor expenses.
Previous wording
•Restaurant expenses were favorable 0.2%, due to 1.5% of sales leverage, partially offset by 0.3% of higher advertising, 0.2% of higher delivery fees and to-go supplies, 0.2% of higher repairs and maintenance, 0.2% of higher rent, 0.1% of higher workers' compensation and general liability insurance, and 0.3% of higher other restaurant expenses.
Current wording
•Restaurant expenses were favorable 0.7%, due to 1.6% of sales leverage and 0.2% lower other restaurant expenses, partially offset by 0.3% of higher repairs and maintenance, 0.2% of higher delivery fees and to-go supplies, 0.2% of higher workers' compensation and general liability insurance, 0.2% of higher advertising, and 0.2% higher rent.
Previous wording
General and administrative expenses increased $0.1 million as follows:
Current wording
General and administrative expenses increased $6.1 million as follows:
Previous wording
The federal statutory tax rate was 21.0% for the thirteen and thirty-nine week periods ended March 25, 2026 and March 26, 2025.
Current wording
The federal statutory tax rate was 21.0% for the thirteen week periods ended September 23, 2026 and September 24, 2025.
Previous wording
The change in the effective income tax rate in the thirteen week period ended March 25, 2026 to the thirteen week period ended March 26, 2025 is primarily due to higher Income before income taxes and resulting deleverage of the FICA tip tax credit. The change in the effective income tax rate in the thirty-nine week period ended March 25, 2026 to the thirty-nine week period ended March 26, 2025 is primarily due to significantly higher excess tax benefits from stock based compensation of $12.4 million in fiscal 2026, partially offset by higher Income before income taxes and resulting deleverage of the FICA tip tax credit.
Current wording
The change in the effective income tax rate in the thirteen week period ended September 23, 2026 compared to the thirteen week period ended September 24, 2025 is primarily due to higher Income before income taxes and resulting deleverage of the FICA tip tax credit.
Previous wording
Chili’s Total revenues increased by 10.9% primarily due to favorable comparable sales driven by higher traffic, menu pricing, and favorable menu item mix. Refer to “Revenues” section above for further details about Chili’s revenues changes.
Current wording
Chili’s Total revenues increased by 10.5% primarily due to favorable comparable restaurant sales driven by higher traffic and menu pricing. Refer to “Revenues” section above for further details about Chili’s revenues changes.
Previous wording
•Restaurant labor was favorable 0.7%, due to 1.5% of sales leverage, 0.1% of lower manager bonus, and 0.2% of lower other labor expenses, partially offset by 0.5% of higher hourly labor, 0.4% of higher manager salaries, and 0.2% of higher health insurance.
Current wording
•Chili’s Restaurant labor was favorable 1.0%, due to 1.8% of sales leverage, partially offset by 0.5% of higher hourly labor, 0.2% of higher manager salaries, and 0.1% of higher other labor expenses.
Previous wording
•Chili’s Restaurant expenses were favorable 0.5%, due to 1.9% of sales leverage, partially offset by 0.3% of higher advertising, 0.3% of higher delivery fees and to-go supplies, 0.2% of higher repairs and maintenance, 0.2% of higher rent, 0.1% of higher workers' compensation and general liability insurance, and 0.3% of higher other restaurant expenses.
Current wording
•Chili’s Restaurant expenses were favorable 0.6%, due to 1.9% of sales leverage and 0.2% of lower other restaurant expenses, partially offset by 0.4% of higher advertising, 0.3% of higher repairs and maintenance, 0.3% of higher delivery fees and to-go supplies, 0.3% of higher workers' compensation and general liability insurance, and 0.2% of higher rent.
Previous wording
Chili’s General and administrative increased $0.5 million as follows:
Current wording
Chili’s General and administrative increased $2.2 million as follows:
Previous wording
Maggiano’s Total revenues decreased 11.1% primarily due to unfavorable comparable restaurant sales and unfavorable impact of restaurant closures. Unfavorable comparable restaurant sales were driven by lower traffic partially offset by menu pricing. Refer to “Revenues” section above for further details about Maggiano’s revenues changes.
Current wording
Maggiano’s Total revenues decreased 4.6% primarily due to unfavorable comparable restaurant sales driven by lower traffic, partially offset by menu pricing. Refer to “Revenues” section above for further details about Maggiano’s revenues changes.
Previous wording
•Maggiano’s Restaurant labor was unfavorable 1.5%, due to 1.7% of sales deleverage, 0.2% of higher health insurance, and 0.4% of higher other labor expenses, partially offset by 0.5% of lower manager bonus and 0.3% of lower hourly labor.
Current wording
•Maggiano’s Restaurant labor was unfavorable 1.5%, due to 0.9% of sales deleverage, 0.3% of higher manager salaries, and 0.3% of higher health insurance.
Previous wording
Net cash provided by operating activities increased due to an increase in operating income and a decrease in interest paid, partially offset by an increase in payments of performance-based compensation and the timing of other operational receipts and payments.
Current wording
Net cash provided by operating activities increased due to an increase in operating income and a decrease in payments of performance-based compensation, partially offset by the timing of other operational receipts and payments.
Previous wording
Net cash used in financing activities increased slightly due to an increase in share repurchase activity in fiscal 2026 compared to fiscal 2025 and a decrease in proceeds received from stock option exercises, partially offset by a decrease in net repayments of long-term debt primarily due to the payoff of our $350.0 million 5.00% notes in the prior year.
Current wording
Net cash used in financing activities increased due to an increase in repayments of long-term debt primarily due to the payoff of our $350.0 million 8.25% notes and an increase in share repurchase activity in fiscal 2027 compared to fiscal 2026, partially offset by an increase in net borrowings on the revolving credit facility which was used to fund the extinguishment of the 8.25% notes.
Previous wording
Our $1.0 billion revolving credit facility, as amended, matures on May 1, 2030 and bears interest at a rate of SOFR plus an applicable margin of 1.25% to 2.00% and an undrawn commitment fee of 0.20% to 0.30%, both based on a function of our debt-to-cash-flow ratio. As of March 25, 2026, our interest rate was 4.93% consisting of SOFR of 3.68% plus the applicable margin of 1.25%. As of March 25, 2026, $969.9 million of credit was available under the revolving credit facility. Availability under the revolving credit facility was reduced by a $30.1 million letter of credit as of March 25, 2026. Refer to Note 7 - Commitments and Contingencies for further information about our letters of credit.
Current wording
Our $1.0 billion revolving credit facility, as amended, matures on May 1, 2030 and bears interest at a rate of SOFR plus an applicable margin of 1.25% to 2.00% and an undrawn commitment fee of 0.20% to 0.30%, both based on a function of our debt-to-cash-flow ratio. As of September 23, 2026, our interest rate was 5.15% consisting of SOFR of 3.90% plus the applicable margin of 1.25%. As of September 23, 2026, $593.4 million of credit was available under the revolving credit facility. Availability under the revolving credit facility was reduced by a $31.6 million letter of credit. Refer to Note 8 - Commitments and Contingencies for further information about our letters of credit.
Previous wording
As of March 25, 2026, we were in compliance with our covenants pursuant to the $1.0 billion revolving credit facility and under the terms of the indentures governing our 8.25% notes. We expect to remain in compliance with our covenants during the remainder of fiscal 2026.
Current wording
As of September 23, 2026, we were in compliance with our covenants pursuant to the $1.0 billion revolving credit facility. We expect to remain in compliance with our covenants during the remainder of fiscal 2027.
Previous wording
Our Board of Directors approved a $400.0 million increase in our share repurchase program in August 2025 allowing for a total available authority of $507.0 million. 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).
Current wording
On August 10, 2026 our Board of Directors approved an increase in authorized share repurchases of $718.0 million increasing our total authorization to $750.0 million. 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).
Previous wording
In the thirty-nine week period ended March 25, 2026, we repurchased 2.5 million shares of our common stock for $343.4 million, including 2.2 million shares purchased for $300.0 million as part of our share repurchase program and 0.3 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 March 25, 2026, approximately $207.0 million of share repurchase authorization remains under the current share repurchase program.
Current wording
In the thirteen week period ended September 23, 2026, we repurchased 0.8 million shares of our common stock for $165.2 million, including 0.6 million shares purchased for $125.0 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 September 23, 2026, approximately $700.0 million of share repurchase authorization remains under the current share repurchase program.
Rearranged previous paragraphs (9)
Previous report — wording carried elsewhere
The following is a summary of the changes in Costs and Expenses:
Previous report — wording carried elsewhere
General and administrative expenses increased $12.1 million as follows:
Previous report — wording carried elsewhere
Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges):
Previous report — wording carried elsewhere
Chili’s Total revenues increased by 4.5% primarily due to favorable comparable restaurant sales driven by menu pricing, partially offset by lower traffic. Refer to “Revenues” section above for further details about Chili’s revenues changes.
Previous report — wording carried elsewhere
The following is a summary of the changes in Chili’s operating costs and expenses:
Previous report — wording carried elsewhere
Chili’s General and administrative increased $3.8 million as follows:
Previous report — wording carried elsewhere
Chili’s Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges):
Previous report — wording carried elsewhere
Maggiano’s Total revenues decreased 9.8% primarily due to unfavorable comparable restaurant sales and unfavorable impact of restaurant closures. Unfavorable comparable restaurant sales were driven by lower traffic, partially offset by menu pricing. Refer to “Revenues” section above for further details about Maggiano’s revenues changes.
Previous report — wording carried elsewhere
The following is a summary of the changes in Maggiano’s operating costs and expenses: