Financial Analysis

Lease Commitments and Guarantees 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 March 25, 2026 and June 25, 2025, we have outstanding lease guarantees or are secondarily liable for an estimated $9.0 million and $11.9 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 2027 through fiscal 2035. 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. 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 and management is closely monitoring any exposure. Letters of Credit We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of March 25, 2026, we had $34.1 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable w …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Long-term debt consists of the following: March 25, 2026 June 25, 2025 8.25% notes $ 350.0 $ 350.0 Revolving credit facility Finance lease obligations 101.6 97.6 Total long-term debt 451.6 447.6 Less: unamortized debt issuance costs (3.4) (4.0) Total long-term debt, less unamortized debt issuance costs 448.2 443.6 Less: current installments of long-term debt (1) (23.8) (17.6) Total long-term debt, less current portion $ 424.4 $ 426.0 (1) 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. Revolving Credit Facility The $1.0 billion revolving credit facility 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. 8.25% Notes As of March 25, 2026, the Company had $350.0 million principal amount of 8.25% senior notes which mature in fisc …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than quoted prices in active markets for identical assets or liabilities Level 3 Unobservable inputs that cannot be corroborated by observable market data Financial Instruments 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 our note are based on quoted market prices and are considered a Level 2 fair value measurement. The carrying amounts of the note, which are net of unamortized debt issuance costs, and fair value are as follows: March 25, 2026 June 25, 2025 Carrying Amount Fair Value Carrying Amount Fair Value 8.25% notes $ 346.6 $ 366.7 $ 346.0 $ 372.3 Non-Financial Assets We review the carrying amounts of non-financial assets, primarily long-lived property and equipment, finance lease assets, operating lease assets, reacquired franch …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Thirty-Nine Week Periods Ended March 25, 2026 March 26, 2025 Effective income tax rate 15.7 % 15.8 % The federal statutory tax rate was 21.0% for the thirty-nine week periods ended March 25, 2026 and March 26, 2025. 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.

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Recently Issued Accounting Standards In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which enhances income tax disclosures through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The Company will adopt this ASU in our fiscal 2026 Form 10-K, and management is currently assessing whether to apply the relevant provisions prospectively or retrospectively. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, which requires, for each relevant expense caption on the income statement, detailed disclosure amounts for purchases of inventory, employee compensation, depreciation, and intangible asset amortization. In addition, this ASU requires companies to include amounts already required by GAAP in the same disclosure, provide a qualitative description of remaining amounts not separately disaggregated, and disclose the amount of total selling expenses along with the companies definition of selling expenses. The amendment is effective for fiscal years beginning after December 15, 2026, which would require us to adopt the provisions in our fiscal 2028 Form 10-K. The amendments should be applied prospectively; however, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on o …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

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 the 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 which depend upon a sales-based measure, these future revenues are not yet estimable as the performance obligations remain unsatisfied. 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 25, 2025 and March 25, 2026: Deferred Franchise and Development Fees Balance as of June 25, 2025 $ 9.8 Additions 0.6 Amount recognized to Franchise revenues (1.5) Balance as of March 25, 2026 $ 8.9 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 March 25, 2026: Fiscal Year Franchise and Development Fees Revenue Recognition Remainder of 2026 $ 0.2 2027 0.8 2028 0.7 2029 0.6 2030 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Our chief operating decision maker (CODM) is the President and Chief Executive Officer. Our CODM uses Operating income as the measure for assessing performance and allocating resources of our segments. Our operating segments are Chilis and Maggianos. The Chilis segment includes the results of our Company-owned Chilis restaurants, which are principally located in the United States, within the full-service casual dining segment of the industry. The Chilis segment also includes results of our Canadian Company-owned restaurants and royalties and other fees from our franchised locations in the United States, 28 other countries and two United States territories. The Maggianos segment includes the results of our Company-owned Maggianos 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 Chilis and Maggianos brands, including operations, brand recruiting, finance, marketing, culinary innovation and franchise are included in the results of our operating segments. The Corporate segment includes unallocated costs such as information technology, human capital management, accounting, legal, purchasing, and restaurant development. Company sales for each operating segment include revenues generated by the operation of Company-owned restaurants including food and beverage sales, net of discounts, delivery service fee income, gift card breakage, digital entertainment revenues, merchand …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Share Repurchases 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 Shareholders equity in the Consolidated Balance Sheets (Unaudited). 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. Stock-based Compensation The following table presents restricted share awards granted under the Companys various equity compensation plans and the relate …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing