Item 2. Properties
ITEM 2. PROPERTIES
Restaurant Locations
As of June 28, 2023, our system of Company-owned and franchise-operated restaurants included 1,657 restaurants. The below table contains a breakdown of our portfolio of restaurants:
June 28, 2023
Domestic International Total
Chili’s
Company-owned 1,130 5 1,135
Franchise 101 369 470
1,231 374 1,605
Maggiano’s
Company-owned 50 — 50
Franchise 2 — 2
52 — 52
System-wide 1,283 374 1,657
Our Chili’s domestic Company-owned and franchise-operated restaurants are located in 49 states. We and our franchisees also have Chili’s restaurants in two United States territories, Guam and Puerto Rico, and 29 other countries: Bahrain, Canada, Chile, China, Costa Rica, the Dominican Republic, Ecuador, Egypt, Germany, Guatemala, Honduras, India, Japan, Kuwait, Lebanon, Malaysia, Mexico, Morocco, Oman, Pakistan, Peru,
21
Table of Contents
Philippines, Qatar, Saudi Arabia, South Korea, Sri Lanka, Taiwan, Tunisia, and the United Arab Emirates. Our Maggiano’s Company-owned and franchise-operated restaurants are located in 22 states and Washington, D.C.
Restaurant Property Information
The following table illustrates the approximate dining room capacity for a prototypical restaurant of each of our brands:
Chili’s Maggiano’s
Square feet 3,200-8,000 8,200-23,300
Dining seats 140-340 250-760
Dining tables 20-70 40-130
As of June 28, 2023, we own 50 properties of the 1,185 Company-owned restaurant locations. The related book value of these owned restaurant locations as of June 28, 2023 includes Land of $41.6 million and the net book value of Buildings and improvements totaling $12.6 million. In fiscal 2023, we sold Land related to three closed restaurants, with a combined book value of $1.8 million. The remaining 1,135 Company-owned restaurant locations are leased. These leased restaurant locations can be categorized as follows: 777 ground leases (where we lease land only, but construct the building and leasehold improvements) and 358 retail leases (where we lease the land/retail space and building, but construct the leasehold improvements). Our leased restaurants typically have an initial lease term of 10 to 20 years, with one or more renewal terms ranging from one to 10 years. The leases typically provide for a fixed rental or a fixed rental plus percentage rentals based on sales volume.
Other Properties
We lease an office building in Dallas, Texas containing approximately 216,300 square feet which we use for our corporate headquarters and menu development activities. As of June 28, 2023, we have also acquired land for a future Company-owned restaurant location with a value of $0.8 million.
ITEM 3. LEGAL PROCEEDINGS
This information is set forth within Part II, Item 8 - Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 9 - Commitments and Contingencies of this Annual Report on Form 10-K is incorporated herein by reference.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
22
Table of Contents
PART II