BRINKER INTERNATIONAL, INC 10-Q

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS General 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 twenty-six week periods ended December 24, 2025 and December 25, 2024. 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. Overview We own, develop, operate and franchise the Chili’s ® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy ® (“Maggiano’s”) restaurant brands. As of December 24, 2025, we owned, operated or franchised 1,627 restaurants, consisting of 1,160 Company-owned restaurants and 467 franchised restaurants, located in the United States, 27 other countries and two United States territories. Our operating segments are Chili’s and Maggiano’s. Operating Environment 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. Operations Strategy We are committed to strategies and a Company culture that we believe will grow sales, increase profits, bring back guests and engage team members. Our strategies and culture are intended to strengthen our position in casual dining and grow our core business over time. Our primary brand strategy is to make our guests feel special through great food and quality service so that they return to our restaurants. 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. 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. 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. 18 Table of Contents In dining rooms, we use tabletop devices with functionality for guests to pay at the table, provide guest feedback and interact with our My Chili’s rewards program. Our My Chili’s rewards program offers free chips and salsa or a non-alcoholic beverage to members any time they visit our restaurants and allows us to communicate and advertise to our guests through email and text. Our servers use handheld tablets to place orders for our guests, increasing the efficiency of our team members and allowing orders to reach our kitchen quicker for better service to our guests. 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. Franchise Partnerships - During the twenty-six week period ended December 24, 2025, there were 10 new franchise restaurant openings and one new development agreement. We plan to strategically pursue expansion of Chili’s internationally through development agreements with new and existing franchise partners. Company Development - The following table details the number of restaurant openings during the thirteen and twenty-six week periods ended December 24, 2025 and December 25, 2024, respectively, total full year projected openings in fiscal 2026 and the total restaurants open at each period end: Openings During the Openings During the Full Year Projected Openings Thirteen Week Periods Ended Twenty-Six Week Periods Ended Total Open Restaurants at December 24, 2025 December 25, 2024 December 24, 2025 December 25, 2024 Fiscal 2026 December 24, 2025 December 25, 2024 Company-owned restaurants Chili’s domestic 1 — 3 1 6 1,108 1,110 Chili’s international — — — — — 4 4 Maggiano’s domestic — — — — — 48 50 Total Company-owned 1 — 3 1 6 1,160 1,164 Franchise restaurants Chili’s domestic — — — 2 2-4 98 99 Chili’s international 5 6 10 18 24-28 366 358 Maggiano’s domestic — 1 — 1 — 3 3 Total franchise 5 7 10 21 26-32 467 460 Total restaurants Chili’s domestic 1 — 3 3 8-10 1,206 1,209 Chili’s international 5 6 10 18 24-28 370 362 Maggiano’s domestic — 1 — 1 — 51 53 Total 6 7 13 22 32-38 1,627 1,624 Additionally, the Company is relocating one Maggiano’s restaurant with an expected opening in the current year. During the thirteen week period ended December 24, 2025, we purchased the land and buildings for one restaurant that was previously leased. As of December 24, 2025, we own property for 55 of the 1,160 Company-owned restaurants and one closed restaurant. The net book values associated with these restaurants included land of $45.2 million and buildings of $19.6 million. 19 Table of Contents Revenues Thirteen and Twenty-Six Week Periods Ended December 24, 2025 compared to December 25, 2024 Revenues are presented in two separate captions in the Consolidated Statements of Comprehensive Income (Unaudited) to provide more clarity around Company-owned restaurant revenues and operating expenses trends: • Company sales 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, merchandise income, Maggiano’s banquet service charge income, and are net of gift card discount costs from third-party gift card sales. • Franchise revenues include royalties, franchise advertising fees, franchise and development fees, and other service fees. The following is a summary of the change in Total revenues: Total Revenues Chili’s Maggiano’s Total Revenues Thirteen Week Period Ended December 25, 2024 $ 1,208.8 $ 149.4 $ 1,358.2 Change from: Comparable restaurant sales 101.8 (3.4) 98.4 Restaurant openings 8.7 — 8.7 Delivery service fee income 0.2 — 0.2 Digital entertainment revenues 0.1 — 0.1 Gift card discounts (0.2) — (0.2) Gift card breakage (0.7) (0.1) (0.8) Maggiano's banquet income (1) — (4.7) (4.7) Restaurant closures (2.7) (6.3) (9.0) Company sales 107.2 (14.5) 92.7 Franchise revenues (2) 1.3 — 1.3 Thirteen Week Period Ended December 24, 2025 $ 1,317.3 $ 134.9 $ 1,452.2 20 Table of Contents Total Revenues Chili’s Maggiano’s Total Revenues Twenty-Six Week Period Ended December 25, 2024 $ 2,239.2 $ 258.0 $ 2,497.2 Change from: Comparable restaurant sales 316.0 (9.7) 306.3 Restaurant openings 15.6 — 15.6 Delivery service fee income 0.4 — 0.4 Digital entertainment revenues 0.3 — 0.3 Gift card discounts (0.3) — (0.3) Gift card breakage (0.7) (0.1) (0.8) Maggiano's banquet income (1) — (5.7) (5.7) Restaurant closures (6.8) (8.2) (15.0) Company sales 324.5 (23.7) 300.8 Franchise revenues (2) 3.3 0.1 3.4 Twenty-Six Week Period Ended December 24, 2025 $ 2,567.0 $ 234.4 $ 2,801.4 (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. (2) Franchise revenues increased in the thirteen and twenty-six week periods ended December 24, 2025 compared to December 25, 2024 primarily because of higher royalties. The table below presents sales from our franchisees: Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 24, 2025 December 25, 2024 December 24, 2025 December 25, 2024 Chili's franchisee sales $ 271.9 $ 232.3 $ 540.5 $ 458.0 Maggiano's franchisee sales 4.1 4.2 8.7 7.3 The table below presents the percentage change in comparable restaurant sales and restaurant capacity for the thirteen and twenty-six week periods ended December 24, 2025 compared to December 25, 2024: Percentage Change in the Thirteen Week Period Ended December 24, 2025 versus December 25, 2024 Comparable Restaurant Sales (1) Price Impact Mix-Shift Impact (2) Traffic Impact Restaurant Capacity (3) Company-owned 7.5 % 4.6 % 1.5 % 1.4 % (0.3) % Chili’s 8.6 % 4.4 % 1.5 % 2.7 % (0.2) % Maggiano’s (2.4) % 6.0 % 0.4 % (8.8) % (4.0) % Franchise (4) 7.3 % U.S. 9.2 % International 6.2 % Chili’s domestic (5) 8.7 % System-wide (6) 7.5 % 21 Table of Contents Percentage Change in the Twenty-Six Week Period Ended December 24, 2025 versus December 25, 2024 Comparable Restaurant Sales (1) Price Impact Mix-Shift Impact (2) Traffic Impact Restaurant Capacity (3) Company-owned 12.7 % 4.3 % 2.6 % 5.8 % (0.5) % Chili’s 14.5 % 4.2 % 2.8 % 7.5 % (0.4) % Maggiano’s (4.1) % 6.0 % 0.5 % (10.6) % (3.0) % Franchise (4) 11.3 % U.S. 14.8 % International 9.1 % Chili’s domestic (5) 14.6 % System-wide (6) 12.5 % (1) Comparable Restaurant Sales include all restaurants that have been in operation for more than 18 full months. Restaurants temporarily closed 14 days or more are excluded from Comparable Restaurant Sales. Percentage amounts are calculated based on the comparable periods year-over-year. (2) Mix-Shift is calculated as the year-over-year percentage change in Company sales resulting from the change in menu items ordered by guests. (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. (4) Franchise sales generated by franchisees are not included in Total revenues in the Consolidated Statements of Comprehensive Income (Unaudited); however, we generate royalty revenues and advertising fees based on franchisee revenues, where applicable. We believe presenting Franchise Comparable Restaurant Sales provides investors relevant information regarding total brand performance. (5) Chili’s domestic Comparable Restaurant Sales percentages are derived from sales generated by Company-owned and franchise-operated Chili’s restaurants in the United States. (6) System-wide Comparable Restaurant Sales are derived from sales generated by Chili’s and Maggiano’s Company-owned and franchise-operated restaurants. Costs and Expenses Thirteen Week Period Ended December 24, 2025 compared to December 25, 2024 The following is a summary of the changes in Costs and Expenses: Thirteen Week Periods Ended Favorable (Unfavorable) Variance December 24, 2025 December 25, 2024 Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales Food and beverage costs $ 370.5 25.7 % $ 343.9 25.5 % $ (26.6) (0.2) % Restaurant labor 446.4 31.0 % 421.0 31.3 % (25.4) 0.3 % Restaurant expenses 352.1 24.5 % 324.4 24.1 % (27.7) (0.4) % Depreciation and amortization 54.6 47.7 (6.9) General and administrative 59.7 53.1 (6.6) Other (gains) and charges 0.5 12.1 11.6 Interest expenses 10.7 14.7 4.0 Other income, net (0.4) (0.4) — 22 Table of Contents As a percentage of Company sales: • Food and beverage costs were unfavorable 0.2%, due to 1.2% of unfavorable menu item mix and 0.2% of unfavorable commodity costs primarily driven by higher meat and seafood, partially offset by lower poultry and 1.2% from favorable menu pricing. • Restaurant labor was favorable 0.3%, due to 1.3% of sales leverage and 0.1% of lower other labor expenses, partially offset by 0.6% of higher hourly labor driven by increased staffing levels and wage rates, 0.3% of higher health insurance, and 0.2% of higher manager salaries. • Restaurant expenses were unfavorable 0.4%, due to 0.6% of higher advertising, 0.4% of higher repairs and maintenance, 0.4% of higher delivery fees and to-go supplies, 0.2% of higher workers' compensation and general liability insurance, and 0.1% of higher rent, partially offset by 1.1% of sales leverage and 0.2% lower other restaurant expenses. Depreciation and amortization increased $6.9 million as follows: Depreciation and Amortization Thirteen Week Period Ended December 25, 2024 $ 47.7 Change from: Additions for new and existing restaurant assets 11.3 Corporate assets 0.4 Finance leases (0.2) Retirements and fully depreciated restaurant assets (4.4) Other (0.2) Thirteen Week Period Ended December 24, 2025 $ 54.6 General and administrative expenses increased $6.6 million as follows: General and Administrative Thirteen Week Period Ended December 25, 2024 $ 53.1 Change from: Payroll expenses 4.0 Stock-based compensation 0.9 Defined contribution plan employer expenses and other benefits 0.4 Corporate technology initiatives 0.2 Other 1.1 Thirteen Week Period Ended December 24, 2025 $ 59.7 23 Table of Contents Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges): Thirteen Week Periods Ended December 24, 2025 December 25, 2024 Restaurant closure asset write-offs and charges $ 1.5 $ 0.8 Litigation & claims, net 0.8 6.1 Severance and other benefit charges 0.2 — Loss from natural disasters, net (of insurance recoveries) — 0.7 Enterprise system implementation costs — 5.2 Lease modification gain, net (2.5) (0.7) Other 0.5 — $ 0.5 $ 12.1 Interest expenses decreased $4.0 million primarily due to the lower average revolver balance during the current year. Twenty-Six Week Period Ended December 24, 2025 compared to December 25, 2024 The following is a summary of the changes in Costs and Expenses: Twenty-Six Week Periods Ended Favorable (Unfavorable) Variance December 24, 2025 December 25, 2024 Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales Food and beverage costs $ 715.1 25.8 % $ 628.2 25.4 % $ (86.9) (0.4) % Restaurant labor 877.4 31.6 % 798.4 32.3 % (79.0) 0.7 % Restaurant expenses 696.1 25.1 % 638.3 25.8 % (57.8) 0.7 % Depreciation and amortization 108.2 94.0 (14.2) General and administrative 116.9 104.9 (12.0) Other (gains) and charges 1.4 21.0 19.6 Interest expenses 21.2 29.0 7.8 Other income, net (0.6) (0.6) — As a percentage of Company sales: • Food and beverage costs were unfavorable 0.4%, due to 1.2% of unfavorable menu item mix and 0.3% of unfavorable commodity costs primarily driven by meat and seafood, partially offset by 1.1% favorable menu pricing. • Restaurant labor was favorable 0.7%, due to 2.2% of sales leverage and 0.1% of lower other labor expenses, partially offset by 1.1% of higher hourly labor driven by increased staffing levels and wage rates, 0.3% of higher manager salaries, and 0.2% of higher health insurance. • Restaurant expenses were favorable 0.7%, due to 2.0% of sales leverage and 0.1% of lower other restaurant expenses, partially offset by 0.5% of higher advertising, 0.5% of higher delivery fees and to-go supplies, 0.2% of higher workers' compensation and general liability insurance, and 0.2% of higher rent. 24 Table of Contents Depreciation and amortization increased $14.2 million as follows: Depreciation and Amortization Twenty-Six Week Period Ended December 25, 2024 $ 94.0 Change from: Additions for new and existing restaurant assets 24.0 Corporate assets 1.2 Finance leases 0.7 Retirements and fully depreciated restaurant assets (11.4) Other (0.3) Twenty-Six Week Period Ended December 24, 2025 $ 108.2 General and administrative expenses increased $12.0 million as follows: General and Administrative Twenty-Six Week Period Ended December 25, 2024 $ 104.9 Change from: Payroll expenses 8.1 Corporate technology initiatives 3.0 Stock-based compensation 1.8 Defined contribution plan employer expenses and other benefits 1.6 Performance-based compensation (3.6) Other 1.1 Twenty-Six Week Period Ended December 24, 2025 $ 116.9 Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges): Twenty-Six Week Periods Ended December 24, 2025 December 25, 2024 Restaurant closure asset write-offs and charges $ 2.1 $ 1.5 Severance and other benefit charges 1.7 0.3 Litigation & claims, net 1.5 8.6 Enterprise system implementation costs — 9.6 Loss from natural disasters, net (of insurance recoveries) (2.3) 0.7 Lease modification gain, net (2.5) (1.0) Other 0.9 1.3 $ 1.4 $ 21.0 Interest expenses decreased $7.8 million primarily due to the lower average outstanding debt balances. 25 Table of Contents Income Taxes Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 24, 2025 December 25, 2024 December 24, 2025 December 25, 2024 Effective income tax rate 18.7 % 16.4 % 14.2 % 14.7 % The federal statutory tax rate was 21.0% for the thirteen and twenty-six week periods ended December 24, 2025 and December 25, 2024. The change in the effective income tax rate in the thirteen week period ended December 24, 2025 to the thirteen week period ended December 25, 2024 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 twenty-six week period ended December 24, 2025 to the twenty-six week period ended December 25, 2024 is primarily due to significantly higher excess tax benefits from stock based compensation of $11.9 million in fiscal 2026, partially offset by higher Income before income taxes and resulting deleverage of the FICA tip tax credit. 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 twenty-six week periods ended December 24, 2025, 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. Segment Results Chili’s Segment Thirteen Week Period Ended December 24, 2025 compared to December 25, 2024 Thirteen Week Periods Ended Favorable (Unfavorable) Variance Variance as percentage December 24, 2025 December 25, 2024 Company sales $ 1,304.1 $ 1,196.9 $ 107.2 9.0 % Franchise revenues 13.2 11.9 1.3 10.9 % Total revenues $ 1,317.3 $ 1,208.8 $ 108.5 9.0 % Chili’s Total revenues increased by 9.0% primarily due to favorable comparable restaurant sales driven by menu pricing, higher traffic, and favorable menu item mix. Refer to “Revenues” section above for further details about Chili’s revenues changes. The following is a summary of the changes in Chili’s operating costs and expenses: Thirteen Week Periods Ended Favorable (Unfavorable) Variance December 24, 2025 December 25, 2024 Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales Food and beverage costs $ 336.5 25.8 % $ 310.1 25.9 % $ (26.4) 0.1 % Restaurant labor 406.6 31.2 % 378.4 31.6 % (28.2) 0.4 % Restaurant expenses 312.5 23.9 % 285.0 23.8 % (27.5) (0.1) % Depreciation and amortization 47.5 41.8 (5.7) General and administrative 14.6 12.2 (2.4) Other (gains) and charges (0.4) 6.2 6.6 26 Table of Contents As a percentage of Company sales: • Chili’s Food and beverage costs were favorable 0.1%, due to 1.2% from favorable menu pricing, partially offset by 0.9% of unfavorable menu item mix and 0.2% of unfavorable commodity costs primarily driven by meat and seafood, partially offset by lower poultry. • Chili’s Restaurant labor was favorable 0.4%, due to 1.6% of sales leverage, partially offset by 0.6% of higher hourly labor driven by increased staffing levels and wage rates, 0.3% of higher manager salaries, and 0.3% of higher health insurance. • Chili’s Restaurant expenses were unfavorable 0.1%, due to 0.6% of higher advertising, 0.4% of higher repairs and maintenance, 0.3% of higher delivery fees and to-go supplies, and 0.3% of higher rent, partially offset by 1.5% of sales leverage. Chili’s Depreciation and amortization increased $5.7 million as follows: Depreciation and Amortization Thirteen Week Period Ended December 25, 2024 $ 41.8 Change from: Additions for new and existing restaurant assets 10.0 Finance leases (0.3) Retirements and fully depreciated restaurant assets (3.8) Other (0.2) Thirteen Week Period Ended December 24, 2025 $ 47.5 Chili’s General and administrative increased $2.4 million as follows: General and Administrative Thirteen Week Period Ended December 25, 2024 $ 12.2 Change from: Payroll expenses 1.0 Defined contribution plan employer expenses and other benefits 0.5 Stock-based compensation 0.2 Performance-based compensation 0.2 Other 0.5 Thirteen Week Period Ended December 24, 2025 $ 14.6 Chili’s Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges): Thirteen Week Periods Ended December 24, 2025 December 25, 2024 Restaurant closure asset write-offs and charges $ 1.4 $ 0.8 Litigation & claims, net 0.6 5.4 Loss from natural disasters, net (of insurance recoveries) — 0.7 Lease modification gain, net (2.5) (0.7) Other 0.1 — $ (0.4) $ 6.2 27 Table of Contents Twenty-Six Week Period Ended December 24, 2025 compared to December 25, 2024 Twenty-Six Week Periods Ended Favorable (Unfavorable) Variance Variance as percentage December 24, 2025 December 25, 2024 Company sales $ 2,540.3 $ 2,215.8 $ 324.5 14.6 % Franchise revenues 26.7 23.4 3.3 14.1 % Total revenues $ 2,567.0 $ 2,239.2 $ 327.8 14.6 % Chili’s Total revenues increased by 14.6% 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. The following is a summary of the changes in Chili’s operating costs and expenses: Twenty-Six Week Periods Ended Favorable (Unfavorable) Variance December 24, 2025 December 25, 2024 Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales Food and beverage costs $ 656.2 25.8 % $ 569.2 25.7 % $ (87.0) (0.1) % Restaurant labor 801.9 31.6 % 720.0 32.5 % (81.9) 0.9 % Restaurant expenses 620.1 24.4 % 565.6 25.5 % (54.5) 1.1 % Depreciation and amortization 94.2 82.3 (11.9) General and administrative 27.3 24.0 (3.3) Other (gains) and charges (1.7) 9.1 10.8 As a percentage of Company sales: • Chili’s Food and beverage costs were unfavorable 0.1%, due to 0.9% of unfavorable menu item mix and 0.3% of unfavorable commodity costs primarily driven by higher meat and seafood, partially offset by 1.1% from favorable menu pricing. • Chili’s Restaurant labor was favorable 0.9%, due to 2.6% of sales leverage, partially offset by 1.2% of higher hourly labor driven by increased staffing levels and wage rates, 0.3% of higher manager salaries, and 0.2% of higher health insurance. • Chili’s Restaurant expenses were favorable 1.1%, due to 2.5% of sales leverage, partially offset by 0.5% of higher advertising, 0.4% of higher delivery fees and to-go supplies, 0.2% of higher workers' compensation and general liability insurance, 0.2% of higher rent, and 0.1% of higher other restaurant expenses. Chili’s Depreciation and amortization increased $11.9 million as follows: Depreciation and Amortization Twenty-Six Week Period Ended December 25, 2024 $ 82.3 Change from: Additions for new and existing restaurant assets 21.4 Finance leases 0.5 Retirements and fully depreciated restaurant assets (9.7) Other (0.3) Twenty-Six Week Period Ended December 24, 2025 $ 94.2 28 Table of Contents Chili’s General and administrative increased $3.3 million as follows: General and Administrative Twenty-Six Week Period Ended December 25, 2024 $ 24.0 Change from: Payroll expenses 1.4 Defined contribution plan employer expenses and other benefits 1.0 Stock-based compensation 0.4 Performance-based compensation (0.6) Other 1.1 Twenty-Six Week Period Ended December 24, 2025 $ 27.3 Chili’s Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges): Twenty-Six Week Periods Ended December 24, 2025 December 25, 2024 Restaurant closure asset write-offs and charges $ 1.7 $ 1.5 Litigation & claims, net 1.3 6.6 Loss from natural disasters, net (of insurance recoveries) (2.2) 0.7 Lease modification gain, net (2.5) (1.0) Other — 1.3 $ (1.7) $ 9.1 Maggiano’s Segment Thirteen Week Period Ended December 24, 2025 compared to December 25, 2024 Thirteen Week Periods Ended Favorable (Unfavorable) Variance Variance as a percentage December 24, 2025 December 25, 2024 Company sales $ 134.7 $ 149.2 $ (14.5) (9.7) % Franchise revenues 0.2 0.2 — — % Total revenues $ 134.9 $ 149.4 $ (14.5) (9.7) % Maggiano’s Total revenues decreased 9.7% primarily due to unfavorable impact of restaurant closures and 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. 29 Table of Contents The following is a summary of the changes in Maggiano’s operating costs and expenses: Thirteen Week Periods Ended Favorable (Unfavorable) Variance December 24, 2025 December 25, 2024 Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales Food and beverage costs $ 34.0 25.2 % $ 33.8 22.6 % $ (0.2) (2.6) % Restaurant labor 39.8 29.5 % 42.6 28.6 % 2.8 (0.9) % Restaurant expenses 39.4 29.3 % 39.0 26.1 % (0.4) (3.2) % Depreciation and amortization 4.3 3.4 (0.9) General and administrative 2.1 2.4 0.3 Other (gains) and charges 0.3 — (0.3) As a percentage of Company sales: • Maggiano’s Food and beverage costs were unfavorable 2.6%, due to 3.0% unfavorable menu item mix and 0.7% of unfavorable commodity costs primarily driven by meat and seafood, partially offset by lower dairy and 1.1% from favorable menu pricing. • Maggiano’s Restaurant labor was unfavorable 0.9%, due to 1.6% of sales deleverage and 0.3% of higher health insurance, partially offset by 0.7% of lower manager bonus and 0.3% of lower other labor expenses. • Maggiano’s Restaurant expenses were unfavorable 3.2%, due to 1.8% of sales deleverage, 0.7% of higher delivery fees and to-go supplies, 0.5% of higher workers' compensation and general liability insurance, and 0.3% of higher repairs and maintenance, partially offset by 0.1% of lower other restaurant expenses. Twenty-Six Week Period Ended December 24, 2025 compared to December 25, 2024 Twenty-Six Week Periods Ended Favorable (Unfavorable) Variance Variance as a percentage December 24, 2025 December 25, 2024 Company sales $ 233.9 $ 257.6 $ (23.7) (9.2) % Franchise revenues 0.5 0.4 0.1 25.0 % Total revenues $ 234.4 $ 258.0 $ (23.6) (9.1) % Maggiano’s Total revenues decreased 9.1% 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. The following is a summary of the changes in Maggiano’s operating costs and expenses: Twenty-Six Week Periods Ended Favorable (Unfavorable) Variance December 24, 2025 December 25, 2024 Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales Food and beverage costs $ 58.9 25.2 % $ 59.0 22.9 % $ 0.1 (2.3) % Restaurant labor 75.5 32.3 % 78.4 30.4 % 2.9 (1.9) % Restaurant expenses 75.6 32.3 % 72.0 28.0 % (3.6) (4.3) % Depreciation and amortization 8.5 6.8 (1.7) General and administrative 3.7 5.4 1.7 Other (gains) and charges 1.3 0.4 (0.9) 30 Table of Contents As a percentage of Company sales: • Maggiano’s Food and beverage costs were unfavorable 2.3%, due to 2.8% of unfavorable menu item mix and 0.6% of unfavorable commodity costs primarily driven by higher meat and seafood, partially offset by lower dairy and 1.1% from favorable menu pricing. • Maggiano’s Restaurant labor was unfavorable 1.9%, due to 1.7% of sales deleverage, 0.2% of higher health insurance, and 0.4% of higher other labor expenses, partially offset by 0.4% of lower manager bonus. • Maggiano’s Restaurant expenses were unfavorable 4.3%, due to 1.8% of sales deleverage, 0.9% of higher delivery fees and to-go supplies, 0.6% of higher advertising, 0.5% of higher workers' compensation and general liability insurance, 0.4% of higher repairs and maintenance, and 0.1% of higher other restaurant expenses. Liquidity and Capital Resources Cash Flows Cash Flows from Operating Activities Twenty-Six Week Periods Ended Favorable (Unfavorable) Variance December 24, 2025 December 25, 2024 Net cash provided by operating activities $ 339.7 $ 281.0 $ 58.7 Net cash provided by operating activities increased due to an increase in operating income partially offset by an increase in payments of performance-based compensation and the timing of other operational receipts and payments. Cash Flows from Investing Activities Twenty-Six Week Periods Ended Favorable (Unfavorable) Variance December 24, 2025 December 25, 2024 Net cash used in investing activities $ (121.6) $ (105.8) $ (15.8) Net cash used in investing activities increased compared to the prior year primarily due to increased spend on construction of new restaurants and spend related to Maggiano’s reimages, partially offset by decreased spend on capital maintenance and equipment. Cash Flows from Financing Activities Twenty-Six Week Periods Ended Favorable (Unfavorable) Variance December 24, 2025 December 25, 2024 Net cash used in financing activities $ (222.0) $ (225.0) $ 3.0 Net cash used in financing activities decreased slightly primarily due to a decrease in net repayments of long-term debt as a result of the prior year payoff of our $350.0 million 5.00% notes, offset by an increase in share repurchase activity in fiscal 2026 compared to fiscal 2025. Debt During the twenty-six week period ended December 24, 2025, net borrowings of $20.0 million were drawn on the revolving credit facility. Additionally, availability was reduced by a $30.1 million letter of credit as of December 24, 2025. Refer to Note 7 - Commitments and Contingencies for further information about our letters of credit. As of December 24, 2025, $949.9 million of credit was available under the revolving credit facility. 31 Table of Contents 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 December 24, 2025, our interest rate was 4.98% consisting of SOFR of 3.73% plus the applicable margin of 1.25%. As of December 24, 2025, 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. Share Repurchase Program 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). In the twenty-six week period ended December 24, 2025, we repurchased 1.8 million shares of our common stock for $235.0 million, including 1.5 million shares purchased for $192.0 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 December 24, 2025, approximately $315.0 million of share repurchase authorization remains under the current share repurchase program. Cash Flow Outlook Based on the current level of operations, we believe that our current cash and cash equivalents, coupled with cash generated from operations and availability under our existing revolving credit facility will be adequate to meet our capital expenditure and working capital needs for at least the next twelve months. Future Commitments and Contractual Obligations 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 $5.5 million in fiscal 2026, $21.2 million in fiscal 2027, $21.1 million in fiscal 2028, and $4.4 million in fiscal 2029. Critical Accounting Estimates The preparation of the financial statements in conformity with GAAP requires us to make estimates and assumptions for the reporting periods covered by the financial statements. These estimates and assumptions affect the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent liabilities. Actual results could differ from these estimates. Our critical accounting estimates have not changed materially from those previously reported in our Annual Report on Form 10-K for the fiscal year ended June 25, 2025. Recent Accounting Pronouncements The impact of recent accounting pronouncements can be found at Note 1 - Basis of Presentation in the Notes to Consolidated Financial Statements (Unaudited) set forth in Part I, Item 1 of this Form 10-Q report.