What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-04-29 compared with 2026-01-28 · 128 added, 117 removed, 300 unchanged (45% of the section changed)

1 unchanged sentence

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.

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.

1 unchanged sentence

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.

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.

25 unchanged sentences

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.

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.

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:

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:

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

Thirteen Week Periods Ended Thirty-Nine Week Periods Ended Total Open Restaurants at

March 25, 2026 March 26, 2025 March 25, 2026 March 26, 2025 Fiscal 2026 March 25, 2026 March 26, 2025

Company-owned restaurants

14 unchanged sentences

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.

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.

Thirteen and Twenty-Six Week Periods Ended December 24, 2025 compared to December 25, 2024

Thirteen and Thirty-Nine Week Periods Ended March 25, 2026 compared to March 26, 2025

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:

4 unchanged sentences

Chili’s Maggiano’s Total Revenues

Thirteen Week Period Ended December 25, 2024 $ 1,208.8 $ 149.4 $ 1,358.2

Thirteen Week Period Ended March 26, 2025 $ 1,304.1 $ 121.0 $ 1,425.1

Comparable restaurant sales 50.7 (5.2) 45.5

1 unchanged sentence

Delivery service fee income 0.2 — 0.2

Merchandise income 0.1 — 0.1

Digital entertainment revenues (0.1) — (0.1)

Gift card discounts (0.2) — (0.2)

Gift card breakage (0.9) (0.1) (1.0)

4 unchanged sentences

Franchise revenues (2)

Thirteen Week Period Ended December 24, 2025 $ 1,317.3 $ 134.9 $ 1,452.2

Thirteen Week Period Ended March 25, 2026 $ 1,362.6 $ 107.6 $ 1,470.2

Total Revenues

Chili’s Maggiano’s Total Revenues

Twenty-Six Week Period Ended December 25, 2024 $ 2,239.2 $ 258.0 $ 2,497.2

Thirty-Nine Week Period Ended March 26, 2025 $ 3,543.3 $ 379.0 $ 3,922.3

Comparable restaurant sales 366.7 (14.9) 351.8

2 unchanged sentences

Digital entertainment revenues 0.2 — 0.2

Merchandise income 0.1 — 0.1

Gift card discounts (0.3) — (0.3)

5 unchanged sentences

Franchise revenues (2)

Twenty-Six Week Period Ended December 24, 2025 $ 2,567.0 $ 234.4 $ 2,801.4

Thirty-Nine Week Period Ended March 25, 2026 $ 3,929.6 $ 342.0 $ 4,271.6

(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.

(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:

Thirteen Week Periods Ended Twenty-Six Week Periods Ended

December 24, 2025 December 25, 2024 December 24, 2025 December 25, 2024

Thirteen Week Periods Ended Thirty-Nine Week Periods Ended

March 25, 2026 March 26, 2025 March 25, 2026 March 26, 2025

Chili's franchisee sales $ 274.1 $ 237.4 $ 817.6 $ 700.1

Maggiano's franchisee sales 4.3 5.0 13.0 12.2

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

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:

Percentage Change in the Thirteen Week Period Ended March 25, 2026 versus March 26, 2025

Comparable Restaurant Sales (1)

8 unchanged sentences

System-wide (6)

Percentage Change in the Twenty-Six Week Period Ended December 24, 2025 versus December 25, 2024

Percentage Change in the Thirty-Nine Week Period Ended March 25, 2026 versus March 26, 2025

Comparable Restaurant Sales (1)

20 unchanged sentences

Costs and Expenses

Thirteen Week Period Ended December 24, 2025 compared to December 25, 2024

Thirteen Week Period Ended March 25, 2026 compared to March 26, 2025

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

March 25, 2026 March 26, 2025

Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales

8 unchanged sentences

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.

• 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.

• 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.

• 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.

Depreciation and amortization increased $0.3 million as follows:

Depreciation and Amortization

Thirteen Week Period Ended December 25, 2024 $ 47.7

Thirteen Week Period Ended March 26, 2025 $ 54.7

Additions for new and existing restaurant assets 13.9

2 unchanged sentences

Retirements and fully depreciated restaurant assets (9.5)

Thirteen Week Period Ended December 24, 2025 $ 54.6

Thirteen Week Period Ended March 25, 2026 $ 55.0

(1) Other decreased primarily due to accelerated depreciation in the prior year as a result of management’s decision to abandon and replace certain equipment.

General and administrative expenses increased $0.1 million as follows:

General and Administrative

Thirteen Week Period Ended December 25, 2024 $ 53.1

Thirteen Week Period Ended March 26, 2025 $ 58.3

Payroll expenses 2.4

Stock-based compensation

Defined contribution plan employer expenses and other benefits 0.4

Corporate technology initiatives

Thirteen Week Period Ended December 24, 2025 $ 59.7

Stock-based compensation

Professional fees (1.3)

Performance-based compensation (1.4)

Thirteen Week Period Ended March 25, 2026 $ 58.4

Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges):

Thirteen Week Periods Ended

2025 December 25,

Restaurant closure asset write-offs and charges $ 1.5 $ 0.8

2026 March 26,

Litigation & claims, net $ 0.9 $ 2.5

Severance and other benefit charges 0.2 —

Loss from natural disasters, net (of insurance recoveries) 0.3 —

Restaurant closure asset write-offs and charges 0.1 0.8

Enterprise system implementation costs — 2.4

Severance and other benefit charges — 2.0

Lease contingencies — 1.5

Lease modification gain, net (0.1) (0.2)

Interest expenses decreased $3.1 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

Thirty-Nine Week Period Ended March 25, 2026 compared to March 26, 2025

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

Thirty-Nine Week Periods Ended Favorable (Unfavorable) Variance

March 25, 2026 March 26, 2025

Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales

9 unchanged sentences

• 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.

• 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.

• 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.

• 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.

Depreciation and amortization increased $14.5 million as follows:

Depreciation and Amortization

Twenty-Six Week Period Ended December 25, 2024 $ 94.0

Thirty-Nine Week Period Ended March 26, 2025 $ 148.7

Additions for new and existing restaurant assets 37.9

2 unchanged sentences

Retirements and fully depreciated restaurant assets (20.9)

Twenty-Six Week Period Ended December 24, 2025 $ 108.2

Thirty-Nine Week Period Ended March 25, 2026 $ 163.2

(1) Other decreased primarily due to accelerated depreciation in the prior year as a result of management’s decision to abandon and replace certain equipment.

General and administrative expenses increased $12.1 million as follows:

General and Administrative

Twenty-Six Week Period Ended December 25, 2024 $ 104.9

Thirty-Nine Week Period Ended March 26, 2025 $ 163.2

Payroll expenses 10.5

2 unchanged sentences

Defined contribution plan employer expenses and other benefits 1.7

Professional fees (2.2)

Performance-based compensation

Twenty-Six Week Period Ended December 24, 2025 $ 116.9

Thirty-Nine Week Period Ended March 25, 2026 $ 175.3

Other (gains) and charges consisted of the following (for further details, refer to Note 11 - Other Gains and Charges):

Twenty-Six Week Periods Ended

2025 December 25,

Thirty-Nine Week Periods Ended

2026 March 26,

Litigation & claims, net $ 2.4 $ 11.1

Restaurant closure asset write-offs and charges 2.2 2.3

Severance and other benefit charges 1.7 2.3

Litigation & claims, net 1.5 8.6

Enterprise system implementation costs — 12.0

Lease contingencies — 1.5

Loss from natural disasters, net (of insurance recoveries) (2.0) 0.7

2 unchanged sentences

Interest expenses decreased $10.9 million primarily due to the lower average outstanding debt balances.

Thirteen Week Periods Ended Twenty-Six Week Periods Ended

2025 December 25,

2024 December 24,

2025 December 25,

Thirteen Week Periods Ended Thirty-Nine Week Periods Ended

2026 March 26,

2025 March 25,

2026 March 26,

Effective income tax rate 18.4 % 17.2 % 15.7 % 15.8 %

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.

The federal statutory tax rate was 21.0% for the thirteen and thirty-nine week periods ended March 25, 2026 and March 26, 2025.

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.

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.

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.

Segment Results

Chili’s Segment

Thirteen Week Period Ended December 24, 2025 compared to December 25, 2024

Thirteen Week Period Ended March 25, 2026 compared to March 26, 2025

Thirteen Week Periods Ended Favorable (Unfavorable) Variance Variance as percentage

2025 December 25,

2026 March 26,

Company sales $ 1,348.1 $ 1,292.2 $ 55.9 4.3 %

1 unchanged sentence

Total revenues $ 1,362.6 $ 1,304.1 $ 58.5 4.5 %

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.

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.

1 unchanged sentence

Thirteen Week Periods Ended Favorable (Unfavorable) Variance

December 24, 2025 December 25, 2024

March 25, 2026 March 26, 2025

Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales

6 unchanged sentences

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 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.

• 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.

• 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.

Chili’s Depreciation and amortization increased $1.3 million as follows:

Depreciation and Amortization

Thirteen Week Period Ended December 25, 2024 $ 41.8

Thirteen Week Period Ended March 26, 2025 $ 48.9

Additions for new and existing restaurant assets 12.3

1 unchanged sentence

Retirements and fully depreciated restaurant assets (8.0)

Thirteen Week Period Ended December 24, 2025 $ 47.5

Thirteen Week Period Ended March 25, 2026 $ 47.6

(1) Other decreased primarily due to accelerated depreciation in the prior year as a result of management’s decision to abandon and replace certain equipment.

Chili’s General and administrative increased $0.5 million as follows:

General and Administrative

Thirteen Week Period Ended December 25, 2024 $ 12.2

Thirteen Week Period Ended March 26, 2025 $ 12.7

Payroll expenses 0.5

Defined contribution plan employer expenses and other benefits 0.3

Stock-based compensation 0.2

Performance-based compensation (0.6)

Thirteen Week Period Ended December 24, 2025 $ 14.6

Thirteen Week Period Ended March 25, 2026 $ 13.2

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

2025 December 25,

Restaurant closure asset write-offs and charges $ 1.4 $ 0.8

2026 March 26,

Litigation & claims, net $ 0.9 $ 2.0

Loss from natural disasters, net (of insurance recoveries) 0.3 —

Restaurant closure asset write-offs and charges 0.1 0.8

Lease modification gain, net (0.1) (0.2)

$ (0.4) $ 6.2

Twenty-Six Week Period Ended December 24, 2025 compared to December 25, 2024

Twenty-Six Week Periods Ended Favorable (Unfavorable) Variance Variance as percentage

2025 December 25,

Other 0.6 0.1

Thirty-Nine Week Period Ended March 25, 2026 compared to March 26, 2025

Thirty-Nine Week Periods Ended Favorable (Unfavorable) Variance Variance as percentage

2026 March 26,

Company sales $ 3,888.4 $ 3,508.0 $ 380.4 10.8 %

4 unchanged sentences

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

Thirty-Nine Week Periods Ended Favorable (Unfavorable) Variance

March 25, 2026 March 26, 2025

Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales

6 unchanged sentences

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 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.

• 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.

• 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.

Chili’s Depreciation and amortization increased $10.6 million as follows:

Depreciation and Amortization

Twenty-Six Week Period Ended December 25, 2024 $ 82.3

Thirty-Nine Week Period Ended March 26, 2025 $ 131.2

Additions for new and existing restaurant assets 33.7

1 unchanged sentence

Retirements and fully depreciated restaurant assets (17.7)

Twenty-Six Week Period Ended December 24, 2025 $ 94.2

Thirty-Nine Week Period Ended March 25, 2026 $ 141.8

(1) Other decreased primarily due to accelerated depreciation in the prior year as a result of management’s decision to abandon and replace certain equipment.

Chili’s General and administrative increased $3.8 million as follows:

General and Administrative

Twenty-Six Week Period Ended December 25, 2024 $ 24.0

Thirty-Nine Week Period Ended March 26, 2025 $ 36.7

Payroll expenses 1.9

2 unchanged sentences

Performance-based compensation (1.2)

Twenty-Six Week Period Ended December 24, 2025 $ 27.3

Thirty-Nine Week Period Ended March 25, 2026 $ 40.5

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

2025 December 25,

Restaurant closure asset write-offs and charges $ 1.7 $ 1.5

Thirty-Nine Week Periods Ended

2026 March 26,

Litigation & claims, net $ 2.2 $ 8.6

Restaurant closure asset write-offs and charges 1.8 2.3

Loss from natural disasters, net (of insurance recoveries) (1.9) 0.7

Lease modification gain, net (2.6) (1.2)

$ (1.7) $ 9.1

Other 0.6 1.4

Maggiano’s Segment

Thirteen Week Period Ended December 24, 2025 compared to December 25, 2024

Thirteen Week Period Ended March 25, 2026 compared to March 26, 2025

Thirteen Week Periods Ended Favorable (Unfavorable) Variance Variance as a percentage

2025 December 25,

2026 March 26,

Company sales $ 107.4 $ 120.8 $ (13.4) (11.1) %

1 unchanged sentence

Total revenues $ 107.6 $ 121.0 $ (13.4) (11.1) %

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.

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.

1 unchanged sentence

Thirteen Week Periods Ended Favorable (Unfavorable) Variance

December 24, 2025 December 25, 2024

March 25, 2026 March 26, 2025

Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales

6 unchanged sentences

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

2025 December 25,

• 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.

• 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.

• 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.

Thirty-Nine Week Period Ended March 25, 2026 compared to March 26, 2025

Thirty-Nine Week Periods Ended Favorable (Unfavorable) Variance Variance as a percentage

2026 March 26,

Company sales $ 341.3 $ 378.4 $ (37.1) (9.8) %

5 unchanged sentences

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

Thirty-Nine Week Periods Ended Favorable (Unfavorable) Variance

March 25, 2026 March 26, 2025

Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales

7 unchanged sentences

• 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.

• 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.

• 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.

• 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.

Liquidity and Capital Resources

Cash Flows from Operating Activities

Twenty-Six Week Periods Ended Favorable (Unfavorable) Variance

2025 December 25,

Thirty-Nine Week Periods Ended Favorable (Unfavorable) Variance

2026 March 26,

Net cash provided by operating activities $ 571.8 $ 493.0 $ 78.8

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.

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.

Cash Flows from Investing Activities

Twenty-Six Week Periods Ended Favorable (Unfavorable) Variance

2025 December 25,

Thirty-Nine Week Periods Ended Favorable (Unfavorable) Variance

2026 March 26,

Net cash used in investing activities $ (172.7) $ (185.4) $ 12.7

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

2025 December 25,

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.

Thirty-Nine Week Periods Ended Favorable (Unfavorable) Variance

2026 March 26,

Net cash used in financing activities $ (360.9) $ (354.7) $ (6.2)

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.

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.

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.

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.

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.

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.

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.

4 unchanged sentences

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.

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 December 24, 2025, approximately $315.0 million of share repurchase authorization remains under the current share repurchase program.

As of March 25, 2026, approximately $207.0 million of share repurchase authorization remains under the current share repurchase program.

Cash Flow Outlook

11 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis