SEGMENT INFORMATION

12 Months Ended

Jun. 28, 2023

Segment Information [Abstract]

SEGMENT INFORMATION

Our operating segments are Chili’s and Maggiano’s. The Chili’s segment includes the results of our Company-owned Chili’s restaurants, which are principally located in the United States, within the full-service casual dining segment of the industry. The Chili’s segment also has Company-owned restaurants in Canada, and franchised locations in the United States, 29 other countries and two United States territories. The Maggiano’s segment includes the results of our Company-owned Maggiano’s restaurants in the United States as well as the results from our domestic franchise business. The Other segment includes costs related to our restaurant support teams for the Chili’s and Maggiano’s brands, including operations, finance, franchise, marketing, human resources and culinary innovation. The Other segment also includes costs related to the common and shared infrastructure, including accounting, information technology, purchasing, guest relations, legal 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, gift card breakage, Maggiano’s banquet service charge income, delivery, digital entertainment revenues, merchandise income and gift card discount costs from third-party gift card sales. Franchise revenues for each operating segment include royalties, franchise advertising fees, gift card equalization, and franchise and development fees.

We do not rely on any major customers as a source of sales, and the customers and long-lived assets of our operating segments are predominantly located in the United States. There were no material transactions amongst our operating segments.

Our chief operating decision maker uses Operating income as the measure for assessing performance of our segments. Operating income includes revenues and expenses directly attributable to segment-level results of operations. Restaurant expenses during the years presented primarily included restaurant rent, supplies, repairs and maintenance, utilities, delivery fees, advertising, property taxes and workers’ compensation and general liability insurance.

The following tables reconcile our segment results to our consolidated results reported in accordance with GAAP:

	Fiscal Year Ended June 28, 2023
	Chili’s		Maggiano's		Corporate		Consolidated
Company sales	$	3,606.7	$	486.5	$	—	$	4,093.2
Franchise revenues	39.4		0.6		—		40.0
Total revenues	3,646.1		487.1		—		4,133.2
Food and beverage costs	1,022.9		123.4		—		1,146.3
Restaurant labor	1,232.3		157.0		—		1,389.3
Restaurant expenses	966.2		130.4		0.9		1,097.5
Depreciation and amortization	145.3		13.0		10.2		168.5
General and administrative	35.5		7.8		111.2		154.5
Other (gains) and charges	22.0		1.4		9.3		32.7
Total operating costs and expenses	3,424.2		433.0		131.6		3,988.8
Operating income (loss)	221.9		54.1		(131.6)		144.4
Interest expenses	3.7		0.3		50.9		54.9
Other income, net	(0.1)		—		(1.2)		(1.3)
Income (loss) before income taxes	$	218.3	$	53.8	$	(181.3)	$	90.8
Segment assets	$	2,079.5	$	244.5	$	163.0	$	2,487.0
Payments for property and equipment	158.1		16.6		10.2		184.9

	Fiscal Year Ended June 29, 2022
	Chili's (1)		Maggiano's		Corporate		Consolidated
Company sales	$	3,340.5	$	424.0	$	—	$	3,764.5
Franchise revenues	39.1		0.5		—		39.6
Total revenues	3,379.6		424.5		—		3,804.1
Food and beverage costs	945.9		102.6		—		1,048.5
Restaurant labor	1,146.5		141.6		—		1,288.1
Restaurant expenses	849.8		117.9		0.6		968.3
Depreciation and amortization	139.8		13.4		11.2		164.4
General and administrative	33.3		8.0		102.8		144.1
Other (gains) and charges	23.3		—		7.9		31.2
Total operating costs and expenses	3,138.6		383.5		122.5		3,644.6
Operating income (loss)	241.0		41.0		(122.5)		159.5
Interest expenses	5.1		0.4		40.6		46.1
Other income, net	(0.3)		—		(1.5)		(1.8)
Income (loss) before income taxes	$	236.2	$	40.6	$	(161.6)	$	115.2
Segment assets	$	2,116.7	$	223.6	$	144.1	$	2,484.4
Payments for property and equipment	133.7		9.1		7.5		150.3

	Fiscal Year Ended June 30, 2021(2)
	Chili’s		Maggiano's		Corporate		Consolidated
Company sales	$	3,023.7	$	277.6	$	—	$	3,301.3
Franchise revenues	36.2		0.3		—		36.5
Total revenues	3,059.9		277.9		—		3,337.8
Food and beverage costs	803.5		64.3		—		867.8
Restaurant labor	1,014.2		94.0		—		1,108.2
Restaurant expenses	765.6		92.1		0.8		858.5
Depreciation and amortization	124.3		13.8		12.1		150.2
General and administrative	27.4		5.8		101.6		134.8
Other (gains) and charges	12.7		1.4		4.9		19.0
Total operating costs and expenses	2,747.7		271.4		119.4		3,138.5
Operating income (loss)	312.2		6.5		(119.4)		199.3
Interest expenses	5.6		0.2		50.4		56.2
Other income, net	(0.5)		—		(1.6)		(2.1)
Income (loss) before income taxes	$	307.1	$	6.3	$	(168.2)	$	145.2
Payments for property and equipment	$	82.9	$	2.6	$	8.5	$	94.0

(1)Chili’s segment information for fiscal 2022 includes the results of operations and the fair values of assets related to the 68 restaurants purchased from three former franchisees subsequent to the acquisition dates. Refer to Note 3 - Acquisitions for further details.

(2)Fiscal 2021, which ended on June 30, 2021, contained 53 weeks. The impact of the 53rd week in fiscal 2021 resulted in an increase in Total revenues. While certain expenses increased in direct relationship to additional revenues from the 53rd week, other expenses, such as fixed costs, are incurred on a calendar month basis.