SEGMENT INFORMATION

3 Months Ended

Sep. 27, 2023

Segment Reporting [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 Corporate 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 Corporate 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 segment include revenues generated by the operation of Company-owned restaurants including food and beverage sales, net of discounts, Maggiano’s banquet service charge income, gift card breakage, delivery, digital entertainment revenues, merchandise income and are net of gift card discounts from third-party gift card sales. Franchise revenues for each operating segment include royalties, franchise advertising fees, franchise and development fees and gift card equalization.

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 (loss) 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 periods presented primarily includes restaurant rent, repairs and maintenance, delivery fees and to-go supplies, supplies, utilities, advertising, credit card processing fees, and workers’ compensation and general liability insurance.

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

	Thirteen Week Period Ended September 27, 2023
	Chili’s		Maggiano's		Corporate		Consolidated
Company sales	$	897.8	$	104.2	$	—	$	1,002.0
Franchise revenues	10.3		0.2		—		10.5
Total revenues	908.1		104.4		—		1,012.5
Food and beverage costs	233.1		25.7		—		258.8
Restaurant labor	311.0		37.1		—		348.1
Restaurant expenses	258.5		32.2		0.1		290.8
Depreciation and amortization	36.2		3.2		2.5		41.9
General and administrative	10.0		2.4		30.0		42.4
Other (gains) and charges	3.7		0.2		2.4		6.3
Total operating costs and expenses	852.5		100.8		35.0		988.3
Operating income (loss)	55.6		3.6		(35.0)		24.2
Interest expenses	0.8		0.1		16.1		17.0
Other income, net	—		—		—		—
Income (loss) before income taxes	$	54.8	$	3.5	$	(51.1)	$	7.2
Segment assets	$	2,066.7	$	245.5	$	162.6	$	2,474.8
Payments for property and equipment	38.9		5.2		2.8		46.9

	Thirteen Week Period Ended September 28, 2022
	Chili’s		Maggiano's		Corporate		Consolidated
Company sales	$	840.6	$	105.5	$	—	$	946.1
Franchise revenues	9.3		0.1		—		9.4
Total revenues	849.9		105.6		—		955.5
Food and beverage costs	260.9		28.6		—		289.5
Restaurant labor	294.4		36.2		—		330.6
Restaurant expenses	236.9		31.7		0.2		268.8
Depreciation and amortization	36.0		3.2		2.7		41.9
General and administrative	9.5		2.5		27.5		39.5
Other (gains) and charges	3.0		0.5		1.5		5.0
Total operating costs and expenses	840.7		102.7		31.9		975.3
Operating income (loss)	9.2		2.9		(31.9)		(19.8)
Interest expenses	1.0		0.1		11.2		12.3
Other income, net	—		—		(0.4)		(0.4)
Income (loss) before income taxes	$	8.2	$	2.8	$	(42.7)	$	(31.7)
Payments for property and equipment	$	42.7	$	1.9	$	2.1	$	46.7