About Brinker International

Brinker International, Inc. and its subsidiaries (Brinker) own, develop, operate, and franchise the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) restaurant brands, as well as a virtual brand, It’s Just Wings. The company’s domestic expansion efforts focus not only on major metropolitan areas in the United States but also on smaller market areas and partnerships with franchisees to enter non-traditional locations (such as airports) that can adequately support the company’s restaurant brands. For smaller market areas, the company has developed a smaller Chili’s building prototype that allows the company to expand into these markets and serve the company’s guests. The company also pursues expansion through the development of the company’s franchisees. Restaurant Brands Chili’s Grill & Bar Chili’s is a recognized leader in the casual dining industry and the flagship brand of Dallas-based Brinker International, Inc. Chili’s has been operating restaurants for over 48 years and enjoys a global presence with restaurants in the United States, 29 other countries and two United States territories. The company’s menu features bold, Southwest inspired American favorites and Chili’s has built a reputation for big mouth burgers, full-on sizzling fajitas, crispy Chicken Crispers and hand-shaken margaritas. As part of the company’s new strategy, the company is improving and innovating on these four core food and drink offerings. Maggiano’s Little Italy Maggiano’s is a full-service, national, polished casual restaurant brand offering Italian-American cuisine. With a passion for making people feel special, the brand is known for catering to special occasions and large parties. Each Maggiano’s location is uniquely designed and features open dining rooms with fresh flowers, warm carpets and soft lighting. Most locations feature designated banquet facilities and all offer catering for large parties at homes or local businesses. The company’s full carryout menu is also available for pick up or delivered through third-party delivery providers. Each Maggiano’s has an executive chef preparing authentic recipes from scratch ingredients. Dishes are served in abundant portions both à la carte and family style. The company offers a full range of lunch and dinner options, complimented by a premium wine list and handcrafted cocktails. Virtual Brands The company’s virtual brand, It’s Just Wings, provides restaurant-like menu offerings that are only available for purchase digitally. It’s Just Wings primarily offers chicken wings available with a variety of different sauces and rubs. It’s Just Wings is available for purchase through the company’s third-party service providers and a brand specific website, itsjustwings.com. Maggiano’s Italian Classics, which offered a select group of items inspired by the menu at Maggiano’s Little Italy, was phased out by the end of fiscal 2023 so the company can focus on the Chili’s strategies discussed below. The operating results for virtual brands are included in the results of the company’s Chili’s and Maggiano’s brands, based on the restaurants that prepared and processed the food orders. Business Strategy Chili’s The company’s strategy is to make everyone feel special through a fun atmosphere, delicious food and drinks and the company’s Chili’s hospitality. The company is making work at Chili’s easier, more fun and more rewarding for the company’s team members so that they are more engaged and provide a better experience for the company’s guests. The company is improving its hospitality by scheduling more team members per shift to serve the company’s guests and by improving systems and technology that can help with the company’s order accuracy and guest experience. Another priority is having clean and well-maintained restaurants that provide an inviting atmosphere for team members to work and guests to dine. In addition, Chili’s has focused on a seamless digital experience as the company’s guests’ preferences and expectations around dining convenience have evolved in recent years. Investments in the company’s technology and off-premise options have enabled the company to provide a faster, more convenient dine-in experience and to offer more To-Go and delivery options for the company’s guests. The company’s To-Go menu is available through the Chili’s mobile app, chilis.com, the company’s delivery partners DoorDash, Uber Eats and Grubhub, Google Food Ordering or by calling the restaurant directly. Maggiano’s Little Italy At Maggiano’s, the company is focused making the company’s guests feel special. This warm and generous hospitality creates an environment where guests come together to celebrate birthdays, weddings and many more special occasions. While the company’s dining rooms support the majority of the company’s business, the company has focused on increasing the company’s carry-out and delivery business in recent years, including through partnerships with delivery service providers that have made the company’s restaurants more accessible to guests and helped create an additional significant revenue channel. The company’s restaurants also have banquet rooms to host large party events and the company has a begun to renovate these banquet rooms in certain restaurants to provide a better experience for this profitable revenue channel, particularly during the holiday season in the second and third quarters of the fiscal year. International Franchises As of June 28, 2023, the company had 18 active development arrangements. The company plans to strategically pursue expansion of Chili’s internationally in areas where the company see the most growth opportunities. Domestic Franchises In 2022, the company purchased 68 Chili’s restaurants from three former franchisees located in the Mid-Atlantic, Great Lakes and Northwest regions of the United States. The company remains committed to supporting the growth of the company’s existing franchisees. Restaurant Management The company’s Chili’s and Maggiano’s brands have separate designated teams who support each brand, including operations, finance, franchise, marketing, human resources and culinary. These strategic, brand-focused teams foster the identities of the individual and uniquely positioned brands. To maximize efficiencies, brands continue to utilize common and shared infrastructure, including among other services, accounting, information technology, supply chain, guest relations, legal, and restaurant development. Advertising and Marketing Chili’s primary focus for developing menu innovation and targeting the company’s digital advertising and loyalty program direct promotions are the Generation X and Millennial families who desire quality food, good value and a service experience that allows them to connect with family and friends. The company relies on digital marketing, direct marketing, social media and word of mouth to advertise. Maggiano’s, as a ‘polished casual’ restaurant with 52 company-owned and franchise-operated locations, primarily targets guests from affluent households who live and work around the higher-end malls where the majority of Maggiano’s restaurants are located. Maggiano’s relies on digital marketing, direct marketing, social media and word of mouth to advertise. Seasonality The company’s business has historically been seasonal and experienced fluctuation in sales volume during the fiscal year (year ended June 2023). The highest sales are generally observed during the winter and the spring months, whereas the summer and the fall months are accompanied with lower sales. Moreover, factors such as inclement weather conditions, natural disasters, and timing of holidays tend to impact this seasonality by region. Trademarks The company has registered, among other marks, ‘Brinker International’, ‘Chili’s’, ‘Maggiano’s’ and ‘It’s Just Wings’ as trademarks with the United States Patent and Trademark Office. History Brinker International, Inc. was founded in 1975. The company was incorporated under the laws of the state of Delaware in 1983.