0000703351-22-000049 | 10-Q | XBRL Viewer | Brinker International INC

$ 955.5

$ 876.4

Operating costs and expenses

289.5

234.3

330.6

304.9

268.8

231.3

41.9

39.3

39.5

36.5

5.0

4.5

975.3

850.8

Operating (loss) income

(19.8)

25.6

12.3

12.5

(0.4)

(0.3)

(Benefit) Provision for income taxes

(31.7)

13.4

(1.5)

0.2

Net (loss) income

$ (30.2)

$ 13.2

Basic net (loss) income per share

$ (0.69)

$ 0.29

Diluted net (loss) income per share

$ (0.69)

$ 0.28

Basic weighted average shares outstanding

43.9

45.9

Diluted weighted average shares outstanding

43.9

47.0

Other comprehensive loss

Foreign currency translation adjustment

$ (1.0)

$ (0.4)

Other comprehensive loss

(1.0)

(0.4)

Comprehensive (loss) income

(31.2)

12.8

Company sales [Member]

Franchise revenues [Member]

946.1

865.6

^[1]

Supplemental Cash Flow Elements [Abstract]

$ 9.4

$ 10.8

^[1]

[1]	Certain changes in presentation have been made to fiscal 2022 revenue amounts to enhance comparability to the fiscal 2023 presentation. These reclassifications have no effect on Total revenues or Net income previously reported. Refer to Note 1 - Basis of Presentation for further details.

Consolidated Balance Sheets (Unaudited) - USD ($) shares in Millions, $ in Millions	Sep. 28, 2022	Jun. 29, 2022
Current assets
Cash and cash equivalents	$ 19.5	$ 13.5
Accounts receivable, net	57.6	66.4
Inventories	36.3	35.6
Restaurant supplies	55.4	55.5
Prepaid expenses	35.4	25.7
Income taxes receivable, net	5.6	4.5
Total current assets	209.8	201.2
Property and equipment, at cost
Land	43.4	43.4
Buildings and leasehold improvements	1,612.4	1,603.9
Furniture and equipment	802.4	793.0
Construction-in-progress	48.4	33.6
Gross property and equipment	2,506.6	2,473.9
Less accumulated depreciation and amortization	(1,683.5)	(1,657.2)
Net property and equipment	823.1	816.7
Other assets
Operating lease assets	1,152.1	1,160.5
Goodwill	194.8	195.1
Deferred income taxes, net	66.5	62.5
Intangibles, net	26.8	27.4
Other	20.7	21.0
Total other assets	1,460.9	1,466.5
Total assets	2,493.8	2,484.4
Current liabilities
Accounts payable	146.5	134.3
Gift card liability	75.0	83.9
Accrued payroll	106.0	111.0
Operating lease liabilities	112.8	112.7
Other accrued liabilities	133.3	116.1
Total current liabilities	573.6	558.0
Long-term debt and finance leases, less current installments	1,020.8	989.1
Long-term operating lease liabilities, less current portion	1,141.1	1,151.1
Other liabilities	54.9	54.3
Commitments and contingencies (Note 13)
Shareholders’ deficit
Common stock, shares authorized	250.0
Common stock, par value per share	$ 0.10
Common stock, shares issued	60.3	70.3
Common stock, shares outstanding	44.0	43.8
Common stock (250.0 million authorized shares; $0.10 par value; 60.3 million shares issued and 44.0 million shares outstanding at September 28, 2022, and 70.3 million shares issued and 43.8 million shares outstanding at June 29, 2022)	$ 6.0	$ 7.0
Additional paid-in capital	688.0	690.9
Accumulated other comprehensive loss	(6.3)	(5.3)
Accumulated deficit	$ (484.7)	$ (148.4)
Treasury stock, shares	16.3	26.5
Treasury stock, at cost (16.3 million shares at September 28, 2022, and 26.5 million shares at June 29, 2022)	$ (499.6)	$ (812.3)
Total shareholders’ deficit	(296.6)	(268.1)
Total liabilities and shareholders’ deficit	$ 2,493.8	$ 2,484.4

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Sep. 28, 2022	Sep. 29, 2021
Cash flows from operating activities
Net (loss) income	$ (30.2)	$ 13.2
Adjustments to reconcile Net (loss) income to Net cash provided by operating activities:
Depreciation and amortization	41.9	39.3
Stock-based compensation	4.7	4.3
Restructure and impairment charges	2.4	1.9
Net loss on disposal of assets	1.5	0.7
Other	0.4	1.5
Changes in assets and liabilities, net of the impact of acquisitions:
Accounts receivable, net	6.1	12.7
Inventories	(1.1)	(0.3)
Restaurant supplies	0.0	(0.3)
Prepaid expenses	(9.7)	(4.6)
Operating lease assets, net of liabilities	(0.9)	8.1
Deferred income taxes, net	(4.1)	8.2
Other assets	0.0	0.1
Accounts payable	7.1	(12.7)
Gift card liability	(8.9)	(4.8)
Accrued payroll	(5.0)	(24.8)
Other accrued liabilities	18.7	7.7
Current income taxes	1.4	(9.1)
Other liabilities	0.3	(0.9)
Net cash provided by operating activities	24.6	40.2
Cash flows from investing activities
Payments for property and equipment	(46.7)	(37.3)
Proceeds from note receivable	1.1	0.0
Payments for franchise restaurant acquisitions	0.0	(47.5)
Proceeds from sale leaseback transactions, net of related expenses	0.0	20.5
Net cash used in investing activities	(45.6)	(64.3)
Cash flows from financing activities
Borrowings on revolving credit facility	135.0	285.0
Payments on revolving credit facility	(100.0)	(205.0)
Payments on long-term debt	(5.8)	(5.5)
Purchases of treasury stock	(2.0)	(39.6)
Payments of dividends	(0.2)	(0.8)
Payments for debt issuance costs	0.0	(3.0)
Proceeds from issuance of treasury stock	0.0	0.3
Net cash provided by financing activities	27.0	31.4
Net change in cash and cash equivalents	6.0	7.3
Cash and cash equivalents at beginning of period	13.5	23.9
Cash and cash equivalents at end of period	$ 19.5	$ 31.2

SUPPLEMENTAL CASH FLOW INFORMATION

3 Months Ended

Sep. 28, 2022

Supplemental Cash Flow Information

Cash paid for income taxes and interest is as follows:


	Thirteen Week Periods Ended
	September 28, 2022		September 29, 2021
Income taxes, net	$	1.1	$	1.9
Interest, net of amounts capitalized	3.9		3.1

Non-cash operating, investing and financing activities are as follows:


	Thirteen Week Periods Ended
	September 28, 2022		September 29, 2021
Operating lease additions(1)	$	23.6	$	60.0
Finance lease additions	0.2		8.9
Accrued capital expenditures	20.3		6.2
Retirement of fully depreciated assets	10.3		7.9

(1)The thirteen week period ended September 29, 2021 primarily included operating lease additions associated with the 23 restaurants purchased from a former franchisee. Refer to Note 14 - Fiscal 2022 Chili’s Restaurant Acquisitions for further details.

BASIS OF PRESENTATION	3 Months Ended
BASIS OF PRESENTATION	Sep. 28, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	References to “Brinker,” the “Company,” “we,” “us,” and “our” in this Form 10-Q refer to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc. Our Consolidated Financial Statements (Unaudited) as of September 28, 2022 and June 29, 2022, and for the thirteen week periods ended September 28, 2022 and September 29, 2021, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Effective for the first quarter of fiscal 2023, we are presenting certain revenue streams related to gift cards, digital entertainment, Maggiano’s banquet service charges and delivery fees within Company sales to better align with the presentation used within the casual dining industry. Our presentation of Franchise revenues will now include only revenues related to the ongoing franchise-operated restaurants. Comparative figures in prior years have been adjusted to conform to the current year’s presentation. These reclassifications have no effect on Total revenues or Net income previously reported. We are principally engaged in the ownership, operation, development and franchising of the Chili’s® Grill & Bar (“Chili’s”) and Maggiano’s Little Italy® (“Maggiano’s”) restaurant brands, as well as virtual brands including It’s Just Wings® and Maggiano’s Italian Classics®. As of September 28, 2022, we owned, operated or franchised 1,645 restaurants, consisting of 1,182 Company-owned restaurants and 463 franchised restaurants, located in the United States, 28 countries and two United States territories. Use of Estimates The preparation of the Consolidated Financial Statements (Unaudited) is in conformity with generally accepted accounting principles in the United States (“GAAP”) and requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements (Unaudited), and the reported amounts of revenues and costs and expenses in the reporting periods. Actual results could differ from those estimates. The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results, financial position and cash flows for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with GAAP, have been omitted pursuant to SEC rules and regulations. The Notes to Consolidated Financial Statements (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements contained in our June 29, 2022 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes. All amounts in the Notes to Consolidated Financial Statements (Unaudited) are presented in millions unless otherwise specified. Foreign Currency Translation The foreign currency translation adjustment included in Comprehensive (loss) income in the Consolidated Statements of Comprehensive (Loss) Income (Unaudited) represents the unrealized impact of translating the financial statements of our Canadian restaurants from Canadian dollars to United States dollars. This amount is not included in Net (loss) income and would only be realized upon disposition of our Canadian restaurants. The related Accumulated other comprehensive loss is presented in the Consolidated Balance Sheets (Unaudited). Impact of COVID-19 Pandemic The number of open dining rooms and the dining room capacity restrictions have fluctuated over the course of the COVID-19 pandemic based on state and local mandates and has resulted in significant adverse impacts to our guest traffic and sales primarily in fiscal 2021. Starting fiscal 2022, we have experienced limited product shortages and service disruptions in our supply chain, limited availability of labor to operate our restaurants due to a tight labor market and an increase in employee turnover. It is possible that supply chain and labor shortages or disruptions could continue or increase in future periods if demand for goods, transportation and labor remains high. We have been carefully assessing the effect of COVID-19 on our business as conditions continue to evolve throughout the communities we serve. At this time, the ultimate impact of COVID-19 cannot be reasonably estimated due to the uncertainty about the extent and the duration of the spread of the virus and could lead to further reduced sales, capacity restrictions, restaurant closures, delays in our supply chain or impair our ability to staff accordingly which could adversely impact our financial results. Impact of Inflation During the first quarter of fiscal 2023, inflation did have a material impact on our operations. Increasing inflation could have a severe impact on the United States or global economies and have an adverse impact on our business, financial condition and results of operations. If commodity pricing and labor costs increase significantly, we may not be able to adjust menu prices to sufficiently offset the effect of the various cost increases without negatively impacting consumer demand. New Accounting Standards Implemented in Fiscal 2023 We reviewed accounting pronouncements that became effective for our fiscal 2023 and determined that either they were not applicable or they did not have a material impact on the Consolidated Financial Statements (Unaudited). We also reviewed recently issued accounting pronouncements to be adopted in future periods and determined that they are not expected to have a material impact on the Consolidated Financial Statements (Unaudited).

REVENUE RECOGNITION

3 Months Ended

Sep. 28, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Deferred Franchise and Development Fees

Our deferred franchise and development fees consist of the unrecognized fees received from franchisees. Recognition of these fees in subsequent periods is based on satisfaction of the contractual performance obligations of our active contracts with franchisees. We also expect to earn subsequent period royalties and advertising fees related to our franchise contracts; however, due to the variability and uncertainty of these future revenues based upon a sales-based measure, these future revenues are not yet estimable as the performance obligations remain unsatisfied.

Deferred franchise and development fees are classified within Other accrued liabilities for the current portion expected to be recognized within the next 12 months, and Other liabilities for the long-term portion in the Consolidated Balance Sheets (Unaudited).

The following table reflects the changes in deferred franchise and development fees between June 29, 2022 and September 28, 2022:


	Deferred Franchise and Development Fees

Balance as of June 29, 2022	$	10.1
Additions	0.7

Amount recognized to Franchise revenues	(0.3)

Balance as of September 28, 2022	$	10.5

The following table illustrates franchise and development fees expected to be recognized in the future related to performance obligations that were unsatisfied or partially unsatisfied as of September 28, 2022:


Fiscal Year	Franchise and Development Fees Revenue Recognition
Remainder of 2023	$	0.7
2024	0.9
2025	0.8
2026	0.8
2027	0.7
Thereafter	6.6
	$	10.5

Deferred Gift Card Revenues

Deferred revenues related to our gift cards include the full value of unredeemed gift card balances less recognized breakage and the unamortized portion of third party fees. The following table reflects the changes in the Gift card liability between June 29, 2022 and September 28, 2022:


	Gift Card Liability

Balance as of June 29, 2022	$	83.9
Gift card sales	17.1
Gift card redemptions recognized to Company sales	(23.8)
Gift card breakage recognized to Company sales	(2.8)
Other	0.6
Balance as of September 28, 2022	$	75.0

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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OTHER GAINS AND CHARGES

3 Months Ended

Sep. 28, 2022

Other Gains and Charges [Abstract]

Other Gains and Charges

Other (gains) and charges in the Consolidated Statements of Comprehensive (Loss) Income (Unaudited) consist of the following:


	Thirteen Week Periods Ended
		September 28, 2022		September 29, 2021
Restaurant closure charges		$	1.5	$	0.2
Enterprise system implementation costs		1.0		0.6
Remodel-related costs		0.8		1.5
Lease modification gain, net		(0.7)		—




Other		2.4		2.2
		$	5.0	$	4.5

Restaurant closure charges related to closure costs and leases associated with certain closed Chili’s restaurants for all periods presented.

Enterprise system implementation costs primarily consisted of consulting fees and subscription fees related to the ongoing enterprise system implementation for all periods presented.

Remodel-related costs related to existing fixed asset write-offs associated with the ongoing Chili’s and Maggiano’s remodel projects for all periods presented.

Lease modification gain, net related to the lease termination of certain Chili’s operating lease liabilities.

INCOME TAXES

3 Months Ended

Sep. 28, 2022

Income Tax Disclosure [Abstract]

Income Taxes


	Thirteen Week Periods Ended
		September 28, 2022		September 29, 2021
Effective income tax rate		4.7	%	1.5	%

The federal statutory tax rate for the periods presented was 21.0%. Reconciliation between the statutory tax rate and the effective tax rate is as follows:


	Thirteen Week Period Ended
	September 28, 2022
Federal statutory tax rate	21.0	%
FICA tip tax credit	(22.8)	%
State income taxes, net of federal benefit	5.9	%
Stock-based compensation tax shortfalls	0.7	%

Other	(0.1)	%
Effective income tax rate	4.7	%

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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NET INCOME PER SHARE

3 Months Ended

Sep. 28, 2022

Earnings Per Share [Abstract]

Net Income Per Share

Basic net (loss) income per share is computed by dividing Net (loss) income by the Basic weighted average shares outstanding for the reporting period. Diluted net (loss) income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of Diluted net (loss) income per share, the Basic weighted average shares outstanding is increased by the dilutive effect of stock options and restricted share awards. Stock options and restricted share awards with an anti-dilutive effect are not included in the Diluted net (loss) income per share calculation. Basic weighted average shares outstanding are reconciled to Diluted weighted average shares outstanding as follows:


	Thirteen Week Periods Ended
		September 28, 2022	September 29, 2021
Basic weighted average shares outstanding		43.9	45.9
Dilutive stock options		—	0.4
Dilutive restricted shares		—	0.7
Total dilutive impact		—	1.1
Diluted weighted average shares outstanding		43.9	47.0

Awards excluded due to anti-dilutive effect		2.8	0.0

SEGMENT INFORMATION

3 Months Ended

Sep. 28, 2022

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, 28 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 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 income, 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, 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 (loss) 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 periods presented primarily included restaurant rent, property and equipment maintenance, utilities, delivery fees, supplies, credit card processing fees, property taxes, supervision expenses, and worker’s comp 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 28, 2022
	Chili’s		Maggiano’s		Other		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)

Segment assets	$	2,127.4	$	220.0	$	146.4	$	2,493.8
Segment goodwill	156.4		38.4		—		194.8
Payments for property and equipment	42.7		1.9		2.1		46.7


	Thirteen Week Period Ended September 29, 2021
	Chili’s(1)		Maggiano’s		Other		Consolidated
Company sales(2)	$	776.9	$	88.7	$	—	$	865.6


Franchise revenues(2)	10.7		0.1		—		10.8
Total revenues	787.6		88.8		—		876.4

Food and beverage costs	213.4		20.9		—		234.3
Restaurant labor	273.5		31.4		—		304.9
Restaurant expenses	204.6		26.6		0.1		231.3
Depreciation and amortization	33.0		3.4		2.9		39.3
General and administrative	8.0		2.0		26.5		36.5
Other (gains) and charges	2.8		0.2		1.5		4.5
Total operating costs and expenses	735.3		84.5		31.0		850.8
Operating income (loss)	52.3		4.3		(31.0)		25.6
Interest expenses	1.4		0.1		11.0		12.5
Other income, net	(0.1)		—		(0.2)		(0.3)
Income (loss) before income taxes	$	51.0	$	4.2	$	(41.8)	$	13.4

Payments for property and equipment	$	33.7	$	1.9	$	1.7	$	37.3

(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 14 - Fiscal 2022 Chili’s Restaurant Acquisitions for further details.

(2)Certain changes in presentation have been made to fiscal 2022 revenue amounts to enhance comparability to the fiscal 2023 presentation. These reclassifications have no effect on Total revenues or Net income previously reported. Refer to Note 1 - Basis of Presentation for further details.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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FAIR VALUE MEASUREMENTS

3 Months Ended

Sep. 28, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair value is the price that would be received for an asset or paid to transfer a liability, or the exit price, in an orderly transaction between market participants on the measurement date. Fair value measurements are categorized in three levels based on the types of significant inputs used, as follows:


Level 1			Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2			Observable inputs available at measurement date other than quote prices included in Level 1
Level 3			Unobservable inputs that cannot be corroborated by observable market data

Non-Financial Assets Measured on a Non-Recurring Basis

We review the carrying amounts of long-lived property and equipment including finance lease assets, operating lease assets, reacquired franchise rights and transferable liquor licenses annually or when events or circumstances indicate that the fair value may not substantially exceed the carrying amount. We record an impairment charge for the excess of the carrying amount over the fair value. All impairment charges were included in Other (gains) and charges in the Consolidated Statements of Comprehensive (Loss) Income (Unaudited) for the periods presented.

Intangibles, net in the Consolidated Balance Sheets (Unaudited) includes both indefinite-lived intangible assets such as transferable liquor licenses and definite-lived intangible assets such as reacquired franchise rights and trademarks. Intangibles, net included accumulated amortization associated with definite-lived intangible assets at September 28, 2022 and June 29, 2022, of $13.2 million and $12.6 million, respectively.

Definite Lived Assets Impairment

Definite lived assets include property and equipment, including finance lease assets, operating lease assets and reacquired franchise rights. During the thirteen week periods ended September 28, 2022 and September 29, 2021, no indicators of impairment were identified.

Indefinite Lived Assets Impairment

The fair values of transferable liquor licenses are based on prices in the open market for licenses in the same or similar jurisdictions and are categorized as Level 2. During the thirteen week periods ended September 28, 2022 and September 29, 2021, no indicators of impairment were identified.

Goodwill

We review the carrying amounts of goodwill annually or when events or circumstances indicate that the carrying amount may not be recoverable. We may elect to perform a qualitative assessment for our reporting units to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if the result of the qualitative assessment indicates a potential impairment, then the fair value of the reporting unit is compared to its carrying value. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the implied fair value of the goodwill.

Related to the qualitative assessment, changes in circumstances existing at the measurement date or at other times in the future, such as declines in our market capitalization, as well as in the market capitalization of other companies in the restaurant industry, declines in sales at our restaurants, and significant adverse changes in the operating environment for the restaurant industry could result in an impairment loss of all or a portion of our goodwill. We performed our annual goodwill impairment analysis in the second quarter of fiscal 2022 using a qualitative approach based on these factors and no indicators of impairment were identified. During the thirteen week period ended September 28, 2022, management concluded that no triggering event occurred.

Chili’s Restaurant Acquisitions

In fiscal 2022, we completed the acquisition of 68 Chili’s restaurants from three former franchisees. The preliminary fair value of assets acquired and liabilities assumed for these restaurants utilized Level 3 inputs. The fair values of intangible assets acquired were primarily based on significant inputs not observable in an active market, including estimates of replacement costs, future cash flows, and discount rates. Refer to Note 14 - Fiscal 2022 Chili’s Restaurant Acquisitions for further details.

Other Financial Instruments

Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The fair values of cash and cash equivalents, accounts receivable and accounts payable approximate their carrying amounts because of the short maturity of these items.

Long-Term Debt

The carrying amount of debt outstanding related to our revolving credit facility approximates fair value as the interest rate on this instrument approximates current market rates (Level 2). The fair values of the 3.875% and 5.000% notes are based on quoted market prices and are considered Level 2 fair value measurements.

The 3.875% notes and 5.000% notes carrying amounts, which are net of unamortized debt issuance costs and discounts, and fair values are as follows:


	September 28, 2022				June 29, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
3.875% notes	$	299.8	$	297.0	$	299.7	$	295.4
5.000% notes	348.4		338.3		348.2		329.0

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

LEASES

3 Months Ended

Sep. 28, 2022

Leases [Abstract]

Leases

We typically lease our restaurant facilities through ground leases (where we lease land only, but construct the building and improvements) or retail leases (where we lease the land/retail space and building). In addition to our restaurant facilities, we also lease our corporate headquarters location and certain equipment.

Lease Amounts Included in the Consolidated Statements of Comprehensive (Loss) Income (Unaudited)

The components of lease expenses included in the Consolidated Statements of Comprehensive (Loss) Income (Unaudited) were as follows:


	Thirteen Week Periods Ended
		September 28, 2022		September 29, 2021
Operating lease expenses (amortization and interest)		$	45.1	$	41.4
Variable lease cost		15.6		15.1
Finance lease amortization		5.2		5.6
Finance lease interest		1.1		1.6
Short-term lease cost		0.1		0.1
Sublease income		(0.9)		(1.1)
Total lease costs, net		$	66.2	$	62.7

Pre-Commencement Leases

As of the end of the first quarter of fiscal 2023, we have 11 pre-commencement leases for new Chili’s locations with undiscounted fixed payments of $15.8 million over the initial term. These leases are expected to commence in the next 12 months and are expected to have an economic lease term of 20 years. These leases will commence when the landlords make the property available to us for new restaurant construction. We will assess the reasonably certain lease term at the lease commencement date.

DEBT

3 Months Ended

Sep. 28, 2022

Debt Disclosure [Abstract]

Debt

Long-term debt consists of the following:


	September 28, 2022		June 29, 2022
Revolving credit facility	$	306.3	$	271.3
5.000% notes	350.0		350.0
3.875% notes(1)	300.0		300.0
Finance lease obligations	84.5		90.2
Total long-term debt and finance leases	1,040.8		1,011.5
Less: unamortized debt issuance costs and discounts	(1.8)		(2.1)
Total long-term debt, less unamortized debt issuance costs and discounts	1,039.0		1,009.4
Less: current installments of long-term debt and finance leases(2)	(18.2)		(20.3)
Long-term debt and finance leases, less current installments	$	1,020.8	$	989.1

(1)Obligations under our 3.875% notes, which will mature in May 2023, have been classified as long-term, reflecting our intent and ability to refinance these notes through our existing revolving credit facility.

(2)Current installments of long-term debt consist of finance leases and are recorded within Other accrued liabilities in the Consolidated Balance Sheets (Unaudited). Refer to Note 10 - Accrued and Other Liabilities for further details.

Revolving Credit Facility

In the thirteen week period ended September 28, 2022, net borrowings of $35.0 million were drawn on our revolving credit facility. As of September 28, 2022, $493.7 million of credit was available under the revolving credit facility.

The $800.0 million revolving credit facility matures on August 18, 2026 and bears interest of LIBOR plus an applicable margin of 1.500% to 2.250% and an undrawn commitment fee of 0.250% to 0.350%, both based on a function of our debt-to-cash-flow ratio. As of September 28, 2022, our interest rate was 4.875% consisting of LIBOR of 3.125% plus the applicable margin of 1.750%.

Financial Covenants

Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage ratios. As of September 28, 2022, we were in compliance with our covenants pursuant to the $800.0 million revolving credit facility and under the terms of the indentures governing our 3.875% notes and 5.000% notes. We expect to remain in compliance with our covenants during the remainder of fiscal 2023.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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Accrued Liabilities and Other Liabilities [Abstract]

ACCRUED AND OTHER LIABILITIES

3 Months Ended

Sep. 28, 2022

Accrued And Other Liabilities Disclosure

Other accrued liabilities consist of the following:


	September 28, 2022		June 29, 2022
Property tax	$	28.6	$	23.3
Insurance	24.0		23.5
Current installments of long-term debt and finance leases	18.2		20.3

Sales tax	17.4		14.4
Interest	13.9		6.5
Utilities and services	10.2		9.6


Other(1)	21.0		18.5
	$	133.3	$	116.1

(1)Other primarily consists of guest deposits for Maggiano’s banquets, contingent lease liabilities related to our lease guarantees, rent-related accruals, charitable donations, deferred franchise and development fees, state income taxes payable and other various accruals. Refer to Note 13 - Contingencies for additional information about our lease guarantees.

Other liabilities consist of the following:


	September 28, 2022		June 29, 2022
Insurance	$	37.0	$	36.9
Deferred franchise and development fees	9.6		9.2
Unrecognized tax benefits	3.0		3.0

Other	5.3		5.2
	$	54.9	$	54.3

SHAREHOLDERS' DEFICIT

3 Months Ended

Sep. 28, 2022

Stockholders' Equity Note [Abstract]

Shareholders' Deficit

The changes in Total shareholders’ deficit during the thirteen week periods ended September 28, 2022 and September 29, 2021, respectively, were as follows:


	Thirteen Week Period Ended September 28, 2022
	Common Stock		Additional Paid-In Capital		Accumulated Deficit		Treasury Stock		Accumulated Other Comprehensive Loss		Total
Balances at June 29, 2022	$	7.0	$	690.9	$	(148.4)	$	(812.3)	$	(5.3)	$	(268.1)
Net loss	—		—		(30.2)		—		—		(30.2)
Other comprehensive loss	—		—		—		—		(1.0)		(1.0)
Dividends	—		—		0.0		—		—		0.0
Stock-based compensation	—		4.7		—		—		—		4.7
Purchases of treasury stock	—		0.2		—		(2.2)		—		(2.0)
Issuances of treasury stock	—		(7.8)		—		7.8		—		—
Retirement of common stock	(1.0)		—		(306.1)		307.1		—		—
Balances at September 28, 2022	$	6.0	$	688.0	$	(484.7)	$	(499.6)	$	(6.3)	$	(296.6)


	Thirteen Week Period Ended September 29, 2021
	Common Stock		Additional Paid-In Capital		Accumulated Deficit		Treasury Stock		Accumulated Other Comprehensive Loss		Total
Balances at June 30, 2021	$	7.0	$	685.4	$	(266.1)	$	(724.9)	$	(4.7)	$	(303.3)

Net income	—		—		13.2		—		—		13.2
Other comprehensive loss	—		—		—		—		(0.4)		(0.4)
Dividends	—		—		0.0		—		—		0.0
Stock-based compensation	—		4.3		—		—		—		4.3
Purchases of treasury stock	—		(2.0)		—		(37.6)		—		(39.6)
Issuances of treasury stock	—		(8.3)		—		8.6		—		0.3
Balances at September 29, 2021	$	7.0	$	679.4	$	(252.9)	$	(753.9)	$	(5.1)	$	(325.5)

Retirement of Common Stock

During the thirteen week period ended September 28, 2022, the Board of Directors approved the retirement of 10.0 million shares of Treasury stock for a weighted average price per share of $30.71. As of September 28, 2022, 16.3 million shares remain in treasury.

Share Repurchases

Our share repurchase program is used to return capital to shareholders and to minimize the dilutive impact of stock options and other share-based awards. 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 Shareholders’ deficit in the Consolidated Balance Sheets (Unaudited).

In August 2021, our Board of Directors reinstated our share repurchase program, allowing for a total available repurchase authority of $300.0 million. In the thirteen week period ended September 28, 2022, we repurchased 0.1 million shares of our common stock for $2.0 million, all of which were purchased from team members to satisfy tax withholding obligations on the vesting of restricted shares. As of September 28, 2022, approximately $204.0 million was available under our share repurchase authorizations.

Stock-based Compensation

The following table presents the restricted share awards granted and related weighted average fair value per share amounts.


	Thirteen Week Periods Ended
	September 28, 2022		September 29, 2021
Restricted share awards
Restricted share awards granted	0.5		0.4
Weighted average fair value per share	$	28.42	$	53.76

Dividends

In the fourth quarter of fiscal 2020, our Board of Directors voted to suspend the quarterly cash dividend in response to liquidity needs created by the COVID-19 pandemic. In the thirteen week periods ended September 28, 2022 and September 29, 2021, dividends paid were solely related to the accrued dividends for restricted share awards that were granted prior to the suspension and vested in the period. Restricted share award dividends are accrued in Other accrued liabilities for the current portion to vest within 12 months, and Other liabilities for the portion that will vest after one year.

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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Chili's Restaurant Acquisitions

CONTINGENCIES	3 Months Ended
CONTINGENCIES	Sep. 28, 2022
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Lease Commitments We have, in certain cases, divested brands or sold restaurants to franchisees and have not been released from lease guarantees for the related restaurants. As of September 28, 2022 and June 29, 2022, we have outstanding lease guarantees or are secondarily liable for an estimated $24.6 million and $26.3 million, respectively. These amounts represent the maximum known potential liability of rent payments under the leases. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from fiscal 2023 through fiscal 2032. We have received notices of default and have been named a party in lawsuits pertaining to some of these leases in circumstances where the current lessee did not pay its rent obligations. In the event of default under a lease by a franchisee or owner of a divested brand, the indemnity and default clauses in our agreements with such third parties and applicable laws govern our ability to pursue and recover amounts we may pay on behalf of such parties. As of September 28, 2022, we have contingent liabilities of $2.0 million for our estimated exposure of the lease defaults related to these lease guarantees. These contingent liabilities are classified within Other accrued liabilities in the Consolidated Balance Sheets (Unaudited). Letters of Credit We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of September 28, 2022, we had $5.8 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable within the next 12 months. Cyber Security Litigation In fiscal 2018, we discovered malware at certain Chili’s restaurants that may have resulted in unauthorized access or acquisition of customer payment card data. We settled all claims from payment card companies related to this incident and do not expect material claims from payment card companies in the future. In connection with this event, the Company was also named as a defendant in a putative class action lawsuit in the United States District Court for the Middle District of Florida (the “Litigation”) relating to this incident. In the Litigation, plaintiffs assert various claims at the Company’s Chili’s restaurants involving customer payment card information and seek monetary damages in excess of $5.0 million, injunctive and declaratory relief, and attorney’s fees and costs. Oral argument of our appeal of the district court’s class certification order was held before the Eleventh Circuit Court of Appeals on June 8, 2022 in Jacksonville, Florida. We await the court’s ruling. In the interim, all matters at the district court have been stayed. We believe we have defenses and intend to continue defending the Litigation. As such, as of September 28, 2022, we have concluded that a loss, or range of loss, from this matter is not determinable, therefore, we have not recorded a liability related to the Litigation. We will continue to evaluate this matter based on new information as it becomes available. Legal Proceedings Evaluating contingencies related to litigation is a process involving judgment on the potential outcome of future events, and the ultimate resolution of litigated claims may differ from our current analysis. Accordingly, we review the adequacy of accruals and disclosures pertaining to litigated matters each quarter in consultation with legal counsel and we assess the probability and range of possible losses associated with contingencies for potential accrual in the Consolidated Financial Statements. We are engaged in various legal proceedings and have certain unresolved claims pending. Liabilities have been established based on our best estimates of our potential liability in certain of these matters. Based upon consultation with legal counsel, management is of the opinion that there are no matters pending or threatened which are expected to have a material adverse effect, individually or in the aggregate, on the consolidated financial condition or results of operations.

CHILI'S RESTAURANT ACQUISITIONS

3 Months Ended

Sep. 28, 2022

Business Combinations [Abstract]

During fiscal 2022, we completed three acquisitions of certain assets and liabilities related to previously franchised Chili’s locations, as follows:

•Mid-Atlantic Region Acquisition - On September 2, 2021, we acquired 23 previously franchised Chili’s restaurants located in the Mid-Atlantic region of the United States for a total purchase price of $47.7 million, including post-closing adjustments. The acquisition was funded with borrowings from our existing credit facility and proceeds from a sale leaseback transaction completed simultaneously with the acquisition.

•Great Lakes Region Acquisition - On October 31, 2021, we acquired 37 previously franchised Chili’s restaurants located in the Great Lakes and Northeast region of the United States for a total purchase price of $57.1 million, including post-closing adjustments, funded with borrowings from our existing credit facility.

•Northwest Region Acquisition - On February 1, 2022, we acquired six previously franchised Chili’s restaurants and on May 5, 2022, we acquired two additional previously franchised Chili’s restaurants located in the Northwest region of the United States for a total purchase price of $2.0 million, including post-closing adjustments, funded with borrowings from our existing credit facility.

Pro-forma financial information for these acquisitions are not presented due to the immaterial impact of the financial results of the acquired restaurants in the Consolidated Financial Statements (Unaudited). We accounted for each of these acquisitions as a business combination.

The assets and liabilities of the acquired restaurants were recorded at their fair values. The results of operations, and assets and liabilities, of these restaurants are included in the Consolidated Financial Statements (Unaudited) from the acquisition dates.

The fair values of tangible and intangible assets acquired were primarily based on significant inputs not observable in an active market, including estimates of replacement costs, future cash flows and discount rates. These inputs represent Level 3 fair value measurements as defined under GAAP. The amounts recorded for the fair value of acquired assets and liabilities at the acquisition dates for the material acquisitions are as follows:


	Mid-Atlantic Region		Great Lakes Region
	Fair Value September 2, 2021		Fair Value October 31, 2021
Current assets	$	1.4	$	2.1
Property and equipment	46.2		43.6
Operating lease assets	23.6		47.8
Reacquired franchise rights(1)	4.7		4.6
Goodwill(2)	—		7.2
Current liabilities	(1.4)		(1.4)
Finance lease liabilities, less current portion	(3.7)		—
Operating lease liabilities, less current portion	(23.1)		(46.8)
Net assets acquired(3)	$	47.7	$	57.1

(1)Reacquired franchise rights related to the Mid-Atlantic Region acquisition and Great Lakes Region acquisition both have weighted average amortization periods of approximately 15 years.

(2)Goodwill is expected to be deductible for tax purposes. The portion of the purchase price attributable to goodwill represents the benefits expected as a result of the acquisition, including sales and unit growth opportunities, and the benefit of the assembled workforce of the acquired restaurants.

(3)Net assets acquired at fair value related to the Mid-Atlantic Region acquisition are equal to the total purchase price of $48.0 million, less $0.3 million of closing adjustments. Net assets acquired at fair value related to the Great Lakes Region acquisition are equal to the total purchase price of $56.0 million, plus $1.1 million of closing adjustments.

BASIS OF PRESENTATION (Policies)	3 Months Ended
BASIS OF PRESENTATION (Policies)	Sep. 28, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Reclassification, Comparability Adjustment	Effective for the first quarter of fiscal 2023, we are presenting certain revenue streams related to gift cards, digital entertainment, Maggiano’s banquet service charges and delivery fees within Company sales to better align with the presentation used within the casual dining industry. Our presentation of Franchise revenues will now include only revenues related to the ongoing franchise-operated restaurants. Comparative figures in prior years have been adjusted to conform to the current year’s presentation. These reclassifications have no effect on Total revenues or Net income previously reported.
Use of Estimates	Use of Estimates The preparation of the Consolidated Financial Statements (Unaudited) is in conformity with generally accepted accounting principles in the United States (“GAAP”) and requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements (Unaudited), and the reported amounts of revenues and costs and expenses in the reporting periods. Actual results could differ from those estimates. The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results, financial position and cash flows for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with GAAP, have been omitted pursuant to SEC rules and regulations. The Notes to Consolidated Financial Statements (Unaudited) should be read in conjunction with the Notes to Consolidated Financial Statements contained in our June 29, 2022 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes. All amounts in the Notes to Consolidated Financial Statements (Unaudited) are presented in millions unless otherwise specified.
Foreign Currency Translation	Foreign Currency Translation The foreign currency translation adjustment included in Comprehensive (loss) income in the Consolidated Statements of Comprehensive (Loss) Income (Unaudited) represents the unrealized impact of translating the financial statements of our Canadian restaurants from Canadian dollars to United States dollars. This amount is not included in Net (loss) income and would only be realized upon disposition of our Canadian restaurants. The related Accumulated other comprehensive loss is presented in the Consolidated Balance Sheets (Unaudited).
Impact of COVID-19 Pandemic and Inflation	Impact of COVID-19 Pandemic The number of open dining rooms and the dining room capacity restrictions have fluctuated over the course of the COVID-19 pandemic based on state and local mandates and has resulted in significant adverse impacts to our guest traffic and sales primarily in fiscal 2021. Starting fiscal 2022, we have experienced limited product shortages and service disruptions in our supply chain, limited availability of labor to operate our restaurants due to a tight labor market and an increase in employee turnover. It is possible that supply chain and labor shortages or disruptions could continue or increase in future periods if demand for goods, transportation and labor remains high. We have been carefully assessing the effect of COVID-19 on our business as conditions continue to evolve throughout the communities we serve. At this time, the ultimate impact of COVID-19 cannot be reasonably estimated due to the uncertainty about the extent and the duration of the spread of the virus and could lead to further reduced sales, capacity restrictions, restaurant closures, delays in our supply chain or impair our ability to staff accordingly which could adversely impact our financial results. Impact of Inflation During the first quarter of fiscal 2023, inflation did have a material impact on our operations. Increasing inflation could have a severe impact on the United States or global economies and have an adverse impact on our business, financial condition and results of operations. If commodity pricing and labor costs increase significantly, we may not be able to adjust menu prices to sufficiently offset the effect of the various cost increases without negatively impacting consumer demand.
New Accounting Standards Implemented in Fiscal 2023	New Accounting Standards Implemented in Fiscal 2023 We reviewed accounting pronouncements that became effective for our fiscal 2023 and determined that either they were not applicable or they did not have a material impact on the Consolidated Financial Statements (Unaudited). We also reviewed recently issued accounting pronouncements to be adopted in future periods and determined that they are not expected to have a material impact on the Consolidated Financial Statements (Unaudited).

REVENUE RECOGNITION (Tables)

3 Months Ended

Sep. 28, 2022

Revenue from Contract with Customer [Abstract]

Changes in Deferred Franchise and Development Fees

The following table reflects the changes in deferred franchise and development fees between June 29, 2022 and September 28, 2022:


	Deferred Franchise and Development Fees

Balance as of June 29, 2022	$	10.1
Additions	0.7

Amount recognized to Franchise revenues	(0.3)

Balance as of September 28, 2022	$	10.5

Remaining Deferred Franchise and Development Fees to be Recognized


Fiscal Year	Franchise and Development Fees Revenue Recognition
Remainder of 2023	$	0.7
2024	0.9
2025	0.8
2026	0.8
2027	0.7
Thereafter	6.6
	$	10.5

Changes in the Gift Card Liability

The following table reflects the changes in the Gift card liability between June 29, 2022 and September 28, 2022:


	Gift Card Liability

Balance as of June 29, 2022	$	83.9
Gift card sales	17.1
Gift card redemptions recognized to Company sales	(23.8)
Gift card breakage recognized to Company sales	(2.8)
Other	0.6
Balance as of September 28, 2022	$	75.0

OTHER GAINS AND CHARGES (Tables)

3 Months Ended

Sep. 28, 2022

Other Gains and Charges [Abstract]

Other Gains And Charges

Other (gains) and charges in the Consolidated Statements of Comprehensive (Loss) Income (Unaudited) consist of the following:


	Thirteen Week Periods Ended
		September 28, 2022		September 29, 2021
Restaurant closure charges		$	1.5	$	0.2
Enterprise system implementation costs		1.0		0.6
Remodel-related costs		0.8		1.5
Lease modification gain, net		(0.7)		—




Other		2.4		2.2
		$	5.0	$	4.5

INCOME TAXES (Tables)

3 Months Ended

Sep. 28, 2022

Income Tax Disclosure [Abstract]

Effective Income Tax Rate Schedule


	Thirteen Week Periods Ended
		September 28, 2022		September 29, 2021
Effective income tax rate		4.7	%	1.5	%

Reconciliation Between Reported Provision (Benefit) for Income Taxes and Amount Computed by Statutory Federal Income Tax Rate

Reconciliation between the statutory tax rate and the effective tax rate is as follows:


	Thirteen Week Period Ended
	September 28, 2022
Federal statutory tax rate	21.0	%
FICA tip tax credit	(22.8)	%
State income taxes, net of federal benefit	5.9	%
Stock-based compensation tax shortfalls	0.7	%

Other	(0.1)	%
Effective income tax rate	4.7	%

NET INCOME PER SHARE (Tables)

3 Months Ended

Sep. 28, 2022

Earnings Per Share [Abstract]

Basic to Diluted Weighted Average Number of Shares Reconciliation

Basic weighted average shares outstanding are reconciled to Diluted weighted average shares outstanding as follows:


	Thirteen Week Periods Ended
		September 28, 2022	September 29, 2021
Basic weighted average shares outstanding		43.9	45.9
Dilutive stock options		—	0.4
Dilutive restricted shares		—	0.7
Total dilutive impact		—	1.1
Diluted weighted average shares outstanding		43.9	47.0

Awards excluded due to anti-dilutive effect		2.8	0.0

SEGMENT INFORMATION (Tables)

3 Months Ended

Sep. 28, 2022

Segment Reporting [Abstract]

Segment Information Tables

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


	Thirteen Week Period Ended September 28, 2022
	Chili’s		Maggiano’s		Other		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)

Segment assets	$	2,127.4	$	220.0	$	146.4	$	2,493.8
Segment goodwill	156.4		38.4		—		194.8
Payments for property and equipment	42.7		1.9		2.1		46.7


	Thirteen Week Period Ended September 29, 2021
	Chili’s(1)		Maggiano’s		Other		Consolidated
Company sales(2)	$	776.9	$	88.7	$	—	$	865.6


Franchise revenues(2)	10.7		0.1		—		10.8
Total revenues	787.6		88.8		—		876.4

Food and beverage costs	213.4		20.9		—		234.3
Restaurant labor	273.5		31.4		—		304.9
Restaurant expenses	204.6		26.6		0.1		231.3
Depreciation and amortization	33.0		3.4		2.9		39.3
General and administrative	8.0		2.0		26.5		36.5
Other (gains) and charges	2.8		0.2		1.5		4.5
Total operating costs and expenses	735.3		84.5		31.0		850.8
Operating income (loss)	52.3		4.3		(31.0)		25.6
Interest expenses	1.4		0.1		11.0		12.5
Other income, net	(0.1)		—		(0.2)		(0.3)
Income (loss) before income taxes	$	51.0	$	4.2	$	(41.8)	$	13.4

Payments for property and equipment	$	33.7	$	1.9	$	1.7	$	37.3

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Sep. 28, 2022

Fair Value Disclosures [Abstract]

Debt Instruments - Carrying Values and Estimated Fair Values Schedule

The 3.875% notes and 5.000% notes carrying amounts, which are net of unamortized debt issuance costs and discounts, and fair values are as follows:


	September 28, 2022				June 29, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
3.875% notes	$	299.8	$	297.0	$	299.7	$	295.4
5.000% notes	348.4		338.3		348.2		329.0

LEASES (Tables)

3 Months Ended

Sep. 28, 2022

Leases [Abstract]

Lease Expenses Included in the Consolidated Statements of Comprehensive Income

The components of lease expenses included in the Consolidated Statements of Comprehensive (Loss) Income (Unaudited) were as follows:


	Thirteen Week Periods Ended
		September 28, 2022		September 29, 2021
Operating lease expenses (amortization and interest)		$	45.1	$	41.4
Variable lease cost		15.6		15.1
Finance lease amortization		5.2		5.6
Finance lease interest		1.1		1.6
Short-term lease cost		0.1		0.1
Sublease income		(0.9)		(1.1)
Total lease costs, net		$	66.2	$	62.7

DEBT (Tables)

3 Months Ended

Sep. 28, 2022

Debt Disclosure [Abstract]

Long-term Debt Schedule

Long-term debt consists of the following:


	September 28, 2022		June 29, 2022
Revolving credit facility	$	306.3	$	271.3
5.000% notes	350.0		350.0
3.875% notes(1)	300.0		300.0
Finance lease obligations	84.5		90.2
Total long-term debt and finance leases	1,040.8		1,011.5
Less: unamortized debt issuance costs and discounts	(1.8)		(2.1)
Total long-term debt, less unamortized debt issuance costs and discounts	1,039.0		1,009.4
Less: current installments of long-term debt and finance leases(2)	(18.2)		(20.3)
Long-term debt and finance leases, less current installments	$	1,020.8	$	989.1

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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Accrued Liabilities and Other Liabilities [Abstract]

ACCRUED AND OTHER LIABILITIES (Tables)

3 Months Ended

Sep. 28, 2022

Other Accrued Liabilities Schedule

Other accrued liabilities consist of the following:


	September 28, 2022		June 29, 2022
Property tax	$	28.6	$	23.3
Insurance	24.0		23.5
Current installments of long-term debt and finance leases	18.2		20.3

Sales tax	17.4		14.4
Interest	13.9		6.5
Utilities and services	10.2		9.6


Other(1)	21.0		18.5
	$	133.3	$	116.1

Other Noncurrent Liabilities

Other liabilities consist of the following:


	September 28, 2022		June 29, 2022
Insurance	$	37.0	$	36.9
Deferred franchise and development fees	9.6		9.2
Unrecognized tax benefits	3.0		3.0

Other	5.3		5.2
	$	54.9	$	54.3

SHAREHOLDERS' DEFICIT (Tables)

3 Months Ended

Sep. 28, 2022

Stockholders' Equity Note [Abstract]

Changes in Shareholders' Deficit Schedule

The changes in Total shareholders’ deficit during the thirteen week periods ended September 28, 2022 and September 29, 2021, respectively, were as follows:


	Thirteen Week Period Ended September 28, 2022
	Common Stock		Additional Paid-In Capital		Accumulated Deficit		Treasury Stock		Accumulated Other Comprehensive Loss		Total
Balances at June 29, 2022	$	7.0	$	690.9	$	(148.4)	$	(812.3)	$	(5.3)	$	(268.1)
Net loss	—		—		(30.2)		—		—		(30.2)
Other comprehensive loss	—		—		—		—		(1.0)		(1.0)
Dividends	—		—		0.0		—		—		0.0
Stock-based compensation	—		4.7		—		—		—		4.7
Purchases of treasury stock	—		0.2		—		(2.2)		—		(2.0)
Issuances of treasury stock	—		(7.8)		—		7.8		—		—
Retirement of common stock	(1.0)		—		(306.1)		307.1		—		—
Balances at September 28, 2022	$	6.0	$	688.0	$	(484.7)	$	(499.6)	$	(6.3)	$	(296.6)


	Thirteen Week Period Ended September 29, 2021
	Common Stock		Additional Paid-In Capital		Accumulated Deficit		Treasury Stock		Accumulated Other Comprehensive Loss		Total
Balances at June 30, 2021	$	7.0	$	685.4	$	(266.1)	$	(724.9)	$	(4.7)	$	(303.3)

Net income	—		—		13.2		—		—		13.2
Other comprehensive loss	—		—		—		—		(0.4)		(0.4)
Dividends	—		—		0.0		—		—		0.0
Stock-based compensation	—		4.3		—		—		—		4.3
Purchases of treasury stock	—		(2.0)		—		(37.6)		—		(39.6)
Issuances of treasury stock	—		(8.3)		—		8.6		—		0.3
Balances at September 29, 2021	$	7.0	$	679.4	$	(252.9)	$	(753.9)	$	(5.1)	$	(325.5)

Stock-based Compensation Schedule

The following table presents the restricted share awards granted and related weighted average fair value per share amounts.


	Thirteen Week Periods Ended
	September 28, 2022		September 29, 2021
Restricted share awards
Restricted share awards granted	0.5		0.4
Weighted average fair value per share	$	28.42	$	53.76

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

3 Months Ended

Sep. 28, 2022

Supplemental Cash Flow Information [Abstract]

Cash Paid for Income Taxes and Interest Schedule

Cash paid for income taxes and interest is as follows:


	Thirteen Week Periods Ended
	September 28, 2022		September 29, 2021
Income taxes, net	$	1.1	$	1.9
Interest, net of amounts capitalized	3.9		3.1

Non-cash Operating, Investing and Financing Activities Schedule

Non-cash operating, investing and financing activities are as follows:


	Thirteen Week Periods Ended
	September 28, 2022		September 29, 2021
Operating lease additions(1)	$	23.6	$	60.0
Finance lease additions	0.2		8.9
Accrued capital expenditures	20.3		6.2
Retirement of fully depreciated assets	10.3		7.9

CHILI'S RESTAURANT ACQUISITIONS (Tables)

3 Months Ended

Sep. 28, 2022

Business Combinations [Abstract]

Fair Value of Acquired Assets and Liabilities

The amounts recorded for the fair value of acquired assets and liabilities at the acquisition dates for the material acquisitions are as follows:


	Mid-Atlantic Region		Great Lakes Region
	Fair Value September 2, 2021		Fair Value October 31, 2021
Current assets	$	1.4	$	2.1
Property and equipment	46.2		43.6
Operating lease assets	23.6		47.8
Reacquired franchise rights(1)	4.7		4.6
Goodwill(2)	—		7.2
Current liabilities	(1.4)		(1.4)
Finance lease liabilities, less current portion	(3.7)		—
Operating lease liabilities, less current portion	(23.1)		(46.8)
Net assets acquired(3)	$	47.7	$	57.1

(1)Reacquired franchise rights related to the Mid-Atlantic Region acquisition and Great Lakes Region acquisition both have weighted average amortization periods of approximately 15 years.

BASIS OF PRESENTATION (Details)	Sep. 28, 2022 Restaurants Country territories
Franchisor Disclosure [Line Items]
Number of restaurants	1,645
Chili's Restaurants [Member]
Franchisor Disclosure [Line Items]
Number of foreign countries in which entity operates \| Country	28
Number of U.S. territories in which entity operates \| territories	2
Entity Operated Units [Member]
Franchisor Disclosure [Line Items]
Number of restaurants	1,182
Franchised Units [Member]
Franchisor Disclosure [Line Items]
Number of restaurants	463

REVENUE RECOGNITION (Deferred Franchise and Development Fees) (Details) - Deferred Franchise and Development Fees [Member] $ in Millions	3 Months Ended
	Sep. 28, 2022 USD ($)
Changes in deferred franchise and development fees [Line Items]
Balance as of June 29, 2022	$ 10.1
Additions	0.7
Amount recognized to Franchise revenues	(0.3)
Balance as of September 28, 2022	$ 10.5

REVENUE RECOGNITION (Remaining Deferred Franchise and Development Fees to be Recognized) (Details) $ in Millions	Sep. 28, 2022 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 10.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 0.7
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-06-29
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 0.9
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-06-27
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 0.8
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-06-25
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 0.8
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-06-25
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 0.7
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-06-30
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining deferred franchise and development fees to be recognized	$ 6.6
Remaining deferred franchise and development fees to be recognized, expected timing of satisfaction in years	15 years

REVENUE RECOGNITION (Deferred Gift Card Revenues) (Details) $ in Millions	3 Months Ended
	Sep. 28, 2022 USD ($)
Deferred Gift Card Revenues [Line Items]
Balance as of June 29, 2022	$ 83.9
Balance as of September 28, 2022	75.0
Gift card sales [Member]
Deferred Gift Card Revenues [Line Items]
Increase in gift card liability	17.1
Gift card redemptions [Member]
Deferred Gift Card Revenues [Line Items]
Gift card redemptions recognized to Company sales	(23.8)
Gift card breakage [Member]
Deferred Gift Card Revenues [Line Items]
Gift card breakage recognized to Company sales	(2.8)
Gift card other [Member]
Deferred Gift Card Revenues [Line Items]
Increase in gift card liability	$ 0.6

OTHER GAINS AND CHARGES (Schedule of Other Gains and Charges) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 28, 2022	Sep. 29, 2021
Restructuring Cost and Reserve [Line Items]
Restaurant closure charges	$ 1.5	$ 0.2
Enterprise system implementation costs	1.0	0.6
Remodel-related costs	0.8	1.5
Lease modification gain, net	(0.7)	0.0
Other	2.4	2.2
Other (gains) and charges	$ 5.0	$ 4.5

INCOME TAXES (Effective and Statutory Tax Rates) (Details)	3 Months Ended
	Sep. 28, 2022 Rate	Sep. 29, 2021 Rate
Income Tax Disclosure [Abstract]
Effective income tax rate	4.70%	1.50%
Federal statutory tax rate	21.00%	21.00%

INCOME TAXES (Reconciliation Between Reported and Computed by Statutory Federal Income Tax Rate) (Details)	3 Months Ended
	Sep. 28, 2022 Rate	Sep. 29, 2021 Rate
Income Tax Disclosure [Abstract]
Federal statutory tax rate	21.00%	21.00%
FICA tip tax credit	(22.80%)
State income taxes, net of federal benefit	5.90%
Stock-based compensation tax shortfalls	0.70%
Other	(0.10%)
Effective income tax rate	4.70%	1.50%

NET INCOME PER SHARE (Details) - shares shares in Millions	3 Months Ended
NET INCOME PER SHARE (Details) - shares shares in Millions	Sep. 28, 2022	Sep. 29, 2021
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Basic weighted average shares outstanding	43.9	45.9
Total dilutive impact	0.0	1.1
Diluted weighted average shares outstanding	43.9	47.0
Awards excluded due to anti-dilutive effect	2.8	0.0
Stock Options [Member]
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0.0	0.4
Restricted Share Award [Member]
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	0.0	0.7

SEGMENT INFORMATION (Schedule of Segment Reporting) (Details)
$ in Millions

3 Months Ended

Sep. 28, 2022

USD ($)

Restaurants

Country

territories

Sep. 29, 2021

USD ($)

Jun. 29, 2022

USD ($)

Restaurants

Segment Information, disclosure of major customers

We do not rely on any major customers as a source of sales,

$ 955.5

$ 876.4

289.5

234.3

330.6

304.9

268.8

231.3

41.9

39.3

39.5

36.5

5.0

4.5

975.3

850.8

(19.8)

25.6

12.3

12.5

(0.4)

(0.3)

(31.7)

13.4

2,493.8

$ 2,484.4

194.8

$ 195.1

$ 46.7

37.3

Chili's Restaurants [Member]

1,645

Number of foreign countries in which entity operates | Country

Number of U.S. territories in which entity operates | territories

$ 849.9

787.6

^[1]

260.9

213.4

^[1]

294.4

273.5

^[1]

236.9

204.6

^[1]

36.0

33.0

^[1]

9.5

8.0

^[1]

3.0

2.8

^[1]

840.7

735.3

^[1]

9.2

52.3

^[1]

1.0

1.4

^[1]

0.0

(0.1)

^[1]

8.2

51.0

^[1]

2,127.4

156.4

Maggiano's Restaurants [Member]

42.7

33.7

^[1]

105.6

88.8

28.6

20.9

36.2

31.4

31.7

26.6

3.2

3.4

2.5

2.0

0.5

0.2

102.7

84.5

2.9

4.3

0.1

0.0

2.8

4.2

220.0

38.4

Corporate and Other [Member]

1.9

0.0

0.0

0.0

0.2

0.1

2.7

2.9

27.5

26.5

1.5

31.9

31.0

(31.9)

(31.0)

11.2

11.0

(0.4)

(0.2)

(42.7)

(41.8)

146.4

0.0

2.1

1.7

Company sales [Member]

Company sales [Member] | Chili's Restaurants [Member]

946.1

865.6

^[2]

Company sales [Member] | Maggiano's Restaurants [Member]

840.6

776.9

^[1],[2]

Company sales [Member] | Corporate and Other [Member]

105.5

88.7

^[2]

Franchise revenues [Member]

0.0

^[2]

Franchise revenues [Member] | Chili's Restaurants [Member]

9.4

10.8

^[2]

Franchise revenues [Member] | Maggiano's Restaurants [Member]

9.3

10.7

^[1],[2]

Franchise revenues [Member] | Corporate and Other [Member]

0.1

^[2]

Chili's restaurant acquisitions [Member] | Chili's Restaurants [Member]

$ 0.0

^[2]

[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 14 - Fiscal 2022 Chili’s Restaurant Acquisitions for further details.
[2]	Certain changes in presentation have been made to fiscal 2022 revenue amounts to enhance comparability to the fiscal 2023 presentation. These reclassifications have no effect on Total revenues or Net income previously reported. Refer to Note 1 - Basis of Presentation for further details.

FAIR VALUE MEASUREMENTS (Non-Financial Assets Measured on a Non-Recurring Basis) (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Sep. 28, 2022	Sep. 29, 2021	Jun. 29, 2022
Additional Fair Value Elements [Abstract]
Accumulated amortization associated with definite-lived intangible assets,	$ 13.2		$ 12.6
Schedule of Impairments [Line Items]
Impairment of definite lived assets	0.0	$ 0.0
Impairment of goodwill	0.0		$ 0.0
Liquor Licenses [Member]
Schedule of Impairments [Line Items]
Impairment of liquor licenses	$ 0.0	$ 0.0

FAIR VALUE MEASUREMENTS Chili's Restaurant Acquisitions (Details) - Restaurants	Sep. 28, 2022	Jun. 29, 2022
Fair Value Disclosure, Acquisition [Line Items]
Number of restaurants	1,645
Chili's restaurant acquisitions [Member] \| Chili's Restaurants [Member]
Fair Value Disclosure, Acquisition [Line Items]
Number of restaurants		68

FAIR VALUE MEASUREMENTS (Schedule of Carrying and Fair Values of Financial Instruments) (Details) - USD ($) $ in Millions	Sep. 28, 2022	Jun. 29, 2022
3.875% notes [Member]
Debt Instrument [Line Items]
Notes, stated percentage interest rate	3.875%
Carrying value of notes	$ 299.8	$ 299.7
Fair value of notes	$ 297.0	295.4
5.000% notes [Member]
Debt Instrument [Line Items]
Notes, stated percentage interest rate	5.00%
Carrying value of notes	$ 348.4	348.2
Fair value of notes	$ 338.3	$ 329.0

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

LEASES (Disclosure of Lease Expenses) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 28, 2022	Sep. 29, 2021
Leases [Abstract]
Operating lease expenses (amortization and interest)	$ 45.1	$ 41.4
Variable lease cost	15.6	15.1
Finance lease amortization	5.2	5.6
Finance lease interest	1.1	1.6
Short-term lease cost	0.1	0.1
Sublease income	(0.9)	(1.1)
Total lease costs, net	$ 66.2	$ 62.7

LEASES (Pre-Commencement Leases) (Details) - Chili's Restaurants [Member] $ in Millions	3 Months Ended
	Sep. 28, 2022 USD ($) leases
Lessee, Lease, Description [Line Items]
Number of Operating Leases, Pre-Commencement \| leases	11
Operating Lease, Undiscounted Fixed Lease Payments, Pre-Commencement \| $	$ 15.8
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	20 years

DEBT (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Millions

Sep. 28, 2022

Jun. 29, 2022

Finance lease obligations

$ 84.5

$ 90.2

Total long-term debt and finance leases

1,040.8

1,011.5

Less: unamortized debt issuance costs and discounts

(1.8)

(2.1)

Total long-term debt, less unamortized debt issuance costs and discounts

1,039.0

1,009.4

Less: current installments of long-term debt and finance leases

^[1]

(18.2)

(20.3)

Long-term debt and finance leases, less current installments

1,020.8

989.1

5.000% notes [Member]

Senior notes

350.0

3.875% notes [Member]

$800.0M Revolving Credit Facility [Member]

Senior notes

^[2]

300.0

Revolving credit facility

$ 306.3

$ 271.3

[1]	Current installments of long-term debt consist of finance leases and are recorded within Other accrued liabilities in the Consolidated Balance Sheets (Unaudited). Refer to Note 10 - Accrued and Other Liabilities for further details.
[2]	Obligations under our 3.875% notes, which will mature in May 2023, have been classified as long-term, reflecting our intent and ability to refinance these notes through our existing revolving credit facility.

DEBT (Additional Information) (Details) - $800.0M Revolving Credit Facility [Member] $ in Millions	3 Months Ended
	Sep. 28, 2022 USD ($)
Line of Credit Facility [Line Items]
Net borrowings	$ 35.0
Revolving credit facility, remaining borrowing capacity	493.7
Revolving credit facility, maximum borrowing capacity	$ 800.0
Revolving credit facility, expiration date	Aug. 18, 2026
Basis spread on variable rate	1.75%
Revolving credit facility, interest rate at period end	4.875%
Revolving credit facility, covenant compliance	we were in compliance with our covenants pursuant to the $800.0 million revolving credit facility and under the terms of the indentures governing our 3.875% notes and 5.000% notes
Maximum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.25%
Undrawn commitment fee spread	0.35%
Minimum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
Undrawn commitment fee spread	0.25%
London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Revolving credit facility, variable rate basis	LIBOR
Revolving credit facility, interest rate during period	3.125%

ACCRUED AND OTHER LIABILITIES (Schedule of Other Accrued Liabilities) (Details) - USD ($)
$ in Millions

Sep. 28, 2022

Jun. 29, 2022

Other accrued liabilities [Line Items]

Property tax

$ 28.6

$ 23.3

Insurance

24.0

23.5

Current installments of long-term debt and finance leases

18.2

20.3

Sales tax

17.4

14.4

Interest

13.9

6.5

Utilities and services

10.2

9.6

Other

^[1]

21.0

18.5

Other accrued liabilities

$ 133.3

$ 116.1

[1]

Other primarily consists of guest deposits for Maggiano’s banquets, contingent lease liabilities related to our lease guarantees, rent-related accruals, charitable donations, deferred franchise and development fees, state income taxes payable and other various accruals. Refer to Note 13 - Contingencies for additional information about our lease guarantees.

ACCRUED AND OTHER LIABILITIES (Schedule of Other Liabilities) (Details) - USD ($) $ in Millions	Sep. 28, 2022	Jun. 29, 2022
Other liabilities [Line Items]
Insurance	$ 37.0	$ 36.9
Deferred franchise and development fees	9.6	9.2
Unrecognized tax benefits	3.0	3.0
Other	5.3	5.2
Other liabilities	$ 54.9	$ 54.3

SHAREHOLDERS' DEFICIT (Changes in Shareholders' Deficit) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 28, 2022	Sep. 29, 2021
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Beginning balance	$ (268.1)	$ (303.3)
Net (loss) income	(30.2)	13.2
Other comprehensive income (loss)	(1.0)	(0.4)
Dividends	0.0	0.0
Stock-based compensation	4.7	4.3
Purchases of treasury stock	(2.0)	(39.6)
Issuances of treasury stock	0.0	0.3
Retirement of common stock	0.0
Ending balance	(296.6)	(325.5)
Common Stock [Member]
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Beginning balance	7.0	7.0
Net (loss) income	0.0	0.0
Other comprehensive income (loss)	0.0	0.0
Dividends	0.0	0.0
Stock-based compensation	0.0	0.0
Purchases of treasury stock	0.0	0.0
Issuances of treasury stock	0.0	0.0
Retirement of common stock	(1.0)
Ending balance	6.0	7.0
Additional Paid-in Capital [Member]
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Beginning balance	690.9	685.4
Net (loss) income	0.0	0.0
Other comprehensive income (loss)	0.0	0.0
Dividends	0.0	0.0
Stock-based compensation	4.7	4.3
Purchases of treasury stock	0.2	(2.0)
Issuances of treasury stock	(7.8)	(8.3)
Retirement of common stock	0.0
Ending balance	688.0	679.4
Accumulated Deficit [Member]
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Beginning balance	(148.4)	(266.1)
Net (loss) income	(30.2)	13.2
Other comprehensive income (loss)	0.0	0.0
Dividends	0.0	0.0
Stock-based compensation	0.0	0.0
Purchases of treasury stock	0.0	0.0
Issuances of treasury stock	0.0	0.0
Retirement of common stock	(306.1)
Ending balance	(484.7)	(252.9)
Treasury Stock [Member]
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Beginning balance	(812.3)	(724.9)
Net (loss) income	0.0	0.0
Other comprehensive income (loss)	0.0	0.0
Dividends	0.0	0.0
Stock-based compensation	0.0	0.0
Purchases of treasury stock	(2.2)	(37.6)
Issuances of treasury stock	7.8	8.6
Retirement of common stock	307.1
Ending balance	(499.6)	(753.9)
Accumulated Other Comprehensive Loss [Member]
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Beginning balance	(5.3)	(4.7)
Net (loss) income	0.0	0.0
Other comprehensive income (loss)	(1.0)	(0.4)
Dividends	0.0	0.0
Stock-based compensation	0.0	0.0
Purchases of treasury stock	0.0	0.0
Issuances of treasury stock	0.0	0.0
Retirement of common stock	0.0
Ending balance	$ (6.3)	$ (5.1)

SHAREHOLDERS' DEFICIT (Retirement of Common Stock) (Details) - $ / shares shares in Millions	3 Months Ended
	Sep. 28, 2022	Jun. 29, 2022
Equity [Abstract]
Retirement of treasury stock, shares	10.0
Treasury stock retired average price per share	$ 30.71
Treasury stock, shares	16.3	26.5

SHAREHOLDERS' DEFICIT (Share Repurchases) (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Sep. 28, 2022	Sep. 29, 2021	Aug. 16, 2021
Remaining amount of share repurchase authorizations available	$ 204.0		$ 300.0
Number of shares repurchased	0.1
Purchases of treasury stock	$ 2.0	$ 39.6
Withheld from Employees [Member]
Number of shares repurchased	0.1

SHAREHOLDERS' DEFICIT (Stock-based Compensation) (Details) - $ / shares shares in Millions	3 Months Ended
	Sep. 28, 2022	Sep. 29, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted share awards granted	0.5	0.4
Weighted average fair value per share	$ 28.42	$ 53.76

SUPPLEMENTAL CASH FLOW INFORMATION (Cash Paid for Income Taxes and Interest) (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 28, 2022	Sep. 29, 2021
Income taxes, net	$ 1.1	$ 1.9
Interest, net of amounts capitalized	$ 3.9	$ 3.1

SUPPLEMENTAL CASH FLOW INFORMATION (Non-Cash Operating, Investing and Financing Activities) (Details)
$ in Millions

3 Months Ended

Sep. 28, 2022

USD ($)

Restaurants

Sep. 29, 2021

USD ($)

Sep. 02, 2021

Restaurants

Other Significant Noncash Transactions [Line Items]

Operating lease additions

$ 23.6

$ 60.0

^[1]

Finance lease additions

0.2

8.9

Accrued capital expenditures

20.3

6.2

Retirement of fully depreciated assets

$ 10.3

$ 7.9

Mid-Atlantic Region Acquisition [Member] | Chili's Restaurants [Member]

1,645

Other Significant Noncash Transactions [Line Items]

[1]	The thirteen week period ended September 29, 2021 primarily included operating lease additions associated with the 23 restaurants purchased from a former franchisee. Refer to Note 14 - Fiscal 2022 Chili’s Restaurant Acquisitions for further details.

CONTINGENCIES (Lease Commitments) (Details) - Lease Guarantees And Secondary Obligations [Member] - USD ($) $ in Millions	Sep. 28, 2022	Jun. 29, 2022
Guarantor Obligations [Line Items]
Contingent liability for lease guarantees	$ 2.0
Maximum [Member]
Guarantor Obligations [Line Items]
Loss contingency, estimate of possible loss	$ 24.6	$ 26.3

CONTINGENCIES (Additional Information) (Details) $ in Millions	Sep. 28, 2022 USD ($) LegalMatter
Loss Contingencies [Line Items]
Amount of undrawn standby letters of credit outstanding	$ 5.8
Number of matters pending or threatened which are expected to have a material adverse effect \| LegalMatter	0
Cyber security incident [Member]
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss	$ 5.0

CHILI'S RESTAURANT ACQUISITIONS (Details)
$ in Millions

12 Months Ended

Oct. 31, 2021

USD ($)

Restaurants

Sep. 02, 2021

USD ($)

Restaurants

Jun. 29, 2022

USD ($)

Restaurants

Sep. 28, 2022

USD ($)

Restaurants

May 05, 2022

Restaurants

Feb. 01, 2022

USD ($)

Restaurants

1,645

Chili's Restaurants [Member]

$ 195.1

$ 194.8

Mid-Atlantic Region Acquisition [Member] | Chili's Restaurants [Member]

$ 156.4

Purchase price including closing adjustments

$ 47.7

Current assets

1.4

Property and equipment

46.2

Operating lease assets

23.6

Reacquired franchise rights

^[1]

4.7

Finance lease liabilities, less current portion

^[2]

0.0

Current liabilities

(1.4)

(3.7)

Operating lease liabilities, less current portion

(23.1)

Net assets acquired

^[3]

47.7

Purchase price excluding closing adjustments

48.0

Closing adjustments

$ (0.3)

Great Lakes Region Acquisition | Chili's Restaurants [Member]

Purchase price including closing adjustments

$ 57.1

Current assets

2.1

Property and equipment

43.6

Operating lease assets

47.8

Reacquired franchise rights

^[1]

4.6

Finance lease liabilities, less current portion

^[2]

7.2

Current liabilities

(1.4)

0.0

Operating lease liabilities, less current portion

(46.8)

Net assets acquired

^[3]

57.1

Purchase price excluding closing adjustments

56.0

Closing adjustments

$ 1.1

Northwest Region Acquisition | Chili's Restaurants [Member]

Purchase price including closing adjustments

$ 2.0

Chili's restaurant acquisitions [Member] | Chili's Restaurants [Member]