0000703351-23-000043 | 10-K | XBRL Viewer | Brinker International INC

INCOME TAXES (Tables)

12 Months Ended

Jun. 28, 2023

Income before income taxes consists of the following:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Domestic	$	87.8	$	113.5	$	146.7
Foreign	3.0		1.7		(1.5)
Income before income taxes	$	90.8	$	115.2	$	145.2

(Benefit) Provision For Income Taxes and Effective Tax Rate

The (Benefit) Provision for income taxes and effective tax rate consists of the following:


	Fiscal Years Ended
	June 28, 2023			June 29, 2022			June 30, 2021
Current income tax (benefit) expenses:
Federal	$	12.2		$	5.8		$	11.6
State	6.8			3.7			14.4
Foreign	0.2			(0.3)			0.0
Total current income tax expenses	19.2			9.2			26.0
Deferred income tax (benefit) expenses:
Federal	(29.5)			(15.7)			(9.4)
State	(2.0)			3.7			(3.0)
Foreign	0.5			0.4			0.0
Total deferred income tax (benefit) expenses	(31.0)			(11.6)			(12.4)
(Benefit) Provision for income taxes	$	(11.8)		$	(2.4)		$	13.6

Effective tax rate	(13.0)		%	(2.1)		%	9.4		%

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

A reconciliation between the reported (Benefit) Provision for income taxes and the amount computed by applying the statutory Federal income tax rate to Income before income taxes is as follows:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Income tax expense at statutory rate	$	19.0	$	24.2	$	30.5
FICA and other tax credits	(34.6)		(32.9)		(24.7)
State income taxes, net of Federal benefit	4.7		6.2		7.8
Stock based compensation tax shortfall (windfall)	0.8		(0.7)		(2.3)
Other	(1.7)		0.8		2.3
(Benefit) Provision for income taxes	$	(11.8)	$	(2.4)	$	13.6

Deferred Income Tax Assets and Liabilities

The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows:


	June 28, 2023		June 29, 2022
Deferred income tax assets:
Lease liabilities	$	451.5	$	337.3
Gift cards	9.2		9.9
Insurance reserves	13.7		11.6
Stock-based compensation	9.5		11.6
Federal credit carryover	59.5		41.1

Net operating losses	4.2		3.7
State credit carryover	2.1		2.5
Restructure charges and impairments	2.1		2.3
Payroll tax deferral	—		6.8
Other, net	9.7		8.0
Less: Valuation allowance	(4.3)		(5.8)
Total deferred income tax assets	557.2		429.0
Deferred income tax liabilities:
Lease assets	421.9		307.1
Goodwill and other amortization	23.2		23.3
Depreciation and capitalized interest on property and equipment	0.7		17.8
Prepaid expenses	17.3		16.9
Other, net	0.7		1.4
Total deferred income tax liabilities	463.8		366.5
Deferred income taxes, net	$	93.4	$	62.5

Reconciliation Of Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits are as follows:


	June 28, 2023		June 29, 2022
Balance at beginning of year	$	3.7	$	4.3
Additions based on tax positions related to the current year	0.4		0.3
Additions (Decreases) based on tax positions related to prior years	0.1		(0.1)
Settlements with tax authorities	—		(0.8)
Expiration of statute of limitations	(1.4)		0.0
Balance at end of year	$	2.8	$	3.7

DEBT

12 Months Ended

Jun. 28, 2023

Debt Disclosure [Abstract]

DEBT

Long-term debt consists of the following:


	June 28, 2023		June 29, 2022
Revolving credit facility	$	161.3	$	271.3
5.000% notes	350.0		350.0
8.250% notes(1)	350.0		—
3.875% notes(2)	—		300.0
Finance lease obligations	67.8		90.2
Total long-term debt	929.1		1,011.5
Less: unamortized debt issuance costs and discounts	(6.7)		(2.1)
Total long-term debt, less unamortized debt issuance costs and discounts	922.4		1,009.4
Less: current installments of finance lease obligations(3)	(10.2)		(20.3)
Total long-term debt, less current portion	$	912.2	$	989.1

(1)On June 27, 2023 we issued $350.0 million of 8.250% senior notes due July 2030.

(2)On May 15, 2023 the 3.875% notes matured and were repaid in full using borrowings under our revolving credit facility.

(3)Current installments of finance lease obligations, for the periods presented, are recorded within Other accrued liabilities in the Consolidated Balance Sheets. Refer to Note 6 - Accrued Liabilities for further details.

Excluding finance lease obligations and interest, our long-term debt maturities for the five fiscal years following June 28, 2023 and thereafter are as follows:


Fiscal Year	Long-Term Debt
2024	$	—
2025	350.0
2026	—
2027	161.3
2028	—
Thereafter	350.0
	$	861.3

Revolving Credit Facility

On May 2, 2023, we amended our $800.0 million revolving credit facility to increase the capacity to $900.0 million and to adopt SOFR as the new benchmark rate, replacing LIBOR. During fiscal 2023, we incurred and capitalized $0.5 million of debt issuance costs associated with the revolving credit facility, which are included in Other assets in the Consolidated Balance Sheets.

The $900.0 million revolving credit facility, as amended, matures on August 18, 2026 and bears interest of SOFR 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 June 28, 2023, our interest rate was 6.952% consisting of SOFR of 5.102% plus the applicable margin and spread adjustment of 1.850%. As of June 28, 2023, there was $738.7 million of borrowing capacity under the revolving credit facility.

3.875% Notes

On May 15, 2023, our $300.0 million 3.875% notes matured and the payoff was funded with borrowings from our revolving credit facility.

8.250% Notes

On June 27, 2023, we issued $350.0 million of 8.250% senior notes due July 15, 2030 and used $340.0 million of the proceeds to reduce outstanding borrowings on the revolver. The 2030 Notes require semi-annual interest payments in arrears, on each January 15 and July 15, beginning on January 15, 2024. During fiscal 2023, we incurred and capitalized $5.7 million of debt issuance costs associated with the 2030 Notes, which are included in Long-term debt and finance leases, less current installments in the Consolidated Balance Sheets.

5.000% Notes

In fiscal 2017, we issued $350.0 million of 5.000% senior notes due October 2024 (the “2024 Notes”). The notes require semi-annual interest payments which began on April 1, 2017.

Financial and Other Covenants

The indentures for the 2024 Notes and 2030 Notes contain certain covenants, including, but not limited to, limitations and restrictions on the ability of the Company and its Restricted Subsidiaries (as defined in the indentures) to (i) create liens on Principal Property (as defined in the Indenture) and (ii) merge, consolidate or amalgamate with or into any other person or sell, transfer, assign, lease, convey or otherwise dispose of all or

substantially all of their property. These covenants are subject to a number of important conditions, qualifications, exceptions and limitations.

Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage ratios. As of June 28, 2023, we were in compliance with our covenants pursuant to the $900.0 million revolving credit facility and under the terms of the indentures governing our 2024 Notes and 2030 Notes. We expect to remain in compliance with our covenants throughout fiscal 2024.

- Definition

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.

+ References

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+ Details

STOCK-BASED COMPENSATION (Transactions During Fiscal 2023-Stock Options) (Details) - Stock Options - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Jun. 28, 2023	Jun. 29, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding at June 29, 2022, number of options	1.9
Exercised, number of options	(0.4)
Forfeited or canceled, number of options	(0.5)
Options outstanding at June 28, 2023, number of options	1.0	1.9
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Options outstanding at June 29, 2022, weighted average exercise price	$ 38.73
Exercised, weighted average exercise price	31.52
Forfeited or canceled, weighted average exercise price	40.36
Options outstanding at June 28, 2023, weighted average exercise price	$ 40.74	$ 38.73
Options, outstanding, weighted average remaining contractual term	2 years 6 months
Options, outstanding, intrinsic value	$ 1.3
Options, exercisable, number	1.0
Options, exercisable, weighted average exercise price	$ 40.98
Options, exercisable, weighted average remaining contractual term	2 years 4 months 24 days
Options, exercisable, intrinsic value	$ 1.1
Intrinsic value of options exercised	3.3	$ 0.2	$ 9.8
Tax benefit realized on options exercised	$ 0.8	$ 0.0	$ 2.4

SHAREHOLDERS' DEFICIT (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended	12 Months Ended
	Sep. 28, 2022	Jun. 28, 2023	Jun. 29, 2022	Jun. 30, 2021	Aug. 16, 2021
Schedule of Capitalization, Equity [Line Items]
Retirement of stock, shares	10.0
Treasury stock retired average price per share	$ 30.71
Treasury stock, shares		15.7	26.5
Stock repurchase program, total authorizations					$ 300.0
Payments for repurchase of common stock		$ 5.0	$ 100.9	$ 4.2
Stock repurchase program, remaining authorized amount available		$ 204.0
Share repurchase program open market purchases
Schedule of Capitalization, Equity [Line Items]
Purchases of treasury stock, shares			2.3
Payments for repurchase of common stock			$ 96.0
Withheld from Employees
Schedule of Capitalization, Equity [Line Items]
Purchases of treasury stock, shares		0.1

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jun. 28, 2023

Nature Of Operations And Summary Of Significant Accounting Policies Narrative [Abstract]

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

The Company is 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 of June 28, 2023, we owned, operated or franchised 1,657 restaurants, consisting of 1,185 Company-owned restaurants and 472 franchised restaurants, located in the United States, 29 other countries and two United States territories.

Basis of Presentation

Principles of Consolidation - The Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), and include the accounts of Brinker International, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. All amounts within the Notes to Consolidated Financial Statements are presented in millions unless otherwise specified.

Fiscal Year - We have a 52 or 53 week fiscal year ending on the last Wednesday in June. We utilize a 13 week accounting period for quarterly reporting purposes, except in years containing 53 weeks when the fourth quarter contains 14 weeks. Fiscal 2023 and Fiscal 2022, which ended on June 28, 2023 and June 29, 2022, respectively, each contained 52 weeks. Fiscal 2021, which ended on June 30, 2021, contained 53 weeks.

Reclassifications - Beginning in 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 - The preparation of the Consolidated Financial Statements is in conformity with 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, and the reported amounts of revenues and costs and expenses in the reporting periods. Actual results could differ from those estimates.

External Impacts to Our Operating Environment - During both fiscal 2022 and fiscal 2023, our operating results were impacted by geopolitical and other macroeconomic events, leading to higher than usual inflation on wages and food and beverage costs. During fiscal 2023, all our domestic Company-owned and franchise restaurants operated with no restrictions. During fiscal 2022, the continuing spread of COVID-19 cases (particularly the Omicron variant), significantly impacted our guest traffic and sales. Many of our restaurants had face mask requirements and some of our restaurants had proof of vaccination requirements for our customers, team members or both.

Significant Accounting Policies

Cash and Cash Equivalents - Our policy is to invest cash in excess of operating requirements in income-producing investments. Income-producing investments with original maturities of three months or less are reflected as cash equivalents.

Accounts Receivable - Accounts receivable, net of the allowance for credit losses, represents the estimated net realizable value. Our primary accounts receivables are due from third-party gift card sales, vendor rebates, restaurant sales made with credit cards and franchisees. Provisions for credit losses are recorded based on management’s judgment regarding our ability to collect as well as the age of the receivables. Accounts receivable are written off when they are deemed uncollectible.

Inventories - Inventories consist of food, beverages and supplies and are valued at the lower of cost (using the first-in, first-out method) or net realizable value.

Cloud-Based Computing Arrangements - The Company defers application development stage costs for cloud-based computing arrangements and amortizes those costs over the related service (subscription) agreement. The current and long term portion is included in Prepaid expenses and Other assets in the Consolidated Balance Sheets, respectively.

Fair Value Measurements - Fair value is the price that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date under market conditions. 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

Property and Equipment - Property and equipment is recorded at cost and depreciated using the straight-line method over the lesser of the remaining term of the lease, including certain renewal options, or the estimated useful lives of the assets. Typical useful lives of our Buildings and leasehold improvements range from 5 to 20 years, and Furniture and equipment range from 3 to 7 years.

Depreciation expenses related to property and equipment for the fiscal years ended June 28, 2023, June 29, 2022, and June 30, 2021, of $165.3 million, $161.3 million, and $148.2 million, respectively, were recorded in Depreciation and amortization in the Consolidated Statements of Comprehensive Income. Routine repair and maintenance costs are expensed when incurred. Major replacements and improvements are capitalized.

We review the carrying amount of property and equipment on an annual basis or when events or circumstances indicate that the carrying amount may not be recoverable. We have determined the restaurant level is the lowest level of identifiable cash flows. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. We determine fair value based on discounted projected future operating cash flows of the restaurants over their remaining service life using a risk adjusted discount rate that is commensurate with the inherent risk that is considered Level 3 (refer to Fair Value Measurements policy above for definition of levels). Impairment charges are included in Other (gains) and charges in the Consolidated Statements of Comprehensive Income.

Leases - We recognize, on the balance sheet, the lease assets and related lease liabilities for the rights and obligations created at lease commencement by operating and finance leases with lease terms of more than 12 months. The lease term commences on the date the lessor makes the underlying asset or assets available, irrespective of when lease payments begin under the contract. When determining the lease term at commencement, we consider both termination and renewal option periods available, and only include the period for which failure to renew the lease imposes a penalty on us in such an amount that renewal, or termination options, appear to be reasonably certain.

Our lease liability is generally based on the present value of the lease payments, consisting of fixed costs and certain rent escalations, using our incremental borrowing rate applicable to the lease term. The lease asset is generally based on the lease liability, adjusted for amounts related to other lease-related assets and liabilities. Our adjustments typically include prepaid rent, landlord contributions as a reduction to the asset and favorable or unfavorable lease purchase price adjustments.

The interest rates used in our lease contracts are not implicit. We have derived our incremental borrowing rate using the interest rate we would pay on our existing borrowings, adjusted for the effect of designating collateral and the lease terms using market data as well as publicly available data for instruments with similar characteristics. The reasonably certain lease term and incremental borrowing rate for each lease requires judgment by management and can impact the classification and accounting for a lease as operating or finance, as well as the value of the lease asset and lease liability.

Lease asset carrying amounts are assessed for impairment annually or when events or circumstances indicate that the carrying amount may not be recoverable, in accordance with our long-lived asset impairment policy. We monitor for events or changes in circumstances that require reassessment of lease classification. When a reassessment results in the re-measurement of a lease liability, a corresponding adjustment is made to the carrying amount of the lease asset.

Variable lease costs, consisting primarily of property taxes, maintenance expenses and contingent rent, are expensed as incurred in Restaurant expenses related to restaurant properties and General and administrative for our corporate headquarters in the Consolidated Statements of Comprehensive Income and are not included in lease liabilities in the Consolidated Balance Sheets. Contingent rent represents payment of variable lease obligations based on a percentage of sales, as defined by the terms of the applicable lease, for certain restaurant facilities and is recorded at the point in time we determine that it is probable that such sales levels will be achieved.

Operating lease expenses are recognized on a straight-line basis over the lease term in Restaurant expenses for restaurant properties and General and administrative for our corporate headquarters, in the Consolidated Statements of Comprehensive Income.

Finance lease expenses are recognized on a straight-line basis over the lesser of the useful life of the leased asset or the lease term and the expenses are recognized in Depreciation and amortization in the Consolidated Statements of Comprehensive Income. Interest on each finance lease liability is recorded to Interest expenses in the Consolidated Statements of Comprehensive Income.

Definite-Lived Intangible Assets - Definite-lived intangible assets primarily include the reacquired franchise rights resulting from our acquisitions and included in Intangibles, net in the Consolidated Balance Sheets. These assets are amortized using the straight-line method over the remaining term of the related franchise agreement. We determine the fair value of reacquired franchise rights based on discounted projected future operating cash flows of the restaurants associated with these franchise rights. We review the carrying amount annually or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. Impairment charges are included in Other (gains) and charges in the Consolidated Statements of Comprehensive Income.

Indefinite-Lived Intangible Assets - The costs of obtaining non-transferable liquor licenses from local government agencies are expensed over the specified term of the license to Restaurant expenses in the Consolidated Statements of Comprehensive Income. The costs of purchasing transferable liquor licenses through open markets in jurisdictions with a limited number of authorized liquor licenses are capitalized as indefinite-lived intangible assets and included in Intangibles, net in the Consolidated Balance Sheets.

Transferable liquor licenses are tested for impairment annually or more frequently if events or circumstances indicate that the asset might be impaired. Impairment charges are recognized based on the excess of carrying value over fair value. We determine fair value based on prices in the open market for licenses in same or similar jurisdictions. Impairment charges are included in Other (gains) and charges in the Consolidated Statements of Comprehensive Income.

Goodwill - Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is assigned to the reporting unit in which the acquired business will operate for purposes of impairment testing. Goodwill is tested for impairment annually, as of the first day of the second quarter of each fiscal year, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Our two restaurant brands, Chili’s and Maggiano’s, are both operating segments and reporting units.

We may elect to perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. If the qualitative assessment is not performed or if we determine that it is not more likely than not that the fair value of the reporting unit exceeds the carrying value, the fair value of the reporting unit is calculated. The carrying value of the reporting unit is compared to its estimated fair value, and if the carrying value of a reporting unit exceeds its fair value, goodwill is written down to its implied fair value.

During fiscal 2023, fiscal 2022 and fiscal 2021, we performed our annual goodwill impairment analysis using a qualitative approach to determine whether indicators of impairment exist. Related to the qualitative assessment, we evaluated factors including our market capitalization, as well as the market capitalization of other companies in the restaurant industry, sales at our restaurants and significant adverse changes in the operating environment for the restaurant industry. Based on these factors, no indicators of impairment were identified during our annual analysis performed in the second quarters of fiscal 2023, fiscal 2022 and fiscal 2021. Additionally, no indicators of impairment were identified through the end of each fiscal year.

Insurance Reserves - We are self-insured for certain losses related to health, general liability and workers’ compensation. We maintain stop loss coverage with third-party insurers to limit our total exposure. The self-insurance liability represents an estimate of the ultimate cost of claims incurred and unpaid as of the balance sheet date. The estimated liability is not discounted and is established based upon analysis of historical data and actuarial estimates and is reviewed on a quarterly basis to ensure that the liability is appropriate. The estimated incurred but unreported costs to settle unpaid claims are included in Other accrued liabilities and Other liabilities, depending on their current or long-term nature, in the Consolidated Balance Sheets.

Preferred Stock - Our Board of Directors is authorized to provide for the issuance of 1.0 million preferred shares with a par value of $1.00 per share, in one or more series, and to fix the voting rights, liquidation preferences, dividend rates, conversion rights, redemption rights, and terms, including sinking fund provisions, and certain other rights and preferences. As of June 28, 2023, no preferred shares were issued.

Revenues - Revenues are presented in the Company sales and Franchise revenues captions in the Consolidated Statements of Comprehensive Income.

Company Sales - Company sales include revenues generated by the operation of Company-owned restaurants including food and beverage sales, net of discounts, gift card breakage, Maggiano’s banquet service charge income, delivery, digital entertainment revenues, merchandise income and gift card discount costs from third-party gift card sales. We record revenues from the sale of food, beverages and alcohol, net of discounts, upon delivery to the customer. Sales taxes assessed by a governmental authority that are both imposed on and concurrent with specific revenue transactions and collected from a customer have been excluded from revenues.

Gift Card Breakage Revenue - Breakage revenues represent the monetary value associated with outstanding gift card balances that will not be redeemed. We estimate this amount based on our historical gift card redemption patterns and actuarial estimates, update the breakage rate estimate periodically and if necessary, adjust the deferred revenues balance within the Gift card liability in the Consolidated Balance Sheets. Breakage revenues are recognized proportionate to the pattern of related gift card redemptions. We do not charge dormancy, or any other fees related to monitoring or administering the gift card program to cardholders. Additionally, proceeds from the sale of gift cards are recorded as deferred revenues in the Gift card liability in the Consolidated Balance Sheets and recognized as Company sales when the gift card is redeemed by the holder.

Gift Card Discount Costs - Our gift cards are sold through various outlets such as in-restaurant, Chili’s and Maggiano’s websites, directly to other businesses and through third-party distributors that sell our gift cards at retail locations. We incur incremental direct costs, such as commissions and activation fees, for gift cards sold by third-party businesses and distributors. These initial direct costs are deferred and amortized against revenues proportionate to the pattern of related gift card redemptions.

Franchise Revenues - Franchise revenues include royalties, franchise advertising fees, gift card equalization, and franchise and development fees. Franchise royalties are based on a percentage of the sales generated by our franchise-operated restaurants. The performance obligation related to franchise sales is considered complete upon the sale of food, beverages and alcohol, therefore royalty revenues are recognized in the same period the sales are generated at the franchise-operated restaurants. Franchise advertising contributions from domestic franchisees are contractually obligated to contribute into certain advertising and marketing funds. Franchise and Development Fees are received from franchises for new restaurant openings and for territory development arrangements. The performance obligation related to these arrangements are collectively deferred as a contract liability and recognized

on a straight-line basis into Franchise revenues in the Consolidated Statements of Comprehensive Income over the term of the underlying agreements.

Advertising Expenses - Advertising production costs are expensed in the period when the advertising first takes place. Other advertising costs are expensed as incurred. In the fiscal years ended June 28, 2023, June 29, 2022 and June 30, 2021, advertising expenses of $58.2 million, $37.4 million and $26.4 million, respectively, were included in Restaurant expenses, and advertising contributions from franchisees of $3.0 million, $2.4 million and $2.8 million, respectively, were recorded in Franchise revenues in the Consolidated Statements of Comprehensive Income.

We record a liability for unrecognized tax benefits resulting from tax positions taken, or expected to be taken, in an income tax return that is not more-likely-than-not to be realized. We recognize any interest and penalties related to unrecognized tax benefits in (Benefit) Provision for income taxes in the Consolidated Statements of Comprehensive Income. Additionally, income taxes are computed on a consolidated legal jurisdiction basis with no regard to brand.

Stock-Based Compensation - We measure and recognize compensation costs at fair value for all share-based payments. We record compensation expenses using a graded-vesting schedule or on a straight-line basis, as applicable, over the vesting period, or the date on which retirement eligibility is achieved, if earlier. We recognize compensation expenses for only the portion of share-based awards that are expected to vest. Therefore, we apply estimated forfeiture rates that are derived from our historical forfeitures of similar awards.

Certain employees are eligible to receive stock options, performance stock options, performance shares, restricted stock and restricted stock units, while non-employee members of the Board of Directors are eligible to receive stock options, restricted stock and restricted stock units. Awards granted to the Board of Directors are non-forfeitable and are fully expensed upon grant. Awards to eligible employees may vest over a specified period of time or service period and may also contain performance-based conditions. The fair value of restricted stock and restricted stock units that do not contain a performance condition are based on our closing stock price on the date of grant, while the fair value of stock options, if granted, is estimated using the Black-Scholes option-pricing model on the date of grant.

Performance shares represent a right to receive shares of common stock upon satisfaction of Company performance goals usually at the end of a three-fiscal-year cycle. Vesting of performance shares granted are generally contingent upon meeting Company performance goals based on a specified rate of earnings growth or a specified range of earnings at the end of the three-fiscal-year period and may also include a market-based metric, such as TSR. Compensation expenses for the performance shares is recorded to General and administrative expenses based on management’s periodic estimates of the number of shares that will be earned under the Company performance metric, and the fair value of the shares as determined by our closing stock price on the date of grant, or by Monte Carlo simulation if a market-based metric is included. A cumulative expenses adjustment is recognized when that estimate changes.

Foreign Currency - Foreign currency translation adjustments represent the unrealized impact of translating the financial statements of our Canadian restaurants from their respective functional currency (Canadian dollars) to U.S. dollars and are reported as a component of comprehensive income and recorded in Accumulated other comprehensive loss on our Consolidated Balance Sheets.

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 income per share calculation. Basic weighted average shares outstanding are reconciled to Diluted weighted average shares outstanding as follows:


	June 28, 2023	June 29, 2022	June 30, 2021
Basic weighted average shares outstanding	44.1	44.8	45.5
Dilutive stock options	0.1	0.2	0.4
Dilutive restricted shares	0.8	0.6	0.7
Total dilutive impact	0.9	0.8	1.1
Diluted weighted average shares outstanding	45.0	45.6	46.6

Awards excluded due to anti-dilutive effect	1.3	0.8	0.5

New Accounting Standards Implemented

We reviewed all 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. We also reviewed all 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.

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

Jun. 28, 2023

Jun. 29, 2022

Debt [Line Items]

Finance lease obligations

^[1]

$ 67.8

$ 90.2

Total long-term debt

929.1

1,011.5

Less: unamortized debt issuance costs and discounts

(6.7)

(2.1)

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

922.4

1,009.4

Less: current installments of finance lease obligations

^[2]

(10.2)

(20.3)

Total long-term debt, less current portion

$ 912.2

$ 989.1

Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]

Other accrued liabilities

5.000% notes

Debt [Line Items]

Senior notes

$ 350.0

8.25% notes

Debt [Line Items]

Senior notes

350.0

^[3]

0.0

3.875% notes

Debt [Line Items]

Senior notes

^[4]

0.0

300.0

$800.0M Revolving Credit Facility

Debt [Line Items]

Revolving credit facility

$ 271.3

$900.0M Revolving Credit Facility

Debt [Line Items]

Revolving credit facility

$ 161.3

[1]	Finance lease assets are recorded in Property and equipment, at cost, and the related current and long-term lease liabilities are recorded within Other accrued liabilities and Long-term debt and finance leases, less current installments, respectively.
[2]	Current installments of finance lease obligations, for the periods presented, are recorded within Other accrued liabilities in the Consolidated Balance Sheets. Refer to Note 6 - Accrued Liabilities for further details.
[3]	On June 27, 2023 we issued $350.0 million of 8.250% senior notes due July 2030.
[4]	On May 15, 2023 the 3.875% notes matured and were repaid in full using borrowings under our revolving credit facility.

FAIR VALUE MEASUREMENTS (Assets Measured At Fair Value On Non-Recurring Basis) (Details) $ in Millions	12 Months Ended
	Jun. 28, 2023 USD ($) restaurant	Jun. 29, 2022 USD ($) restaurant	Jun. 30, 2021 USD ($) restaurant
Carrying Values and Impairment Charges Recorded for Long-lived Assets [Line Items]
Restaurant impairment charges	$ 12.1	$ 8.5	$ 3.0
Number of restaurants \| restaurant	1,657
Chili's Restaurants [Member] \| Franchisee [Member]
Carrying Values and Impairment Charges Recorded for Long-lived Assets [Line Items]
Number of restaurants \| restaurant		68
Underperforming Restaurants [Member]
Carrying Values and Impairment Charges Recorded for Long-lived Assets [Line Items]
Pre-impairment carrying value of impaired long lived assets	$ 10.2	$ 7.3
Pre-impairment carrying value of impaired reacquired franchise rights	0.3	0.0
Pre-impairment carrying value of impaired operating lease assets	21.4	13.0
Total pre-impairment carrying value of impaired assets of underperforming restaurants	31.9	20.3
Impairment charges on long-lived assets	10.2	7.3
Impairment charges on reacquired franchise rights	0.3	0.0
Impairment charges on operating lease assets	1.5	1.0
Restaurant impairment charges	$ 12.0	$ 8.3
Underperforming Restaurants [Member] \| Chili's Restaurants [Member]
Carrying Values and Impairment Charges Recorded for Long-lived Assets [Line Items]
Number of underperforming restaurants \| restaurant	38	30	11
Underperforming Restaurants [Member] \| Maggiano's Restaurants [Member]
Carrying Values and Impairment Charges Recorded for Long-lived Assets [Line Items]
Number of underperforming restaurants \| restaurant		2	3
Liquor Licenses [Member]
Carrying Values and Impairment Charges Recorded for Long-lived Assets [Line Items]
Impairment of liquor licenses	$ 0.1	$ 0.2

INCOME TAXES INCOME TAXES (Narrative Details for Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 28, 2023	Jun. 29, 2022
Income Tax Disclosure [Abstract]
Amount that would affect the effective tax rate if recognized	$ 2.2	$ 2.9
Income tax penalties and interest accrued	0.2	0.5
Income tax penalties and interest accrued, net of deferred tax benefits	0.2	0.4
Federal deferred tax benefit	$ 0.0	$ 0.1

COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES Loss Contingencies (Details) $ in Millions	Jun. 28, 2023 USD ($) LegalMatter
Loss Contingencies [Line Items]
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

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Jun. 28, 2023

Total Stock-based Compensation Expenses and Related Total Income Tax Benefit Recognized

Presented below is total stock-based compensation expenses, and the related total income tax benefit recognized in the Consolidated Statements of Comprehensive Income:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Stock-based compensation expenses	$	14.4	$	18.6	$	16.4
Tax benefit related to stock-based compensation expenses	2.6		3.9		3.0

Intrinsic Value and Related Tax Benefit of Options Exercised

The intrinsic value and related tax benefit of options exercised is as follows:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Intrinsic value of options exercised	$	3.3	$	0.2	$	9.8
Tax benefit realized on options exercised	0.8		—		2.4

Fair Value of Restricted Share Awards Vested

The fair value of shares that vested is as follows:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Fair value of restricted share awards vested	$	16.1	$	18.1	$	14.9

Stock Options

Stock Based Transactions During the Fiscal Year

Stock option transactions during fiscal 2023 were as follows (option prices in dollars):


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Stock options outstanding at June 29, 2022	1.9	$	38.73

Exercised	(0.4)	31.52
Forfeited or canceled	(0.5)	40.36
Stock options outstanding at June 28, 2023	1.0	$	40.74	2.5	$	1.3

Stock options exercisable at June 28, 2023	1.0	$	40.98	2.4	$	1.1

Restricted Shares

Stock Based Transactions During the Fiscal Year

Restricted share award transactions, including performance shares reflected at target, during fiscal 2023 were as follows (fair value per award in dollars):


	Number of Restricted Share Awards	Weighted Average Grant Date Fair Value Per Award
Restricted share awards outstanding at June 29, 2022	1.3	$	42.85
Granted	0.8	29.87
Vested	(0.5)	40.85
Forfeited	(0.1)	39.95
Restricted share awards outstanding at June 28, 2023	1.5	$	36.97

STOCK-BASED COMPENSATION (Total Stock-based Compensation Expenses and Related Total Income Tax Benefit Recognized) (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 28, 2023	Jun. 29, 2022	Jun. 30, 2021
Total Stock-based Compensation Expenses and Related Total Income Tax Benefit Recognized [Line Items]
Stock-based compensation expenses	$ 14.4	$ 18.6	$ 16.4
Tax benefit related to stock-based compensation expenses	$ 2.6	$ 3.9	$ 3.0

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Schedule of Weighted Average Number of Shares (Details) - shares shares in Millions	12 Months Ended
	Jun. 28, 2023	Jun. 29, 2022	Jun. 30, 2021
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Basic weighted average shares outstanding	44.1	44.8	45.5
Weighted average number diluted shares outstanding adjustment	0.9	0.8	1.1
Diluted weighted average shares outstanding	45.0	45.6	46.6
Awards excluded due to anti-dilutive effect	1.3	0.8	0.5
Stock Options
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Incremental common shares attributable to dilutive effect of share-based payment arrangements	0.1	0.2	0.4
Restricted Shares
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Incremental common shares attributable to dilutive effect of share-based payment arrangements	0.8	0.6	0.7

STOCK-BASED COMPENSATION (Stock Options) (Details) - shares	12 Months Ended
	Jun. 28, 2023	Jun. 29, 2022	Jun. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, number of options		0	0
Stock Options With a Performance Condition [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance stock options vested, shares		400,000
Performance stock options forfeited, shares	400,000
Stock Options Without a Performance Condition [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contractual term of stock options, in years	8 years
Stock Options Without a Performance Condition [Member] \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	1 year
Stock Options Without a Performance Condition [Member] \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, number of options	0

INCOME TAXES

12 Months Ended

Jun. 28, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

Income before income taxes consists of the following:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Domestic	$	87.8	$	113.5	$	146.7
Foreign	3.0		1.7		(1.5)
Income before income taxes	$	90.8	$	115.2	$	145.2

The (Benefit) Provision for income taxes and effective tax rate consists of the following:


	Fiscal Years Ended
	June 28, 2023			June 29, 2022			June 30, 2021
Current income tax (benefit) expenses:
Federal	$	12.2		$	5.8		$	11.6
State	6.8			3.7			14.4
Foreign	0.2			(0.3)			0.0
Total current income tax expenses	19.2			9.2			26.0
Deferred income tax (benefit) expenses:
Federal	(29.5)			(15.7)			(9.4)
State	(2.0)			3.7			(3.0)
Foreign	0.5			0.4			0.0
Total deferred income tax (benefit) expenses	(31.0)			(11.6)			(12.4)
(Benefit) Provision for income taxes	$	(11.8)		$	(2.4)		$	13.6

Effective tax rate	(13.0)		%	(2.1)		%	9.4		%

A reconciliation between the reported (Benefit) Provision for income taxes and the amount computed by applying the statutory Federal income tax rate to Income before income taxes is as follows:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Income tax expense at statutory rate	$	19.0	$	24.2	$	30.5
FICA and other tax credits	(34.6)		(32.9)		(24.7)
State income taxes, net of Federal benefit	4.7		6.2		7.8
Stock based compensation tax shortfall (windfall)	0.8		(0.7)		(2.3)
Other	(1.7)		0.8		2.3
(Benefit) Provision for income taxes	$	(11.8)	$	(2.4)	$	13.6

Our federal statutory tax rate for fiscal 2023, fiscal 2022 and fiscal 2021 was 21.0%.

Deferred Tax and Allowances

The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and liabilities are as follows:


	June 28, 2023		June 29, 2022
Deferred income tax assets:
Lease liabilities	$	451.5	$	337.3
Gift cards	9.2		9.9
Insurance reserves	13.7		11.6
Stock-based compensation	9.5		11.6
Federal credit carryover	59.5		41.1

Net operating losses	4.2		3.7
State credit carryover	2.1		2.5
Restructure charges and impairments	2.1		2.3
Payroll tax deferral	—		6.8
Other, net	9.7		8.0
Less: Valuation allowance	(4.3)		(5.8)
Total deferred income tax assets	557.2		429.0
Deferred income tax liabilities:
Lease assets	421.9		307.1
Goodwill and other amortization	23.2		23.3
Depreciation and capitalized interest on property and equipment	0.7		17.8
Prepaid expenses	17.3		16.9
Other, net	0.7		1.4
Total deferred income tax liabilities	463.8		366.5
Deferred income taxes, net	$	93.4	$	62.5

As of June 28, 2023, we have deferred tax assets of $5.3 million reflecting the benefit of state loss carryforwards, before federal benefit and valuation allowance, which expire at various dates between 2024 and 2043. We have deferred tax assets of $59.5 million of federal and $2.6 million of state tax credits, before federal benefit and valuation allowance, which expire at various dates between 2024 and 2043. The recognized deferred tax asset for the state loss carryforwards, net of valuation allowance, is $2.3 million and the federal tax credits is $59.5 million. $5.7 million of the federal credit carryover is limited by Section 382 of the Internal Revenue Code.

The valuation allowance is $4.3 million at the end of fiscal 2023 to recognize certain deductions and tax credits management believes are more-likely-than-not to not be realized. In assessing whether a deferred tax asset will be

realized, we consider the likelihood of the realization, and the reversal of existing taxable temporary differences, projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income, as of June 28, 2023, we believe it is more-likely-than-not that we will realize the benefits of the deferred tax assets, net of the existing valuation allowances.

Unrecognized Tax Benefits

A reconciliation of unrecognized tax benefits are as follows:


	June 28, 2023		June 29, 2022
Balance at beginning of year	$	3.7	$	4.3
Additions based on tax positions related to the current year	0.4		0.3
Additions (Decreases) based on tax positions related to prior years	0.1		(0.1)
Settlements with tax authorities	—		(0.8)
Expiration of statute of limitations	(1.4)		0.0
Balance at end of year	$	2.8	$	3.7

The total amount of unrecognized tax benefits, excluding interest and penalties, which would affect income tax expenses if resolved in our favor was $2.2 million and $2.9 million as of June 28, 2023 and June 29, 2022, respectively. We do not expect any material changes to our liability for uncertain tax positions in the next 12 months.

We recognize accrued interest and penalties related to unrecognized tax benefits in (Benefit) Provision for income taxes in the Consolidated Statements of Comprehensive Income. As of June 28, 2023, we had $0.2 million ($0.2 million net of a $0.0 million Federal deferred tax benefit) of interest and penalties accrued, compared to $0.5 million ($0.4 million net of a $0.1 million Federal deferred tax benefit) as of June 29, 2022.

Our income tax returns are subject to examination by taxing authorities in the jurisdictions in which we operate. The periods subject to examination for our federal return are fiscal 2022 to fiscal 2024, and fiscal 2020 to fiscal 2022 for our Canadian returns. State income tax returns are generally subject to examination for a period of three to five years from date return is filed. We have various state income tax returns in the process of examination or settlements. Our federal returns for fiscal 2022 to 2024 are currently under examination through the Internal Revenue Service: Compliance Assurance Process (CAP) program. There are no unrecorded liabilities associated with these examinations.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

DEBT (Narrative) (Details) - USD ($) $ in Millions		2 Months Ended	3 Months Ended		10 Months Ended	12 Months Ended
DEBT (Narrative) (Details) - USD ($) $ in Millions	Jun. 28, 2023	Jun. 28, 2023	Jun. 28, 2023	Sep. 28, 2016	May 01, 2023	Jun. 28, 2023	Jun. 29, 2022	Jun. 30, 2021	May 02, 2023
Debt [Line Items]
Revolving credit facility amendments, debt issuance costs	$ 0.5	$ 0.5	$ 0.5			$ 0.5
Repayment of 3.875% Notes using capacity on the revolver						$ 322.1	$ 23.7	$ 20.0
3.875% notes
Debt [Line Items]
Stated interest rate	3.875%	3.875%	3.875%			3.875%
Repayment of 3.875% Notes using capacity on the revolver			$ 300.0
8.25% notes
Debt [Line Items]
Stated interest rate	8.25%	8.25%	8.25%			8.25%
Proceeds from issuance of debt			$ 350.0
Debt issuance costs capitalized, gross	$ 5.7	$ 5.7	$ 5.7			$ 5.7
5.000% notes
Debt [Line Items]
Stated interest rate	5.00%	5.00%	5.00%			5.00%
Proceeds from issuance of debt				$ 350.0
$800.0M Revolving Credit Facility
Debt [Line Items]
Revolving credit facility, maximum borrowing capacity									$ 800.0
$900.0M Revolving Credit Facility
Debt [Line Items]
Revolving credit facility, maximum borrowing capacity	$ 900.0	$ 900.0	$ 900.0			$ 900.0
Revolving credit facility expiration date						Aug. 18, 2026
Basis spread on variable rate						1.85%
Revolving credit facility interest rate at end of period	6.952%	6.952%	6.952%			6.952%
Remaining credit available under revolving credit facility	$ 738.7	$ 738.7	$ 738.7			$ 738.7
Payments made on revolver from proceeds of 8.25% notes	$ 340.0
Covenant compliance						we were in compliance with our covenants pursuant to the $900.0 million revolving credit facility and under the terms of the indentures governing our 2024 Notes and 2030 Notes
$900.0M Revolving Credit Facility \| Maximum
Debt [Line Items]
Basis spread on variable rate						2.25%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage						0.35%
$900.0M Revolving Credit Facility \| Minimum
Debt [Line Items]
Basis spread on variable rate						1.50%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage						0.25%
Base Rate \| $800.0M Revolving Credit Facility
Debt [Line Items]
Revolving credit facility, variable rate basis					LIBOR
Base Rate \| $900.0M Revolving Credit Facility
Debt [Line Items]
Revolving credit facility, variable rate basis		SOFR
Revolving credit facility interest rate at end of period	5.102%	5.102%	5.102%			5.102%

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 28, 2023

Nature Of Operations And Summary Of Significant Accounting Policies Narrative [Abstract]

Nature Of Operations

Nature of Operations

Principles Of Consolidation

Fiscal Year

Reclassifications

Use Of Estimates

External Impacts to Our Operating Environment

Cash And Cash Equivalents

Accounts Receivable

Inventories

Inventories - Inventories consist of food, beverages and supplies and are valued at the lower of cost (using the first-in, first-out method) or net realizable value.

Cloud-Based Computing Arrangements

Fair Value Measurements


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

Property And Equipment

Leases

Definite-lived Intangible Assets

Indefinite-lived Intangible Assets

Revenues - Revenues are presented in the Company sales and Franchise revenues captions in the Consolidated Statements of Comprehensive Income.

on a straight-line basis into Franchise revenues in the Consolidated Statements of Comprehensive Income over the term of the underlying agreements.

Advertising Expenses

Income Taxes

Income Taxes - Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.We record a liability for unrecognized tax benefits resulting from tax positions taken, or expected to be taken, in an income tax return that is not more-likely-than-not to be realized. We recognize any interest and penalties related to unrecognized tax benefits in (Benefit) Provision for income taxes in the Consolidated Statements of Comprehensive Income. Additionally, income taxes are computed on a consolidated legal jurisdiction basis with no regard to brand.

Stock-Based Compensation

Foreign Currency

Net Income Per Share

Net Income Per Share - Basic net income per share is computed by dividing Net income by the Basic weighted average shares outstanding for the reporting period. Diluted net 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 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 income per share calculation.

New Accounting Standards Implemented

GOODWILL AND INTANGIBLES

12 Months Ended

Jun. 28, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLES

There have been no impairments of Goodwill for the fiscal years ended June 28, 2023, June 29, 2022 and June 30, 2021. The changes in the carrying amount of Goodwill by segment are as follows:


	June 28, 2023						June 29, 2022
	Chili’s		Maggiano’s		Consolidated		Chili’s		Maggiano’s		Consolidated
Balance at beginning of year	$	156.7	$	38.4	$	195.1	$	149.8	$	38.4	$	188.2
Changes in goodwill:
Additions(1)	—		—		—		7.2		—		7.2
Foreign currency translation adjustment	(0.1)		—		(0.1)		(0.3)		—		(0.3)
Balance at end of year	$	156.6	$	38.4	$	195.0	$	156.7	$	38.4	$	195.1

(1)In the fiscal year ended June 29, 2022, we acquired 68 domestic Chili’s restaurants previously owned by three franchise partners. Refer to Note 3 - Acquisitions for further information.

Intangible assets, net are as follows:


	June 28, 2023						June 29, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite-lived intangible assets
Chili’s reacquired franchise rights	$	28.4	$	(14.9)	$	13.5	$	29.3	$	(12.2)	$	17.1
Chili’s other	0.4		(0.4)		—		0.4		(0.4)		—
	$	28.8	$	(15.3)	$	13.5	$	29.7	$	(12.6)	$	17.1

Indefinite-lived intangible assets
Chili’s liquor licenses	$	9.6					$	9.4
Maggiano’s liquor licenses	0.8						0.9
	$	10.4					$	10.3

Amortization expenses for all definite-lived intangible assets were recorded in Depreciation and amortization in the Consolidated Statements of Comprehensive Income as follows:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Definite-lived intangibles amortization expense	$	3.2	$	3.0	$	2.0

Annual amortization expenses for definite-lived intangible assets are estimated to be $3.0 million for fiscal 2024, $2.7 million for each of fiscal 2025, fiscal 2026, and fiscal 2027 and $1.4 million for fiscal 2028.

LEASES (Consolidated Balance Sheet Disclosure of Lease Amounts) (Details) - USD ($)
$ in Millions

Jun. 28, 2023

Jun. 29, 2022

Leases - Consolidated Balance Sheet Disclosure of Lease Amounts [Abstract]

Finance Leases, Lease assets

^[1]

$ 51.3

$ 71.1

Finance Leases, Current lease liabilities

^[1]

10.2

20.3

Finance Leases, Long-term lease liabilities

^[1]

57.6

69.9

Finance Leases, Total lease liabilities

^[1]

67.8

90.2

Operating Leases, Lease assets

^[2]

1,134.9

1,160.5

Operating Leases, Current lease liabilties

^[2]

112.4

112.7

Operating Leases, Long-term lease liabilities

^[2]

1,125.8

1,151.1

Operating Leases, Total lease liabilities

^[2]

1,238.2

1,263.8

Total Leases, Lease assets

1,186.2

1,231.6

Total Leases, Current lease liabilities

122.6

133.0

Total Leases, Long-term lease liabilities

1,183.4

1,221.0

Total Leases, Total lease liabilities

$ 1,306.0

$ 1,354.0

Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]

Property, Plant and Equipment, Gross

Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]

Other accrued liabilities

Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]

Long-term debt and finance leases, less current installments

[1]	Finance lease assets are recorded in Property and equipment, at cost, and the related current and long-term lease liabilities are recorded within Other accrued liabilities and Long-term debt and finance leases, less current installments, respectively.
[2]	Operating lease assets are recorded in Operating lease assets and the related current and long-term lease liabilities are recorded within Operating lease liabilities and Long-term operating lease liabilities, less current portion, respectively.

INCOME TAXES (Deferred Income Tax Assets And Liabilities) (Details) - USD ($) $ in Millions	Jun. 28, 2023	Jun. 29, 2022
Deferred income tax assets:
Lease liabilities	$ 451.5	$ 337.3
Gift cards	9.2	9.9
Insurance reserves	13.7	11.6
Stock-based compensation	9.5	11.6
Federal credit carryover	59.5	41.1
Net operating losses	4.2	3.7
State credit carryover	2.1	2.5
Restructure charges and impairments	2.1	2.3
Payroll tax deferral	0.0	6.8
Other, net	9.7	8.0
Less: Valuation allowance	(4.3)	(5.8)
Total deferred income tax assets	557.2	429.0
Deferred income tax liabilities:
Lease assets	421.9	307.1
Goodwill and other amortization	23.2	23.3
Depreciation and capitalized interest on property and equipment	0.7	17.8
Prepaid expenses	17.3	16.9
Other, net	0.7	1.4
Total deferred income tax liabilities	463.8	366.5
Deferred income taxes, net	$ 93.4	$ 62.5

GOODWILL AND INTANGIBLES Definite-Lived Intangibles Amortization Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 28, 2023	Jun. 29, 2022	Jun. 30, 2021
Definite-Lived Intangible Assets [Line Items]
Definite-lived intangible assets, expected amortization, year one	$ 3.0
Definite-lived intangible assets, expected amortization, year two	2.7
Definite-lived intangible assets, expected amortization, year three	2.7
Definite-lived intangible assets, expected amortization, year four	2.7
Definite-lived intangible assets, expected amortization, year five	1.4
Chili's Restaurants [Member]
Definite-Lived Intangible Assets [Line Items]
Definite-lived intangibles amortization expense	$ 3.2	$ 3.0	$ 2.0

FAIR VALUE MEASUREMENTS

12 Months Ended

Jun. 28, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Non-Financial Assets

We review the carrying amounts of non-financial assets, primarily long-lived property and equipment, finance lease assets, operating lease assets, reacquired franchise rights, goodwill 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 Income for the periods presented. Refer to Note 14 - Other Gains and Charges for more information.

Intangibles, net in the Consolidated Balance Sheets includes both indefinite-lived intangible assets such as transferable liquor licenses and definite-lived intangible assets such as reacquired franchise rights and trademarks.

Definite-Lived Assets Impairment

Definite-lived assets include property and equipment, including finance lease assets, operating lease assets and reacquired franchise rights. During fiscal 2023, we impaired certain long-lived assets and operating lease assets primarily related to 38 underperforming Chili’s restaurants. During fiscal 2022, we impaired certain long-lived assets and operating lease assets primarily related to 30 underperforming Chili’s and two underperforming Maggiano’s restaurants.

We determined the fair value of these assets based on Level 3 fair value measurements. The table below presents the carrying values and related impairment charges recorded on these impaired restaurants for the periods presented:


					Impairment Charges
	Pre-Impairment Carrying Value				Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 28, 2023		June 29, 2022
Underperforming restaurants
Long-lived assets	$	10.2	$	7.3	$	10.2	$	7.3
Reacquired franchise rights assets	0.3		—		0.3		—
Operating lease assets	21.4		13.0		1.5		1.0

Total underperforming restaurants	$	31.9	$	20.3	$	12.0	$	8.3

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. Based on our annual reviews, in fiscal 2023 we determined there was a $0.1 million impairment and in fiscal 2022 we determined there was $0.2 million impairment.

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 3 - 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 our notes are based on quoted market prices and are considered Level 2 fair value measurements.

The 5.000%, 8.250% and 3.875% notes’ carrying amounts, which are net of unamortized debt issuance costs and discounts, and fair values are as follows, refer to Note 8 - Debt for further details:


	June 28, 2023				June 29, 2022
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
5.000% notes	$	349.0	$	343.5	$	348.2	$	329.0
8.250% notes(1)	344.3		348.3		—		—
3.875% notes(2)	—		—		299.7		295.4

(1)On June 27, 2023 we issued $350.0 million of 8.250% senior notes due July 2030 (the “2030 Notes”).

(2)On May 15, 2023 the 3.875% notes matured and were repaid in full using borrowings under our revolving credit facility.

- Definition

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 (Weighted Average Lease Term and Discount Rate) (Details)	Jun. 28, 2023 Rate	Jun. 29, 2022 Rate
Leases - Weighted Average Lease Term and Discount Rate [Abstract]
Finance Leases, Weighted average remaining lease term	9 years 10 months 24 days	9 years 1 month 6 days
Operating Leases, Weighted average remaining lease term	11 years 9 months 18 days	12 years
Finance Leases, Weighted average discount rate	5.50%	5.10%
Operating Leases, Weighted average discount rate	5.80%	5.50%

LEASES (Tables)

12 Months Ended

Jun. 28, 2023

Leases [Abstract]

Consolidated Balance Sheet Disclosure of Lease Amounts

The following table includes a detail of lease assets and liabilities included in the Consolidated Balance Sheets:


	June 28, 2023
	Finance Leases(1)		Operating Leases(2)		Total Leases
Lease assets	$	51.3	$	1,134.9	$	1,186.2

Current lease liabilities	10.2		112.4		122.6
Long-term lease liabilities	57.6		1,125.8		1,183.4
Total lease liabilities	$	67.8	$	1,238.2	$	1,306.0


	June 29, 2022
	Finance Leases(1)		Operating Leases(2)		Total Leases
Lease assets	$	71.1	$	1,160.5	$	1,231.6

Current lease liabilities	20.3		112.7		133.0
Long-term lease liabilities	69.9		1,151.1		1,221.0
Total lease liabilities	$	90.2	$	1,263.8	$	1,354.0

(1)Finance lease assets are recorded in Property and equipment, at cost, and the related current and long-term lease liabilities are recorded within Other accrued liabilities and Long-term debt and finance leases, less current installments, respectively.

(2)Operating lease assets are recorded in Operating lease assets and the related current and long-term lease liabilities are recorded within Operating lease liabilities and Long-term operating lease liabilities, less current portion, respectively.

Consolidated Statement of Comprehensive Income Disclosure of Lease Amounts

The components of lease expenses, including variable lease costs primarily consisting of rent based on a percentage of sales, common area maintenance and real estate tax charges, and short-term lease expenses for leases with lease terms less than twelve months are included in the Consolidated Statements of Comprehensive Income as follows:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Operating lease cost	$	181.0	$	173.7	$	167.2
Finance lease amortization	19.7		21.9		17.3
Finance lease interest	4.1		5.5		5.9
Short-term lease cost	0.3		0.6		0.5
Variable lease cost	63.5		60.5		57.9
Sublease income	(2.8)		(4.2)		(4.4)
Total lease costs, net	$	265.8	$	258.0	$	244.4

Consolidated Statement of Cash Flows Disclosure of Lease Amounts

Supplemental cash flow information related to leases recorded in the Consolidated Statements of Cash Flows is as follows:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Cash flows from operating activities
Cash paid related to lease liabilities
Operating leases(1)	$	184.3	$	171.1	$	195.5
Finance leases	4.1		5.5		5.9
Cash flows from financing activities
Cash paid related to lease liabilities
Finance leases	22.1		23.7		20.0
Non-cash lease assets obtained in exchange for lease liabilities
Operating leases(2)	101.7		255.4		60.6
Finance leases	0.3		13.4		29.8

(1)Cash paid related to lease liabilities for Operating leases were higher in fiscal 2021 primarily due to the lease payments made during fiscal 2021 for rents that were deferred in fiscal 2020 due to the impacts of the COVID-19 pandemic.

(2)Non-cash operating lease assets obtained in exchange for operating lease liabilities were higher in fiscal 2022 primarily due to the new and assumed operating lease additions associated with the 68 restaurants purchased from three former franchisees, including sale leaseback transactions on six of the acquired restaurants. The combined transactions resulted in increased operating lease assets of $86.8 million as of the end of fiscal 2022, and cash proceeds of $20.5 million were received from the sale leaseback transactions. Additionally, the modifications of 25 leases in fiscal 2022 from finance leases to operating leases, resulted in increased operating lease assets of $47.9 million.

Weighted Average Lease Term and Discount Rate

Other information related to leases is as follows:

Fiscal Years Ended

June 28, 2023

June 29, 2022

Finance Leases

Operating Leases

Finance Leases

Operating Leases

Weighted average remaining lease term

9.9 years

11.8 years

9.1 years

12.0 years

Weighted average discount rate

5.5

5.8

5.1

5.5

Lease Maturity Analysis

As of June 28, 2023, the future minimum lease payments on finance and operating leases, as well as sublease income were as follows:


	June 28, 2023
Fiscal Year	Finance Leases		Operating Leases		Sublease Income
2024	$	13.7	$	179.4	$	0.8
2025	12.3		177.6		0.7
2026	8.1		164.8		0.6
2027	7.6		147.7		0.5
2028	7.5		129.3		0.3
Thereafter	40.1		944.5		0.1
Total future lease payments	89.3		1,743.3		$	3.0
Less: Imputed interest	21.5		505.1
Present value of lease liability	$	67.8	$	1,238.2

INCOME TAXES (Income Before Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 28, 2023	Jun. 29, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Domestic	$ 87.8	$ 113.5	$ 146.7
Foreign	3.0	1.7	(1.5)
Income before income taxes	$ 90.8	$ 115.2	$ 145.2

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

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+ Details

REVENUE RECOGNITION

12 Months Ended

Jun. 28, 2023

Revenue Recognition [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 the active contracts with franchisees. The weighted average remaining term of the current franchise agreements, including certain renewal periods expected to be exercised, was approximately 20 years as of June 28, 2023. 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.

The following table reflects the changes in deferred franchise and development fees for the fiscal years ended on June 28, 2023 and June 29, 2022:



	June 28, 2023		June 29, 2022
Beginning balance	$	10.1	$	11.4
Additions	1.9		1.1
Amount recognized to Other gains and charges(1)	—		(0.9)
Amount recognized to Franchise revenues	(0.9)		(1.5)
Ending balance	$	11.1	$	10.1

(1)The remaining deferred franchise and development fee balances associated with the 68 Chili’s restaurants acquired during fiscal 2022 were recognized as of the acquisition dates in Other (gains) and charges in the Consolidated Statements of Comprehensive Income. Refer to Note 3 - Acquisitions for further details.

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 June 28, 2023:


Fiscal Year	Franchise and Development Fees Revenue Recognition
2024	$	0.9
2025	0.9
2026	0.8
2027	0.8
2028	0.7
Thereafter	7.0
	$	11.1

Deferred Gift Card Revenues

Total 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 for fiscal years ended on June 28, 2023 and June 29, 2022:



	June 28, 2023		June 29, 2022
Beginning balance	$	83.9	$	106.4
Gift card sales	127.1		134.8
Gift card redemptions recognized to Company sales	(121.7)		(122.1)
Gift card breakage recognized to Company sales(1)	(16.5)		(36.1)
Other	0.2		0.9
Ending balance	$	73.0	$	83.9

(1)Gift card breakage recognized to Company sales decreased due to prior year change in estimate to increase gift card breakage rates primarily attributable to gift cards sold prior to fiscal 2022.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 9
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-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT - USD ($)
shares in Millions, $ in Millions

Total

Common Stock

Additional Paid-in Capital

Accumulated Deficit

Treasury Stock

Accumulated Other Comprehensive Loss

Balance, shares at Jun. 24, 2020

45.0

Balance at Jun. 24, 2020

$ (479.1)

$ 7.0

$ 669.4

$ (397.5)

$ (751.8)

$ (6.2)

Increase (Decrease) in Stockholders' Deficit [Roll Forward]

Net income

131.6

^[1]

0.0

131.6

0.0

Other comprehensive income (loss)

1.5

0.0

1.5

Dividends

(0.2)

0.0

(0.2)

0.0

Stock-based compensation

16.4

$ 0.0

16.4

0.0

Purchases of treasury stock, shares

(0.1)

Purchases of treasury stock

(4.2)

$ 0.0

(1.2)

0.0

(3.0)

0.0

Issuances of treasury stock, shares

1.0

Issuances of treasury stock

30.7

$ 0.0

0.8

0.0

29.9

0.0

Balance, shares at Jun. 30, 2021

45.9

Balance at Jun. 30, 2021

(303.3)

$ 7.0

685.4

(266.1)

(724.9)

(4.7)

Increase (Decrease) in Stockholders' Deficit [Roll Forward]

Net income

117.6

0.0

117.6

0.0

Other comprehensive income (loss)

(0.6)

0.0

(0.6)

Dividends

0.1

0.0

0.1

0.0

Stock-based compensation

18.6

$ 0.0

18.6

0.0

Purchases of treasury stock, shares

(2.4)

Purchases of treasury stock

(100.9)

$ 0.0

(2.0)

0.0

(98.9)

0.0

Issuances of treasury stock, shares

0.3

Issuances of treasury stock

$ 0.4

$ 0.0

(11.1)

0.0

11.5

0.0

Balance, shares at Jun. 29, 2022

43.8

Balance at Jun. 29, 2022

$ (268.1)

$ 7.0

690.9

(148.4)

(812.3)

(5.3)

Increase (Decrease) in Stockholders' Deficit [Roll Forward]

Net income

102.6

0.0

102.6

0.0

Other comprehensive income (loss)

(0.7)

0.0

(0.7)

Dividends

0.0

Stock-based compensation

14.4

$ 0.0

14.4

0.0

Purchases of treasury stock, shares

(0.1)

Purchases of treasury stock

(5.0)

$ 0.0

(0.4)

0.0

(4.6)

0.0

Issuances of treasury stock, shares

0.9

Issuances of treasury stock

12.5

$ 0.0

(14.9)

0.0

27.4

0.0

Retirement of stock, shares

0.0

Retirement of stock

$ 0.0

$ (1.0)

0.0

(306.1)

307.1

0.0

Balance, shares at Jun. 28, 2023

44.6

Balance at Jun. 28, 2023

$ (144.3)

$ 6.0

$ 690.0

$ (351.9)

$ (482.4)

$ (6.0)

[1]

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

LEASES (Consolidated Statement of Cash Flows Disclosure of Lease Amounts) (Details)
$ in Millions

12 Months Ended

Jun. 28, 2023

USD ($)

restaurant

Jun. 29, 2022

USD ($)

restaurant

Jun. 30, 2021

USD ($)

Mar. 01, 2022

USD ($)

Leases

Lessee, Lease, Description [Line Items]

Operating lease payments

$ 184.3

$ 171.1

$ 195.5

^[1]

Finance lease payments

4.1

5.5

5.9

Payments on long-term debt

22.1

23.7

20.0

Operating lease additions

101.7

255.4

^[2]

60.6

Finance lease additions

$ 0.3

13.4

29.8

Number of restaurants acquired | restaurant

1,657

Operating lease assets

^[3]

$ 1,134.9

1,160.5

Proceeds from sale leaseback transactions, net of related expenses

$ 0.0

$ 20.5

$ 0.0

Lease Modification | Chili's Restaurants [Member]

Lessee, Lease, Description [Line Items]

Number of operating leases | Leases

Operating lease assets

$ 47.9

Franchisee [Member] | Chili's Restaurants [Member]

Lessee, Lease, Description [Line Items]

Number of restaurants acquired | restaurant

Operating lease assets

$ 86.8

Franchisee [Member] | Chili's Restaurants [Member] | eat_SaleLeasebackMember

Lessee, Lease, Description [Line Items]

Number of operating leases | restaurant

[1]	Cash paid related to lease liabilities for Operating leases were higher in fiscal 2021 primarily due to the lease payments made during fiscal 2021 for rents that were deferred in fiscal 2020 due to the impacts of the COVID-19 pandemic.
[2]	Non-cash operating lease assets obtained in exchange for operating lease liabilities were higher in fiscal 2022 primarily due to the new and assumed operating lease additions associated with the 68 restaurants purchased from three former franchisees, including sale leaseback transactions on six of the acquired restaurants. The combined transactions resulted in increased operating lease assets of $86.8 million as of the end of fiscal 2022, and cash proceeds of $20.5 million were received from the sale leaseback transactions. Additionally, the modifications of 25 leases in fiscal 2022 from finance leases to operating leases, resulted in increased operating lease assets of $47.9 million.
[3]	Operating lease assets are recorded in Operating lease assets and the related current and long-term lease liabilities are recorded within Operating lease liabilities and Long-term operating lease liabilities, less current portion, respectively.

STOCK-BASED COMPENSATION

12 Months Ended

Jun. 28, 2023

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

Our shareholder approved stock-based compensation plans include the Stock Option and Incentive Plan for employees (“Employee Plan”) and the Stock Option and Incentive Plan for Non-Employee Directors and Consultants (“Non-Employee Plan” and collectively, the “Plans”). In fiscal 2023, our shareholders approved and we registered an additional 0.3 million shares of common stock of Brinker International, Inc. available for issuance under the Non-Employee Plan. The Plans provide for grants of options to purchase our common stock, performance shares, restricted stock, restricted stock units, and stock appreciation rights. Additionally, grants to eligible employees may vest over a specified period of time or service period, or may contain performance-based conditions. As of June 28, 2023, the total number of shares authorized for issuance to employees and non-employee directors and consultants under the Plans was 39.0 million shares.

Presented below is total stock-based compensation expenses, and the related total income tax benefit recognized in the Consolidated Statements of Comprehensive Income:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Stock-based compensation expenses	$	14.4	$	18.6	$	16.4
Tax benefit related to stock-based compensation expenses	2.6		3.9		3.0

Stock Options

In fiscal 2019 and fiscal 2018, certain eligible employees under the Plans were granted performance stock options whose vesting was contingent upon meeting Company performance goals based on our annual earnings at the end of fiscal 2021 and fiscal 2022. Expenses for performance stock options were recognized using a graded-vesting schedule over the vesting period based upon management’s periodic estimates of the number of stock options that ultimately vested. At the end of fiscal 2021, the first performance goal was met, resulting in the vesting of 0.4 million, or one-half, of the outstanding performance stock options. At the end of fiscal 2022, the second performance goal was not met, which resulted in the forfeiture of the remaining 0.4 million performance stock options. The options have a contractual term to exercise of no later than August 31, 2025.

Stock options that do not contain a performance condition were also granted to eligible employees in the fiscal years prior to fiscal 2021. Expenses related to these stock options are recognized using a graded-vesting schedule over the vesting period or to the date on which retirement eligibility is achieved, if shorter. Stock options generally vest over a period of 1 to 4 years and have contractual terms to exercise of 8 years. Full or partial vesting of awards may occur upon a change in control (as defined in the Plans), or upon an employee’s death, disability or involuntary termination.

No stock options have been granted in fiscal 2023, fiscal 2022, or fiscal 2021.

Stock option transactions during fiscal 2023 were as follows (option prices in dollars):


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Stock options outstanding at June 29, 2022	1.9	$	38.73

Exercised	(0.4)	31.52
Forfeited or canceled	(0.5)	40.36
Stock options outstanding at June 28, 2023	1.0	$	40.74	2.5	$	1.3

Stock options exercisable at June 28, 2023	1.0	$	40.98	2.4	$	1.1

The intrinsic value and related tax benefit of options exercised is as follows:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Intrinsic value of options exercised	$	3.3	$	0.2	$	9.8
Tax benefit realized on options exercised	0.8		—		2.4

Restricted Share Awards

Restricted share awards consist of performance shares and restricted stock units. In fiscal 2023 and fiscal 2022, eligible employees under the Plans were granted performance shares whose vesting is contingent upon meeting Company performance goals based on our earnings at the end of a three-fiscal-year period. The number of shares that will vest varies depending on the amount of earnings achieved as compared to the target amount. The fiscal 2023 grant also includes a provision that will increase or decrease the number of shares to be vested if Brinker’s relative TSR ranking compared to the peer group falls in the top 25% or bottom 25%, respectively. In fiscal 2021, certain eligible employees under the Plans were granted performance shares whose vesting is contingent upon the Company exceeding a specified level of annual earnings in any of fiscal 2022, fiscal 2023 or fiscal 2024. The number of shares that will vest varies depending on the fiscal year that the performance criteria is first met. Expenses are recognized ratably over the vesting period, or to the date on which retirement eligibility is achieved, if shorter, based upon management’s periodic estimates of the number of shares that will be earned under the Company performance metric.

Restricted stock units granted to eligible employees under the Plans generally vest over a three-year period from the date of grant. Restricted stock units issued to eligible employees under our career equity plan generally vest upon each employee’s retirement from the Company. Expenses are recognized ratably over the vesting period, or to the date on which retirement eligibility is achieved, if shorter. Full or partial vesting of awards may occur upon a change in control (as defined in the Plans), or upon an employee’s death, disability or involuntary termination.

Restricted stock units granted to non-employee directors under the Plans are non-forfeitable and are expensed upon grant. Non-employee directors’ awards have variable distribution dates ranging from one year after grant to two years following departure from the Board.

Restricted share award transactions, including performance shares reflected at target, during fiscal 2023 were as follows (fair value per award in dollars):


	Number of Restricted Share Awards	Weighted Average Grant Date Fair Value Per Award
Restricted share awards outstanding at June 29, 2022	1.3	$	42.85
Granted	0.8	29.87
Vested	(0.5)	40.85
Forfeited	(0.1)	39.95
Restricted share awards outstanding at June 28, 2023	1.5	$	36.97

As of June 28, 2023, unrecognized compensation expenses related to unvested restricted share awards that are expected to vest totaled approximately $14.0 million and will be recognized over a weighted average period of 1.7 years. The fair value of shares that vested is as follows:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Fair value of restricted share awards vested	$	16.1	$	18.1	$	14.9

LEASES (Pre-Commencement Leases) (Details) - Chili's Restaurants [Member] $ in Millions	12 Months Ended
	Jun. 28, 2023 USD ($) Leases
Lessee, Lease, Description [Line Items]
Number of Operating Leases, Pre-Commencement \| Leases	5
Operating Lease, Undiscounted Fixed Lease Payments, Pre-Commencement \| $	$ 17.7
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract	20 years

DEFINED CONTRIBUTION PLAN - Additional Information (Details)	12 Months Ended
	Jun. 28, 2023
Retirement Benefits [Abstract]
Eligibility age for savings plan	21 years
Service period required to participate in savings plan	90 days
Percentage of base salary allowed for savings plan contribution	50.00%
Percentage of bonus allowed for contribution to savings plan	100.00%
Employer matching contribution percentage for first three percent contributed to savings plan	100.00%
Percentage of compensation contributed to savings plan matched by employer at 100%	3.00%
Employer matching contribution percentage for subsequent two percent contributed to savings plan	50.00%
Percentage over 3% for which employer will match 50% of employee contributions to savings plan	2.00%

COMMITMENTS AND CONTINGENCIES Commitments and Guarantees (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 28, 2023	Jun. 29, 2022	Jun. 30, 2021
Guarantor Obligations [Line Items]
Lease contingencies, loss recorded	$ 2.0	$ 3.1	$ 2.2
Amount of undrawn standby letters of credit outstanding	5.8
Maximum \| Lease Guarantees And Secondary Obligations [Member]
Guarantor Obligations [Line Items]
Loss contingency, estimate of possible loss	$ 16.9	$ 26.3

REVENUE RECOGNITION - Deferred Gift Card Revenues (Details) - USD ($)
$ in Millions

12 Months Ended

Jun. 28, 2023

Jun. 29, 2022

Changes in Gift Card Liability [Line Items]

Beginning balance

$ 83.9

$ 106.4

Ending balance

73.0

83.9

Gift card sales [Member]

Changes in Gift Card Liability [Line Items]

Additions

127.1

134.8

Gift card redemptions [Member]

Changes in Gift Card Liability [Line Items]

Amount recognized to Company sales

(121.7)

(122.1)

Gift card breakage [Member]

Changes in Gift Card Liability [Line Items]

Amount recognized to Company sales

^[1]

(16.5)

(36.1)

Gift card other

Changes in Gift Card Liability [Line Items]

Additions

$ 0.2

$ 0.9

[1]	Gift card breakage recognized to Company sales decreased due to prior year change in estimate to increase gift card breakage rates primarily attributable to gift cards sold prior to fiscal 2022.

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 28, 2023

Nature Of Operations And Summary Of Significant Accounting Policies Narrative [Abstract]

Schedule of Weighted Average Number of Shares

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


	June 28, 2023	June 29, 2022	June 30, 2021
Basic weighted average shares outstanding	44.1	44.8	45.5
Dilutive stock options	0.1	0.2	0.4
Dilutive restricted shares	0.8	0.6	0.7
Total dilutive impact	0.9	0.8	1.1
Diluted weighted average shares outstanding	45.0	45.6	46.6

Awards excluded due to anti-dilutive effect	1.3	0.8	0.5

ACCRUED LIABILITIES

12 Months Ended

Jun. 28, 2023

Accrued and other liabilities [Abstract]

ACCRUED LIABILITIES

Other accrued liabilities consist of the following:


	June 28, 2023		June 29, 2022
Insurance	$	29.3	$	23.5
Property tax	24.5		23.3
Sales tax	17.3		14.4
Utilities and services	10.4		9.6
Current installments of finance lease obligations	10.2		20.3
Interest	6.4		6.5
Other	18.2		18.5
	$	116.3	$	116.1

CONSOLIDATED BALANCE SHEETS - USD ($)
shares in Millions, $ in Millions

Jun. 28, 2023

Jun. 29, 2022

Current assets

Cash and cash equivalents

$ 15.1

$ 13.5

Accounts receivable, net

60.9

66.4

Inventories

34.5

35.6

Restaurant supplies

55.6

55.5

Prepaid expenses

17.2

25.7

Income taxes receivable, net

0.0

4.5

Total current assets

183.3

201.2

Property and equipment, at cost

Land

42.4

43.4

Buildings and leasehold improvements

1,635.7

1,603.9

Furniture and equipment

765.8

793.0

Construction-in-progress

30.1

33.6

Gross property and equipment

2,474.0

2,473.9

Less accumulated depreciation and amortization

(1,665.7)

(1,657.2)

Net property and equipment

808.3

816.7

Other assets

Operating lease assets

^[1]

1,134.9

1,160.5

Goodwill

195.0

195.1

Deferred income taxes, net

93.4

62.5

Intangibles, net

23.9

27.4

Other

48.2

21.0

Total other assets

1,495.4

1,466.5

Total assets

2,487.0

2,484.4

Current liabilities

Accounts payable

125.7

134.3

Gift card liability

73.0

83.9

Accrued payroll

106.1

111.0

Operating lease liabilities

^[1]

112.4

112.7

Other accrued liabilities

116.3

116.1

Income taxes payable, net

2.4

0.0

Total current liabilities

535.9

558.0

Long-term debt and finance leases, less current installments

912.2

989.1

Long-term operating lease liabilities, less current portion

^[1]

1,125.8

1,151.1

Other liabilities

57.4

54.3

Commitments and contingencies (Note 9)

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

44.6

43.8

Common stock

$ 6.0

$ 7.0

Additional paid-in capital

690.0

690.9

Accumulated other comprehensive loss

(6.0)

(5.3)

Accumulated deficit

$ (351.9)

$ (148.4)

Treasury stock, shares

15.7

26.5

Treasury stock, at cost

$ (482.4)

$ (812.3)

Total shareholders’ deficit

(144.3)

(268.1)

Total liabilities and shareholders’ deficit

$ 2,487.0

$ 2,484.4

[1]	Operating lease assets are recorded in Operating lease assets and the related current and long-term lease liabilities are recorded within Operating lease liabilities and Long-term operating lease liabilities, less current portion, respectively.

ACQUISITIONS (Details)
$ in Millions

12 Months Ended

Jun. 29, 2022

USD ($)

restaurant

Jun. 28, 2023

USD ($)

restaurant

May 05, 2022

restaurant

Feb. 01, 2022

USD ($)

restaurant

Oct. 31, 2021

USD ($)

restaurant

Sep. 02, 2021

USD ($)

restaurant

Jun. 30, 2021

USD ($)

Business Acquisition [Line Items]

Number of restaurants | restaurant

1,657

Goodwill

$ 195.1

$ 195.0

$ 188.2

Chili's Restaurants [Member]

Business Acquisition [Line Items]

Goodwill

$ 156.7

$ 156.6

$ 149.8

Chili's Restaurants [Member] | Franchisee [Member]

Business Acquisition [Line Items]

Number of restaurants | restaurant

Reacquired franchise rights weighted average amortization period in years

15 years

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

Business Acquisition [Line Items]

Number of restaurants | restaurant

Purchase price including customary working capital adjustments

$ 47.7

Current assets

1.4

Property and equipment

46.2

Operating lease assets

23.6

Reacquired franchise rights

^[1]

4.7

Goodwill

0.0

Current liabilities

(1.4)

Finance lease liabilities, less current portion

(3.7)

Operating lease liabilities, less current portion

(23.1)

Net assets acquired

$ 47.7

Chili's Restaurants [Member] | Northwest Region Acquisition

Business Acquisition [Line Items]

Number of restaurants | restaurant

Purchase price including customary working capital adjustments

$ 2.0

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

Business Acquisition [Line Items]

Number of restaurants | restaurant

Purchase price including customary working capital adjustments

$ 57.1

Current assets

2.1

Property and equipment

43.6

Operating lease assets

47.8

Reacquired franchise rights

^[1]

4.6

Goodwill

^[2]

7.2

Current liabilities

(1.4)

Finance lease liabilities, less current portion

0.0

Operating lease liabilities, less current portion

(46.8)

Net assets acquired

$ 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.

SEGMENT INFORMATION (Segment Results) (Details)
$ in Millions

12 Months Ended

Jun. 28, 2023

USD ($)

restaurant

Country

Location

Jun. 29, 2022

USD ($)

restaurant

Jun. 30, 2021

USD ($)

Segment Reporting Information [Line Items]

Number of foreign countries operating in | Country

Number of territories | Location

Segment Information, disclosure of major customers

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

Total revenues

$ 4,133.2

$ 3,804.1

$ 3,337.8

^[1]

Food and beverage costs

1,146.3

1,048.5

867.8

^[1]

Restaurant labor

1,389.3

1,288.1

1,108.2

^[1]

Restaurant expenses

1,097.5

968.3

858.5

^[1]

Depreciation and amortization

168.5

164.4

150.2

^[1]

General and administrative

154.5

144.1

134.8

^[1]

Other (gains) and charges

32.7

31.2

19.0

^[1]

Total operating costs and expenses

3,988.8

3,644.6

3,138.5

^[1]

Operating income (loss)

144.4

159.5

199.3

^[1]

Interest expenses

54.9

46.1

56.2

^[1]

Other income, net

(1.3)

(1.8)

(2.1)

^[1]

Income before income taxes

90.8

115.2

145.2

^[1]

Segment assets

2,487.0

2,484.4

Payments for property and equipment

$ 184.9

150.3

94.0

Number of restaurants | restaurant

1,657

Chili's Restaurants [Member]

Segment Reporting Information [Line Items]

Number of territories | Location

Total revenues

$ 3,646.1

3,379.6

^[2]

3,059.9

^[3]

Food and beverage costs

1,022.9

945.9

^[2]

803.5

^[3]

Restaurant labor

1,232.3

1,146.5

^[2]

1,014.2

^[3]

Restaurant expenses

966.2

849.8

^[2]

765.6

^[3]

Depreciation and amortization

145.3

139.8

^[2]

124.3

^[3]

General and administrative

35.5

33.3

^[2]

27.4

^[3]

Other (gains) and charges

22.0

23.3

^[2]

12.7

^[3]

Total operating costs and expenses

3,424.2

3,138.6

^[2]

2,747.7

^[3]

Operating income (loss)

221.9

241.0

^[2]

312.2

^[3]

Interest expenses

3.7

5.1

^[2]

5.6

^[3]

Other income, net

(0.1)

(0.3)

^[2]

(0.5)

^[3]

Income before income taxes

218.3

236.2

^[2]

307.1

^[3]

Segment assets

2,079.5

2,116.7

^[2]

Payments for property and equipment

158.1

133.7

^[2]

82.9

Maggiano's Restaurants [Member]

Segment Reporting Information [Line Items]

Total revenues

487.1

424.5

277.9

^[3]

Food and beverage costs

123.4

102.6

64.3

^[3]

Restaurant labor

157.0

141.6

94.0

^[3]

Restaurant expenses

130.4

117.9

92.1

^[3]

Depreciation and amortization

13.0

13.4

13.8

^[3]

General and administrative

7.8

8.0

5.8

^[3]

Other (gains) and charges

1.4

0.0

1.4

^[3]

Total operating costs and expenses

433.0

383.5

271.4

^[3]

Operating income (loss)

54.1

41.0

6.5

^[3]

Interest expenses

0.3

0.4

0.2

^[3]

Other income, net

0.0

^[3]

Income before income taxes

53.8

40.6

6.3

^[3]

Segment assets

244.5

223.6

Payments for property and equipment

16.6

9.1

2.6

Corporate and Other [Member]

Segment Reporting Information [Line Items]

Total revenues

0.0

^[3]

Food and beverage costs

0.0

^[3]

Restaurant labor

0.0

^[3]

Restaurant expenses

0.9

0.6

0.8

^[3]

Depreciation and amortization

10.2

11.2

12.1

^[3]

General and administrative

111.2

102.8

101.6

^[3]

Other (gains) and charges

9.3

7.9

4.9

^[3]

Total operating costs and expenses

131.6

122.5

119.4

^[3]

Operating income (loss)

(131.6)

(122.5)

(119.4)

^[3]

Interest expenses

50.9

40.6

50.4

^[3]

Other income, net

(1.2)

(1.5)

(1.6)

^[3]

Income before income taxes

(181.3)

(161.6)

(168.2)

^[3]

Segment assets

163.0

144.1

Payments for property and equipment

10.2

7.5

8.5

Company sales [Member]

Segment Reporting Information [Line Items]

Revenues

4,093.2

3,764.5

3,301.3

^[1]

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

Segment Reporting Information [Line Items]

Revenues

3,606.7

3,340.5

^[2]

3,023.7

^[3]

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

Segment Reporting Information [Line Items]

Revenues

486.5

424.0

277.6

^[3]

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

Segment Reporting Information [Line Items]

Revenues

0.0

^[3]

Franchise revenues [Member]

Segment Reporting Information [Line Items]

Revenues

40.0

39.6

36.5

^[1]

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

Segment Reporting Information [Line Items]

Revenues

39.4

39.1

^[2]

36.2

^[3]

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

Segment Reporting Information [Line Items]

Revenues

0.6

0.5

0.3

^[3]

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

Segment Reporting Information [Line Items]

Revenues

$ 0.0

^[3]

Franchisee [Member] | Chili's Restaurants [Member]

Segment Reporting Information [Line Items]

Number of restaurants | restaurant

[1]	Fiscal 2021, which ended on June 30, 2021, contained 53 weeks. The impact of the 53rd week in fiscal 2021 resulted in an increase in Total revenues. While certain expenses increased in direct relationship to additional revenues from the 53rd week, other expenses, such as fixed costs, are incurred on a calendar month basis.
[2]	Chili’s segment information for fiscal 2022 includes the results of operations and the fair values of assets related to the 68 restaurants purchased from three former franchisees subsequent to the acquisition dates. Refer to Note 3 - Acquisitions for further details.
[3]	Fiscal 2021, which ended on June 30, 2021, contained 53 weeks. The impact of the 53rd week in fiscal 2021 resulted in an increase in Total revenues. While certain expenses increased in direct relationship to additional revenues from the 53rd week, other expenses, such as fixed costs, are incurred on a calendar month basis.

REVENUE RECOGNITION (Tables)

12 Months Ended

Jun. 28, 2023

Revenue Recognition [Abstract]

Changes in Deferred Franchise and Development Fees

The following table reflects the changes in deferred franchise and development fees for the fiscal years ended on June 28, 2023 and June 29, 2022:



	June 28, 2023		June 29, 2022
Beginning balance	$	10.1	$	11.4
Additions	1.9		1.1
Amount recognized to Other gains and charges(1)	—		(0.9)
Amount recognized to Franchise revenues	(0.9)		(1.5)
Ending balance	$	11.1	$	10.1

Remaining Deferred Franchise and Development Fees to be Recognized


Fiscal Year	Franchise and Development Fees Revenue Recognition
2024	$	0.9
2025	0.9
2026	0.8
2027	0.8
2028	0.7
Thereafter	7.0
	$	11.1

Changes in Gift Card Liability

The following table reflects the changes in the Gift card liability for fiscal years ended on June 28, 2023 and June 29, 2022:



	June 28, 2023		June 29, 2022
Beginning balance	$	83.9	$	106.4
Gift card sales	127.1		134.8
Gift card redemptions recognized to Company sales	(121.7)		(122.1)
Gift card breakage recognized to Company sales(1)	(16.5)		(36.1)
Other	0.2		0.9
Ending balance	$	73.0	$	83.9

(1)Gift card breakage recognized to Company sales decreased due to prior year change in estimate to increase gift card breakage rates primarily attributable to gift cards sold prior to fiscal 2022.

ACCRUED LIABILITIES - Other Accrued Liabilities (Details) - USD ($)
$ in Millions

Jun. 28, 2023

Jun. 29, 2022

Other accrued liabilities [Line Items]

Insurance

$ 29.3

$ 23.5

Property tax

24.5

23.3

Sales tax

17.3

14.4

Utilities and services

10.4

9.6

Current installments of finance lease obligations

^[1]

10.2

20.3

Interest

6.4

6.5

Other

18.2

18.5

Other accrued liabilities

$ 116.3

$ 116.1

[1]	Finance lease assets are recorded in Property and equipment, at cost, and the related current and long-term lease liabilities are recorded within Other accrued liabilities and Long-term debt and finance leases, less current installments, respectively.

REVENUE RECOGNITION - Changes in Deferred Franchise and Development Fees (Details)
$ in Millions

12 Months Ended

Jun. 28, 2023

USD ($)

restaurant

Jun. 29, 2022

USD ($)

restaurant

Changes in deferred franchise and development fees [Line Items]

Ending balance

$ 11.1

Number of restaurants | restaurant

1,657

Chili's Restaurants [Member] | Franchisee [Member]

Changes in deferred franchise and development fees [Line Items]

Number of restaurants | restaurant

Deferred Franchise and Development Fees

Changes in deferred franchise and development fees [Line Items]

Beginning balance

$ 10.1

$ 11.4

Additions

1.9

1.1

Amount recognized to Franchise revenues

(0.9)

(1.5)

Ending balance

11.1

10.1

Deferred Franchise and Development Fees | Franchisee [Member]

Changes in deferred franchise and development fees [Line Items]

Amount recognized to Other gains and charges

$ 0.0

$ (0.9)

^[1]

[1]

The remaining deferred franchise and development fee balances associated with the 68 Chili’s restaurants acquired during fiscal 2022 were recognized as of the acquisition dates in Other (gains) and charges in the Consolidated Statements of Comprehensive Income. Refer to Note 3 - Acquisitions for further details.

REVENUE RECOGNITION - Remaining Deferred Franchise and Development Fees to be Recognized (Details) $ in Millions	Jun. 28, 2023 USD ($)
Remaining Deferred Franchise and Development Fees to be Recognized [Line Items]
Total remaining performance obligation	$ 11.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-06-29
Remaining Deferred Franchise and Development Fees to be Recognized [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, remaining performance obligation	$ 0.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-06-27
Remaining Deferred Franchise and Development Fees to be Recognized [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, remaining performance obligation	$ 0.9
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-06-26
Remaining Deferred Franchise and Development Fees to be Recognized [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, remaining performance obligation	$ 0.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-06-25
Remaining Deferred Franchise and Development Fees to be Recognized [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, remaining performance obligation	$ 0.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01
Remaining Deferred Franchise and Development Fees to be Recognized [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, remaining performance obligation	$ 0.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-06-29
Remaining Deferred Franchise and Development Fees to be Recognized [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	15 years
Revenue, remaining performance obligation	$ 7.0
Weighted Average [Member] \| Franchise fees and other revenues [Member] \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-06-29
Remaining Deferred Franchise and Development Fees to be Recognized [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period	20 years

DEBT (Tables)

12 Months Ended

Jun. 28, 2023

Debt Disclosure [Abstract]

Long-Term Debt

Long-term debt consists of the following:


	June 28, 2023		June 29, 2022
Revolving credit facility	$	161.3	$	271.3
5.000% notes	350.0		350.0
8.250% notes(1)	350.0		—
3.875% notes(2)	—		300.0
Finance lease obligations	67.8		90.2
Total long-term debt	929.1		1,011.5
Less: unamortized debt issuance costs and discounts	(6.7)		(2.1)
Total long-term debt, less unamortized debt issuance costs and discounts	922.4		1,009.4
Less: current installments of finance lease obligations(3)	(10.2)		(20.3)
Total long-term debt, less current portion	$	912.2	$	989.1

(1)On June 27, 2023 we issued $350.0 million of 8.250% senior notes due July 2030.

(2)On May 15, 2023 the 3.875% notes matured and were repaid in full using borrowings under our revolving credit facility.

Long-Term Debt Maturities Excluding Finance Lease Obligations and Interest

Excluding finance lease obligations and interest, our long-term debt maturities for the five fiscal years following June 28, 2023 and thereafter are as follows:


Fiscal Year	Long-Term Debt
2024	$	—
2025	350.0
2026	—
2027	161.3
2028	—
Thereafter	350.0
	$	861.3

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
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-Name Accounting Standards Codification
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+ Details

INCOME TAXES (Reconciliation Between Reported (Benefit) Provision For Income Taxes And Amount Computed By Statutory Federal Income Tax Rate) (Details) - USD ($)
$ in Millions

12 Months Ended

Jun. 28, 2023

Jun. 29, 2022

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income tax expense at statutory rate

$ 19.0

$ 24.2

$ 30.5

FICA and other tax credits

(34.6)

(32.9)

(24.7)

State income taxes, net of Federal benefit

4.7

6.2

7.8

Stock based compensation tax shortfall (windfall)

0.8

(0.7)

(2.3)

Other

(1.7)

0.8

2.3

(Benefit) Provision for income taxes

$ (11.8)

$ (2.4)

$ 13.6

^[1]

Statutory Federal income tax rate

21.00%

[1]

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

GOODWILL AND INTANGIBLES (Tables)

12 Months Ended

Jun. 28, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Changes In Carrying Amount Of Goodwill

The changes in the carrying amount of Goodwill by segment are as follows:


	June 28, 2023						June 29, 2022
	Chili’s		Maggiano’s		Consolidated		Chili’s		Maggiano’s		Consolidated
Balance at beginning of year	$	156.7	$	38.4	$	195.1	$	149.8	$	38.4	$	188.2
Changes in goodwill:
Additions(1)	—		—		—		7.2		—		7.2
Foreign currency translation adjustment	(0.1)		—		(0.1)		(0.3)		—		(0.3)
Balance at end of year	$	156.6	$	38.4	$	195.0	$	156.7	$	38.4	$	195.1

(1)In the fiscal year ended June 29, 2022, we acquired 68 domestic Chili’s restaurants previously owned by three franchise partners. Refer to Note 3 - Acquisitions for further information.

Intangible Assets

Intangible assets, net are as follows:


	June 28, 2023						June 29, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite-lived intangible assets
Chili’s reacquired franchise rights	$	28.4	$	(14.9)	$	13.5	$	29.3	$	(12.2)	$	17.1
Chili’s other	0.4		(0.4)		—		0.4		(0.4)		—
	$	28.8	$	(15.3)	$	13.5	$	29.7	$	(12.6)	$	17.1

Indefinite-lived intangible assets
Chili’s liquor licenses	$	9.6					$	9.4
Maggiano’s liquor licenses	0.8						0.9
	$	10.4					$	10.3

Definite-Lived Intangibles Amortization Expense

Amortization expenses for all definite-lived intangible assets were recorded in Depreciation and amortization in the Consolidated Statements of Comprehensive Income as follows:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Definite-lived intangibles amortization expense	$	3.2	$	3.0	$	2.0

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
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+ Details

OTHER GAINS AND CHARGES (Tables)

12 Months Ended

Jun. 28, 2023

Other Gains and Charges [Abstract]

Other Gains And Charges

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


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Restaurant level impairment charges	$	12.1	$	8.5	$	3.0
Restaurant closure asset write-offs and charges	8.3		3.7		2.4
Enterprise system implementation costs	4.7		2.4		—
Severance and other benefit charges	3.7		—		0.5
Lease contingencies	2.0		3.1		2.2
Remodel-related asset write-off	1.1		4.9		2.3
Loss from natural disasters, net of (insurance recoveries)	0.8		1.1		2.9
Gain on sale of assets, net	(3.7)		—		(0.3)

Other	3.7		7.5		6.0
	$	32.7	$	31.2	$	19.0

Restaurant level impairment charges primarily associated with the following long-lived assets:

•Fiscal 2023 - 38 underperforming Chili’s restaurants. Refer to Note 4 - Fair Value Measurements for further details.

•Fiscal 2022 - 30 underperforming Chili’s and two underperforming Maggiano’s restaurants.

•Fiscal 2021 - 11 underperforming Chili’s and three underperforming Maggiano’s restaurants.

Restaurant closure asset write-offs and charges includes costs associated with the closure of certain Chili’s and Maggiano’s restaurants.

Enterprise system implementation costs primarily consists of software subscription fees, certain consulting fees, and contract labor associated with the ongoing enterprise system implementation that are not capitalized.

Severance and other benefit charges relates to changes in our management team and organizational structure in fiscal 2023 and the elimination of certain Maggiano’s banquet manager positions in fiscal 2021.

Lease contingencies includes expenses related to lease guarantees and certain sublease receivables for divested brands when we have determined it is probable that the current lessee will default on the lease obligation. Refer to Note 9 - Commitments and Contingencies for additional information about our secondarily liable lease guarantees.

Remodel-related asset write-off relates to assets that are removed or discarded in connection with Chili’s and Maggiano’s remodel projects.

Loss from natural disasters, net of (insurance recoveries) primarily relates to the following natural disasters:

•Fiscal 2023 - Hurricane Ian in September 2022 and the Winter Storm in December 2022.

•Fiscal 2022 - Hurricane Ida in August 2021.

•Fiscal 2021 - Winter Storm Uri in February 2021.

Gain on sale of assets, net in fiscal 2023 relates to sale of three land parcels for previously closed Chili’s restaurants.

DEFINED CONTRIBUTION PLAN - Employer Contributions Match Expenses (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 28, 2023	Jun. 29, 2022	Jun. 30, 2021
Defined Contribution Plan Disclosure [Line Items]
Employer contributions match expenses	$ 11.9	$ 11.0	$ 4.6

Audit Information	12 Months Ended
Audit Information	Jun. 28, 2023
Auditor Information [Abstract]
Auditor Name	KPMG LLP
Auditor Location	Dallas, TX
Auditor Firm ID	185

LEASES

12 Months Ended

Jun. 28, 2023

Leases [Abstract]

LEASES

As of June 28, 2023, 1,135 of our 1,185 Company-owned restaurant facilities were leased. We typically lease our restaurant facilities through ground leases (where we lease land only, but construct the building and leasehold improvements) or retail leases (where we lease the land/retail space and building, but construct the leasehold improvements). As of June 28, 2023, the restaurant leases have cumulative renewal clauses of 1 to 30 years at our option. Our leased restaurants typically have an initial lease term of 10 to 20 years, with one or more renewal terms ranging from 1 to 10 years. The leases typically provide for a fixed rental or a fixed rental plus percentage rentals based on sales volume. In addition to our restaurant facilities, we also lease our corporate headquarters location and certain equipment. Our lease agreements do not contain any material residual value guarantees or material covenant restrictions.

Consolidated Balance Sheet Disclosure of Lease Amounts

The following table includes a detail of lease assets and liabilities included in the Consolidated Balance Sheets:


	June 28, 2023
	Finance Leases(1)		Operating Leases(2)		Total Leases
Lease assets	$	51.3	$	1,134.9	$	1,186.2

Current lease liabilities	10.2		112.4		122.6
Long-term lease liabilities	57.6		1,125.8		1,183.4
Total lease liabilities	$	67.8	$	1,238.2	$	1,306.0


	June 29, 2022
	Finance Leases(1)		Operating Leases(2)		Total Leases
Lease assets	$	71.1	$	1,160.5	$	1,231.6

Current lease liabilities	20.3		112.7		133.0
Long-term lease liabilities	69.9		1,151.1		1,221.0
Total lease liabilities	$	90.2	$	1,263.8	$	1,354.0

Consolidated Statement of Comprehensive Income Disclosure of Lease Amounts


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Operating lease cost	$	181.0	$	173.7	$	167.2
Finance lease amortization	19.7		21.9		17.3
Finance lease interest	4.1		5.5		5.9
Short-term lease cost	0.3		0.6		0.5
Variable lease cost	63.5		60.5		57.9
Sublease income	(2.8)		(4.2)		(4.4)
Total lease costs, net	$	265.8	$	258.0	$	244.4

Consolidated Statement of Cash Flows Disclosure of Lease Amounts

Supplemental cash flow information related to leases recorded in the Consolidated Statements of Cash Flows is as follows:


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Cash flows from operating activities
Cash paid related to lease liabilities
Operating leases(1)	$	184.3	$	171.1	$	195.5
Finance leases	4.1		5.5		5.9
Cash flows from financing activities
Cash paid related to lease liabilities
Finance leases	22.1		23.7		20.0
Non-cash lease assets obtained in exchange for lease liabilities
Operating leases(2)	101.7		255.4		60.6
Finance leases	0.3		13.4		29.8

Weighted Average Lease Term and Discount Rate

Other information related to leases is as follows:

Fiscal Years Ended

June 28, 2023

June 29, 2022

Finance Leases

Operating Leases

Finance Leases

Operating Leases

Weighted average remaining lease term

9.9 years

11.8 years

9.1 years

12.0 years

Weighted average discount rate

5.5

5.8

5.1

5.5

Lease Maturity Analysis

Finance leases and Operating leases total future lease payments represent the contractual obligations due under the lease agreements, including cancellable option periods where we are reasonably assured to exercise the options. As of June 28, 2023, the future minimum lease payments on finance and operating leases, as well as sublease income were as follows:


	June 28, 2023
Fiscal Year	Finance Leases		Operating Leases		Sublease Income
2024	$	13.7	$	179.4	$	0.8
2025	12.3		177.6		0.7
2026	8.1		164.8		0.6
2027	7.6		147.7		0.5
2028	7.5		129.3		0.3
Thereafter	40.1		944.5		0.1
Total future lease payments	89.3		1,743.3		$	3.0
Less: Imputed interest	21.5		505.1
Present value of lease liability	$	67.8	$	1,238.2

Pre-Commencement Leases

In fiscal 2023, we executed five leases for new Chili’s locations with undiscounted fixed payments over the initial term of $17.7 million. 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.

LEASES (Consolidated Statement of Comprehensive Income Disclosure of Lease Amounts) (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 28, 2023	Jun. 29, 2022	Jun. 30, 2021
Leases - Consolidated Statement of Comprehensive Income Disclosure of Lease Amounts [Abstract]
Operating lease cost	$ 181.0	$ 173.7	$ 167.2
Finance lease amortization	19.7	21.9	17.3
Finance lease interest	4.1	5.5	5.9
Short-term lease cost	0.3	0.6	0.5
Variable lease cost	63.5	60.5	57.9
Sublease income	(2.8)	(4.2)	(4.4)
Total lease costs, net	$ 265.8	$ 258.0	$ 244.4

DEBT (Long-Term Debt Maturities Excluding Finance Lease Obligations and Interest) (Details) $ in Millions	Jun. 28, 2023 USD ($)
Debt Disclosure [Abstract]
2024	$ 0.0
2025	350.0
2026	0.0
2027	161.3
2028	0.0
Thereafter	350.0
Total long-term debt maturities	$ 861.3

INCOME TAXES (Reconciliation Of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 28, 2023	Jun. 29, 2022
Income Tax Disclosure [Abstract]
Balance at beginning of year	$ 3.7	$ 4.3
Additions based on tax position related to the current year	0.4	0.3
Additions based on tax positions related to prior years	0.1
Decreases based on tax positions related to prior years		(0.1)
Settlements with tax authorities	0.0	(0.8)
Expiration of statute of limitations	(1.4)	0.0
Balance at end of year	$ 2.8	$ 3.7

OTHER GAINS AND CHARGES

12 Months Ended

Jun. 28, 2023

Other Gains and Charges [Abstract]

OTHER GAINS AND CHARGES

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


	Fiscal Years Ended
	June 28, 2023		June 29, 2022		June 30, 2021
Restaurant level impairment charges	$	12.1	$	8.5	$	3.0
Restaurant closure asset write-offs and charges	8.3		3.7		2.4
Enterprise system implementation costs	4.7		2.4		—
Severance and other benefit charges	3.7		—		0.5
Lease contingencies	2.0		3.1		2.2
Remodel-related asset write-off	1.1		4.9		2.3
Loss from natural disasters, net of (insurance recoveries)	0.8		1.1		2.9
Gain on sale of assets, net	(3.7)		—		(0.3)

Other	3.7		7.5		6.0
	$	32.7	$	31.2	$	19.0