Brinker International Inc.

08/19/2026 | Press release | Distributed by Public on 08/19/2026 14:13

Annual Report for Fiscal Year Ending June 24, 2026 (Form 10-K)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to help you understand our Company, our operations and our current operating environment. For an understanding of the significant factors that influenced our performance, the MD&A should be read in conjunction with the Consolidated Financial Statements and related Notes to Consolidated Financial Statements included in Part II, Item 8 - Financial Statements and Supplementary Data of this report. Our MD&A consists of the following sections:
•Overview - a brief description of our business and a discussion on the external trends impacting our business;
•Results of Operations - an analysis of the Consolidated Statements of Comprehensive Income included in the Consolidated Financial Statements;
•Liquidity and Capital Resources - an analysis of cash flows, including capital expenditures, aggregate contractual obligations, financing activity, and known trends that may impact liquidity, including off-balance sheet arrangements; and
•Critical Accounting Estimates - a discussion of accounting policies that require critical judgments and estimates, including recent accounting pronouncements.
The following MD&A includes a discussion comparing our results in fiscal 2026 to fiscal 2025. For a discussion comparing our results from fiscal 2025 to fiscal 2024, refer to Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended June 25, 2025, filed with the SEC on August 15, 2025.
The Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States, and include the accounts of Brinker International, Inc. and our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. 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 2026, Fiscal 2025, and Fiscal 2024 which ended on June 24, 2026, June 25, 2025, and June 26, 2024, respectively, each contained 52 weeks. All amounts within the MD&A are presented in millions unless otherwise specified.
OVERVIEW
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. Our two restaurant brands, Chili's and Maggiano's, are both operating segments. Refer to Part I, Item 1 - Business of this document for additional information about our business and operational strategies.
Operating Environment
Geopolitical tensions and broader macroeconomic pressures have led, and in the future may lead, to wage inflation, staffing challenges, product cost inflation (inclusive of tariffs), and/or supply chain disruptions. We may also experience supply chain disruptions resulting from adverse weather conditions, climate change, or other catastrophic events beyond our control. These events may impact our ability to obtain the products needed to support our operation and/or negatively affect consumer spending potentially reducing guest traffic and/or reducing the average amount guests spend in our restaurants.
RESULTS OF OPERATIONS
The following table sets forth selected operating data:
Fiscal Years Ended
June 24, 2026 June 25, 2025
Dollars
As a percentage(1)
Dollars
As a percentage(1)
Revenues
Company sales $ 5,750.9 99.0 % $ 5,335.3 99.1 %
Franchise revenues 56.5 1.0 % 48.9 0.9 %
Total revenues 5,807.4 100.0 % 5,384.2 100.0 %
Operating costs and expenses
Food and beverage costs 1,487.6 25.9 % 1,350.6 25.3 %
Restaurant labor 1,810.2 31.5 % 1,717.3 32.2 %
Restaurant expenses 1,426.7 24.8 % 1,333.9 25.0 %
Depreciation and amortization 218.7 3.8 % 206.6 3.8 %
General and administrative 235.7 4.1 % 222.0 4.1 %
Other (gains) and charges 8.6 0.1 % 41.8 0.8 %
Total operating costs and expenses 5,187.5 89.3 % 4,872.2 90.5 %
Operating income 619.9 10.7 % 512.0 9.5 %
Interest expenses 40.5 0.7 % 53.1 1.0 %
Other income, net (1.5) - % (1.1) - %
Income before income taxes 580.9 10.0 % 460.0 8.5 %
Provision for income taxes 93.9 1.6 % 76.9 1.4 %
Net income $ 487.0 8.4 % $ 383.1 7.1 %
(1)Food and beverage costs, Restaurant labor and Restaurant expenses are calculated based on a percentage of Company sales. All others are calculated as a percentage of Total revenues.
Revenues
Revenues are presented in two separate captions in the Consolidated Statements of Comprehensive Income to provide more clarity around Company-owned restaurant revenues and operating expenses trends:
•Company sales include revenues generated by the operation of Company-owned restaurants including food and beverage sales, net of discounts, delivery, gift card breakage, digital entertainment revenues, merchandise income, Maggiano's banquet service charge income, and are net of gift card discount costs from third-party gift card sales.
•Franchise revenues include royalties, franchise advertising fees, franchise and development fees, and other service fees.
The following is a summary of the change in Total revenues:
Total Revenues
Chili's Maggiano's Total Revenues
Fiscal year ended June 25, 2025 $ 4,882.9 $ 501.3 $ 5,384.2
Change from:
Comparable restaurant sales 440.4 (17.8) 422.6
Restaurant openings 33.5 0.4 33.9
Delivery service fee income 1.0 0.1 1.1
Gift card breakage 0.3 - 0.3
Digital entertainment revenues 0.2 - 0.2
Merchandise income 0.1 - 0.1
Gift card discounts (0.5) (0.1) (0.6)
Maggiano's banquet income(1)
- (12.5) (12.5)
Restaurant closures (12.8) (16.7) (29.5)
Company sales 462.2 (46.6) 415.6
Franchise revenues(2)
7.5 0.1 7.6
Fiscal year ended June 24, 2026 $ 5,352.6 $ 454.8 $ 5,807.4
(1)Maggiano's banquet income decreased primarily due to management's decision to substantially eliminate banquet service charges at the end of the first quarter of fiscal 2026.
(2)Franchise revenues increased primarily due to higher royalties. Our Chili's and Maggiano's franchisees generated sales of approximately $1,118.5 million and $17.1 million respectively in fiscal 2026 compared to $967.4 million and $16.9 million respectively in fiscal 2025.
The table below presents the percentage change in comparable restaurant sales and restaurant capacity for fiscal 2026 compared to fiscal 2025:
Comparable
Sales(1)
Price Impact
Mix-Shift Impact(2)
Traffic Impact
Restaurant Capacity(3)
Company-owned 8.1 % 4.4 % 1.2 % 2.5 % (0.3) %
Chili's 9.2 % 4.4 % 1.2 % 3.6 % (0.1) %
Maggiano's (3.9) % 5.0 % 0.4 % (9.3) % (3.1) %
Franchise(4)
8.6 %
U.S. 10.6 %
International 7.3 %
Chili's domestic(5)
9.4 %
System-wide(6)
8.2 %
(1)Comparable Restaurant Sales include all restaurants that have been in operation for more than 18 full months. Restaurants temporarily closed 14 days or more are excluded from Comparable Restaurant Sales. Percentage amounts are calculated based on the comparable periods year-over-year.
(2)Mix-Shift is calculated as the year-over-year percentage change in Company sales resulting from the change in menu items ordered by guests.
(3)Restaurant Capacity is measured by sales weeks and is calculated based on comparable periods year-over-year. No adjustments have been made to capacity for temporary closures.
(4)Franchise sales generated by franchisees are not included in Total revenues in the Consolidated Statements of Comprehensive Income; however, we generate royalty revenues and advertising fees based on franchisee revenues, where applicable. We believe presenting Franchise Comparable Restaurant Sales provides investors relevant information regarding total brand performance.
(5)Chili's domestic Comparable Restaurant Sales percentages are derived from sales generated by Company-owned and franchise-operated Chili's restaurants in the United States.
(6)System-wide Comparable Restaurant Sales are derived from sales generated by Chili's and Maggiano's Company-owned and franchise-operated restaurants.
Costs and Expenses
The following is a summary of the changes in Costs and Expenses:
Fiscal Years Ended Favorable (Unfavorable) Variance
June 24, 2026 June 25, 2025
Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales
Food and beverage costs $ 1,487.6 25.9 % $ 1,350.6 25.3 % $ (137.0) (0.6) %
Restaurant labor 1,810.2 31.5 % 1,717.3 32.2 % (92.9) 0.7 %
Restaurant expenses 1,426.7 24.8 % 1,333.9 25.0 % (92.8) 0.2 %
Depreciation and amortization 218.7 206.6 (12.1)
General and administrative 235.7 222.0 (13.7)
Other (gains) and charges 8.6 41.8 33.2
Interest expenses 40.5 53.1 12.6
Other income, net (1.5) (1.1) 0.4
As a percentage of Company sales:
•Food and beverage costs were unfavorable 0.6%, due to 0.9% of unfavorable commodity costs driven by meat and seafood and 0.8% of unfavorable menu item mix, partially offset by 1.1% of favorable menu pricing.
•Restaurant labor was favorable 0.7%, due to 1.4% of sales leverage and 0.2% lower manager bonus, partially offset by 0.4% of higher hourly labor, 0.3% of higher manager salaries, and 0.2% of higher health insurance.
•Restaurant expenses were favorable 0.2%, due to 1.3% of sales leverage, partially offset by 0.3% of higher advertising, 0.2% of higher delivery fees and to-go supplies, 0.2% of higher rent, 0.1% of higher repairs and maintenance, 0.1% of higher workers' compensation and general liability insurance, and 0.2% of higher other restaurant expenses.
Depreciation and amortization increased $12.1 million as follows:
Depreciation and Amortization
Fiscal year ended June 25, 2025 $ 206.6
Change from:
Additions for existing and new restaurant assets 44.9
Corporate assets 3.4
Finance leases 0.7
Retirements and fully depreciated restaurant assets (27.7)
Other(1)
(9.2)
Fiscal year ended June 24, 2026 $ 218.7
(1)Other decreased primarily due to accelerated depreciation in the prior year as a result of management's decision to abandon and replace certain equipment.
General and administrative expenses increased $13.7 million as follows:
General and Administrative
Fiscal year ended June 25, 2025 $ 222.0
Change from:
Payroll expenses 12.4
Corporate technology initiatives
5.1
Defined contribution plan employer expenses and other benefits 1.5
Stock-based compensation
1.1
Professional fees
(1.9)
Performance-based compensation
(6.8)
Other 2.3
Fiscal year ended June 24, 2026 $ 235.7
Other (gains) and charges consisted of the following (for further details refer to Note 13 - Other Gains and Charges within Part II, Item 8 - Financial Statements and Supplementary Data):
Fiscal Years Ended
June 24, 2026 June 25, 2025
Restaurant-level impairment charges $ 5.7 $ 4.6
Litigation & claims, net
3.4 22.4
Restaurant closure asset write-offs and charges 2.7 4.1
Severance and other benefit charges 1.7 2.4
Enterprise system implementation costs - 14.1
Lease contingencies - 1.7
Lease modification gain, net (3.7) (5.1)
Loss from natural disasters, net (of insurance recoveries) (2.2) (3.7)
Other, net 1.0 1.3
$ 8.6 $ 41.8
Interest expenses decreased $12.6 million primarily due to lower average outstanding debt balances.
Income Taxes
Fiscal Years Ended
June 24, 2026 June 25, 2025
Effective income tax rate 16.2 % 16.7 %
The change in the effective income tax rate from fiscal 2025 to fiscal 2026 is primarily due to excess tax benefits from stock based compensation. Refer to Note 9 - Income Taxes within Part II, Item 8 - Financial Statements and Supplementary Data for more information.
H.R. 1., also known as the One Big Beautiful Bill Act ("OBBBA"), was enacted on July 4, 2025. The legislation included several provisions that impact the timing and magnitude of certain tax deductions, including restoring 100% bonus depreciation for qualifying property. The Company has evaluated the impacts of the OBBBA, and the effects of these provisions have been incorporated into the accompanying financial statements.
Segment Results
Chili's Segment
Fiscal Years Ended Favorable (Unfavorable) Variance
June 24, 2026 June 25, 2025 Dollars %
Company sales $ 5,297.0 $ 4,834.8 $ 462.2 9.6 %
Franchise revenues 55.6 48.1 7.5 15.6 %
Total revenues $ 5,352.6 $ 4,882.9 $ 469.7 9.6 %
Chili's Total revenues increased 9.6% primarily due to favorable comparable restaurant sales driven by menu pricing, higher traffic, and favorable menu item mix. Refer to the Revenues section above for further details about Chili's revenues changes.
The following is a summary of the changes in Chili's operating costs and expenses:
Fiscal Years Ended Favorable (Unfavorable) Variance
June 24, 2026 June 25, 2025
Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales
Food and beverage costs $ 1,373.5 25.9 % $ 1,233.1 25.5 % $ (140.4) (0.4) %
Restaurant labor 1,662.0 31.4 % 1,561.4 32.3 % (100.6) 0.9 %
Restaurant expenses 1,280.0 24.2 % 1,187.8 24.6 % (92.2) 0.4 %
Depreciation and amortization 189.9 182.5 (7.4)
General and administrative 54.1 50.4 (3.7)
Other (gains) and charges 0.5 23.7 23.2
As a percentage of Company sales:
•Chili's Food and beverage costs were unfavorable 0.4%, due to 0.9% of unfavorable commodity costs driven by higher meat and seafood and 0.6% of unfavorable menu item mix, partially offset by 1.1% of favorable menu pricing.
•Chili's Restaurant labor was favorable 0.9%, due to 1.7% of sales leverage, 0.2% of lower manager bonus, and 0.1% of lower other labor expenses, partially offset by 0.5% of higher hourly labor, 0.4% of higher manager salaries, and 0.2% of higher health insurance.
•Chili's Restaurant expenses were favorable 0.4%, due to 1.7% of sales leverage, partially offset by 0.3% of higher advertising, 0.3% of higher delivery fees and to-go supplies, 0.2% of higher rent, 0.1% of higher
repairs and maintenance, 0.1% of higher workers' compensation and general liability insurance, and 0.3% of higher other restaurant expenses.
Chili's Depreciation and amortization increased $7.4 million as follows:
Depreciation and Amortization
Fiscal year ended June 25, 2025 $ 182.5
Change from:
Additions for new and existing restaurant assets 39.9
Finance leases 0.3
Retirements and fully depreciated restaurant assets (23.5)
Other(1)
(9.3)
Fiscal year ended June 24, 2026 $ 189.9
(1)Other decreased primarily due to accelerated depreciation in the prior year as a result of management's decision to abandon and replace certain equipment.
Chili's General and administrative increased $3.7 million as follows:
General and Administrative
Fiscal year ended June 25, 2025 $ 50.4
Change from:
Payroll expenses 2.5
Defined contribution plan employer expenses and other benefits 1.7
Stock-based compensation
0.4
Performance-based compensation
(2.1)
Other 1.2
Fiscal year ended June 24, 2026 $ 54.1
Chili's Other (gains) and charges consisted of the following (for further details, refer to Note 13 - Other Gains and Charges within Part II, Item 8 - Financial Statements and Supplementary Data):
Fiscal Years Ended
June 24, 2026 June 25, 2025
Litigation & claims, net $ 3.2 $ 20.0
Restaurant closure asset write-offs and charges 2.3 3.6
Restaurant-level impairment charges 0.3 4.6
Loss from natural disasters, net (of insurance recoveries) (2.1) (3.5)
Lease modification gain, net (2.6) (1.6)
Other (0.6) 0.6
$ 0.5 $ 23.7
Maggiano's Segment
Fiscal Years Ended Favorable (Unfavorable) Variance
June 24, 2026 June 25, 2025 Dollars %
Company sales $ 453.9 $ 500.5 $ (46.6) (9.3) %
Franchise revenues 0.9 0.8 0.1 12.5 %
Total revenues $ 454.8 $ 501.3 $ (46.5) (9.3) %
Maggiano's Total revenues decreased 9.3% primarily due to unfavorable comparable restaurant sales and unfavorable impact of restaurant closures, including one closure due to relocation. Unfavorable comparable restaurant sales was driven by lower traffic partially offset by menu pricing and favorable menu item mix. Refer to the Revenues section above for further details about Maggiano's revenues changes.
The following is a summary of the changes in Maggiano's operating costs and expenses:
Fiscal Years Ended Favorable (Unfavorable) Variance
June 24, 2026 June 25, 2025
Dollars % of Company Sales Dollars % of Company Sales Dollars % of Company Sales
Food and beverage costs $ 114.1 25.1 % $ 117.5 23.5 % $ 3.4 (1.6) %
Restaurant labor 148.2 32.7 % 155.9 31.2 % 7.7 (1.5) %
Restaurant expenses 145.8 32.1 % 145.3 29.0 % (0.5) (3.1) %
Depreciation and amortization 17.8 14.6 (3.2)
General and administrative 6.7 9.7 3.0
Other (gains) and charges 5.7 (1.8) (7.5)
As a percentage of Company sales:
•Maggiano's Food and beverage costs were unfavorable 1.6%, due to 1.4% of unfavorable menu item mix and 1.2% of unfavorable commodity costs driven by meat and seafood, partially offset by 1.0% of favorable menu pricing.
•Maggiano's Restaurant labor was unfavorable 1.5%, due to 1.7% of sales deleverage, 0.2% of higher health insurance, and 0.3% of higher other labor expenses, partially offset by 0.5% of lower hourly labor and 0.2% of lower manager bonus.
•Maggiano's Restaurant expenses were unfavorable 3.1%, due to 2.0% of sales deleverage, 0.5% of higher delivery fees and to-go supplies, 0.3% of higher advertising, 0.3% higher pre-opening, 0.2% of higher repairs and maintenance, and 0.1% of higher workers' compensation and general liability insurance, partially offset by 0.3% of lower other restaurant expenses.
Maggiano's Other (gains) and charges consisted of the following (for further details, refer to Note 13 - Other Gains and Charges within Part II, Item 8 - Financial Statements and Supplementary Data):
Fiscal Years Ended
June 24, 2026 June 25, 2025
Restaurant-level impairment charges $ 5.4 $ -
Severance and other benefit charges 1.0 1.1
Restaurant closure asset write-offs and charges 0.4 0.5
Lease modification gain, net (1.1) (3.5)
Other - 0.1
$ 5.7 $ (1.8)
CRITICAL ACCOUNTING ESTIMATES
Our significant accounting policies are disclosed in Note 1 - Nature of Operations and Summary of Significant Accounting Policies in Part II, Item 8 - Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements. The following discussion addresses our most critical accounting estimates, which are those that are most important to the portrayal of our financial condition and results, and that require significant judgment.
Gift Card Revenues Recognition
Proceeds from the sale of gift cards are recorded as deferred revenues and recognized as revenues when the gift cards are redeemed by the holders. Breakage income represents the value associated with the portion of gift cards sold that will most likely never be redeemed and is estimated based on our historical gift card redemption patterns and actuarial estimates. Breakage revenues are recognized proportionate to the pattern of related gift card redemptions. We recognize breakage income in Company sales in the Consolidated Statements of Comprehensive Income. We update our breakage rate estimate periodically and, if necessary, adjust the deferred revenues balance accordingly. If actual redemption patterns vary from our estimate, actual gift card breakage income may differ from the amounts recorded.
Valuation of Long-Lived Assets
We evaluate long-lived assets, such as property, equipment, and lease assets for impairment, whenever events or circumstances indicate that the carrying amount of a restaurant may not be recoverable. For purposes of this evaluation, we define the asset group at the individual restaurant level. When we evaluate the restaurants, cash flows are the primary indicator of impairment. Recoverability of assets to be held and used is measured by comparing the operating cash flows of each restaurant (asset group) over its remaining service life to the carrying value of the asset group. If the cash flows exceed the carrying value, then the asset group is not impaired, and no further evaluation is required. If the carrying value of the asset group exceeds its cash flows, impairment may exist. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value of the asset group. This process requires the use of estimates and assumptions, which are subject to a high degree of judgment.
Effect of New Accounting Standards
The impact of new accounting pronouncements can be found at Note 1 - Nature of Operations and Summary of Significant Accounting Policies in Part II, Item 8 - Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements.
LIQUIDITY AND CAPITAL RESOURCES
Our principal sources of liquidity are net cash provided by operating activities and borrowings if any, under our $1.0 billion revolving credit facility as further discussed below. Our main requirements for liquidity are to support our working capital, capital expenditures for new and existing restaurants, obligations under our operating leases, and interest payments on our debt. Our operations have typically not required significant working capital. Substantially all of our sales are tendered in cash and cash equivalents, which are received before related trade payables for food and beverage products, supplies, labor and services become due.
Changes in our cash flows from operating, investing and financing activities during fiscal 2026 compared to fiscal 2025 are outlined below.
Cash Flows from Operating Activities
Fiscal Years Ended Favorable (Unfavorable) Variance
June 24, 2026 June 25, 2025
Net cash provided by operating activities $ 789.4 $ 679.0 $ 110.4
Net cash provided by operating activities increased due to an increase in operating income and a decrease in interest paid, partially offset by an increase in payments of performance-based compensation and the timing of other operational receipts and payments.
Cash Flows from Investing Activities
Fiscal Years Ended Favorable (Unfavorable) Variance
June 24, 2026 June 25, 2025
Net cash used in investing activities $ (231.0) $ (263.4) $ 32.4
Net cash used in investing activities decreased primarily due to decreased spend on restaurant and IT equipment and capital maintenance, partially offset by increased spend on both Chili's and Maggiano's re-images.
Cash Flows from Financing Activities
Fiscal Years Ended Favorable (Unfavorable) Variance
June 24, 2026 June 25, 2025
Net cash used in financing activities $ (467.3) $ (461.3) $ (6.0)
Net cash used in financing activities increased slightly due to an increase in share repurchase activity in fiscal 2026 and a decrease in proceeds received from stock option exercises, partially offset by a decrease in net repayments of long-term debt primarily due to the payoff of our $350.0 million 5.00% notes in the prior year.
Debt
The $1.0 billion revolving credit facility matures on May 1, 2030 and bears interest at a rate of SOFR plus an applicable margin of 1.25% to 2.00% and an undrawn commitment fee of 0.20% to 0.30%, both based on a function of our debt-to-cash-flow ratio. As of June 24, 2026, our interest rate was 4.90% consisting of SOFR of 3.65% plus the applicable margin of 1.25%. As of June 24, 2026, the revolving credit facility had $969.9 million available, net of a $30.1 million letter of credit, pledged as collateral on insurance policies.
The outstanding $350.0 million 8.25% notes are due July 15, 2030 (fiscal 2031), with semi-annual interest payments on January 15 and July 15. The notes are callable as of July 15, 2026 at the Company's option, at a redemption price equal to 100.0% of the principal amount redeemed plus an applicable premium if redeemed prior to July 15, 2028, and accrued and unpaid interest.
On June 16, 2026, we issued a notice of redemption for all of our outstanding 8.25% notes and subsequent to the end of the fiscal year, on July 15, 2026, the notes were redeemed at a redemption price equal to the sum of 104.125% of the principal amount plus accrued and unpaid interest, for a total cash outflow of $378.9 million. The payoff was funded with borrowings from the revolving credit facility.
As of June 24, 2026, we were in compliance with our covenants pursuant to the $1.0 billion revolving credit facility. Refer to Note 7 - Debt within Part II, Item 8 - Financial Statements and Supplementary Data for further information about our notes and revolving credit facility.
Acquisition
On June 1, 2026, we executed an asset purchase agreement with a franchisee for the acquisition of 12 Chili's restaurants located in Alabama and Mississippi, including the real estate for six of the locations. The transaction is
expected to close on August 27, 2026 for a purchase price of approximately $27.5 million, and will be funded with availability under our existing revolving credit facility.
Share Repurchase Program
Our share repurchase program is used to return capital to shareholders and to minimize the dilution to our shares outstanding that results from equity compensation grants. We evaluate potential share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, proceeds from divestitures, borrowings and planned investment and financing needs.
During the first quarter of fiscal 2026, our Board of Directors authorized an additional $400.0 million under our existing share repurchase program. Utilizing the increased availability, the Company repurchased 2.9 million shares of our common stock for $400.0 million during fiscal 2026. As of June 24, 2026, we had $107.0 million of authorized repurchases remaining under the share repurchase program.
Subsequent to end of the fiscal year, we repurchased an additional 0.4 million shares of our common stock for $75.0 million, reducing the amount available for share repurchases to $32.0 million. On August 10, 2026, our Board of Directors approved an increase in authorized share repurchases, bringing the total to $750.0 million.
Dividend Program
There were no dividends declared in fiscal 2026 or fiscal 2025. The Company's decision to pay dividends in the future is at the discretion of the Board of Directors and will be dependent on our operating performance, financial condition, capital expenditure requirements, limitations on cash distributions pursuant to the terms and conditions of our revolving credit facility and applicable law, and such other factors that the Board of Directors considers relevant.
Cash Flow Outlook
Geopolitical tensions and broader macroeconomic pressures have contributed, and may continue to contribute, to wage inflation, labor availability challenges, product cost increases (including the impact of tariffs), and supply chain disruptions. Additionally, adverse weather events, climate change, and other unforeseen circumstances outside of our control may strain our supply chain, potentially limiting our ability to source necessary products and adversely affecting consumer spending patterns. We continually monitor our operating environment and remain prepared to adapt our capital allocation strategy, including share repurchase activity, in response to evolving market conditions. Our ongoing priorities include strong cash flow generation and preserving a sound, flexible financial foundation to support the long-term execution of our business investment strategy.
Given our current level of operations, we believe that existing cash and cash equivalents, together with cash flows from operations and available borrowing capacity under our revolving credit facility, will be sufficient to fund our capital expenditure and working capital requirements for at least the next twelve months, including the settlement of current debt obligations.
Future Commitments and Contractual Obligations
Payments due under our long-term contractual obligations for finance and operating leases and certain purchase obligations as of June 24, 2026 are as follows:
Payments Due by Period
Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Total
Finance leases(1)
$ 29.9 $ 42.8 $ 19.1 $ 24.0 $ 115.8
Operating leases(1)
192.7 356.6 337.8 939.0 1,826.1
Purchase obligations(2)
40.8 35.3 0.2 - 76.3
(1)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.
(2)Our purchase obligations primarily consist of long-term obligations for media and software contracts, and exclude agreements that are cancellable without significant penalty.
Off-Balance Sheet Arrangements
We have entered into certain pre-commencement leases as disclosed in Note 6 - Leases and have obligations for guarantees on certain lease agreements and letters of credit as disclosed in Note 8 - Commitments and Contingencies included within Part II, Item 8 - Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements of this Annual Report on Form 10-K.
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