Financial Data and Key Metrics Changes - In Q4, Chili's same store sales increased by 24%, outperforming the casual dining industry by 189 basis points, with a two-year comp of 39% [6][7] - Total revenue for the year grew by 21.9%, surpassing $5 billion for the first time, with adjusted EPS growth of 117.1% [38][39] - Restaurant operating margin improved from 11.9% in fiscal 2022 to 17.6% in fiscal 2025 [8][14] Business Line Data and Key Metrics Changes - Chili's reported top line sales growth with comps at 23.7%, driven by positive traffic of 16.3%, mix of 4.7%, and price of 2.7% [39] - Maggiano's reported comp sales for the quarter of negative 0.4% [40] Market Data and Key Metrics Changes - Chili's average annual volumes increased from $3.6 million to over $4.5 million [38][14] - The company has seen a significant increase in marketing investment from $32 million in fiscal 2022 to $137 million in fiscal 2025 [17] Company Strategy and Development Direction - The company is focused on a turnaround strategy that emphasizes food, service, and atmosphere, with a streamlined menu and improved operational efficiency [13][19] - Plans for fiscal 2026 include a full year of the ribs upgrade, new frozen margarita offerings, and a major relaunch of the chicken sandwich platform [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth momentum, with expectations for continued positive same store sales and traffic [46][47] - The company plans to ramp up reimaging programs for both Chili's and Maggiano's, aiming for a 10% annual refresh rate [24][90] Other Important Information - The company has paid down over $570 million of outstanding debt in the past three years, achieving a lease adjusted leverage ratio of 1.7 [18][44] - A new Vice President of Restaurant Development has been appointed to lead reimaging and new restaurant openings [25] Q&A Session Summary Question: Comments on restaurant margins and Maggiano's turnaround - Management clarified that margin expansion is expected to be in the range of 30 to 40 basis points, with some inflation in the cost of sales [51][52] - The turnaround for Maggiano's will focus on enhancing the guest experience based on core customer preferences [54][56] Question: Update on growth targets and marketing investment - Management indicated that while growth targets remain relevant, there may be updates as new unit growth ramps up [60][62] - Marketing investment is set at about 3% of total revenues, with plans for incremental increases [66][68] Question: Expectations for same store sales components in FY 2026 - Price increases are expected to be closer to 3% in FY 2026, with mix planned to be flat and positive traffic anticipated [75][78] - The company is focused on maintaining industry-leading value while managing pricing strategies [74][76] Question: Insights on new customer dynamics - The company is experiencing growth across all income levels, with frequency of visits remaining stable among new customers [83][84] Question: Details on STORE reimage plans - The company plans to reimage four restaurants initially, with evaluations to inform future investments and sales lift expectations [89][90]

Financial Data and Key Metrics Changes - In Q4, Chili's same store sales increased by 24%, outperforming the casual dining industry by 189 basis points, following a 15% increase in the same quarter last year, resulting in a two-year comp of 39% [5][36] - Total revenue for the year grew by 21.9%, surpassing $5 billion for the first time, with adjusted EPS growth of 117.1% [36][41] - Restaurant operating margin improved from 11.9% in fiscal 2022 to 17.6% in fiscal 2025 [6][13] Business Line Data and Key Metrics Changes - Chili's reported top line sales growth with comps at 23.7%, driven by positive traffic of 16.3%, positive mix of 4.7%, and price increase of 2.7% [37] - Maggiano's reported comp sales for the quarter of negative 0.4%, indicating challenges in that segment [38] Market Data and Key Metrics Changes - Chili's has consistently outperformed the casual dining industry for seven consecutive quarters in terms of traffic [6] - The average annual volume (AUV) at Chili's increased from $3.6 million to over $4.5 million [36][41] Company Strategy and Development Direction - The company is focused on a turnaround strategy that emphasizes food, service, and atmosphere, with a streamlined menu and improved operational efficiency [12][18] - Plans for fiscal 2026 include continued investment in marketing, menu management, and a barbell pricing strategy to maintain value while offering premium options [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth, with expectations for continued positive same store sales and traffic above industry averages [36][44] - The company plans to ramp up reimaging programs for both Chili's and Maggiano's, aiming for a 10% annual refresh rate of restaurants [22][88] Other Important Information - The company has significantly improved its balance sheet, repaying over $570 million in debt over the past three years, resulting in a lease adjusted leverage ratio of 1.7 [16][41] - A new Vice President of Restaurant Development has been appointed to lead reimaging and new restaurant openings [23] Q&A Session Summary Question: Insights on restaurant margins and Maggiano's turnaround - Management clarified that margin expansion is expected to be around 30 to 40 basis points, with some inflation in the cost of sales line [50][51] - The turnaround for Maggiano's will focus on core guest preferences, emphasizing food quality and service [53] Question: Future growth targets and marketing investments - Management indicated that while the current growth targets remain relevant, there may be updates as new unit growth ramps up [59][61] - Marketing investments will continue to be around 3% of total revenues, with plans for new value messaging [66][68] Question: Expectations for same store sales components - Pricing is expected to be closer to 3% in fiscal 2026, with flat mix and positive traffic anticipated [75][81] - The company is seeing growth across all income levels, maintaining frequency among new guests [82][83] Question: STORE Reimage plans - The company plans to reimage four restaurants initially, with evaluations to inform future investments and expected sales lifts [87][89]