Brinker International, Inc. Investor Day 2026

Hello. Good morning, everyone, and welcome to the 2026 Brinker International Investor Day meeting. My name is Kim Sanders, and I am the VP of Investor Relations. First of all, I want to thank everyone that traveled here to Dallas today to be here live at our restaurant support center. I would also like to extend a warm welcome to everyone that is joining us online. A couple of housekeeping items before we get started. First of all, we will have a couple of breaks today, but please feel free, if you need to get up, have a bathroom break. The bathrooms are just right outside this room. The next thing I want to do is tell you about the great day that we have planned today. It is going to be a wonderful day.

First of all, we are going to have our senior leadership team walk you through our long-term corporate strategy, initiatives, and outlook. We will have plenty of time for Q&A. Those of you who are here in Dallas are going to get the opportunity to join us for lunch downstairs in the demo dining and the test kitchen, and we are going to try some delicious Chili's food that you are going to hear about in just a little bit. Before we head over to our Tarrant Parkway Chili's, where you are going to be able to see some of the reimage elements and throughput initiatives come to life. Next, I would like to introduce you to our executive leadership team here at Brinker. Our presenters for the day are Kevin Hochman, President and Chief Executive Officer. George Felix, our Executive Vice President and Chief Marketing Officer.

We have Aaron White, our Executive Vice President and Chief Operating and People Officer, and Mika Ware, our Executive Vice President and Chief Financial Officer. Now, I also want to introduce you to the rest of our executive leadership team, who you will get the opportunity to interact with today. First, we have James Butler, who is our Chief Supply Chain and Corporate Strategy Officer. Chris Caldwell, our Chief Information Officer. We have Doug Comings, Chief Operating Officer for Chili's. Dan Fuller, our Chief Legal Officer, Jeremy Linker, our SVP of Brand Finance, and then also Laura White, our SVP of Peopleworks. You guys know, before we get started, it is my job also to remind you of our safe harbor statement. Luckily, Dan is not going to make me read this entire thing on the screen.

You can take a look at that for yourself, but I will remind you that during these presentations, and in response to your questions, certain items may be discussed which are not based entirely on historical facts. Any such items should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as amended. Now that we have got that business out of the way, we are going to go ahead and get started. I would like to welcome to the stage Kevin Hochman.

Thank you, Kim. I am so excited that you are all here, and those online, to hear about our next chapter of growth. Just a little bit about myself. I have been with our company about four and a half years. I started my career in 1995 with Procter & Gamble. It is a consumer products firm where you learn a lot about brand building, and you learn a lot about leadership. After 18 years there, I had the fortunate opportunity to join Yum! Brands, where I spent eight years in a variety of marketing and president roles, where you learn how to run a large multi-unit restaurant concept, and you learn from some of the most amazing restaurant leaders in our industry.

Fortunately for me, the board chose me to run this company in June of 2022, and I got to tell you, this has been my career hallmark. This is an amazing company with amazing culture, amazing people, world-class brands, and it has been a whole lot of fun getting back to winning again with Chili's. A lot of the old-timers tell us it feels like when we were growing exponentially when we were a startup brand, but it feels like that today. We are now in year five of our Invest to Grow strategy, and we have had great results, but more importantly, we are a completely different company than we were the last time we were here at Investor Day three and a half years ago. We have a clear track record of winning now.

We have a strong, differentiated foundation and capabilities built that I would argue is very difficult for our competitors to challenge, and we have clear growth drivers to sustain growth over time ahead. I know there are a lot of questions in this room and online and in the investment community of how have they been able to have these remarkable results? There are probably even more questions about how are they going to continue to sustain these remarkable results? I hope that you leave here today with clear understanding on both questions. How have we been able to deliver such remarkable results that people thought not possible? What are the drivers of sustained growth, and what are the initiatives that we have put in place that will continue to sustain growth for many, many years to come?

Lastly, I hope you leave with an understanding, after Mika takes you through our long-term targets, with the same confidence that our leadership team has of being able to meet or exceed those targets over time. Let us get started. Oh, I missed the welcome slide. There you go. This is a slide about basically telling you an overview of our company. There are two things that are important to know about this slide. Number one, Chili's is 93% of sales and is 97% of profits. The second important thing is, within Chili's, we make most of our sales and our money on equity-owned restaurants in the U.S. So we are going to spend the bulk of our time today talking about equity restaurants in the U.S. Okay? We'll touch on some of the other things a little bit, but the vast majority of sales and profits come from those restaurants, and that's what we're going to focus on.

We've made incredible progress since our last Investor Day, which was in June of 2023. There's two things I think that are important on this slide to note. One is our success has been driven by driving same-store sales and driving Chili's AUVs. In the last three years, in this snapshot, we went from a little over $3 million AUVs to $5 million, and that has driven both the top line and the bottom line. You can see the restaurant operating margin improving by 660 basis points. Part of that is simplification. A bigger part of that is driving AUVs. We're able to drive the top line through traffic and getting guests to repeat, right?

But the bottom line is also spinning a lot faster because it's AUV driven versus some other way driven, right? And that's why you can see EPS is almost triple over that time. The other thing I think is important to note about when we look back at our results is every quarter and every year, what's the number one question our management team gets? How are you possibly going to comp the comp, right? "Oh, you did a +30. You did a +20. You did a +12. How are you going to comp the comp?" We're going to go deep on that today. You're going to have a real understanding of how we're able to sustain traffic. The key thing on this slide that you're looking at is it's a pretty straight slope line up and to the right.

Our cumulative growth rates are pretty consistent. And I think when we give you a look under the hood, it's going to be really clear why we've been able to sustain traffic, and that will be the foundation for our initiatives going forward to sustain growth. Here's the thing I get excited about as an investor in our company, someone that owns a lot of stock. This is a very unique restaurant company to be investing in. Because we have all of the strengths of a very successful legacy brand now, but we have a lot of the upside of the new brands that you cover that you're so excited about. So established brand strength. We are a legacy brand. We have broad awareness. That's the number one challenge in chain restaurants nationwide. Do you have broad awareness? Everybody knows Chili's, right? We have a clear brand positioning.

People know us for certain things, so we stand out of a sea of sameness, right? And then lastly, we have incredibly strong four-wall economics and AUVs now. That gives us a lot of opportunities to do some things differently. But we also have new brand upside. And there's two things to think about this. Number one, and you'll feel this in the building here today, you'll see this from our presenters, there is new energy in this business. We have fresh thinking. We have a growth mindset culture. And that is something you typically see with upstart brands that you don't see with legacy brands. And then the second thing is we have a whole generation of guests that have not been introduced to Chili's, right?

Everybody's like, "Oh, how many more new guests can you bring in?" The answer is a whole lot more new guests. You're going to see that in the data when we provide. This is a very unique investor proposition that you typically don't see in restaurants. Let's get started with the agenda. We're going to start with what we've been able to accomplish the last few years to have an understanding of the foundation of this new strategy's been built on. I was on this stage about three and a half years ago. This is a slide that we used. We talked about this was based on our turnaround strategy, right? We talked about what are the things that we're going to do in order to transform this business, right?

I'm not going to touch on all of them, but I'll give you a couple of examples, the ones that touch the four walls, so you have an understanding, a recap of what we've been able to do in the last four years. Number one, menu. We talked about the need to simplify. We simply had too many things for the amount of labor that we could afford. We've cut about 30% of SKUs now, right? Why do restaurant companies not cut SKUs? Because you lose sales, right? That's all behind us now, and we've been able to grow sales while we cut SKUs, right? The second is operations. In addition to additional simplification besides getting rid of menu items, right? We got rid of a lot of process, a lot of administration, a lot of prep steps.