Brinker International (EAT) risk factors, FY2025 10-K

Strategic and Operational Risks

1. 01If we are unable to successfully design and execute a business strategy plan, our gross sales and profitability may be adversely affected
2. 02Changes in consumer preferences may decrease demand for food at our restaurants
3. 03Food safety incidents at our restaurants or in our industry or supply chain may adversely affect customer perception of our brands or industry and result in declines in sales and profits
4. 04Unfavorable publicity relating to one or more of our restaurants in a particular brand may affect public perception of the brand
5. 05We face risks related to our ability to continue to grow sales through delivery orders and digital commerce
6. 06Loss of key management personnel could hurt our business and limit our ability to operate and grow successfully
7. 07Failure to recruit, train and retain high-quality restaurant management and team members may result in lower guest satisfaction and lower sales and profitability
8. 08Our results can be adversely affected by events, such as adverse weather conditions, natural disasters, climate change, pandemics or other catastrophic events
9. 09The large number of Company-owned restaurants concentrated in Texas, Florida and California makes us susceptible to changes in economic and other trends in those regions
10. 10The operational success of our franchise system is important to our business and future international growth
11. 11constraints; franchisee failures to meet obligations to pay employees; and franchisee failures to comply with food quality and preparation requirements
12. 12Failure to protect our service marks or other intellectual property could harm our business
13. 13We outsource certain business processes to third-party vendors that subject us to risks, including disruptions in business and increased costs
14. 14Corporate responsibility matters, including those related to climate change and sustainability, may have an adverse effect on our business, financial condition, and operating results and may damage our reputation

Macroeconomic and Industry Risks

1. 15Competition may adversely affect our operations and financial results
2. 16A failure to identify and execute innovative marketing and guest engagement tactics, ineffective or improper use of other marketing initiatives, and increased advertising and marketing costs could adversely affect our results of operations
3. 17Our business could be adversely affected by our inability to respond to or effectively manage social media
4. 18Global and domestic economic conditions negatively impact consumer discretionary spending and our business operations and could have a material negative effect on our financial performance
5. 19General economic conditions, including inflation and fluctuations in energy costs, and changes in U.S. or global trade policy may continue to increase our operating expenses
6. 20Shortages or interruptions in the availability and delivery of food and other products may increase costs or reduce revenues
7. 21Information and Technology Related Risks
8. 22We are dependent on information technology and any material failure in the operation or security of that technology or our ability to execute a comprehensive business continuity plan could impair our ability to efficiently operate our business

Financial Risks

1. 23Downgrades in our credit ratings could impact our ability to access capital and materially adversely affect our business, financial condition and results of operations
2. 24Declines in the market price of our common stock or changes in other circumstances that may indicate an impairment of goodwill could adversely affect our financial position and results of operations
3. 25Changes to estimates related to our property and equipment, or operating results that are lower than our current estimates at certain restaurant locations, may cause us to incur impairment charges on certain long-lived assets

Legal and Regulatory Risks

1. 26Litigation could have a material adverse impact on our business and our financial performance
2. 27Our business and operation could be negatively affected if we become subject to any securities litigation or shareholder activism, which could cause us to incur significant expenses, hinder execution of investment strategy and impact our stock price
3. 28Employment and labor laws and regulations have increased, and in the future may further increase, the cost of labor for our restaurants
4. 29Governmental regulation may adversely affect our ability to maintain our existing and future operations and to open new restaurants
5. 30Changes in tax laws and unanticipated tax liabilities could adversely affect the taxes we pay and our profitability
6. 31Failure to achieve and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and stock price
7. 32Other risk factors may adversely affect our financial performance