What the changes say
- Food-safety risk now specifically includes allergen cross-contamination, while prior references to health concerns and reduced demand for menu items were removed.
- Catastrophe risk expands to delivery-order disruption, supply-chain impacts, higher costs, and potentially more frequent climate-related severe weather.
- Company-owned restaurant concentration in Texas increased from 18.9% to 19.2%; labor shortages are described as limited to certain markets.
- Two risks were dropped: international franchisee-specific exposures and social-media platform risks.
What changed since the prior 10-K
Dropped
- DroppedStrategic and Operational Risks
constraints; franchisee failures to meet obligations to pay employees; and franchisee failures to comply with food quality and preparation requirements
- DroppedMacroeconomic and Industry Risks
Our business could be adversely affected by our inability to respond to or effectively manage social media
Reworded
- 62% rewrittenStrategic and Operational Risks
Food 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
Adds allergen cross-contamination and says incidents may be inaccurate; removes health concerns and reduced demand for particular menu offerings.
- 59% rewrittenStrategic and Operational Risks
The operational success of our franchise system is important to our business and future international growth
Retains the 29.0% franchise ownership figure and international-growth dependence, with no substantive change beyond wording.
- 56% rewrittenMacroeconomic and Industry Risks
A 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
Removes explicit failures to innovate or develop guest-relationship initiatives, while adding that marketing may be negatively perceived.
- 56% rewrittenStrategic and Operational Risks
Unfavorable publicity relating to one or more of our restaurants in a particular brand may affect public perception of the brand
Adds poor customer service and team-member publicity, and says social-media activity could increase costs or cause litigation; removes the explicit speed-of-dissemination point.
- 53% rewrittenStrategic and Operational Risks
Our results can be adversely affected by adverse weather conditions, natural disasters, climate change, pandemics or other catastrophic events
Adds possible delivery-order disruption, supply-chain disruption, and higher costs, and says climate change may increase severe-weather frequency.
Was: Our results can be adversely affected by events, such as adverse weather conditions, natural disasters, climate change, pandemics or other catastrophic events
- 50% rewrittenFinancial Risks
Changes 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
Removes the specific disclosure that fiscal 2025 included $4.6 million of long-lived-asset and liquor-license impairment charges.
- 48% rewrittenStrategic and Operational Risks
Failure to recruit, train and retain high-quality restaurant management and team members may result in lower guest satisfaction, sales and profitability
Narrows labor-recruiting challenges from ongoing broad market pressure to potential challenges in limited markets.
Was: Failure to recruit, train and retain high-quality restaurant management and team members may result in lower guest satisfaction and lower sales and profitability
- 47% rewrittenStrategic and Operational Risks
The large number of Company-owned restaurants concentrated in certain states makes us susceptible to changes in economic and other trends in those regions
Texas concentration rose from 18.9% to 19.2% as of June 24, 2026; hurricanes were added to regional disaster examples.
Was: The 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
- 46% rewrittenLegal and Regulatory Risks
Employment and labor laws and regulations have increased, and in the future may further increase, the cost of labor for our restaurants
- 43% rewrittenStrategic and Operational Risks
Changes in consumer preferences may decrease demand for food at our restaurants
- 41% rewrittenLegal and Regulatory Risks
Other risk factors may adversely affect our financial performance
- 40% rewrittenStrategic and Operational Risks
Corporate 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
- 36% rewrittenMacroeconomic and Industry Risks
General 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
- 32% rewrittenLegal and Regulatory Risks
Our business and operations 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
Was: Our 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
- 28% rewrittenMacroeconomic and Industry Risks
Competition may adversely affect our operations and financial results
All 30 risk factors
Headings as the filing states them, in filing order.
Strategic and Operational Risks
- 01If we are unable to successfully design and execute our business strategy plan, our gross sales and profitability may be adversely affected
- 02Changes in consumer preferences may decrease demand for food at our restaurants43% rewritten
- 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 profits62% rewritten
- 04Unfavorable publicity relating to one or more of our restaurants in a particular brand may affect public perception of the brand56% rewritten
- 05We face risks related to our ability to continue to grow sales through delivery orders and digital commerce
- 06Loss of key management personnel could hurt our business and limit our ability to operate and grow successfully
- 07Failure to recruit, train and retain high-quality restaurant management and team members may result in lower guest satisfaction, sales and profitability48% rewritten
- 08Our results can be adversely affected by adverse weather conditions, natural disasters, climate change, pandemics or other catastrophic events53% rewritten
- 09The large number of Company-owned restaurants concentrated in certain states makes us susceptible to changes in economic and other trends in those regions47% rewritten
- 10The operational success of our franchise system is important to our business and future international growth59% rewritten
- 11Failure to protect our service marks or other intellectual property could harm our business
- 12We outsource certain business processes to third-party vendors, subjecting us to risks, including disruptions in business and increased costs
- 13Corporate 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 reputation40% rewritten
Macroeconomic and Industry Risks
- 14Competition may adversely affect our operations and financial results28% rewritten
- 15A 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 operations56% rewritten
- 16Global and domestic economic and geopolitical conditions may negatively impact consumer discretionary spending and our business operations and could have a material negative effect on our financial performance
- 17General economic conditions, including inflation and fluctuations in energy costs, and changes in U.S. or global trade policy may continue to increase our operating expenses36% rewritten
- 18Shortages or interruptions in the availability and delivery of food and other products may increase costs or reduce revenues
- 19Information and Technology Related Risks
- 20We 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
- 21Downgrades in our credit ratings could impact our ability to access capital and materially adversely affect our business, financial condition and results of operations
- 22Declines 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
- 23Changes 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 assets50% rewritten
Legal and Regulatory Risks
- 24Litigation could have a material adverse impact on our business and our financial performance
- 25Our business and operations 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 price32% rewritten
- 26Employment and labor laws and regulations have increased, and in the future may further increase, the cost of labor for our restaurants46% rewritten
- 27Governmental regulation may adversely affect our ability to maintain our existing and future operations and to open new restaurants
- 28Changes in tax laws and unanticipated tax liabilities could adversely affect the taxes we pay and our profitability
- 29Failure 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
- 30Other risk factors may adversely affect our financial performance41% rewritten
Other Brinker International 10-Ks
- FY2025 10-K risk factors32 risks
Geographic concentration in Texas, Florida, and California creates regional exposure to economic and regulatory changes. Heavy reliance on labor and food supply chains introduces continuous cost and inflation pressures. Information technology failures or cybersecurity breaches pose major operational and reputational risks.
Filed Aug 15, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.