Chili's 2008 Annual Report Download - page 23

Unfavorable publicity relating to one or more of our restaurants in a particular brand may taint
public perception of the brand.
Multi-unit restaurant businesses can be adversely affected by publicity resulting from poor food
quality, illness or health concerns or operating issues stemming from one or a limited number of
restaurants. In particular, since we depend heavily on the Chili’s brand for a majority of our revenues,
unfavorable publicity relating to one or more Chili’s restaurants could have a material adverse effect on
the Chili’s brand, and consequently on our business, financial condition and results of operations.
Identification of material weakness in internal control may adversely affect our financial results.
We are subject to the ongoing internal control provisions of Section 404 of the Sarbanes-Oxley Act of
2002. Those provisions provide for the identification of material weaknesses in internal control. If such a
material weakness is identified, it could indicate a lack of adequate controls to generate accurate financial
statements. We routinely assess our internal controls, but we cannot assure you that we will be able to
timely remediate any material weaknesses that may be identified in future periods, or maintain all of the
controls necessary for continued compliance. Likewise, we cannot assure you that we will be able to retain
sufficient skilled finance and accounting team members, especially in light of the increased demand for
such individuals among publicly traded companies.
Other risk factors may adversely affect our financial performance.
Other risk factors that could cause our actual results to differ materially from those indicated in the
forward-looking statements by affecting, among many things, pricing, consumer spending and consumer
confidence, include, without limitation, changes in economic conditions and financial and credit markets
(including rising interest rates and costs for consumers and reduced disposable income), credit availability,
increased costs of food commodities, increased fuel costs and availability for our team members, customers
and suppliers, health epidemics or pandemics or the prospects of these events (such as reports on avian
flu), consumer perceptions of food safety, changes in consumer tastes and behaviors, governmental
monetary policies, changes in demographic trends, availability of employees, terrorist acts, energy
shortages and rolling blackouts, and weather (including, major hurricanes and regional winter storms) and
other acts of God.
Item 1B. UNRESOLVED STAFF COMMENTS.
None.
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