Chili's 2012 Annual Report Download - page 23

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; increased
health care costs; health epidemics or pandemics or the prospects of these events; 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.
Item 2. PROPERTIES.
Restaurant Locations
At June 27, 2012, our system of company-owned and franchised restaurants included 1,581 restaurants
located in 50 states and Washington, D.C. We also have restaurants in the U.S. territories of Guam and Puerto
Rico and the countries of Bahrain, Brazil, Canada, Dominican Republic, Ecuador, Egypt, El Salvador, Germany,
Guatemala, Honduras, India, Indonesia, Japan, Jordan, Kuwait, Lebanon, Malaysia, Mexico, Oman, Peru,
Philippines, Portugal, Qatar, Russia, Saudi Arabia, Singapore, South Korea, Syria, Taiwan, United Arab Emirates
and Venezuela. We have provided you a breakdown of our portfolio of restaurants in the two tables below:
Table 1: Company-owned vs. franchise (by brand) as of June 27, 2012:
Chili’s
Company-owned ......................................... 821
Franchise ............................................... 715
Maggiano’s
Company-owned ......................................... 44
Franchise ............................................... 1
Total ............................................... 1,581
Table 2: Domestic vs. foreign locations (by brand) as of June 27, 2012 (company-owned and franchised):
Domestic
(No. of States)
Foreign
(No. of countries
and territories)
Chili’s ................................ 1,279(50) 257(33)
Maggiano’s ............................ 44(20 & D.C.) 1
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