Credit markets are overstating EAT’s credit risk with a YTW of 5.817% relative to an Intrinsic YTW of 4.875% and an Intrinsic CDS of 113bps. Furthermore, Moody’s is materially overstating the firm’s fundamental credit risk, with its Ba3 credit rating five notches lower than Valens’ IG4+ (Baa1) credit rating

Incentives Dictate Behavior™ analysis highlights mostly negative signals for credit holders. That said, as a positive, management members are material owners of EAT equity relative to their annual compensation, indicating they may be aligned with shareholders to pursue long-term value creation for the company.

Earnings Call Forensics™ of the firm’s Q4 2025 (8/13/2025) earnings call highlights that management generated excitement markers when saying their current structure makes it more attractive to deploy new capital to restaurants and get paybacks and that their social media marketing will have a higher share in the total ad budget. In addition, they are confident the firm is in better shape in terms of capital deployment ability than three years ago and that pricing for Chili’s will increase 4% in FY2026.