Brinker International Reports First Quarter Fiscal 2010 EPS

Tuesday, October 20, 2009 7:45 AM

Oct. 20, 2009 (PR Newswire) -- DALLAS, Oct. 20 /PRNewswire-FirstCall/ -- Brinker International, Inc. (NYSE: EAT) announced first quarter fiscal 2010 earnings per diluted share of $0.17 compared to $0.20 for the first quarter of fiscal 2009, before special items and excluding Romano's Macaroni Grill® (reconciliation included in Table 2). On a GAAP basis, earnings per diluted share decreased to $0.15 from $0.23 for the first quarter in the prior year.

In the second quarter of fiscal 2009, the company completed the sale of Macaroni Grill while retaining a minority ownership interest. The information presented below includes Macaroni Grill unless otherwise noted.

Quarterly Revenues

Brinker reported revenues for the 13-week period of $778.1 million, a decrease of 21.0 percent compared with $984.4 million reported for the same period of fiscal 2009. The company experienced a 6.0 percent decrease in comparable restaurant sales (see Table 1) in the first quarter of fiscal 2010. Revenues were also negatively impacted by a net decline in capacity of 18.6 percent due to the sale of 198 restaurants since the first quarter of fiscal 2009 (189 of which were Macaroni Grills) and 49 restaurant closures (three of which were Macaroni Grills). Royalty and franchise revenues were $15.8 million for the quarter.



Table 1: Q1 comparable restaurant sales
Q1 10 and Q1 09, company and three reported brands; percentage

Q1 10        Q1 09       Q1 10
Comparable  Comparable    Pricing      Q1 10
Sales       Sales       Impact     Mix-Shift
-----------  ----------    -------    ---------
Brinker International(1)       (6.0)       (3.0)        1.8        (2.5)
Chili's                      (6.0)       (3.0)        1.9        (2.4)
On The Border                (5.1)       (3.3)        2.2        (4.1)
Maggiano's                   (6.6)       (3.3)        0.9        (2.0)

(1) Brinker International comparable restaurant sales exclude the impact
of Macaroni Grill.

Quarterly Operating Performance

Cost of sales, as a percent of revenues, decreased from 28.4 percent in the prior year to 28.2 percent in the first quarter of fiscal 2010. Menu changes at Chili's® Grill & Bar and On The Border Mexican Grill & Cantina® and favorable price changes resulted in improvements in cost of sales.

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