Brinker International: Reports Fiscal Q1-2019 Results

Dallas / TX . (bi) Brinker International Inc., a recognized leader in casual dining, announced results for the fiscal first quarter ended September 26, 2018. Highlights include the following:

  • Earnings per diluted share, on a GAAP basis, in the first quarter of fiscal 2019 increased 220.0 percent to USD 0.64 compared to USD 0.20 in the first quarter of fiscal 2018 primarily driven by the net gain recognized on sale leaseback transactions during the first quarter of fiscal 2019
  • Earnings per diluted share, excluding special items, in the first quarter of fiscal 2019 increased 11.9 percent to USD 0.47 compared to USD 0.42 in the first quarter of fiscal 2018
  • Brinker International’s Company sales in the first quarter of fiscal 2019 increased 1.6 percent to USD 728.3 million compared to the first quarter of fiscal 2018. Total revenues in the first quarter of fiscal 2019 increased 1.9 percent to USD 753.8 million compared to the first quarter of fiscal 2018
  • Chili’s company-owned comparable restaurant sales increased 2.0 percent in the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018. Chili’s U.S. franchise comparable restaurant sales increased 1.5 percent in the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018
  • Maggiano’s comparable restaurant sales were flat in the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018
  • Chili’s international franchise comparable restaurant sales decreased 3.0 percent in the first quarter of fiscal 2019 compared to the first quarter of fiscal 2018
  • Operating income, as a percent of Total revenues, was 6.2 percent in the first quarter of fiscal 2019 compared to 3.9 percent in the first quarter of fiscal 2018 representing an increase of approximately 230 basis points
  • Restaurant operating margin, as a percent of Company sales, was 11.1 percent in the first quarter of fiscal 2019 compared to 12.6 percent in the first quarter of fiscal 2018
  • Cash flows provided by operating activities in the first quarter of fiscal 2019 were USD 49.6 million and capital expenditures totalled USD 31.2 million. Free cash flow was USD 18.4 million
  • During the first quarter of fiscal 2019, we completed the sale and leaseback of 141 Chili’s restaurant properties for aggregate consideration of USD 455.7 million, resulting in a total gross gain of USD 289.1 million. Of the total gain, USD 20.1 million was recognized in first quarter of fiscal 2019, and USD 269.0 million was deferred at September 26, 2018 to be recognized straight-line over the 15 year initial terms of the new operating leases. The net proceeds from these sale leaseback transactions were used to repay borrowings on our revolving credit facility
  • The Company’s Board of Directors approved a quarterly dividend of USD 0.38 per share on the common stock of the Company. The dividend will be payable December 27, 2018 to shareholders of record as of December 7, 2018

«Brinker’s strong performance this quarter is the result of the continued execution of our strategy to drive traffic and gain market share», said Wyman Roberts, Chief Executive Officer and President. «We are committed to delivering a quality guest experience while offering a compelling value proposition, a combination we believe is key to our long term success».

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