Brinker International: Reports Fiscal Q2-2019 Results

Dallas / TX . (bi) Brinker International Inc., a recognized leader in casual dining, announced results for the fiscal third quarter ended March 27, 2019. Highlights include the following:

  • Earnings per diluted share, on a GAAP basis, in the third quarter of fiscal 2019 increased 28.4 percent to USD 1.31 compared to USD 1.02 in the third quarter of fiscal 2018
  • Earnings per diluted share, excluding special items, in the third quarter of fiscal 2019 increased 16.7 percent to USD 1.26compared to USD 1.08 in the third quarter of fiscal 2018 (see non-GAAP reconciliation below)
  • Brinker International’s Company sales in the third quarter of fiscal 2019 increased 2.7 percent to USD 811.6 million compared to the third quarter of fiscal 2018. Total revenues in the third quarter of fiscal 2019 increased 3.3 percent to USD 839.3 millioncompared to the third quarter of fiscal 2018
  • Chili’s company-owned comparable restaurant sales increased 2.9 percent in the third quarter of fiscal 2019 compared to the third quarter of fiscal 2018. Chili’s U.S. franchise comparable restaurant sales increased 2.0 percent in the third quarter of fiscal 2019 compared to the third quarter of fiscal 2018
  • Maggiano’s company-owned comparable restaurant sales increased 0.4 percent in the third quarter of fiscal 2019 compared to the third quarter of fiscal 2018
  • Chili’s international franchise comparable restaurant sales decreased 3.9 percent in the third quarter of fiscal 2019 compared to the third quarter of fiscal 2018
  • Operating income, as a percent of Total revenues, was 8.4 percent in the third quarter of fiscal 2019 compared to 8.9 percent in the third quarter of fiscal 2018 representing a decrease of approximately 50 basis points
  • Restaurant operating margin, as a percent of Company sales, was 14.3 percent in the third quarter of fiscal 2019 which included the impact of the sale leaseback transactions and adopting the new revenue accounting standard (ASC 606), compared to 16.1 percent in the third quarter of fiscal 2018 (see non-GAAP reconciliation below). Excluding the impact of the sale leaseback transactions and ASC 606, Restaurant operating margin would have been flat year-over-year
  • Cash flows provided by operating activities in the thirty-nine week period ended March 27, 2019 was USD 150.6 millionand capital expenditures totalled USD 128.0 million resulting in free cash flow of USD 22.6 million (see non-GAAP reconciliation below) which was reduced by USD 75.0 million in cash tax payments related to the gain on the sale leaseback transactions. Proceeds from sale leaseback transactions of USD 468.8 million are included in Cash flows provided by investing activities
  • 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 June 27, 2019 to shareholders of record as of June 7, 2019

«Brinker posted strong comp sales growth and industry leading traffic again in the third quarter,» said Wyman Roberts, CEO and President. «This marked our 5th consecutive quarter of significantly outperforming the category in traffic. Our focus continues to be on elevating our guest experiences and providing true every day value to increase the frequency and loyalty of our guests.»

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