Brinker International: Reports Third Quarter Results

Dallas / TX. (bi) Brinker International Inc., a recognized leader in casual dining, announced results for the fiscal third quarter ended March 23, 2016. Highlights include the following:

• Earnings per diluted share, excluding special items, increased 6.4 percent to 1.00 USD compared to 0.94 USD for the third quarter of fiscal 2015
• On a GAAP basis, earnings per diluted share decreased 2.0 percent to 1.00 USD compared to 1.02 USD for the third quarter of fiscal 2015
• Brinker International total revenues increased 5.2 percent to 824.6 million USD and company sales increased 5.7 percent to 805.1 million USD, primarily attributable to the 103 restaurants acquired with the Pepper Dining transaction in the first quarter of fiscal 2016
• Chili’s company-owned comparable restaurant sales decreased 4.1 percent
• Maggiano’s comparable restaurant sales increased 0.2 percent
• Chili’s franchise comparable restaurant sales decreased 1.7 percent which includes a 2.2 percent and 0.7 percent decrease for U.S. and international franchise restaurants, respectively
• Restaurant operating margin, as a percent of company sales, declined approximately 150 basis points to 17.4 percent compared to 18.9 percent for the third quarter of fiscal 2015
• For the first nine months of fiscal 2016, cash flows provided by operating activities were 299.6 million USD and capital expenditures totaled 76.1 million USD. Free cash flow was approximately 223.5 million USD
• The company repurchased approximately 2.6 million shares of its common stock for 126.1 million USD in the third quarter and a total of approximately 5.4 million shares for 266.2 million USD year-to-date
• The company declared a dividend of 32 cents per share to be paid in the fourth quarter, representing a 14.3 percent increase over the prior year

«While we continue to deliver strong cash flow and positive earnings growth through the year, we are disappointed in our recent sales performance», said Wyman Roberts, chief executive officer and president. «Our focus going forward is to more aggressively invest in our brands to grow comp sales and capture market share».