DALLAS, April 28, 2021
/PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) today
announced results for the third quarter of fiscal 2021 ended
March 24, 2021, and provided a financial update for the fourth
quarter of fiscal 2021.
"I am very pleased with the ongoing growth of our business as
our guests are able to return in greater numbers to Chili's and
Maggiano's dining rooms," said Wyman
Roberts, CEO and President. "This reopening trend, supported
by investment in our digital platforms and virtual brands, now has
us meaningfully outperforming our F19 sales and traffic
results."
Fiscal 2021 Highlights - Third Quarter
The third quarter of fiscal 2021 results reflect the continued
impact from the COVID-19 pandemic. At the end of the third quarter,
substantially all of our Company-owned restaurant dining rooms or
patios were open in some capacity in accordance with state and
local mandates.
- Operating income in the third quarter of fiscal 2021 increased
to $52.2 million as compared to
$41.1 million in the third quarter of
fiscal 2020.
- Restaurant operating margin in the third quarter of fiscal 2021
increased to 13.9% in the third quarter of fiscal 2021 compared to
12.8% in the third quarter of fiscal 2020.
- Chili's Company sales in the third quarter of fiscal 2021
increased to $749.0 million in the
third quarter of fiscal 2021 as compared to $748.7 million in the third quarter of fiscal
2020.
- Net income per diluted share, on a GAAP basis, in the third
quarter of fiscal 2021 was $0.73
compared to $0.81 in the third
quarter of fiscal 2020, and excluding special items Net income per
diluted share in the third quarter of fiscal 2021 was $0.78 compared to $1.28 in the third quarter of fiscal 2020.
- Net cash provided by operating activities in the thirty-nine
week period ended March 24, 2021 was
$268.6 million, and capital
expenditures totaled $62.4 million
resulting in free cash flow of $206.2
million.
- The estimated impact of Winter Storm "Uri" during the third
quarter of fiscal 2021 was a decrease in Company sales of
$10.5 million, comparable restaurant
sales of 1.2%, and Net income per diluted share, excluding special
items, of $0.06.
For comparable restaurant sales details and non-GAAP
reconciliations, please refer to the Non-GAAP Information and
Reconciliations section of this release.
Comparable Restaurant Sales for Selected Periods in Fiscal
2021 vs. Fiscal 2019
The following table compares fiscal 2021 to fiscal 2019 due to
the impact of the pandemic on fiscal 2020 sales:
|
Comparable
Restaurant Sales
|
|
January
|
|
February
|
|
March
|
|
MTD April
Through April
21st
|
Brinker
|
(11.4)
|
%
|
|
(12.6)
|
%
|
|
(1.8)
|
%
|
|
6.3
|
%
|
Chili's
|
(6.7)
|
%
|
|
(8.8)
|
%
|
|
2.0
|
%
|
|
10.1
|
%
|
Maggiano's
|
(41.0)
|
%
|
|
(38.0)
|
%
|
|
(29.5)
|
%
|
|
(19.7)
|
%
|
Comparable restaurant sales includes restaurants that are
currently open and had been open under the Company's ownership at
least six months at the beginning of the third quarter of fiscal
2019.
Financial Metrics
|
Third
Quarter
|
|
2021
|
|
2020
|
|
%
Change
|
Company
sales
|
$
|
813.7
|
|
|
$
|
840.4
|
|
|
(3.2)
|
%
|
Total
revenues
|
$
|
828.4
|
|
|
$
|
860.0
|
|
|
(3.7)
|
%
|
|
|
|
|
|
|
Operating
income
|
$
|
52.2
|
|
|
$
|
41.1
|
|
|
27.0
|
%
|
Operating income as a
percentage of Total revenues
|
6.3
|
%
|
|
4.8
|
%
|
|
1.5
|
%
|
Restaurant operating
margin, non-GAAP(1)
|
$
|
112.9
|
|
|
$
|
107.6
|
|
|
4.9
|
%
|
Restaurant operating
margin as a percentage of Company sales, non-GAAP
|
13.9
|
%
|
|
12.8
|
%
|
|
1.1
|
%
|
|
|
|
|
|
|
Net income per
diluted share(2)
|
$
|
0.73
|
|
|
$
|
0.81
|
|
|
(9.9)
|
%
|
Net income per
diluted share, excluding special items,
non-GAAP(2)
|
$
|
0.78
|
|
|
$
|
1.28
|
|
|
(39.1)
|
%
|
Comparable
Restaurant Sales - Company Owned
|
Q3:21 vs
20
|
|
Q3:20 vs
19
|
Brinker
|
(3.3)
|
%
|
|
(5.9)
|
%
|
Chili's
|
0.0
|
%
|
|
(5.3)
|
%
|
Maggiano's
|
(29.6)
|
%
|
|
(9.9)
|
%
|
|
|
(1)
|
Restaurant operating
margin is defined as Company sales less Company restaurant expenses
which includes Food and beverage costs, Restaurant labor and
Restaurant expenses, and excludes Depreciation and amortization,
General and administrative and Other (gains) and charges (see
non-GAAP reconciliation below).
|
|
|
(2)
|
Net income per
diluted share reflects the impact of 8.1 million shares of common
stock sold in an offering in the fourth quarter of fiscal
2020.
|
Fourth Quarter of Fiscal 2021 Guidance
We are providing a financial outlook for the fourth quarter of
fiscal 2021. The uncertainties created by the ongoing COVID-19
pandemic, as well as other risks and uncertainties, could cause
actual results to differ materially from those projected.
- Revenues are expected to be in the range of $950 million to $1.0
billion.
- Net income per diluted share, excluding special items, is
expected to be in the range of $1.55
to $1.70.
- Diluted weighted average shares outstanding for the fourth
quarter are expected to be in the range of 47.0 million to 48.0
million.
Fiscal 2021 is a 53-week year, and includes an extra operating
week in the fourth quarter.
We are unable to reliably forecast special items such as
restaurant impairments, restaurant closures, reorganization charges
and legal settlements without unreasonable effort. As such, we do
not present a reconciliation of forecasted non-GAAP measures to the
corresponding GAAP measures. If special items are reported during
fiscal 2021, reconciliations to the appropriate GAAP measures will
be provided.
Third Quarter of Fiscal 2021 Operating Performance
Segment Performance
The table below presents selected financial information (in
millions, except as noted) related to our segments' operational
performance for the thirteen week periods ended March 24, 2021 and March
25, 2020:
|
Chili's
|
|
Maggiano's
|
|
Third
Quarter
|
|
Variance
|
|
Third
Quarter
|
|
Variance
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Company
sales
|
$
|
749.0
|
|
|
$
|
748.7
|
|
|
$
|
0.3
|
|
|
$
|
64.7
|
|
|
$
|
91.7
|
|
|
$
|
(27.0)
|
|
Franchise and other
revenues
|
14.0
|
|
|
15.7
|
|
|
(1.7)
|
|
|
0.7
|
|
|
3.9
|
|
|
(3.2)
|
|
Total
revenues
|
$
|
763.0
|
|
|
$
|
764.4
|
|
|
$
|
(1.4)
|
|
|
$
|
65.4
|
|
|
$
|
95.6
|
|
|
$
|
(30.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
|
80.3
|
|
|
$
|
58.7
|
|
|
$
|
21.6
|
|
|
$
|
1.4
|
|
|
$
|
4.0
|
|
|
$
|
(2.6)
|
|
Operating income as a
% of Total revenues
|
10.5
|
%
|
|
7.7
|
%
|
|
2.8
|
%
|
|
2.1
|
%
|
|
4.2
|
%
|
|
(2.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Company restaurant
expenses(1)
|
$
|
641.6
|
|
|
$
|
648.4
|
|
|
$
|
(6.8)
|
|
|
$
|
59.0
|
|
|
$
|
84.3
|
|
|
$
|
(25.3)
|
|
Company restaurant
expenses as a % of Company sales
|
85.7
|
%
|
|
86.6
|
%
|
|
(0.9)
|
%
|
|
91.2
|
%
|
|
91.9
|
%
|
|
(0.7)
|
%
|
Restaurant operating
margin - non-GAAP
|
$
|
107.4
|
|
|
$
|
100.3
|
|
|
$
|
7.1
|
|
|
$
|
5.7
|
|
|
$
|
7.4
|
|
|
$
|
(1.7)
|
|
Restaurant operating
margin as a % of Company sales - non-GAAP
|
14.3
|
%
|
|
13.4
|
%
|
|
0.9
|
%
|
|
8.8
|
%
|
|
8.1
|
%
|
|
0.7
|
%
|
|
|
(1)
|
Company restaurant
expenses includes Food and beverage costs, Restaurant labor and
Restaurant expenses, and excludes Depreciation and amortization,
General and administrative and Other (gains) and
charges.
|
Chili's
- Chili's Company sales increased primarily due to increased
off-premise sales including It's Just
Wings, partially offset by lower dining room sales and the
impact of Winter Storm Uri.
- Chili's Company restaurant expenses, as a percentage of Company
sales, decreased primarily due to lower advertising expenses, lower
hourly labor expenses, and favorable menu item mix, partially
offset by higher expenses related to delivery fees and supplies in
connection with the growth in off-premise sales and higher manager
bonus expenses.
Maggiano's
- Maggiano's Company sales decreased primarily due to lower
dining room sales, partially offset by increased off-premise
sales.
- Maggiano's Company restaurant expenses, as a percentage of
Company sales, decreased primarily due to lower manager and hourly
labor expenses, lower repairs and maintenance expenses, lower
variable rent expenses, favorable menu item mix, lower banquet
expenses, lower credit card fees, lower advertising expenses and
lower utilities expenses. These decreases were partially offset by
sales deleverage, higher expenses related to delivery fees and
supplies in connection with the growth in off-premise sales, higher
manager bonus expenses and higher insurance expenses.
Franchise and other revenues
- Franchise and other revenues declined primarily due to the
ongoing impact of the COVID-19 pandemic on our domestic and global
franchise restaurants. Our franchisees generated sales of
approximately $190.8 million in the
third quarter of fiscal 2021 compared to $218.0 million in the third quarter of fiscal
2020.
- Maggiano's Franchise and other revenues decreased primarily due
to lower banquet volume driven by the ongoing impact of the
COVID-19 pandemic.
Income Taxes
- On a GAAP basis, the effective income tax rate increased to
11.7% in the third quarter of fiscal 2021 compared to a benefit of
13.2% in the third quarter of fiscal 2020 primarily driven by
leverage on the FICA tip tax credit, partially offset by the
favorable impact of excess benefits associated with stock-based
compensation. Excluding the impact of special items (see non-GAAP
reconciliation below for details), the effective income tax rate
increased to 15.0% in the third quarter of fiscal 2021 compared to
4.7% in the third quarter of fiscal 2020 driven by improved
operating performance.
Webcast Information
Investors and interested parties are invited to listen to
today's conference call, as management will provide further details
of the quarter and business updates. The call will broadcast live
on Brinker's website today, April 28, 2021 at
9 a.m. CDT:
http://investors.brinker.com/events/event-details/q3-2021-brinker-international-earnings-conference-call
For those who are unable to listen to the live broadcast, a
replay of the call will be available shortly thereafter and will
remain on Brinker's website until the end of the day May 12, 2021.
Additional financial information, including statements of income
which detail operations excluding special items, franchise and
other revenues, and comparable restaurant sales trends by brand, is
also available on Brinker's website under the Financial Information
section of the Investor tab.
Forward Calendar
- SEC Form 10-Q for the third quarter of fiscal 2021 filing on or
before May 3, 2021
- Earnings release call for the fourth quarter of fiscal 2021 on
August 18, 2021
Non-GAAP Measures
Brinker management uses certain non-GAAP measures in analyzing
operating performance and believes that the presentation of these
measures in this release provides investors with information that
is beneficial to gaining an understanding of the Company's
financial results. Non-GAAP disclosures should not be viewed as a
substitute for financial results determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures that may be presented by other companies. Reconciliations
of these non-GAAP measures are included in the tables below.
About Brinker
Brinker International, Inc. is one of the world's leading casual
dining restaurant companies. Based in Dallas, Texas, as of March 24, 2021,
Brinker owned, operated, or franchised 1,657 restaurants under the
names Chili'sĀ® Grill & Bar (1,603 restaurants) and
Maggiano's Little ItalyĀ® (54 restaurants).
Forward-Looking Statements
The statements and tables contained in this release that are not
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward-looking statements are
based on our current plans and expectations and involve risks and
uncertainties which could cause actual results to differ materially
from our historical results or from those projected in
forward-looking statements, and are currently, or in the future
could be, amplified by the novel strain of the coronavirus
("COVID-19") pandemic. Such risks and uncertainties include, among
other things, uncertainty of the magnitude, duration, geographic
reach and impact of the COVID-19 pandemic on local, national and
global economies; the current, and uncertain future, impact of the
COVID-19 pandemic and governments' responses to it on our industry,
business, growth, reputation, projections, prospects, financial
condition, operations, cash flows, and liquidity; the adequacy or
effectiveness of steps we take to respond to the COVID-19 crisis,
including cost reduction or other mitigation programs; the impact
of competition; changes in consumer preferences; consumer
perception of food safety; reduced disposable income; unfavorable
publicity; increased minimum wages; governmental regulations; the
impact of mergers, acquisitions, divestitures and other strategic
transactions; the Company's ability to meet its business strategy
plan; loss of key management personnel; failure to hire and retain
high-quality restaurant management; the impact of social media;
failure to protect the security of data of our guests and team
members; product availability; regional business and economic
conditions; litigation; franchisee success; inflation; changes in
the retail industry; technology failures; failure to protect our
intellectual property; outsourcing; impairment of goodwill or
assets; failure to maintain effective internal control over
financial reporting; actions of activist shareholders; adverse
weather conditions; terrorist acts; health epidemics or pandemics
(such as COVID-19); and tax reform; as well as the risks and
uncertainties described in "Risk Factors" in our Annual Report on
Form 10-K and future filings with the Securities and Exchange
Commission.
BRINKER
INTERNATIONAL, INC.
|
Consolidated
Statements of Comprehensive Income (Unaudited)
|
(In millions,
except per share amounts)
|
|
|
Thirteen Week
Periods Ended
|
|
Thirty-Nine Week
Periods Ended
|
|
March 24,
2021
|
|
March 25,
2020
|
|
March 24,
2021
|
|
March 25,
2020
|
Revenues
|
|
|
|
|
|
|
|
Company
sales
|
$
|
813.7
|
|
|
$
|
840.4
|
|
|
$
|
2,288.1
|
|
|
$
|
2,451.8
|
|
Franchise and other
revenues(1)
|
14.7
|
|
|
19.6
|
|
|
41.1
|
|
|
63.5
|
|
Total
revenues
|
828.4
|
|
|
860.0
|
|
|
2,329.2
|
|
|
2,515.3
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
Food and beverage
costs
|
213.9
|
|
|
226.7
|
|
|
606.3
|
|
|
653.6
|
|
Restaurant
labor
|
270.8
|
|
|
285.9
|
|
|
774.6
|
|
|
846.2
|
|
Restaurant
expenses
|
216.1
|
|
|
220.2
|
|
|
629.9
|
|
|
652.2
|
|
Depreciation and
amortization
|
37.4
|
|
|
43.5
|
|
|
112.0
|
|
|
120.9
|
|
General and
administrative
|
33.7
|
|
|
23.3
|
|
|
94.2
|
|
|
95.9
|
|
Other (gains) and
charges(2)
|
4.3
|
|
|
19.3
|
|
|
13.5
|
|
|
30.7
|
|
Total operating costs
and expenses
|
776.2
|
|
|
818.9
|
|
|
2,230.5
|
|
|
2,399.5
|
|
Operating
income
|
52.2
|
|
|
41.1
|
|
|
98.7
|
|
|
115.8
|
|
Interest
expenses
|
14.1
|
|
|
14.3
|
|
|
43.1
|
|
|
44.2
|
|
Other income,
net
|
(0.3)
|
|
|
(0.4)
|
|
|
(1.2)
|
|
|
(1.4)
|
|
Income before income
taxes
|
38.4
|
|
|
27.2
|
|
|
56.8
|
|
|
73.0
|
|
Provision (benefit)
for income taxes
|
4.5
|
|
|
(3.6)
|
|
|
0.2
|
|
|
(0.6)
|
|
Net income
|
$
|
33.9
|
|
|
$
|
30.8
|
|
|
$
|
56.6
|
|
|
$
|
73.6
|
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
$
|
0.74
|
|
|
$
|
0.83
|
|
|
$
|
1.25
|
|
|
$
|
1.97
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share
|
$
|
0.73
|
|
|
$
|
0.81
|
|
|
$
|
1.22
|
|
|
$
|
1.94
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
45.5
|
|
|
37.2
|
|
|
45.3
|
|
|
37.3
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
46.7
|
|
|
37.8
|
|
|
46.2
|
|
|
38.0
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments(3)
|
$
|
0.3
|
|
|
$
|
(1.0)
|
|
|
$
|
1.1
|
|
|
$
|
(1.1)
|
|
Other comprehensive
income (loss)
|
0.3
|
|
|
(1.0)
|
|
|
1.1
|
|
|
(1.1)
|
|
Comprehensive
income
|
$
|
34.2
|
|
|
$
|
29.8
|
|
|
$
|
57.7
|
|
|
$
|
72.5
|
|
|
|
(1)
|
Franchise and other
revenues include royalties, delivery service income, gift card
breakage, franchise advertising fees, digital entertainment
revenues, Maggiano's banquet service charge income, franchise and
development fees, gift card discount costs from third-party gift
card sales and merchandise income.
|
(2)
|
Other (gains) and
charges included in the Consolidated Statements of Comprehensive
Income (Unaudited) included (in millions):
|
|
Thirteen Week
Periods Ended
|
|
Thirty-Nine Week
Periods Ended
|
|
March 24,
2021
|
|
March 25,
2020
|
|
March 24,
2021
|
|
March 25,
2020
|
Loss from natural
disasters, net of (insurance recoveries)
|
$
|
1.8
|
|
|
$
|
(0.9)
|
|
|
$
|
2.0
|
|
|
$
|
(0.6)
|
|
Remodel-related
costs
|
0.9
|
|
|
0.6
|
|
|
1.8
|
|
|
2.1
|
|
COVID-19 related
charges
|
0.9
|
|
|
16.1
|
|
|
3.1
|
|
|
16.1
|
|
Restaurant closure
charges
|
0.3
|
|
|
0.3
|
|
|
2.2
|
|
|
3.4
|
|
Foreign currency
transaction (gain) loss
|
0.1
|
|
|
2.3
|
|
|
(0.3)
|
|
|
2.2
|
|
Restaurant impairment
charges
|
ā
|
|
|
ā
|
|
|
2.5
|
|
|
4.6
|
|
Lease modification
gain, net
|
ā
|
|
|
ā
|
|
|
(0.5)
|
|
|
(3.1)
|
|
Acquisition of
franchise restaurants costs, net
|
ā
|
|
|
1.1
|
|
|
ā
|
|
|
2.6
|
|
Other
|
0.3
|
|
|
(0.2)
|
|
|
2.7
|
|
|
3.4
|
|
|
$
|
4.3
|
|
|
$
|
19.3
|
|
|
$
|
13.5
|
|
|
$
|
30.7
|
|
|
|
(3)
|
Foreign currency
translation adjustment included in our Comprehensive income in
the Consolidated Statements of Comprehensive Income (Unaudited)
represents the unrealized impact of translating the financial
statements of our Canadian restaurants from Canadian dollars to
U.S. dollars. This amount is not included in Net income and would
only be realized upon disposition of these restaurants.
|
BRINKER
INTERNATIONAL, INC.
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In
millions)
|
|
|
March
24,
2021
|
|
June
24,
2020
|
ASSETS
|
|
|
|
Total current
assets
|
$
|
252.4
|
|
|
$
|
224.4
|
|
Net property and
equipment
|
751.6
|
|
|
805.3
|
|
Operating lease
assets
|
1,025.8
|
|
|
1,054.6
|
|
Deferred income taxes,
net
|
47.5
|
|
|
38.2
|
|
Other
assets
|
231.7
|
|
|
233.5
|
|
Total
assets
|
$
|
2,309.0
|
|
|
$
|
2,356.0
|
|
LIABILITIES AND
SHAREHOLDERS' DEFICIT
|
|
|
|
Total current
liabilities
|
$
|
577.8
|
|
|
$
|
497.9
|
|
Long-term debt and
finance leases, less current installments
|
1,017.0
|
|
|
1,208.5
|
|
Long-term operating
lease liabilities, less current portion
|
1,023.7
|
|
|
1,061.6
|
|
Other
liabilities
|
81.1
|
|
|
67.1
|
|
Total shareholders'
deficit
|
(390.6)
|
|
|
(479.1)
|
|
Total liabilities and
shareholders' deficit
|
$
|
2,309.0
|
|
|
$
|
2,356.0
|
|
Of the 1,120 Company-owned restaurants, at March 24, 2021,
we own both the building and land for 42 restaurants. The related
book values associated with these restaurants included land of
$33.1 million and buildings of
$11.6 million.
BRINKER
INTERNATIONAL, INC.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(In
millions)
|
|
|
Thirty-Nine Week
Periods Ended
|
|
March 24,
2021
|
|
March 25,
2020
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
|
56.6
|
|
|
$
|
73.6
|
|
Adjustments to
reconcile Net income to Net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
112.0
|
|
|
120.9
|
|
Stock-based
compensation
|
11.3
|
|
|
9.0
|
|
Restructure and
impairment charges
|
6.5
|
|
|
24.8
|
|
Net loss on disposal
of assets
|
1.1
|
|
|
1.1
|
|
Other
|
2.7
|
|
|
1.7
|
|
Changes in assets and
liabilities
|
78.4
|
|
|
6.7
|
|
Net cash provided by
operating activities
|
268.6
|
|
|
237.8
|
|
Cash flows from
investing activities
|
|
|
|
Payments for property
and equipment
|
(62.4)
|
|
|
(82.0)
|
|
Proceeds from sale of
assets
|
1.6
|
|
|
1.0
|
|
Proceeds from note
receivable
|
1.5
|
|
|
2.2
|
|
Payments for franchise
restaurant acquisitions
|
ā
|
|
|
(94.6)
|
|
Net cash used in
investing activities
|
(59.3)
|
|
|
(173.4)
|
|
Cash flows from
financing activities
|
|
|
|
Payments on revolving
credit facility
|
(210.0)
|
|
|
(630.0)
|
|
Borrowings on
revolving credit facility
|
28.4
|
|
|
806.8
|
|
Payments on long-term
debt
|
(14.3)
|
|
|
(12.4)
|
|
Purchases of treasury
stock
|
(4.1)
|
|
|
(32.3)
|
|
Payments for debt
issuance costs
|
(2.2)
|
|
|
(1.0)
|
|
Payments of
dividends
|
(1.5)
|
|
|
(43.3)
|
|
Proceeds from issuance
of treasury stock
|
14.1
|
|
|
1.6
|
|
Net cash (used in)
provided by financing activities
|
(189.6)
|
|
|
89.4
|
|
Net change in cash
and cash equivalents
|
19.7
|
|
|
153.8
|
|
Cash and cash
equivalents at beginning of period
|
43.9
|
|
|
13.4
|
|
Cash and cash
equivalents at end of period
|
$
|
63.6
|
|
|
$
|
167.2
|
|
BRINKER
INTERNATIONAL, INC.
|
Restaurant
Summary
|
|
|
|
|
|
|
New
Openings
|
|
|
|
|
|
Fiscal
2021
|
|
Total Restaurants
Open at March 24, 2021
|
|
Total Restaurants
Open at March 25, 2020
|
|
Third Quarter
Openings
|
|
Fiscal Year
Openings
|
|
Full Year
Projected Openings
|
Company-owned
restaurants
|
|
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,063
|
|
|
1,060
|
|
|
2
|
|
|
6
|
|
|
8
|
|
Chili's
international
|
5
|
|
|
5
|
|
|
ā
|
|
|
ā
|
|
|
ā
|
|
Maggiano's
domestic
|
52
|
|
|
52
|
|
|
ā
|
|
|
ā
|
|
|
ā
|
|
Total
Company-owned
|
1,120
|
|
|
1,117
|
|
|
2
|
|
|
6
|
|
|
8
|
|
Franchise
restaurants
|
|
|
|
|
|
|
|
|
|
Chili's
domestic
|
172
|
|
|
178
|
|
|
2
|
|
|
3
|
|
|
3
|
|
Chili's
international
|
363
|
|
|
379
|
|
|
2
|
|
|
6
|
|
|
7
|
|
Maggiano's
domestic
|
2
|
|
|
1
|
|
|
ā
|
|
|
1
|
|
|
1
|
|
Total
franchise
|
537
|
|
|
558
|
|
|
4
|
|
|
10
|
|
|
11
|
|
Total Company-owned
and franchise
|
|
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,235
|
|
|
1,238
|
|
|
4
|
|
|
9
|
|
|
11
|
|
Chili's
international
|
368
|
|
|
384
|
|
|
2
|
|
|
6
|
|
|
7
|
|
Maggiano's
domestic
|
54
|
|
|
53
|
|
|
ā
|
|
|
1
|
|
|
1
|
|
Total
|
1,657
|
|
|
1,675
|
|
|
6
|
|
|
16
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Relocation
Openings
|
Chili's domestic
Company-owned relocations
|
|
|
|
|
ā
|
|
2
|
|
2
|
|
NON-GAAP
INFORMATION AND RECONCILIATIONS
|
Comparable
Restaurant Sales
|
Q3 21 and Q3
20
|
|
|
Comparable
Restaurant Sales(1)
|
|
Price
Impact
|
|
Mix-Shift(3)
|
|
Traffic
|
|
Q3:21 vs
20(2)
|
|
Q3:20 vs
19
|
|
Q3:21 vs
20
|
|
Q3:20 vs
19
|
|
Q3:21 vs
20
|
|
Q3:20 vs
19
|
|
Q3:21 vs
20
|
|
Q3:20 vs
19
|
Company-owned
|
(3.3)
|
%
|
|
(5.9)
|
%
|
|
0.6
|
%
|
|
1.0
|
%
|
|
(6.2)
|
%
|
|
(0.1)
|
%
|
|
2.3
|
%
|
|
(6.8)
|
%
|
Chili's
|
0.0
|
%
|
|
(5.3)
|
%
|
|
0.5
|
%
|
|
0.9
|
%
|
|
(4.5)
|
%
|
|
0.3
|
%
|
|
4.0
|
%
|
|
(6.5)
|
%
|
Maggiano's
|
(29.6)
|
%
|
|
(9.9)
|
%
|
|
1.2
|
%
|
|
1.8
|
%
|
|
(9.2)
|
%
|
|
(1.5)
|
%
|
|
(21.6)
|
%
|
|
(10.2)
|
%
|
Chili's
franchise(4)
|
0.2
|
%
|
|
(7.7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
5.2
|
%
|
|
(6.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
(8.8)
|
%
|
|
(9.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Chili's
domestic(5)
|
0.6
|
%
|
|
(5.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide(6)
|
(2.8)
|
%
|
|
(6.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Comparable Restaurant
Sales include all restaurants that have been in operation for more
than 18 months except acquired restaurants which are included after
12 months of ownership. Restaurants temporarily closed 14 days or
more are excluded from comparable restaurant sales. Percentage
amounts are calculated based on the comparable periods
year-over-year.
|
|
|
(2)
|
Comparable Restaurant
Sales for Q3:21 vs 20 include the results of It's Just Wings, a
virtual brand launched nationally in June 2020.
|
|
|
(3)
|
Mix-Shift is
calculated as the year-over-year percentage change in Company sales
resulting from the change in menu items ordered by
guests.
|
|
|
(4)
|
Chili's franchise
sales generated by franchisees are not included in revenues in the
Consolidated Statements of Comprehensive Income (Unaudited);
however, we generate royalty revenues and advertising fees based on
franchisee revenues, where applicable. We believe presenting
Chili's franchise comparable restaurant sales provides investors
relevant information regarding total brand performance.
|
|
|
(5)
|
Chili's domestic
Comparable Restaurant Sales percentages are derived from sales
generated by Company-owned and franchise-operated Chili's
restaurants in the United States.
|
|
|
(6)
|
System-wide
Comparable Restaurant Sales are derived from sales generated by
Company-owned Chili's and Maggiano's restaurants in addition to the
sales generated at franchise-operated Chili's
restaurants.
|
Reconciliation of Net Income Excluding Special Items (in
millions, except per share amounts)
Brinker believes excluding special items from its financial
results provides investors with a clearer perspective of the
Company's ongoing operating performance and a more relevant
comparison to prior period results.
|
Third
Quarter
|
|
Q3
21
|
|
EPS
Q3
21
|
|
Q3
20
|
|
EPS
Q3
20
|
Net income -
GAAP
|
$
|
33.9
|
|
|
$
|
0.73
|
|
|
$
|
30.8
|
|
|
$
|
0.81
|
|
Special
items(1)
|
4.4
|
|
|
0.09
|
|
|
23.7
|
|
|
0.63
|
|
Income tax effect
related to special items(2)
|
(1.1)
|
|
|
(0.02)
|
|
|
(6.0)
|
|
|
(0.16)
|
|
Special items, net of
taxes
|
3.3
|
|
|
0.07
|
|
|
17.7
|
|
|
0.47
|
|
Adjustment for special
tax items(3)
|
(0.8)
|
|
|
(0.02)
|
|
|
0.0
|
|
|
0.00
|
|
Net income, excluding
special items - Non-GAAP
|
$
|
36.4
|
|
|
$
|
0.78
|
|
|
$
|
48.5
|
|
|
$
|
1.28
|
|
|
|
(1)
|
Special items in the
third quarter of fiscal 2021 consist of a charge of $4.3 million in
Other (gains) and charges and $0.1 million of incremental
depreciation expenses associated with a change in estimated useful
life of certain restaurant-level long-lived assets. Special items
in the third quarter of fiscal 2020 consist of $19.3 million in
Other (gains) and charges that includes charges primarily related
to the COVID-19 pandemic and $4.4 million of incremental
depreciation expenses associated with a change in estimated useful
life of certain restaurant-level long-lived assets.
|
|
|
(2)
|
Income tax effect
related to special items is based on the statutory tax rate in
effect at the end of each period presented.
|
|
|
(3)
|
Adjustment for
special tax items in the third quarter of fiscal 2021 primarily
related to excess tax windfalls associated with stock-based
compensation. Adjustment for special tax items in the third quarter
of fiscal 2020 was negligible.
|
Reconciliation of Restaurant Operating Margin (in
millions, except percentages)
|
Chili's
|
|
Maggiano's
|
|
Brinker
|
|
Q3
21
|
|
Q3
20
|
|
Q3
21
|
|
Q3
20
|
|
Q3
21
|
|
Q3
20
|
Operating income -
GAAP
|
$
|
80.3
|
|
|
$
|
58.7
|
|
|
$
|
1.4
|
|
|
$
|
4.0
|
|
|
$
|
52.2
|
|
|
$
|
41.1
|
|
Operating income as a
percentage of Total revenues
|
10.5
|
%
|
|
7.7
|
%
|
|
2.1
|
%
|
|
4.2
|
%
|
|
6.3
|
%
|
|
4.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income -
GAAP
|
$
|
80.3
|
|
|
$
|
58.7
|
|
|
$
|
1.4
|
|
|
$
|
4.0
|
|
|
$
|
52.2
|
|
|
$
|
41.1
|
|
Less: Franchise
and other revenues
|
(14.0)
|
|
|
(15.7)
|
|
|
(0.7)
|
|
|
(3.9)
|
|
|
(14.7)
|
|
|
(19.6)
|
|
Plus:
Depreciation and amortization
|
31.0
|
|
|
36.5
|
|
|
3.4
|
|
|
3.8
|
|
|
37.4
|
|
|
43.5
|
|
General and
administrative
|
7.0
|
|
|
5.9
|
|
|
1.3
|
|
|
1.1
|
|
|
33.7
|
|
|
23.3
|
|
Other (gains) and
charges
|
3.1
|
|
|
14.9
|
|
|
0.3
|
|
|
2.4
|
|
|
4.3
|
|
|
19.3
|
|
Restaurant operating
margin - non-GAAP
|
$
|
107.4
|
|
|
$
|
100.3
|
|
|
$
|
5.7
|
|
|
$
|
7.4
|
|
|
$
|
112.9
|
|
|
$
|
107.6
|
|
Restaurant operating
margin as a percentage of Company sales
|
14.3
|
%
|
|
13.4
|
%
|
|
8.8
|
%
|
|
8.1
|
%
|
|
13.9
|
%
|
|
12.8
|
%
|
Restaurant operating margin is not a measurement determined in
accordance with GAAP and should not be considered in isolation, or
as an alternative to operating income as an indicator of financial
performance. Restaurant operating margin is widely regarded in the
restaurant industry as a useful metric by which to evaluate
restaurant-level operating efficiency and performance of ongoing
restaurant-level operations. This non-GAAP measure is not
indicative of overall Company performance and profitability because
this measure does not directly accrue benefit to the shareholders
due to the nature of costs excluded. We define Restaurant operating
margin as Company sales less Food and beverage costs, Restaurant
labor and Restaurant expenses. We believe this metric provides a
more useful comparison between periods and enables investors to
focus on the performance of restaurant-level operations by
excluding revenues not related to food and beverage sales at
Company-owned restaurants, corporate General and administrative
expenses, Depreciation and amortization, and Other (gains) and
charges.
Restaurant operating margin excludes Franchise and other
revenues which are earned primarily from franchise royalties,
advertising fees, and other non-food and beverage revenues streams
such as delivery service income, gift card breakage, banquet
service charges and digital entertainment
revenues. Depreciation and amortization expenses,
substantially all of which are related to restaurant-level assets,
are excluded because such expenses represent historical costs which
do not reflect current cash outlays for the restaurants. General
and administrative expenses include primarily non-restaurant-level
costs associated with support of the restaurants and other
activities at our corporate offices and are therefore excluded. We
believe that excluding special items, included within Other (gains)
and charges, from Restaurant operating margin provides investors
with a clearer perspective of the Company's ongoing operating
performance and a more useful comparison to prior period results.
Restaurant operating margin as presented may not be comparable to
other similarly titled measures of other companies in our
industry.
Reconciliation of Free Cash Flow (in millions)
Brinker believes presenting free cash flow provides a useful
measure to evaluate the cash flow available for reinvestment after
considering the capital requirements and expenditures of our
business operations.
|
Thirty-Nine
Week
Period Ended
March 24, 2021
|
Cash flows provided
by operating activities - GAAP
|
$
|
268.6
|
|
Capital
expenditures
|
(62.4)
|
|
Free cash flow -
non-GAAP
|
$
|
206.2
|
|
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SOURCE Brinker International, Inc.