DALLAS, Aug. 18, 2021
/PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) today
announced results for the fourth quarter of fiscal 2021 ended
June 30, 2021, and provided a financial update for fiscal
2022.
"Brinker's fourth quarter was a positive finish to a successful
fiscal year, with Brinker posting one of its most profitable
quarters in recent history," said Wyman
Roberts, Chief Executive Officer and President. "We
continued to accelerate our competitive advantages and
multi-channel sales strategy, resulting in traffic-driven share
gains and meaningful outperformance of our pre-pandemic sales and
margin results."
Fiscal 2021 Highlights - Fourth Quarter and Fiscal
Year
- Brinker International's Company sales in the fourth quarter of
fiscal 2021 increased to $990.9
million as compared to $553.1
million in the fourth quarter of fiscal 2020. Brinker's
Company sales in fiscal 2021 increased to $3,279.0 million as compared to $3,004.9 million in fiscal 2020.
- Chili's Company sales in the fourth quarter of fiscal 2021
increased to $898.7 million as
compared to $518.9 million in the
fourth quarter of fiscal 2020. Chili's Company sales in fiscal 2021
increased to $3,005.7 million as
compared to $2,673.5 million in
fiscal 2020.
- Operating income in the fourth quarter of fiscal 2021 increased
to $100.6 million as compared to the
Operating loss of $53.2 million in
the fourth quarter of fiscal 2020. Operating income in fiscal 2021
increased to $199.3 million as
compared to $62.6 million in fiscal
2020.
- Restaurant operating margin in the fourth quarter of fiscal
2021 increased to 16.9% in the fourth quarter of fiscal 2021 as
compared to 6.4% in the fourth quarter of fiscal 2020. Restaurant
operating margin in fiscal 2021 increased to 13.6% as compared to
11.1% in fiscal 2020.
- Net income per diluted share, on a GAAP basis, in the fourth
quarter of fiscal 2021 increased to $1.58 as compared to a Net loss per diluted
share, on a GAAP basis, of $1.20 in
the fourth quarter of fiscal 2020. Net income per diluted share, on
a GAAP basis, for fiscal 2021 increased to $2.83 as compared to $0.63 in fiscal 2020.
- Net income per diluted share, excluding special items, in the
fourth quarter of fiscal 2021 increased to $1.68 as compared to a Net loss per diluted
share, excluding special items, of $0.88 in the fourth quarter of fiscal 2020. Net
income per diluted share, excluding special items, for fiscal 2021
increased to $3.12 as compared to
$1.71 in fiscal 2020.
- In fiscal 2021, the fourth quarter and fiscal year included an
additional operating week compared to fiscal 2020, resulting in
estimated increases of $70 million to
Total revenues and $0.34 to Net
income per diluted share.
- Net cash provided by operating activities in fiscal 2021 was
$369.7 million, and capital
expenditures totaled $94.0 million
resulting in free cash flow of $275.7
million. Net repayments of $301.6
million were made on the revolving credit facility during
fiscal 2021 resulting in an outstanding balance of $171.3 million as of June
30, 2021.
- In August 2021, the Company's
Board of Directors reinstated the share repurchase program,
allowing for a total available authority of $300 million.
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(1)
|
Q4:21 vs
20
|
|
FY:21 vs
20
|
Brinker
|
65.4
|
%
|
|
5.1
|
%
|
Chili's
|
59.8
|
%
|
|
8.3
|
%
|
Maggiano's
|
147.9
|
%
|
|
(19.8)
|
%
|
The following table presents comparable restaurant sales for the
periods presented to the comparable periods prior to the COVID-19
pandemic:
|
Q4:21 vs
19
|
|
FY:21 vs
19
|
|
Q1:22 vs
20(2)
|
Brinker
|
5.1
|
%
|
|
(5.5)
|
%
|
|
7.9
|
%
|
Chili's
|
8.5
|
%
|
|
(0.7)
|
%
|
|
8.7
|
%
|
Maggiano's
|
(17.5)
|
%
|
|
(35.8)
|
%
|
|
1.6
|
%
|
|
|
(1)
|
Comparable Restaurant
Sales include 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)
|
QTD Q1:22 vs 20
represents the period of July 1, 2021 through August 4, 2021 as
compared to the same operating period in fiscal 2020.
|
Financial Metrics
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
2021
|
|
2020
|
|
Variance
|
|
2021
|
|
2020
|
|
Variance
|
Company
sales
|
$
|
990.9
|
|
|
$
|
553.1
|
|
|
$
|
437.8
|
|
|
$
|
3,279.0
|
|
|
$
|
3,004.9
|
|
|
$
|
274.1
|
|
Total
revenues
|
$
|
1,008.6
|
|
|
$
|
563.2
|
|
|
$
|
445.4
|
|
|
$
|
3,337.8
|
|
|
$
|
3,078.5
|
|
|
$
|
259.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
100.6
|
|
|
$
|
(53.2)
|
|
|
$
|
153.8
|
|
|
$
|
199.3
|
|
|
$
|
62.6
|
|
|
$
|
136.7
|
|
Operating income
(loss) as a percentage
of Total revenues
|
10.0
|
%
|
|
(9.4)
|
%
|
|
19.4
|
%
|
|
6.0
|
%
|
|
2.0
|
%
|
|
4.0
|
%
|
Restaurant operating
margin, non-GAAP(1)
|
$
|
167.2
|
|
|
$
|
35.2
|
|
|
$
|
132.0
|
|
|
$
|
444.5
|
|
|
$
|
335.0
|
|
|
$
|
109.5
|
|
Restaurant operating
margin as a
percentage of Company sales, non-GAAP
|
16.9
|
%
|
|
6.4
|
%
|
|
10.5
|
%
|
|
13.6
|
%
|
|
11.1
|
%
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
diluted share
|
$
|
1.58
|
|
|
$
|
(1.20)
|
|
|
$
|
2.78
|
|
|
$
|
2.83
|
|
|
$
|
0.63
|
|
|
$
|
2.20
|
|
Net income (loss) per
diluted share,
excluding special items, non-GAAP
|
$
|
1.68
|
|
|
$
|
(0.88)
|
|
|
$
|
2.56
|
|
|
$
|
3.12
|
|
|
$
|
1.71
|
|
|
$
|
1.41
|
|
|
|
(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).
|
Fiscal 2022 Guidance
Due to the uncertainties created by the ongoing COVID-19
pandemic and the increasing impact of the Delta variant,
forecasting business performance is not currently reliable and as a
result, we are providing a limited financial outlook for fiscal
2022. These uncertainties, as well as other risks and
uncertainties, could cause actual results to differ materially from
those projected.
Full Year Fiscal 2022 Guidance
- Commodity and labor inflation is expected to be in the
mid-single digits.
- Excluding the impact of special items, the effective income tax
rate is expected to be in the range of 14% to 15%.
- Capital expenditures are expected to be $155.0 million to $165.0
million.
- Diluted weighted average shares outstanding are expected to be
in the range of 45.0 million to 47.0 million.
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 2022, reconciliations to the appropriate GAAP measures will
be provided.
Fourth 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 fourteen week period ended June 30, 2021 and thirteen week period ended
June 24, 2020:
|
Chili's
|
|
Maggiano's
|
|
Fourth
Quarter
|
|
Variance
|
|
Fourth
Quarter
|
|
Variance
|
|
2021
|
|
2020
|
|
|
2021
|
|
2020
|
|
Company
sales
|
$
|
898.7
|
|
|
$
|
518.9
|
|
|
$
|
379.8
|
|
|
$
|
92.2
|
|
|
$
|
34.2
|
|
|
$
|
58.0
|
|
Franchise and other
revenues
|
15.3
|
|
|
9.7
|
|
|
5.6
|
|
|
2.4
|
|
|
0.4
|
|
|
2.0
|
|
Total
revenues
|
$
|
914.0
|
|
|
$
|
528.6
|
|
|
$
|
385.4
|
|
|
$
|
94.6
|
|
|
$
|
34.6
|
|
|
$
|
60.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company restaurant
expenses(1)
|
$
|
745.2
|
|
|
$
|
478.2
|
|
|
$
|
267.0
|
|
|
$
|
78.4
|
|
|
$
|
39.5
|
|
|
$
|
38.9
|
|
Company restaurant
expenses as a %
of Company sales
|
82.9
|
%
|
|
92.2
|
%
|
|
(9.3)
|
%
|
|
85.0
|
%
|
|
115.5
|
%
|
|
(30.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
125.7
|
|
|
$
|
(4.2)
|
|
|
$
|
129.9
|
|
|
$
|
10.7
|
|
|
$
|
(14.2)
|
|
|
$
|
24.9
|
|
Operating income
(loss) as a % of
Total revenues
|
13.8
|
%
|
|
(0.8)
|
%
|
|
14.6
|
%
|
|
11.3
|
%
|
|
(41.0)
|
%
|
|
52.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant operating
margin - non-
GAAP
|
$
|
153.5
|
|
|
$
|
40.7
|
|
|
$
|
112.8
|
|
|
$
|
13.8
|
|
|
$
|
(5.3)
|
|
|
$
|
19.1
|
|
Restaurant operating
margin as a %
of Company sales - non-GAAP
|
17.1
|
%
|
|
7.8
|
%
|
|
9.3
|
%
|
|
15.0
|
%
|
|
(15.5)
|
%
|
|
30.5
|
%
|
|
|
(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 higher dining
room sales, higher delivery sales including It's Just Wings and the impact of the additional
operating week, partially offset by a decrease in To-Go sales.
- Chili's Company restaurant expenses, as a percentage of Company
sales, decreased primarily due to sales leverage, lower advertising
expenses, lower insurance, and lower To-Go supplies expenses. These
decreases were partially offset by increased manager and hourly
wages and bonuses, higher repairs and maintenance expenses, higher
utilities expenses and unfavorable commodity pricing.
Maggiano's
- Maggiano's Company sales increased primarily due to higher
dining and banquet room sales, higher delivery sales including It's
Just Wings and the impact of the
additional operating week, partially offset by a decrease in To-Go
sales.
- Maggiano's Company restaurant expenses, as a percentage of
Company sales, decreased primarily due to sales leverage and lower
To-Go supplies expenses. These decreases were partially offset by
increased manager and hourly wages and bonuses, higher repairs and
maintenance expenses, higher advertising expenses and higher
insurance expenses.
Franchise and other revenues
- Franchise and other revenues increased primarily due to higher
dining room sales and traffic at our domestic and global franchise
restaurants resulting in higher royalty income. Our franchisees
generated sales of approximately $238.8
million in the fourth quarter of fiscal 2021 compared to
$82.4 million in the fourth quarter
of fiscal 2020.
- Maggiano's Franchise and other revenues increased primarily due
to higher banquet room sales and traffic.
Income Taxes
- On a GAAP basis, the effective income tax rate was 15.2% in the
fourth quarter of fiscal 2021 which is lower than the statutory
rate of 21.0% due to leverage of the FICA tip tax credit. Excluding
the impact of special items (see non-GAAP reconciliation below for
details), the effective income tax rate was 15.0% in the fourth
quarter of fiscal 2021.
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, August 18, 2021 at
9 a.m. CDT:
http://investors.brinker.com/events/event-details/q4-2021-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 September 1, 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-K for the fiscal 2021 filing on or before
August 30, 2021
- Brinker International Investor Day on September 15, 2021
- Earnings release call for the first quarter of fiscal 2022 on
November 3, 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 June 30, 2021,
Brinker owned, operated, or franchised 1,648 restaurants under the
names Chili's® Grill & Bar (1,594 restaurants) and
Maggiano's Little Italy® (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 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 (Loss)
(Unaudited)
|
(In millions,
except per share amounts)
|
|
|
Fourteen Week
Period Ended
|
|
Thirteen Week
Period Ended
|
|
Fifty-Three
Week
Period Ended
|
|
Fifty-Two Week
Period Ended
|
|
June 30,
2021
|
|
June 24,
2020
|
|
June 30,
2021
|
|
June 24,
2020
|
Revenues
|
|
|
|
|
|
|
|
Company
sales
|
$
|
990.9
|
|
|
$
|
553.1
|
|
|
$
|
3,279.0
|
|
|
$
|
3,004.9
|
|
Franchise and other
revenues(1)
|
17.7
|
|
|
10.1
|
|
|
58.8
|
|
|
73.6
|
|
Total
revenues
|
1,008.6
|
|
|
563.2
|
|
|
3,337.8
|
|
|
3,078.5
|
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
Food and beverage
costs
|
261.5
|
|
|
145.0
|
|
|
867.8
|
|
|
798.6
|
|
Restaurant
labor
|
333.6
|
|
|
199.3
|
|
|
1,108.2
|
|
|
1,045.5
|
|
Restaurant
expenses
|
228.6
|
|
|
173.6
|
|
|
858.5
|
|
|
825.8
|
|
Depreciation and
amortization
|
38.2
|
|
|
41.4
|
|
|
150.2
|
|
|
162.3
|
|
General and
administrative
|
40.6
|
|
|
40.4
|
|
|
134.8
|
|
|
136.3
|
|
Other (gains) and
charges(2)
|
5.5
|
|
|
16.7
|
|
|
19.0
|
|
|
47.4
|
|
Total operating costs
and expenses
|
908.0
|
|
|
616.4
|
|
|
3,138.5
|
|
|
3,015.9
|
|
Operating income
(loss)
|
100.6
|
|
|
(53.2)
|
|
|
199.3
|
|
|
62.6
|
|
Interest
expenses
|
13.1
|
|
|
15.4
|
|
|
56.2
|
|
|
59.6
|
|
Other income,
net
|
(0.9)
|
|
|
(0.5)
|
|
|
(2.1)
|
|
|
(1.9)
|
|
Income (loss) before
income taxes
|
88.4
|
|
|
(68.1)
|
|
|
145.2
|
|
|
4.9
|
|
Provision (benefit)
for income taxes
|
13.4
|
|
|
(18.9)
|
|
|
13.6
|
|
|
(19.5)
|
|
Net income
(loss)
|
$
|
75.0
|
|
|
$
|
(49.2)
|
|
|
$
|
131.6
|
|
|
$
|
24.4
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share
|
$
|
1.64
|
|
|
$
|
(1.20)
|
|
|
$
|
2.89
|
|
|
$
|
0.64
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per share
|
$
|
1.58
|
|
|
$
|
(1.20)
|
|
|
$
|
2.83
|
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
Basic weighted
average shares outstanding
|
45.8
|
|
|
40.9
|
|
|
45.5
|
|
|
38.2
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
47.6
|
|
|
40.9
|
|
|
46.6
|
|
|
38.9
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments(3)
|
$
|
0.4
|
|
|
$
|
0.5
|
|
|
$
|
1.5
|
|
|
$
|
(0.6)
|
|
Other comprehensive
income (loss)
|
0.4
|
|
|
0.5
|
|
|
1.5
|
|
|
(0.6)
|
|
Comprehensive income
(loss)
|
$
|
75.4
|
|
|
$
|
(48.7)
|
|
|
$
|
133.1
|
|
|
$
|
23.8
|
|
|
|
(1)
|
Franchise and other
revenues include franchise royalties, gift card breakage, delivery
service income, Maggiano's banquet service charge income, digital
entertainment revenues, franchise and development fees, merchandise
income, franchise advertising fees, and gift card discount costs
from third-party gift card sales.
|
|
|
(2)
|
Other (gains) and
charges included in the Consolidated Statements of Comprehensive
Income (Loss) (Unaudited) included (in millions):
|
|
|
|
Fourteen Week
Period Ended
|
|
Thirteen Week
Period Ended
|
|
Fifty-Three
Week Period
Ended
|
|
Fifty-Two
Week Period
Ended
|
|
June 30,
2021
|
|
June 24,
2020
|
|
June 30,
2021
|
|
June 24,
2020
|
COVID-19 related
charges
|
$
|
0.2
|
|
|
$
|
(3.9)
|
|
|
$
|
3.3
|
|
|
$
|
12.2
|
|
Restaurant impairment
charges
|
0.5
|
|
|
14.5
|
|
|
3.0
|
|
|
19.1
|
|
Loss from natural
disasters, net of (insurance recoveries)
|
0.9
|
|
|
(0.1)
|
|
|
2.9
|
|
|
(0.7)
|
|
Restaurant closure
charges
|
0.2
|
|
|
0.4
|
|
|
2.4
|
|
|
3.8
|
|
Remodel-related
costs
|
0.5
|
|
|
1.1
|
|
|
2.3
|
|
|
3.2
|
|
Loss on lease
contingencies
|
2.2
|
|
|
—
|
|
|
2.2
|
|
|
—
|
|
Severance and other
benefit charges
|
—
|
|
|
2.7
|
|
|
0.5
|
|
|
3.2
|
|
Foreign currency
transaction (gain) loss
|
(0.3)
|
|
|
(0.8)
|
|
|
(0.6)
|
|
|
1.4
|
|
Other
|
1.3
|
|
|
2.8
|
|
|
3.0
|
|
|
5.2
|
|
|
$
|
5.5
|
|
|
$
|
16.7
|
|
|
$
|
19.0
|
|
|
$
|
47.4
|
|
|
|
(3)
|
Foreign currency
translation adjustment included in our Comprehensive income
(loss) in the Consolidated Statements of Comprehensive Income
(Loss) (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
(loss) and would only be realized upon disposition of these
restaurants.
|
BRINKER
INTERNATIONAL, INC.
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
(In
millions)
|
|
|
June
30,
2021
|
|
June
24,
2020
|
ASSETS
|
|
|
|
Total current
assets
|
$
|
207.2
|
|
|
$
|
224.4
|
|
Net property and
equipment
|
774.8
|
|
|
805.3
|
|
Operating lease
assets
|
1,007.4
|
|
|
1,054.6
|
|
Deferred income taxes,
net
|
50.9
|
|
|
38.2
|
|
Other
assets
|
234.6
|
|
|
233.5
|
|
Total
assets
|
$
|
2,274.9
|
|
|
$
|
2,356.0
|
|
LIABILITIES AND
SHAREHOLDERS' DEFICIT
|
|
|
|
Total current
liabilities
|
$
|
571.6
|
|
|
$
|
497.9
|
|
Long-term debt and
finance leases, less current installments
|
917.9
|
|
|
1,208.5
|
|
Long-term operating
lease liabilities, less current portion
|
1,006.7
|
|
|
1,061.6
|
|
Other
liabilities
|
82.0
|
|
|
67.1
|
|
Total shareholders'
deficit
|
(303.3)
|
|
|
(479.1)
|
|
Total liabilities and
shareholders' deficit
|
$
|
2,274.9
|
|
|
$
|
2,356.0
|
|
Of the 1,121 Company-owned restaurants, at June 30, 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
$11.0 million.
BRINKER
INTERNATIONAL, INC.
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
(In
millions)
|
|
|
Fifty-Three
Week
Period Ended
|
|
Fifty-Two Week
Period Ended
|
|
June 30,
2021
|
|
June 24,
2020
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
|
131.6
|
|
|
$
|
24.4
|
|
Adjustments to
reconcile Net income to Net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
150.2
|
|
|
162.3
|
|
Stock-based
compensation
|
16.4
|
|
|
14.8
|
|
Restructure and
impairment charges
|
9.8
|
|
|
28.9
|
|
Net loss on disposal
of assets
|
1.8
|
|
|
1.2
|
|
Other
|
3.7
|
|
|
2.8
|
|
Changes in assets and
liabilities
|
56.2
|
|
|
10.6
|
|
Net cash provided by
operating activities
|
369.7
|
|
|
245.0
|
|
Cash flows from
investing activities
|
|
|
|
Payments for property
and equipment
|
(94.0)
|
|
|
(104.5)
|
|
Proceeds from sale of
assets
|
1.6
|
|
|
1.2
|
|
Proceeds from note
receivable
|
1.5
|
|
|
2.8
|
|
Payments for franchise
restaurant acquisitions
|
—
|
|
|
(94.6)
|
|
Insurance
recoveries
|
—
|
|
|
1.1
|
|
Net cash used in
investing activities
|
(90.9)
|
|
|
(194.0)
|
|
Cash flows from
financing activities
|
|
|
|
Payments on revolving
credit facility
|
(345.0)
|
|
|
(858.8)
|
|
Borrowings on
revolving credit facility
|
43.4
|
|
|
808.4
|
|
Payments on long-term
debt
|
(20.0)
|
|
|
(17.8)
|
|
Purchases of treasury
stock
|
(4.2)
|
|
|
(32.4)
|
|
Payments for debt
issuance costs
|
(2.2)
|
|
|
(3.2)
|
|
Payments of
dividends
|
(1.5)
|
|
|
(57.4)
|
|
Proceeds from issuance
of treasury stock
|
30.7
|
|
|
1.6
|
|
Proceeds from issuance
of common stock
|
—
|
|
|
146.9
|
|
Payments for common
stock issuance costs
|
—
|
|
|
(7.8)
|
|
Net cash used in
financing activities
|
(298.8)
|
|
|
(20.5)
|
|
Net change in cash
and cash equivalents
|
(20.0)
|
|
|
30.5
|
|
Cash and cash
equivalents at beginning of period
|
43.9
|
|
|
13.4
|
|
Cash and cash
equivalents at end of period
|
$
|
23.9
|
|
|
$
|
43.9
|
|
BRINKER
INTERNATIONAL, INC.
|
Restaurant
Summary
|
|
|
|
|
|
|
New
Openings
|
|
|
|
|
|
Fiscal
2021
|
|
Total
Restaurants
Open at June 30,
2021
|
|
Total
Restaurants
Open at June 24,
2020
|
|
Fourth Quarter
Openings
|
|
Fiscal Year
Openings
|
Company-owned
restaurants
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,064
|
|
|
1,059
|
|
|
2
|
|
|
8
|
|
Chili's
international
|
5
|
|
|
5
|
|
|
—
|
|
|
—
|
|
Maggiano's
domestic
|
52
|
|
|
52
|
|
|
—
|
|
|
—
|
|
Total
Company-owned
|
1,121
|
|
|
1,116
|
|
|
2
|
|
|
8
|
|
Franchise
restaurants
|
|
|
|
|
|
|
|
Chili's
domestic
|
171
|
|
|
174
|
|
|
—
|
|
|
3
|
|
Chili's
international
|
354
|
|
|
372
|
|
|
—
|
|
|
6
|
|
Maggiano's
domestic
|
2
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Total
franchise
|
527
|
|
|
547
|
|
|
0
|
|
|
10
|
|
Total Company-owned
and franchise
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,235
|
|
|
1,233
|
|
|
2
|
|
|
11
|
|
Chili's
international
|
359
|
|
|
377
|
|
|
—
|
|
|
6
|
|
Maggiano's
domestic
|
54
|
|
|
53
|
|
|
—
|
|
|
1
|
|
Total
|
1,648
|
|
|
1,663
|
|
|
2
|
|
|
18
|
|
NON-GAAP
INFORMATION AND RECONCILIATIONS
|
Comparable
Restaurant Sales
|
Q4 21 and Q4
20
|
|
|
Comparable
Restaurant
Sales(1)
|
|
Price
Impact
|
|
Mix-Shift(3)
|
|
Traffic
|
|
Q4:21 vs
20(2)
|
|
Q4:20 vs
19
|
|
Q4:21 vs
20
|
|
Q4:20 vs
19
|
|
Q4:21 vs
20
|
|
Q4:20 vs
19
|
|
Q4:21 vs
20
|
|
Q4:20 vs
19
|
Company-owned
|
65.4
|
%
|
|
(36.7)
|
%
|
|
0.3
|
%
|
|
0.9
|
%
|
|
12.5
|
%
|
|
(8.0)
|
%
|
|
52.6
|
%
|
|
(29.6)
|
%
|
Chili's
|
59.8
|
%
|
|
(32.2)
|
%
|
|
0.2
|
%
|
|
0.8
|
%
|
|
8.4
|
%
|
|
(5.4)
|
%
|
|
51.2
|
%
|
|
(27.6)
|
%
|
Maggiano's
|
147.9
|
%
|
|
(66.7)
|
%
|
|
1.5
|
%
|
|
2.1
|
%
|
|
64.7
|
%
|
|
(15.1)
|
%
|
|
81.7
|
%
|
|
(53.7)
|
%
|
Chili's
franchise(4)
|
104.6
|
%
|
|
(49.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
84.9
|
%
|
|
(39.9)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
159.1
|
%
|
|
(66.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Chili's
domestic(5)
|
62.1
|
%
|
|
(33.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide(6)
|
69.8
|
%
|
|
(38.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
FY
21 and FY 20
|
|
|
Comparable
Restaurant
Sales(1)
|
|
Price
Impact
|
|
Mix-Shift(3)
|
|
Traffic
|
|
FY:21 vs
20(2)
|
|
FY:20 vs
19
|
|
FY:21 vs
20
|
|
FY:20 vs
19
|
|
FY:21 vs
20
|
|
FY:20 vs
19
|
|
FY:21 vs
20
|
|
FY:20 vs
19
|
Company-owned
|
5.1
|
%
|
|
(10.1)
|
%
|
|
0.6
|
%
|
|
1.3
|
%
|
|
(4.3)
|
%
|
|
(2.0)
|
%
|
|
8.8
|
%
|
|
(9.4)
|
%
|
Chili's
|
8.3
|
%
|
|
(8.6)
|
%
|
|
0.4
|
%
|
|
1.3
|
%
|
|
(2.6)
|
%
|
|
(1.1)
|
%
|
|
10.5
|
%
|
|
(8.8)
|
%
|
Maggiano's
|
(19.8)
|
%
|
|
(19.9)
|
%
|
|
2.3
|
%
|
|
1.5
|
%
|
|
(7.7)
|
%
|
|
(4.0)
|
%
|
|
(14.4)
|
%
|
|
(17.4)
|
%
|
Chili's
franchise(4)
|
12.5
|
%
|
|
(14.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
13.8
|
%
|
|
(10.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
9.7
|
%
|
|
(23.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Chili's
domestic(5)
|
8.9
|
%
|
|
(8.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide(6)
|
6.0
|
%
|
|
(10.8)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Q4:21 vs 20 and FY:21 vs 20 include the results of
virtual brands.
|
|
|
(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 Total revenues
in the Consolidated Statements of Comprehensive Income (Loss)
(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 and sales
generated at franchise-operated Chili's restaurants.
|
Reconciliation of Net Income (Loss) 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.
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
Q4
21
|
|
EPS
Q4
21
|
|
Q4
20
|
|
EPS
Q4
20
|
|
FY
21
|
|
EPS
FY
21
|
|
FY
20
|
|
EPS
FY
20
|
Net income (loss) -
GAAP
|
$
|
75.0
|
|
|
$
|
1.58
|
|
|
$
|
(49.2)
|
|
|
$
|
(1.20)
|
|
|
$
|
131.6
|
|
|
$
|
2.83
|
|
|
$
|
24.4
|
|
|
$
|
0.63
|
|
Special items -
OG&C(1)
|
5.5
|
|
|
0.12
|
|
|
16.7
|
|
|
0.41
|
|
|
19.0
|
|
|
0.41
|
|
|
47.4
|
|
|
1.22
|
|
Special items -
Depreciation(2)
|
0.2
|
|
|
0.00
|
|
|
2.4
|
|
|
0.05
|
|
|
0.6
|
|
|
0.01
|
|
|
9.8
|
|
|
0.25
|
|
Income tax effect
related to
special items(3)
|
(1.4)
|
|
|
(0.03)
|
|
|
(4.8)
|
|
|
(0.12)
|
|
|
(4.9)
|
|
|
(0.11)
|
|
|
(14.3)
|
|
|
(0.37)
|
|
Special items, net of
taxes
|
4.3
|
|
|
0.09
|
|
|
14.3
|
|
|
0.34
|
|
|
14.7
|
|
|
0.31
|
|
|
42.9
|
|
|
1.10
|
|
Adjustment for special
tax items(4)
|
0.7
|
|
|
0.01
|
|
|
(0.9)
|
|
|
(0.02)
|
|
|
(0.9)
|
|
|
(0.02)
|
|
|
(0.7)
|
|
|
(0.02)
|
|
Net income (loss),
excluding special
items - Non-GAAP
|
$
|
80.0
|
|
|
$
|
1.68
|
|
|
$
|
(35.8)
|
|
|
$
|
(0.88)
|
|
|
$
|
145.4
|
|
|
$
|
3.12
|
|
|
$
|
66.6
|
|
|
$
|
1.71
|
|
|
|
(1)
|
Special items -
OG&C represents Other (gains) and charges for each period
presented. See Footnote "(2)" to the Consolidated Statements of
Comprehensive Income (Loss) (Unaudited) for additional details on
the composition of Other (gains) and charges.
|
|
|
(2)
|
Special items -
Depreciation represents incremental depreciation expenses
associated with a change in estimated useful life of certain
restaurant-level long-lived assets.
|
|
|
(3)
|
Income tax effect
related to special items is based on the statutory tax rate in
effect at the end of each period presented.
|
|
|
(4)
|
Adjustment for
special tax items in the fourth quarter of fiscal 2021 primarily
related to an increase in unrecognized tax benefits partially
offset by excess tax windfalls associated with stock-based
compensation. Adjustment for special tax items in the fourth
quarter of fiscal 2020 primarily related to additional tax benefit
of prior year return claim amendments as allowed by the CARES
Act.
|
Adjustment for special tax items in fiscal 2021 primarily
related to excess tax windfalls associated with stock-based
compensation partially offset by an increase in unrecognized tax
benefits. Adjustment for special tax items in fiscal 2020 primarily
related to additional tax benefit of prior year return claim
amendments as allowed by the CARES Act.
Reconciliation of Restaurant Operating Margin (in millions,
except percentages)
Q4
21
|
|
|
Chili's
|
|
Maggiano's
|
|
Brinker
|
|
Q4
21
|
|
Q4
20
|
|
Q4
21
|
|
Q4
20
|
|
Q4
21
|
|
Q4
20
|
Operating income
(loss) - GAAP
|
$
|
125.7
|
|
|
$
|
(4.2)
|
|
|
$
|
10.7
|
|
|
$
|
(14.2)
|
|
|
$
|
100.6
|
|
|
$
|
(53.2)
|
|
Operating income
(loss) as a percentage of Total
revenues
|
13.8
|
%
|
|
(0.8)
|
%
|
|
11.3
|
%
|
|
(41.0)
|
%
|
|
10.0
|
%
|
|
(9.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) - GAAP
|
$
|
125.7
|
|
|
$
|
(4.2)
|
|
|
$
|
10.7
|
|
|
$
|
(14.2)
|
|
|
$
|
100.6
|
|
|
$
|
(53.2)
|
|
Less: Franchise
and other revenues
|
(15.3)
|
|
|
(9.7)
|
|
|
(2.4)
|
|
|
(0.4)
|
|
|
(17.7)
|
|
|
(10.1)
|
|
Plus:
Depreciation and amortization
|
31.9
|
|
|
34.6
|
|
|
3.4
|
|
|
3.6
|
|
|
38.2
|
|
|
41.4
|
|
General and
administrative
|
9.6
|
|
|
8.6
|
|
|
1.9
|
|
|
1.4
|
|
|
40.6
|
|
|
40.4
|
|
Other (gains) and
charges
|
1.6
|
|
|
11.4
|
|
|
0.2
|
|
|
4.3
|
|
|
5.5
|
|
|
16.7
|
|
Restaurant operating
margin - non-GAAP
|
$
|
153.5
|
|
|
$
|
40.7
|
|
|
$
|
13.8
|
|
|
$
|
(5.3)
|
|
|
$
|
167.2
|
|
|
$
|
35.2
|
|
Restaurant operating
margin as a percentage of
Company sales
|
17.1
|
%
|
|
7.8
|
%
|
|
15.0
|
%
|
|
(15.5)
|
%
|
|
16.9
|
%
|
|
6.4
|
%
|
Fiscal
2021
|
|
|
Chili's
|
|
Maggiano's
|
|
Brinker
|
|
FY
21
|
|
FY
20
|
|
FY
21
|
|
FY
20
|
|
FY
21
|
|
FY
20
|
Operating income -
GAAP
|
$
|
312.2
|
|
|
$
|
167.2
|
|
|
$
|
6.5
|
|
|
$
|
12.8
|
|
|
$
|
199.3
|
|
|
$
|
62.6
|
|
Operating income as a
percentage of Total
revenues
|
10.2
|
%
|
|
6.1
|
%
|
|
2.3
|
%
|
|
3.7
|
%
|
|
6.0
|
%
|
|
2.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income -
GAAP
|
$
|
312.2
|
|
|
$
|
167.2
|
|
|
$
|
6.5
|
|
|
$
|
12.8
|
|
|
$
|
199.3
|
|
|
$
|
62.6
|
|
Less: Franchise
and other revenues
|
(54.2)
|
|
|
(58.2)
|
|
|
(4.6)
|
|
|
(15.4)
|
|
|
(58.8)
|
|
|
(73.6)
|
|
Plus:
Depreciation and amortization
|
124.3
|
|
|
133.9
|
|
|
13.8
|
|
|
15.4
|
|
|
150.2
|
|
|
162.3
|
|
General and
administrative
|
27.4
|
|
|
32.1
|
|
|
5.8
|
|
|
5.7
|
|
|
134.8
|
|
|
136.3
|
|
Other (gains) and
charges
|
12.7
|
|
|
35.3
|
|
|
1.4
|
|
|
6.8
|
|
|
19.0
|
|
|
47.4
|
|
Restaurant operating
margin - non-GAAP
|
$
|
422.4
|
|
|
$
|
310.3
|
|
|
$
|
22.9
|
|
|
$
|
25.3
|
|
|
$
|
444.5
|
|
|
$
|
335.0
|
|
Restaurant operating
margin as a percentage of
Company sales
|
14.1
|
%
|
|
11.6
|
%
|
|
8.4
|
%
|
|
7.6
|
%
|
|
13.6
|
%
|
|
11.1
|
%
|
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 royalties, delivery fee
income, gift card breakage, digital entertainment revenues,
Maggiano's banquet service charge income, franchise advertising
fees, franchise and development fees, gift card equalization,
merchandise income and gift card discount costs from third-party
gift card sales. 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.
|
Fifty-Three
Week
Period Ended
June 30, 2021
|
Cash flows provided
by operating activities - GAAP
|
$
|
369.7
|
|
Capital
expenditures
|
(94.0)
|
|
Free cash flow -
non-GAAP
|
$
|
275.7
|
|
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SOURCE Brinker International, Inc.