DALLAS, Aug. 14,
2024 /PRNewswire/ -- Brinker International, Inc.
(NYSE: EAT) today announced financial results for the fourth
quarter ended June 26, 2024, and provided financial guidance
for fiscal 2025.
Fourth Quarter Fiscal 2024 Financial Highlights
Company sales were $1,196.5
million in the fourth quarter of fiscal 2024 compared to
$1,064.8 million in the fourth
quarter of fiscal 2023. Comparable restaurant sales increased
13.5%, with an increase in comparable restaurant sales of 14.8% for
Chili's and 2.5% for Maggiano's. The comparable restaurant sales
increase at Chili's was primarily due to increased menu pricing and
higher traffic. The launch of the "Big Smasher" burger and the
strength of Chili's advertising highlighting value drove traffic
during the fourth quarter. Additionally, the Chili's traffic
increase of 5.9% includes a negative impact of approximately 2.3%
from our strategic decision to de-emphasize virtual brands. Higher
Company sales resulted in operating income margin increasing to
6.1% and restaurant operating margin (non-GAAP) increasing to 15.2%
for the fourth quarter. The Company continued to invest in the
business during the fourth quarter, increasing restaurant staffing
and repairs and maintenance expense. Additionally, our strong
business performance significantly exceeded planned targets for the
annual and long-term performance-based compensation plans resulting
in a $13.2 million increase in
General and administrative expenses for the quarter.
Diluted net income per share was $1.24 in the fourth quarter of fiscal 2024,
compared to $1.19 in the fourth
quarter of fiscal 2023. Diluted net income per share, excluding
special items (non-GAAP), was $1.61
in the fourth quarter of fiscal 2024, compared to $1.39 in the fourth quarter of fiscal 2023.
The Company ended fiscal 2024 with no outstanding borrowings on
its $900.0 million revolving credit
facility and $64.6 million of cash on
hand.
"We achieved another quarter of solid progress against our
strategy to deliver profitable, sustainable growth. We
significantly outperformed the industry in both sales and traffic
during the quarter, while maintaining record high guest metrics,"
said Kevin Hochman, Chief Executive
Officer and President of Brinker International. "With significantly
increased traffic at Chili's and many guests trying Chili's for the
first time, we quickly accelerated investments in labor and the
facilities to ensure a great experience."
Fourth Quarter Financial Results
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
2024
|
|
2023
|
|
Variance
|
|
2024
|
|
2023
|
|
Variance
|
Company
sales
|
$ 1,196.5
|
|
$ 1,064.8
|
|
$
131.7
|
|
$ 4,371.1
|
|
$ 4,093.2
|
|
$
277.9
|
Total
revenues
|
$ 1,208.2
|
|
$ 1,075.5
|
|
$
132.7
|
|
$ 4,415.1
|
|
$ 4,133.2
|
|
$
281.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$ 73.1
|
|
$ 59.3
|
|
$ 13.8
|
|
$
229.6
|
|
$
144.4
|
|
$ 85.2
|
Operating income as a %
of Total revenues
|
6.1 %
|
|
5.5 %
|
|
0.6 %
|
|
5.2 %
|
|
3.5 %
|
|
1.7 %
|
Restaurant operating
margin, non-GAAP(1)
|
$
182.1
|
|
$
142.6
|
|
$ 39.5
|
|
$
583.3
|
|
$
460.1
|
|
$
123.2
|
Restaurant operating
margin as a % of Company sales, non-GAAP(1)
|
15.2 %
|
|
13.4 %
|
|
1.8 %
|
|
13.3 %
|
|
11.2 %
|
|
2.1 %
|
Net income
|
$ 57.3
|
|
$ 54.2
|
|
$
3.1
|
|
$
155.3
|
|
$
102.6
|
|
$ 52.7
|
Adjusted EBITDA,
non-GAAP(1)
|
$
141.8
|
|
$
114.5
|
|
$ 27.3
|
|
$
443.6
|
|
$
345.6
|
|
$ 98.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per diluted
share
|
$ 1.24
|
|
$ 1.19
|
|
$ 0.05
|
|
$ 3.40
|
|
$ 2.28
|
|
$ 1.12
|
Net income per diluted
share, excluding special items, non-GAAP(1)
|
$ 1.61
|
|
$ 1.39
|
|
$ 0.22
|
|
$ 4.10
|
|
$ 2.83
|
|
$ 1.27
|
Comparable Restaurant Sales(2)
|
Q4:24 vs
23
|
|
FY:24 vs
23
|
Brinker
|
13.5 %
|
|
7.0 %
|
Chili's
|
14.8 %
|
|
7.4 %
|
Maggiano's
|
2.5 %
|
|
3.5 %
|
(1)
|
See Non-GAAP
Information and Reconciliations section below for more
details.
|
(2)
|
Comparable Restaurant
Sales include restaurants that have been in operation for more than
18 full months. Restaurants temporarily closed for 14 days or more
are excluded from comparable restaurant sales. Percentage amounts
are calculated based on the comparable periods
year-over-year.
|
Full Year Fiscal 2025 Guidance
We are providing the following guidance for fiscal 2025 based on
our current outlook:
- Total revenues are expected to be in the range of $4.55 billion - $4.62
billion;
- Net income per diluted share, excluding special items,
non-GAAP, is expected to be in the range of $4.35 - $4.75;
- Weighted average shares are expected to be in the range of 45
million - 47 million; and
- Capital expenditures are expected to be in the range of
$195 million - $215 million.
The potential for changes in macroeconomic conditions, among
other risks, could cause actual results to differ materially from
those projected. We are unable to reliably forecast special items
without unreasonable effort. As such, we do not present a
reconciliation of forecasted non-GAAP measures to the corresponding
GAAP measures.
Fourth Quarter of Fiscal 2024 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 June 26, 2024 and June 28,
2023:
|
Chili's
|
|
Maggiano's
|
|
Fourth
Quarter
|
|
Variance
|
|
Fourth
Quarter
|
|
Variance
|
|
2024
|
|
2023
|
|
|
2024
|
|
2023
|
|
Company
sales
|
$
1,072.9
|
|
$ 943.6
|
|
$ 129.3
|
|
$ 123.6
|
|
$ 121.2
|
|
$
2.4
|
Franchise
revenues
|
11.5
|
|
10.5
|
|
1.0
|
|
0.2
|
|
0.2
|
|
—
|
Total
revenues
|
$
1,084.4
|
|
$ 954.1
|
|
$ 130.3
|
|
$ 123.8
|
|
$ 121.4
|
|
$
2.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Company restaurant
expenses(1)
|
$ 910.5
|
|
$ 821.7
|
|
$ 88.8
|
|
$ 103.8
|
|
$ 100.2
|
|
$
3.6
|
Company restaurant
expenses as a % of Company sales
|
84.9 %
|
|
87.1 %
|
|
(2.2) %
|
|
84.0 %
|
|
82.7 %
|
|
1.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$ 106.1
|
|
$ 76.0
|
|
$ 30.1
|
|
$ 13.4
|
|
$ 16.0
|
|
$
(2.6)
|
Operating income as a %
of Total revenues
|
9.8 %
|
|
8.0 %
|
|
1.8 %
|
|
10.8 %
|
|
13.2 %
|
|
(2.4) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant operating
margin, non-GAAP(2)
|
$ 162.4
|
|
$ 121.9
|
|
$ 40.5
|
|
$ 19.8
|
|
$ 21.0
|
|
$
(1.2)
|
Restaurant operating
margin as a % of Company sales, non-GAAP(2)
|
15.1 %
|
|
12.9 %
|
|
2.2 %
|
|
16.0 %
|
|
17.3 %
|
|
(1.3) %
|
(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.
|
(2)
|
See Non-GAAP
Information and Reconciliations section below for more
details.
|
Chili's
- Chili's Company sales increased primarily due to favorable
comparable restaurant sales driven by increased menu pricing,
higher traffic, and favorable menu item mix.
- Chili's Company restaurant expenses, as a percentage of Company
sales, decreased primarily due to sales leverage, partially offset
by higher hourly labor, repairs and maintenance, advertising, and
manager salaries and bonus expense.
- Chili's franchisees generated sales of $230.1 million for the fourth quarter of fiscal
2024 compared to $227.0 million for
the fourth quarter of fiscal 2023.
Maggiano's
- Maggiano's Company sales increased primarily due to favorable
comparable restaurant sales driven by increased menu pricing and
favorable menu item mix, partially offset by lower traffic.
- Maggiano's Company restaurant expenses, as a percentage of
Company sales, increased slightly, primarily due to higher repairs
and maintenance and advertising, partially offset by sales
leverage.
Corporate
- On a GAAP basis, the effective income tax rate was 1.2% in the
fourth quarter of fiscal 2024. The effective income tax rate is
lower than the statutory rate of 21.0% due primarily to leverage of
the FICA tip credit. Excluding the impact of special items, the
effective income tax rate was an expense of 9.0% in the fourth
quarter of fiscal 2024.
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 be broadcast
live on Brinker's website today, August 14, 2024 at
9 a.m. CDT:
https://investors.brinker.com/events/event-details/q4-2024-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 at least the end of the day
August 14, 2025.
Additional financial information, including statements of income
which detail operations excluding special items, and comparable
restaurant sales trends by brand, is also available on Brinker's
website under the Financial Information and Events &
Presentations sections of the Investor tab.
Forward Calendar
- SEC Form 10-K for the year of fiscal 2024 filing on or before
August 26, 2024
- Earnings release call for the first quarter of fiscal 2025 on
October 30, 2025
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 and home of Chili's®
Grill & Bar and Maggiano's Little Italy.® Founded in
1975 in Dallas, Texas, we've
ventured far from home, but stayed true to our roots. Brinker owns,
operates or franchises more than 1,600 restaurants in the United States and 27 other countries and
two U.S. territories. Our passion is making everyone feel special,
and we hope you feel that passion each time you visit one of our
restaurants or invite us into your home through takeout or
delivery. Learn more about Brinker and its brands at
brinker.com.
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. We intend all forward-looking
statements to be covered by the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. All
forward-looking statements are made only based on our current plans
and expectations as of the date such statements are made, and we
undertake no obligation to update forward-looking statements to
reflect events or circumstances arising after the date such
statements are made. Forward-looking statements are neither
predictions nor guarantees of future events or performance and are
subject to risks and uncertainties which could cause actual results
to differ materially from our historical results or from those
projected in forward-looking statements. Such risks and
uncertainties include, among other things, the impact of general
economic conditions, including inflation, on economic activity and
on our operations; disruptions on our business including consumer
demand, costs, product mix, our strategic initiatives, our
partners' supply chains, operations, technology and assets, and our
financial performance; the impact of competition; changes in
consumer preferences; consumer perception of food safety; reduced
consumer discretionary spending; unfavorable publicity;
governmental regulations; the Company's ability to meet its
business strategy plan; loss of key management personnel; failure
to hire and retain high-quality restaurant management and team
members; increasing regulation surrounding wage inflation and
competitive labor markets; the impact of social media or other
unfavorable publicity; reliance on technology and third party
delivery providers; failure to protect the security of data of our
guests and team members; product availability and supply chain
disruptions; regional business and economic conditions; volatility
in consumer, commodity, transportation, labor, currency and capital
markets; litigation; franchisee success; technology failures;
failure to protect our intellectual property; outsourcing;
impairment of goodwill or assets; failure to maintain effective
internal control over financial reporting; downgrades in credit
ratings; changes in estimates regarding our assets; actions of
activist shareholders; failure to comply with new environmental,
social and governance ("ESG") requirements; failure to achieve any
goals, targets or objectives with respect to ESG matters; adverse
weather conditions; terrorist acts; health epidemics or pandemics;
tax reform; inadequate insurance coverage and limitations imposed
by our credit agreements 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
|
|
Fifty-Two Week
Periods Ended
|
|
June 26,
2024
|
|
June 28,
2023
|
|
June 26,
2024
|
|
June 28,
2023
|
Revenues
|
|
|
|
|
|
|
|
Company
sales
|
$
1,196.5
|
|
$
1,064.8
|
|
$
4,371.1
|
|
$
4,093.2
|
Franchise
revenues
|
11.7
|
|
10.7
|
|
44.0
|
|
40.0
|
Total
revenues
|
1,208.2
|
|
1,075.5
|
|
4,415.1
|
|
4,133.2
|
Operating costs and
expenses
|
|
|
|
|
|
|
|
Food and beverage
costs
|
297.9
|
|
279.9
|
|
1,107.6
|
|
1,146.3
|
Restaurant
labor
|
392.5
|
|
362.9
|
|
1,467.3
|
|
1,389.3
|
Restaurant
expenses
|
324.0
|
|
279.4
|
|
1,212.9
|
|
1,097.5
|
Depreciation and
amortization
|
45.0
|
|
42.3
|
|
170.8
|
|
168.5
|
General and
administrative
|
52.0
|
|
38.8
|
|
183.7
|
|
154.5
|
Other (gains) and
charges(1)
|
23.7
|
|
12.9
|
|
43.2
|
|
32.7
|
Total operating costs
and expenses
|
1,135.1
|
|
1,016.2
|
|
4,185.5
|
|
3,988.8
|
Operating
income
|
73.1
|
|
59.3
|
|
229.6
|
|
144.4
|
Interest
expenses
|
15.1
|
|
14.5
|
|
65.0
|
|
54.9
|
Other income,
net
|
—
|
|
—
|
|
(0.3)
|
|
(1.3)
|
Income before income
taxes
|
58.0
|
|
44.8
|
|
164.9
|
|
90.8
|
Provision (benefit) for
income taxes
|
0.7
|
|
(9.4)
|
|
9.6
|
|
(11.8)
|
Net income
|
$
57.3
|
|
$
54.2
|
|
$
155.3
|
|
$
102.6
|
|
|
|
|
|
|
|
|
Basic net income per
share
|
$
1.28
|
|
$
1.22
|
|
$
3.49
|
|
$
2.33
|
|
|
|
|
|
|
|
|
Diluted net income per
share
|
$
1.24
|
|
$
1.19
|
|
$
3.40
|
|
$
2.28
|
|
|
|
|
|
|
|
|
Basic weighted average
shares outstanding
|
44.7
|
|
44.3
|
|
44.4
|
|
44.1
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
46.3
|
|
45.3
|
|
45.7
|
|
45.0
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
$
(0.1)
|
|
$
0.1
|
|
$
(0.3)
|
|
$
(0.7)
|
Comprehensive
income
|
$
57.2
|
|
$
54.3
|
|
$
155.0
|
|
$
101.9
|
(1)
|
Other (gains) and
charges included in the Consolidated Statements of Comprehensive
Income (Unaudited) included (in millions):
|
|
Thirteen Week
Periods Ended
|
|
Fifty-Two Week
Periods Ended
|
|
June 26,
2024
|
|
June 28,
2023
|
|
June 26,
2024
|
|
June 28,
2023
|
Enterprise system
implementation costs
|
$
6.6
|
|
$
1.4
|
|
$
14.0
|
|
$
4.7
|
Restaurant level
impairment charges
|
12.3
|
|
12.1
|
|
12.3
|
|
12.1
|
Restaurant closure
asset write-offs and charges
|
5.3
|
|
1.7
|
|
10.1
|
|
8.3
|
Litigation &
claims, net
|
1.4
|
|
1.3
|
|
6.6
|
|
2.5
|
Lease
contingencies
|
—
|
|
—
|
|
0.8
|
|
2.0
|
Severance
|
—
|
|
(0.2)
|
|
0.5
|
|
3.7
|
Remodel-related asset
write-offs
|
0.1
|
|
—
|
|
0.5
|
|
1.1
|
Gain on sale of assets,
net
|
(2.7)
|
|
(3.7)
|
|
(2.7)
|
|
(3.7)
|
Other
|
0.7
|
|
0.3
|
|
1.1
|
|
2.0
|
Total other (gains) and
charges
|
$
23.7
|
|
$
12.9
|
|
$
43.2
|
|
$
32.7
|
BRINKER
INTERNATIONAL, INC.
Condensed
Consolidated Balance Sheets (Unaudited)
(In
millions)
|
|
|
June 26,
2024
|
|
June 28,
2023
|
ASSETS
|
|
|
|
Total current
assets
|
$
234.1
|
|
$
183.3
|
Net property and
equipment
|
879.7
|
|
808.3
|
Operating lease
assets
|
1,095.2
|
|
1,134.9
|
Deferred income taxes,
net
|
113.9
|
|
93.4
|
Other
assets
|
270.2
|
|
267.1
|
Total
assets
|
$
2,593.1
|
|
$
2,487.0
|
LIABILITIES AND
SHAREHOLDERS' EQUITY (DEFICIT)
|
|
|
|
Total current
liabilities
|
$
622.3
|
|
$
535.9
|
Long-term debt and
finance leases, less current installments
|
786.3
|
|
912.2
|
Long-term operating
lease liabilities, less current portion
|
1,084.5
|
|
1,125.8
|
Other
liabilities
|
60.6
|
|
57.4
|
Total shareholders'
equity (deficit)
|
39.4
|
|
(144.3)
|
Total liabilities and
shareholders' equity (deficit)
|
$
2,593.1
|
|
$
2,487.0
|
BRINKER
INTERNATIONAL, INC.
Condensed
Consolidated Statements of Cash Flows (Unaudited)
(In
millions)
|
|
|
Fifty-Two Week
Periods Ended
|
|
June 26,
2024
|
|
June 28,
2023
|
Cash flows from
operating activities
|
|
|
|
Net income
|
$
155.3
|
|
$
102.6
|
Adjustments to
reconcile Net income to Net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
170.8
|
|
168.5
|
Deferred income taxes,
net
|
(20.6)
|
|
(30.9)
|
Stock-based
compensation
|
25.9
|
|
14.4
|
Non-cash other (gains)
and charges
|
28.7
|
|
24.0
|
Net loss on disposal
of assets
|
3.5
|
|
2.7
|
Other
|
2.8
|
|
1.8
|
Changes in assets and
liabilities
|
55.5
|
|
(26.8)
|
Net cash provided by
operating activities
|
421.9
|
|
256.3
|
Cash flows from
investing activities
|
|
|
|
Payments for property
and equipment
|
(198.9)
|
|
(184.9)
|
Proceeds from note
receivable
|
1.3
|
|
4.5
|
Proceeds from sale of
assets
|
4.7
|
|
5.5
|
Insurance
recoveries
|
0.7
|
|
0.7
|
Net cash used in
investing activities
|
(192.2)
|
|
(174.2)
|
Cash flows from
financing activities
|
|
|
|
Borrowings on
revolving credit facility
|
389.0
|
|
765.0
|
Payments on revolving
credit facility
|
(550.3)
|
|
(875.0)
|
Proceeds from issuance
of long-term debt
|
—
|
|
350.0
|
Payments on long-term
debt
|
(20.1)
|
|
(322.1)
|
Purchases of treasury
stock
|
(25.8)
|
|
(5.0)
|
Proceeds from issuance
of treasury stock
|
27.9
|
|
12.5
|
Payments for debt
issuance costs
|
(0.7)
|
|
(5.3)
|
Payments of
dividends
|
(0.2)
|
|
(0.6)
|
Net cash used in
financing activities
|
(180.2)
|
|
(80.5)
|
Net change in cash and
cash equivalents
|
49.5
|
|
1.6
|
Cash and cash
equivalents at beginning of period
|
15.1
|
|
13.5
|
Cash and cash
equivalents at end of period
|
$
64.6
|
|
$
15.1
|
BRINKER
INTERNATIONAL, INC.
Restaurant
Summary
|
|
|
|
|
|
|
Fiscal 2024 New
Openings
|
|
Restaurants
Open at June 26,
2024
|
|
Restaurants
Open at June 28,
2023
|
|
Fourth Quarter
Openings
|
|
Fiscal Year
Openings
|
Company-owned
restaurants
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,117
|
|
1,130
|
|
2
|
|
9
|
Chili's
international
|
4
|
|
5
|
|
—
|
|
—
|
Maggiano's
domestic
|
50
|
|
50
|
|
—
|
|
—
|
Total
Company-owned
|
1,171
|
|
1,185
|
|
2
|
|
9
|
Franchise
restaurants
|
|
|
|
|
|
|
|
Chili's
domestic
|
97
|
|
101
|
|
—
|
|
—
|
Chili's
international
|
344
|
|
369
|
|
4
|
|
20
|
Maggiano's
domestic
|
2
|
|
2
|
|
—
|
|
—
|
Total
franchise
|
443
|
|
472
|
|
4
|
|
20
|
Total Company-owned and
franchise
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,214
|
|
1,231
|
|
2
|
|
9
|
Chili's
international
|
348
|
|
374
|
|
4
|
|
20
|
Maggiano's
domestic
|
52
|
|
52
|
|
—
|
|
—
|
Total
|
1,614
|
|
1,657
|
|
6
|
|
29
|
NON-GAAP INFORMATION
AND RECONCILIATIONS
Comparable
Restaurant Sales
Q4 24 and Q4
23
|
|
|
Comparable
Restaurant Sales(1)
|
|
Price
Impact
|
|
Mix-Shift(2)
|
|
Traffic
|
|
Q4:24 vs
23
|
|
Q4:23 vs
22
|
|
Q4:24 vs
23
|
|
Q4:23 vs
22
|
|
Q4:24 vs
23
|
|
Q4:23 vs
22
|
|
Q4:24 vs
23
|
|
Q4:23 vs
22
|
Company-owned
|
13.5 %
|
|
6.6 %
|
|
8.2 %
|
|
9.4 %
|
|
0.9 %
|
|
4.1 %
|
|
4.4 %
|
|
(6.9) %
|
Chili's
|
14.8 %
|
|
6.3 %
|
|
8.1 %
|
|
9.4 %
|
|
0.8 %
|
|
4.6 %
|
|
5.9 %
|
|
(7.7) %
|
Maggiano's
|
2.5 %
|
|
9.1 %
|
|
9.2 %
|
|
9.5 %
|
|
2.2 %
|
|
(0.2) %
|
|
(8.9) %
|
|
(0.2) %
|
Franchise(3)
|
4.1 %
|
|
4.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
10.3 %
|
|
2.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
0.5 %
|
|
5.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Chili's
domestic(4)
|
14.5 %
|
|
6.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide(5)
|
11.9 %
|
|
6.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
FY24 and
FY23
|
|
|
Comparable
Restaurant Sales(1)
|
|
Price
Impact
|
|
Mix-Shift(2)
|
|
Traffic
|
|
FY:24 vs
23
|
|
FY:23 vs
22
|
|
FY:24 vs
23
|
|
FY:23 vs
22
|
|
FY:24 vs
23
|
|
FY:23 vs
22
|
|
FY:24 vs
23
|
|
FY:23 vs
22
|
Company-owned
|
7.0 %
|
|
8.1 %
|
|
7.6 %
|
|
9.0 %
|
|
0.6 %
|
|
4.4 %
|
|
(1.2) %
|
|
(5.3) %
|
Chili's
|
7.4 %
|
|
7.0 %
|
|
7.4 %
|
|
9.2 %
|
|
0.6 %
|
|
4.7 %
|
|
(0.6) %
|
|
(6.9) %
|
Maggiano's
|
3.5 %
|
|
17.3 %
|
|
9.4 %
|
|
7.9 %
|
|
0.6 %
|
|
2.8 %
|
|
(6.5) %
|
|
6.6 %
|
Franchise(3)
|
1.2 %
|
|
9.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
7.1 %
|
|
3.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
(2.0) %
|
|
13.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Chili's
domestic(4)
|
7.4 %
|
|
6.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide(5)
|
6.1 %
|
|
8.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Comparable Restaurant
Sales include all restaurants that have been in operation for more
than 18 full months. 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)
|
Mix-Shift is calculated
as the year-over-year percentage change in Company sales resulting
from the change in menu items ordered by guests.
|
(3)
|
Franchise sales
generated by franchisees are not included in Total 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
Franchise Comparable Restaurant Sales provides investors relevant
information regarding total brand performance.
|
(4)
|
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.
|
(5)
|
System-wide Comparable
Restaurant Sales are derived from sales generated by Chili's and
Maggiano's Company-owned and franchise-operated
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.
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
Q4 24
|
|
EPS Q4
24
|
|
Q4 23
|
|
EPS Q4
23
|
|
FY 24
|
|
EPS FY
24
|
|
FY 23
|
|
EPS FY
23
|
Net income,
GAAP
|
$ 57.3
|
|
$ 1.24
|
|
$ 54.2
|
|
$ 1.19
|
|
$
155.3
|
|
$ 3.40
|
|
$
102.6
|
|
$ 2.28
|
Special items - Other
(gains) and charges(1)
|
23.7
|
|
0.51
|
|
12.9
|
|
0.28
|
|
43.2
|
|
0.95
|
|
32.7
|
|
0.73
|
Special items -
Depreciation
|
—
|
|
—
|
|
0.1
|
|
—
|
|
0.0
|
|
—
|
|
0.4
|
|
—
|
Income tax effect
related to special items(2)
|
(5.9)
|
|
(0.12)
|
|
(3.2)
|
|
(0.06)
|
|
(10.8)
|
|
(0.24)
|
|
(8.2)
|
|
(0.18)
|
Special items, net of
taxes
|
17.8
|
|
0.39
|
|
9.8
|
|
0.22
|
|
32.4
|
|
0.71
|
|
24.9
|
|
0.55
|
Adjustment for special
tax items
|
(0.7)
|
|
(0.02)
|
|
(0.9)
|
|
(0.02)
|
|
(0.2)
|
|
(0.01)
|
|
(0.1)
|
|
—
|
Net income, excluding
special items, non-GAAP
|
$ 74.4
|
|
$ 1.61
|
|
$ 63.1
|
|
$ 1.39
|
|
$
187.5
|
|
$ 4.10
|
|
$
127.4
|
|
$ 2.83
|
(1)
|
See footnote (1) to the
Consolidated Statements of Comprehensive Income (Unaudited) for
additional details on the composition of Other (gains) and
charges.
|
(2)
|
Income tax effect
related to special items is based on the statutory tax rate in
effect at the end of each period.
|
Reconciliation of Restaurant Operating Margin (in millions,
except percentages)
Q4
24
|
|
|
Chili's
|
|
Maggiano's
|
|
Brinker
|
|
Q4 24
|
|
Q4 23
|
|
Q4 24
|
|
Q4 23
|
|
Q4 24
|
|
Q4 23
|
Operating income,
GAAP
|
$ 106.1
|
|
$
76.0
|
|
$
13.4
|
|
$
16.0
|
|
$
73.1
|
|
$
59.3
|
Operating income as a %
of Total revenues
|
9.8 %
|
|
8.0 %
|
|
10.8 %
|
|
13.2 %
|
|
6.1 %
|
|
5.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income,
GAAP
|
$ 106.1
|
|
$
76.0
|
|
$
13.4
|
|
$
16.0
|
|
$
73.1
|
|
$
59.3
|
Less: Franchise
revenues
|
(11.5)
|
|
(10.5)
|
|
(0.2)
|
|
(0.2)
|
|
(11.7)
|
|
(10.7)
|
Plus:
Depreciation and amortization
|
39.4
|
|
36.6
|
|
3.3
|
|
3.2
|
|
45.0
|
|
42.3
|
General and
administrative
|
11.8
|
|
8.7
|
|
3.3
|
|
1.8
|
|
52.0
|
|
38.8
|
Other (gains) and
charges
|
16.6
|
|
11.1
|
|
0.0
|
|
0.2
|
|
23.7
|
|
12.9
|
Restaurant operating
margin, non-GAAP
|
$ 162.4
|
|
$ 121.9
|
|
$
19.8
|
|
$
21.0
|
|
$ 182.1
|
|
$ 142.6
|
Restaurant operating
margin as a % of Company sales, non-GAAP
|
15.1 %
|
|
12.9 %
|
|
16.0 %
|
|
17.3 %
|
|
15.2 %
|
|
13.4 %
|
Fiscal
2024
|
|
|
Chili's
|
|
Maggiano's
|
|
Brinker
|
|
FY24
|
|
FY23
|
|
FY24
|
|
FY23
|
|
FY24
|
|
FY23
|
Operating income,
GAAP
|
$ 329.0
|
|
$ 221.9
|
|
$
57.5
|
|
$
54.1
|
|
$ 229.6
|
|
$ 144.4
|
Operating income as a %
of Total revenues
|
8.4 %
|
|
6.1 %
|
|
11.6 %
|
|
11.1 %
|
|
5.2 %
|
|
3.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income,
GAAP
|
$ 329.0
|
|
$ 221.9
|
|
$
57.5
|
|
$
54.1
|
|
$ 229.6
|
|
$ 144.4
|
Less: Franchise
revenues
|
(43.3)
|
|
(39.4)
|
|
(0.7)
|
|
(0.6)
|
|
(44.0)
|
|
(40.0)
|
Plus:
Depreciation and amortization
|
147.7
|
|
145.3
|
|
13.1
|
|
13.0
|
|
170.8
|
|
168.5
|
General and
administrative
|
42.8
|
|
35.5
|
|
10.2
|
|
7.8
|
|
183.7
|
|
154.5
|
Other (gains) and
charges
|
26.9
|
|
22.0
|
|
0.6
|
|
1.4
|
|
43.2
|
|
32.7
|
Restaurant operating
margin, non-GAAP
|
$ 503.1
|
|
$ 385.3
|
|
$
80.7
|
|
$
75.7
|
|
$ 583.3
|
|
$ 460.1
|
Restaurant operating
margin as a % of Company sales, non-GAAP
|
13.0 %
|
|
10.7 %
|
|
16.3 %
|
|
15.6 %
|
|
13.3 %
|
|
11.2 %
|
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 as
presented may not be comparable to other similarly titled measures
of other companies in our industry.
Reconciliation of Adjusted EBITDA (in millions)
Adjusted EBITDA is not a measurement determined in accordance
with GAAP and should not be considered in isolation, or as an
alternative to net income as an indicator of financial performance.
Brinker believes presenting Adjusted EBITDA provides a useful
measure of our operating performance, excluding the impacts of
financing costs, capital expenditures and special items. We define
Adjusted EBITDA as Net income before Provision (benefit) for income
taxes, Other income, net, Interest expenses, Depreciation and
amortization and Other (gains) and charges.
|
Fourth
Quarter
|
|
Fiscal
Year
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net income,
GAAP
|
$
57.3
|
|
$
54.2
|
|
$
155.3
|
|
$
102.6
|
Provision (benefit)
for income taxes
|
0.7
|
|
(9.4)
|
|
9.6
|
|
(11.8)
|
Other income,
net
|
—
|
|
—
|
|
(0.3)
|
|
(1.3)
|
Interest
expenses
|
15.1
|
|
14.5
|
|
65.0
|
|
54.9
|
Depreciation and
amortization
|
45.0
|
|
42.3
|
|
170.8
|
|
168.5
|
Other (gains) and
charges
|
23.7
|
|
12.9
|
|
43.2
|
|
32.7
|
Adjusted EBITDA,
non-GAAP
|
$
141.8
|
|
$
114.5
|
|
$
443.6
|
|
$
345.6
|
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SOURCE Brinker International, Inc.