Brinker International: Reports Second Quarter 2018 Results

Dallas / TX. (bi) Brinker International Inc., a recognized leader in casual dining, announced results for the fiscal second quarter ended December 27, 2017. Highlights include the following:

• On a GAAP basis, earnings per diluted share were USD 0.54 for the second quarter of fiscal 2018 representing a 21.7 percent decrease from USD 0.69 in the second quarter of fiscal 2017
• Earnings per diluted share, excluding special items, were USD 0.87 for the second quarter of fiscal 2018 representing a 22.5 percent increase from USD 0.71 in the second quarter of fiscal 2017
• The Tax Cuts and Jobs Act of 2017 (the Tax Act) negatively impacted GAAP net income by USD 3.9 million or USD 0.08 per diluted share, consisting of USD 8.7 million or USD 0.18 per diluted share for the revaluation of the Company’s net deferred tax assets, partially offset by the impact from the decrease in the statutory tax rate of USD 4.8 million or USD 0.10 per diluted share for the second quarter of 2017
• Brinker International’s total revenues were USD 766.4 million in the second quarter of fiscal 2018 decreasing 0.6 percent compared to the second quarter of fiscal 2017, and company sales were USD 742.7 million in the second quarter of fiscal 2018 decreasing 0.8 percent compared to the second quarter of fiscal 2017
• Chili’s company-owned comparable restaurant sales decreased 1.5 percent in the second quarter of fiscal 2018 compared to the second quarter of fiscal 2017. Chili’s U.S. franchise comparable restaurant sales decreased 1.7 percent in the second quarter of fiscal 2018 compared to the second quarter of fiscal 2017
• Chili’s international franchise comparable restaurant sales increased 0.1 percent in the second quarter of fiscal 2018 compared to the second quarter of fiscal 2017
• Maggiano’s comparable restaurant sales increased 1.8 percent in the second quarter of fiscal 2018 compared to the second quarter of fiscal 2017
• Operating income, as a percent of total revenues, was 7.1 percent for the second quarter of fiscal 2018 compared to 8.0 percent for the second quarter of fiscal 2017 representing a decrease of approximately 90 basis points
• Restaurant operating margin, as a percent of company sales, was 14.9 percent for the second quarter of fiscal 2018 compared to 15.1 percent for the second quarter of fiscal 2017 representing a decrease of approximately 20 basis points
• For the first six months of fiscal 2018, cash flows provided by operating activities were USD 119.7 million and capital expenditures totaled USD 48.6 million. Free cash flow was USD 71.1 million
• The Company is updating its fiscal 2018 outlook and now estimates earnings per diluted share, excluding special items and the revaluation of the Company’s deferred tax accounts, to be in the range of USD 3.42 to USD 3.52 for fiscal 2018

«Brinker saw performance improve across the business during the second quarter, especially related to our initiatives to change traffic trends at Chili’s», said Wyman Roberts, chief executive officer and president. «With this foundational strategy in place, we will focus on targeted segments of the business we believe will enhance the guest experience and drive traffic».