Brinker International: Reports Q2 Of Fiscal 2020 Results

Dallas / TX . (bi) Brinker International Inc., a recognized leader in casual dining, announced results for the second quarter of fiscal 2020 ended December 25, 2019. Highlights include the following:

• Earnings per diluted share, on a GAAP basis, in the second quarter of fiscal 2020 decreased 12.0 percent to USD 0.73 compared to USD 0.83 in the second quarter of fiscal 2019 primarily due to changes in special items, partially offset by improved operating performance
• Earnings per diluted share, excluding special items, in the second quarter of fiscal 2020 increased 13.5 percent to USD 1.01 compared to USD 0.89 in the second quarter of fiscal 2019 primarily due to improved operating performance
• Operating income, as a percentage of Total revenues, was 5.0 percent in the second quarter of fiscal 2020 compared to 6.3 percent in the second quarter of fiscal 2019 primarily due to changes in special items, partially offset by improved operating performance
• Restaurant operating margin, as a percentage of Company sales, was 12.7 percent in the second quarter of fiscal 2020 compared to 12.4 percent in the second quarter of fiscal 2019
• Brinker International’s Company sales in the second quarter of fiscal 2020 increased 11.3 percent to USD 847.5 million compared to the second quarter of fiscal 2019 primarily due to increased capacity from the 116 Chili’s restaurants acquired in the first quarter of fiscal 2020 and increased comparable restaurant sales. Total revenues in the second quarter of fiscal 2020 increased 9.9 percent to USD 869.3 million compared to the second quarter of fiscal 2019
• Chili’s company-owned comparable restaurant sales increased 2.0 percent in the second quarter of fiscal 2020 compared to the second quarter of fiscal 2019
• Maggiano’s company-owned comparable restaurant sales decreased 1.4 percent in the second quarter of fiscal 2020 compared to the second quarter of fiscal 2019
• Chili’s international franchise comparable restaurant sales decreased 0.9 percent in the second quarter of fiscal 2020 compared to the second quarter of fiscal 2019
• Cash flows provided by operating activities in the twenty-six week period ended December 25, 2019 were USD 142.3 million and capital expenditures totaled USD 51.4 million resulting in free cash flow of USD 90.9 million (see non-GAAP reconciliation below)
• The Company’s Board of Directors approved a quarterly dividend of USD 0.38 per share on the common stock of the Company. The dividend will be payable March 26, 2020 to shareholders of record as of March 6, 2020

«Our second quarter of fiscal 2020 combined positive top line growth and effective P+L management, which resulted in double digit adjusted EPS growth,» said Wyman Roberts, CEO and President. «Our strategic focus on core execution, value and convenience allows us to build positive results on top of previous positive results.»