Brinker: Reports Q1 Of Fiscal 2020 Results

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

• The Company acquired 116 Chili’s restaurants located in the Midwest United States from a franchisee on September 05, 2019. Three weeks of the acquired restaurants results of operations are included in the consolidated financial statements from the date of acquisition in the first quarter of fiscal 2020.
• Earnings per diluted share, on a GAAP basis, in the first quarter of fiscal 2020 decreased 39.1 percent to USD 0.39 compared to USD 0.64 in the first quarter of fiscal 2019 primarily due to the fiscal 2019 net gain recognized on sale leaseback transactions.
• Earnings per diluted share, excluding special items, in the first quarter of fiscal 2020 decreased 12.8 percent to USD 0.41compared to USD 0.47 in the first quarter of fiscal 2019 primarily due to the acceleration of certain stock-based compensation expenses for newly retirement eligible executives.
• Brinker International’s Company sales in the first quarter of fiscal 2020 increased 4.9 percent to USD 763.9 million compared to the first quarter of fiscal 2019. Total revenues in the first quarter of fiscal 2020 increased 4.3 percent to USD 786.0 millioncompared to the first quarter of fiscal 2019.
• Chili’s company-owned comparable restaurant sales increased 2.9 percent in the first quarter of fiscal 2020 compared to the first quarter of fiscal 2019. Chili’s U.S. franchise comparable restaurant sales increased 0.4 percent in the first quarter of fiscal 2020 compared to the first quarter of fiscal 2019.
• Maggiano’s company-owned comparable restaurant sales decreased 1.8 percent in the first quarter of fiscal 2020 compared to the first quarter of fiscal 2019.
• Chili’s international franchise comparable restaurant sales decreased 1.3 percent in the first quarter of fiscal 2020 compared to the first quarter of fiscal 2019.
• Operating income, as a percentage of Total revenues, was 4.0 percent in the first quarter of fiscal 2020 compared to 6.2 percent in the first quarter of fiscal 2019 representing a decrease of approximately 220 basis points primarily due to the fiscal 2019 net gain recognized on sale leaseback transactions and acceleration of certain stock-based compensation expenses for newly retirement eligible executives.
• Restaurant operating margin, as a percentage of Company sales, was 11.0 percent in the first quarter of fiscal 2020 compared to 11.1 percent in the first quarter of fiscal 2019.
• Cash flows provided by operating activities in the thirteen week period ended September 25, 2019 was USD 86.6 million and capital expenditures totaled USD 20.5 million resulting in free cash flow of USD 66.1 million.
• 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 December 26, 2019 to shareholders of record as of December 06, 2019.

«The first quarter of fiscal 2020 represents our 6th consecutive quarter of positive comparable restaurant sales and our 7th consecutive quarter to outperform the category in traffic,» said Wyman Roberts, CEO and President. «We are now lapping our year-over-year positive results and expect these trends to continue.»