« All News

MAGGIANO’S RAISES THE BAR

Maggiano’s enhances its bar experience with a signature Barrel-Aged Cocktail and all still wines available by the glass

 

DALLAS, Nov. 2, 2017 /PRNewswire/ — Maggiano’s Little Italy® is an expert in serving chef inspired, made-from-scratch Italian-American dishes, hosting special occasions and serving a wide range of wines and handmade cocktails. Starting this month, Maggiano’s is offering Guests the option to further enjoy their dining experience by pairing their meal with the new Barrel-Aged Cocktail or a glass of wine using the Coravin™ Wine Preservation Opener available in all 52 restaurants.

Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/80120242-maggianos-little-italy-tapping-party/

Spurring from Maggiano’s made-from-scratch culture; the brand created the signature Barrel-Aged Cocktail. Maggiano’s is leading the way in cocktail innovation as it is the only national casual-dining restaurant to serve a cocktail that has been aged in-house to its Guests. Not only does this handcrafted cocktail bring rich premium flavors, but it also carries a history that directly reflects Maggiano’s Italian-American heritage. Maggiano’s executive mixologists paired Old Forester, America’s first bottled bourbon, with the original 1525 Italian recipe of Disaronno® Amaretto to create the perfect Italian-American cocktail to serve with Maggiano’s made-from-scratch dishes.

Also, known for its wine culture and the fact that Italian-American dishes pair excellently with a great glass of wine, it was a simple decision for the brand to invest in the Coravin Wine Preservation Opener, which allows Maggiano’s Guests to enjoy any wine of their choice by the glass without the price tag of a whole bottle.

“We’re experts in creating a memorable dining experience where our Guests feel special” said Larry Konecny, vice president and chief concept officer of Maggiano’s. “Elevating our bar experience and taking great care in giving our Guests the perfect drink options to pair with their food was an easy next step for us.”

Maggiano’s Bar Enhancements

  • Barrel-Aged Cocktail – This new signature beverage is sure to be the drink of the season as it exudes warms flavors just in time for fall! To make this drink, Maggiano’s mixes Old Forester, Disaronno Amaretto and Cointreau® in an American white oak barrel and cures the cocktail in-house for 14 days before serving it over a large ice cube with an orange expression.
  • Coravin Wine Preservation Opener – This system allows wine to be accessed without ever removing the cork, thus perfectly preserving a bottle of wine for years without worrying about waste. With Coravin, Maggiano’s Guests will be able to explore more than 44 wines by the glass.

Guests are invited to raise a glass to Maggiano’s new bar menu at a nationwide tapping party on Nov. 2. To find the nearest tapping party, visit http://bit.ly/TappingParty.

To learn more, visit https://www.maggianos.com/ or follow along on social!

About Maggiano’s Little Italy

Maggiano’s Little Italy® specializes in Italian-American cuisine served in a warm and friendly atmosphere. Maggiano’s menu features both classic and contemporary recipes – authentic pastas, signature salads, prime steaks, fresh seafood, regular chef specials and specialty desserts. Maggiano’s 52 restaurants nationwide offer lunch, dinner and brunch, delivery, carryout service and banquet spaces for special occasions. Maggiano’s is owned and operated by Brinker International, Inc. (NYSE: EAT), one of the world’s leading casual dining restaurant companies, serving more than one million guests daily. Brinker owns or franchises more than 1,600 restaurants in 32 countries and two territories. In addition to Maggiano’s, Brinker owns and operates Chili’s® Grill & Bar.

Follow news about Maggiano’s on Facebook (www.facebook.com/maggianos), Twitter (http://twitter.com/maggianos), Instagram (https://instagram.com/maggianoslittleitaly/), YouTube (www.youtube.com/maggianoslittleitaly) and Pinterest (http://pinterest.com/maggianos). For more information, please visit http://www.maggianos.com.

SOURCE Maggiano’s Little Italy(R)

For further information: Maggiano’s Little Italy, media.requests@brinker.com, 800.775.7290

« All News

BRINKER INTERNATIONAL REPORTS FIRST QUARTER RESULTS

DALLAS, Nov. 1, 2017 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) today announced results for the fiscal first quarter ended Sept. 27, 2017.

Highlights include the following:

  • On a GAAP basis, earnings per diluted share were $0.20 for the first quarter of fiscal 2018 representing a 52.4 percent decrease from $0.42 in the first quarter of fiscal 2017
  • Earnings per diluted share, excluding special items, were $0.42 for the first quarter of fiscal 2018 representing a 14.3 percent decrease from $0.49 in the first quarter of fiscal 2017 (see non-GAAP reconciliation below)
  • Brinker International’s total revenues were $739.4 million in the first quarter of fiscal 2018 decreasing 2.5 percent compared to the first quarter of fiscal 2017, and company sales were $716.9 million in the first quarter of fiscal 2018 decreasing 2.8 percent compared to the first quarter of fiscal 2017
  • Hurricane Harvey and Hurricane Irma negatively impacted Brinker International’s company sales by approximately $5.4 million and earnings per diluted share by approximately $0.03 in the first quarter of fiscal 2018
  • Chili’s company-owned comparable restaurant sales decreased 3.4 percent in the first quarter of fiscal 2018 compared to the first quarter of fiscal 2017. Chili’s U.S. franchise comparable restaurant sales decreased 1.7 percent in the first quarter of fiscal 2018 compared to the first quarter of fiscal 2017
  • Maggiano’s comparable restaurant sales decreased 2.6 percent in the first quarter of fiscal 2018 compared to the first quarter of fiscal 2017
  • Chili’s international franchise comparable restaurant sales decreased 7.9 percent in the first quarter of fiscal 2018 compared to the first quarter of fiscal 2017
  • Operating income, as a percent of total revenues, was 3.9 percent for the first quarter of fiscal 2018 compared to 5.5 percent for the first quarter of fiscal 2017 representing a decrease of approximately 160 basis points
  • Restaurant operating margin, as a percent of company sales, was 12.6 percent for the first quarter of fiscal 2018 compared to 13.3 percent for the first quarter of fiscal 2017 representing a decrease of approximately 70 basis points (see non-GAAP reconciliation below)
  • For the first quarter of fiscal 2018, cash flows provided by operating activities were $50.2 million and capital expenditures totaled $22.5 million. Free cash flow was $27.7 million (see non-GAAP reconciliation below)

"As anticipated, our first quarter was challenging including unique weather events," said Wyman Roberts, chief executive officer and president. "However, late in the quarter, we successfully introduced our new menu and implemented our operational focus on speed. We believe both are fundamental to driving improved traffic at Chili’s."

Table 1: Q1 comparable restaurant sales1

Company-owned, reported brands and franchise; percentage

Q1 18

Q1 17

Brinker International

(3.3)

(1.3)

Chili’s Company-Owned

Comparable Restaurant Sales

(3.4)

(1.4)

Pricing Impact

2.8

1.2

Mix-Shift2

2.5

1.5

Traffic

(8.7)

(4.1)

Maggiano’s

Comparable Restaurant Sales

(2.6)

(0.6)

Pricing Impact

0.1

2.3

Mix-Shift2

0.1

(1.3)

Traffic

(2.8)

(1.6)

Chili’s Franchise3

(4.1)

(0.6)

U.S. Comparable Restaurant Sales

(1.7)

(1.6)

International Comparable Restaurant Sales

(7.9)

0.9

Chili’s Domestic4

(3.0)

(1.3)

System-wide5

(3.5)

(1.1)

1

Comparable restaurant sales includes all restaurants that have been in operation for more than 18 months. Restaurants temporarily closed 14 days or more are excluded from comparable restaurant sales.

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

Revenues generated by franchisees are not included in revenues on the consolidated statements of comprehensive income; however, we generate royalty revenue and advertising fees based on franchisee revenues, where applicable. We believe including franchise comparable restaurant sales provides investors information regarding brand performance that is relevant to current operations and may impact future restaurant development.

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 company-owned Chili’s and Maggiano’s restaurants in addition to the sales generated at franchise-operated Chili’s restaurants.

Quarterly Operating Performance
CHILI’S first quarter company sales decreased 3.2 percent to $627.6 million from $648.6 million in the prior year primarily due to a decline in comparable restaurant sales including the impact of temporary restaurant closures associated with Hurricanes Harvey and Irma. As compared to the prior year, Chili’s restaurant operating margin1 declined. Restaurant labor, as a percent of company sales, increased compared to the prior year due to higher wage rates and sales deleverage. Restaurant expenses, as a percent of company sales, decreased due to lower advertising and repairs and maintenance expenses, partially offset by sales deleverage. Cost of sales, as a percent of company sales, remained flat compared to the prior year.

MAGGIANO’S first quarter company sales increased 0.6 percent to $89.3 million from $88.8 million in the prior year primarily due to an increase in restaurant capacity, partially offset by a decrease in comparable restaurant sales including the impact of temporary restaurant closures associated with Hurricanes Harvey and Irma. As compared to the prior year, Maggiano’s restaurant operating margin1 declined. Cost of sales, as a percent of company sales, was negatively impacted by unfavorable menu item mix and commodity pricing, partially offset by increased menu pricing. Restaurant labor, as a percent of company sales, increased compared to prior year due to higher wage rates, partially offset by lower incentive bonuses. Restaurant expenses, as a percent of company sales, decreased primarily due to lower repairs and maintenance expenses.

1Restaurant operating margin is defined as Company sales less Cost of sales, Restaurant labor and Restaurant expenses and excludes Depreciation and amortization expenses. (See non-GAAP reconciliation below)

FRANCHISE AND OTHER revenues increased 6.2 percent to $22.4 million for the first quarter of fiscal 2018 compared to $21.1 million in the prior year first quarter primarily due to higher gift card related revenues.

Other
Depreciation and amortization expense decreased $0.4 million for the current quarter compared to the first quarter of fiscal 2017 primarily due to an increase in fully-depreciated assets and restaurant closures, partially offset by depreciation on asset replacements and new restaurant openings.

General and administrative expense decreased $0.2 million for the current quarter compared to the first quarter of fiscal 2017 primarily due to lower compensation-related expenses, partially offset by higher professional fees.

On a GAAP basis, the effective income tax rate increased to 34.8 percent in the current quarter from 29.5 percent in the first quarter of fiscal 2017. In the first quarter of fiscal 2018, we adopted an accounting standard (ASU 2016-09) related to employee share-based payments that requires the recognition of excess tax benefits and tax deficiencies resulting from the settlement of those awards in the provision for income taxes in the consolidated statements of comprehensive income. The increase in the GAAP basis effective tax rate in the current quarter was primarily due to a tax deficiency related to share-based payments, partially offset by lower profits in the current quarter compared to the first quarter of 2017. Excluding the impact of special items, which includes the adoption of the accounting standard, the effective income tax rate decreased to 28.0 percent in the current quarter compared to 30.9 percent in the first quarter of fiscal 2017 primarily due to lower profits.

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 operating results. Non-GAAP disclosures should not be viewed as a substitute for operating 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.

Table 2: Reconciliation of net income excluding special items

Q1 18 and Q1 17; $ millions and $ per diluted share

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.

Q1 18

EPS Q1 18

Q1 17

EPS Q1 17

Net Income

$

9.9

$

0.20

$

23.2

$

0.42

Special items1

13.2

0.27

6.1

0.11

Income tax effect related to special items

(4.3)

(0.08)

(2.3)

(0.04)

Special items, net of taxes

8.9

0.19

3.8

0.07

Adjustment for tax items2

1.6

0.03

Net Income excluding special items

$

20.4

$

0.42

$

27.0

$

0.49

1

See footnote "b" to the consolidated statements of comprehensive income for additional details on the composition of these amounts.

2

Amounts resulting from the recognition of tax deficiencies from the settlement of stock-based compensation awards in the provision for income taxes.

Table 3: Reconciliation of restaurant operating margin

Q1 18 and Q1 17; $ millions

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 industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance of ongoing restaurant-level operations. We define restaurant operating margin as Company sales less Company restaurant expenses, including Cost of sales, Restaurant labor and Restaurant expenses. Restaurant expenses includes advertising expense. 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 expense, depreciation and amortization, and other gains and charges.

Restaurant operating margin excludes Franchise and other revenues which are earned primarily from franchise royalties and other non-food and beverage revenue streams such as banquet service charges, digital entertainment revenues and gift card breakage. Depreciation and amortization expense, substantially all of which is related to restaurant-level assets, is excluded because such expenses represent historical costs which do not reflect current cash outlays for the restaurants. General and administrative expense includes primarily non-restaurant-level costs associated with support of the restaurants and other activities at our corporate offices and is 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.

Q1 18

Q1 17

Operating income – GAAP

$

28.6

$

41.5

Operating income as a percent of total revenues

3.9

%

5.5

%

Operating income

28.6

41.5

Less: Franchise and other revenues

(22.4)

(21.1)

Plus: Depreciation and amortization

38.5

38.9

General and administrative

32.2

32.5

Other gains and charges

13.2

6.1

Restaurant operating margin – non-GAAP

$

90.1

$

97.9

Restaurant operating margin as a percent of company sales

12.6

%

13.3

%

Table 4: Reconciliation of free cash flow

Q1 18; $ millions

Brinker believes presenting free cash flow provides a useful measure to evaluate the cash flow available for reinvestment after considering the capital requirements of our business operations.

Thirteen Week Period
Ended Sept. 27, 2017

Cash flows provided by operating activities – GAAP

$

50.2

Capital expenditures

(22.5)

Free cash flow – non-GAAP

$

27.7

Guidance Policy

Brinker provides annual guidance as it relates to comparable restaurant sales, earnings per diluted share, excluding special items, and other key line items in the statements of comprehensive income and will only provide updates if there is a material change versus the original guidance. We do not provide annual guidance as it relates to US GAAP earnings per diluted share as we are unable to reliably forecast special items such as restaurant impairments, restaurant closures, reorganization charges and legal settlements without unreasonable effort.

Webcast Information

Investors and interested parties are invited to listen to today’s conference call, as management will provide further details of the quarter. The call will broadcast live on Brinker’s website at 9 a.m. CDT today (Nov. 1) –

http://investors.brinker.com/phoenix.zhtml?c=119205&p=irol-EventDetails&EventId=5263819

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 Nov. 29, 2017.

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-Q for the first quarter of fiscal 2018 filing on or before Nov. 6, 2017; and
– Second quarter earnings release, before market opens, Jan. 30, 2018.

About Brinker

Brinker International, Inc. is one of the world’s leading casual dining restaurant companies. Founded in 1975 and based in Dallas, Texas, as of September 27, 2017, Brinker owned, operated, or franchised 1,682 restaurants under the names Chili’s® Grill & Bar (1,630 restaurants) and Maggiano’s Little Italy® (52 restaurants).

Forward-Looking Statements

The statements 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. These risks and uncertainties are, in many instances, beyond our control. Such risks and uncertainties include, among other things, general business and economic conditions, financial and credit market conditions, litigation, reduced disposable income, the impact of competition, the impact of mergers, acquisitions, divestitures and other strategic transactions, franchisee success, the seasonality of the company’s business, increased minimum wages, increased health care costs, adverse weather conditions, loss of key management personnel, product availability, actions of activist shareholders, terrorist acts, consumer perception of food safety, changes in consumer taste, health epidemics or pandemics, changes in demographic trends, availability of employees, unfavorable publicity, the company’s ability to meet its business strategy plan, material weaknesses in internal control over financial reporting, governmental regulations, inflation, technology failures, and failure to protect the security of data of our guests and teammates, as well as the risks described under the caption "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

(In thousands, except per share amounts)

(Unaudited)

Thirteen Week Periods Ended

Sept. 27, 2017

Sept. 28, 2016

Revenues:

Company sales

$

716,942

$

737,410

Franchise and other revenues (a)

22,448

21,082

Total revenues

739,390

758,492

Operating costs and expenses:

Company restaurants (excluding depreciation and amortization)

Cost of sales

187,597

192,302

Restaurant labor

251,075

250,570

Restaurant expenses

188,129

196,643

Company restaurant expenses

626,801

639,515

Depreciation and amortization

38,520

38,886

General and administrative

32,358

32,537

Other gains and charges (b)

13,154

6,078

Total operating costs and expenses

710,833

717,016

Operating income

28,557

41,476

Interest expense

13,884

8,809

Other, net

(476)

(299)

Income before provision for income taxes

15,149

32,966

Provision for income taxes

5,272

9,733

Net income

$

9,877

$

23,233

Basic net income per share

$

0.20

$

0.42

Diluted net income per share

$

0.20

$

0.42

Basic weighted average shares outstanding

48,293

54,844

Diluted weighted average shares outstanding

48,732

55,576

Other comprehensive income (loss):

Foreign currency translation adjustment (c)

$

1,537

$

(481)

Other comprehensive income (loss)

1,537

(481)

Comprehensive income

$

11,414

$

22,752

(a)

Franchise and other revenues primarily includes royalties, development fees, franchise fees, Maggiano’s banquet service charge income, gift card breakage and discounts, digital entertainment revenue, Chili’s retail food product royalties and delivery fee income.

(b)

Other gains and charges include:

Thirteen Week Periods Ended

Sept. 27, 2017

Sept. 28, 2016

Restaurant impairment charges

$

7,159

$

Hurricane-related costs

4,648

Accelerated depreciation

483

Restaurant closure charges

238

2,506

Loss on the sale of assets, net

45

Information technology restructuring

2,491

Other

581

1,081

$

13,154

$

6,078

(c)

The foreign currency translation adjustment included in comprehensive income on the consolidated statements of comprehensive income represents the unrealized impact of translating the financial statements of the Canadian restaurants and the Mexican joint venture from their respective functional currencies to U.S. dollars. This amount is not included in net income and would only be realized upon disposition of the businesses.

BRINKER INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

Sept. 27, 2017

June 28, 2017

ASSETS

Current assets

$

140,876

$

144,325

Net property and equipment (a)

974,825

1,000,614

Total other assets

252,924

258,694

Total assets

$

1,368,625

$

1,403,633

LIABILITIES AND SHAREHOLDERS’ DEFICIT

Current installments of long-term debt

$

9,015

$

9,649

Other current liabilities

405,347

426,712

Long-term debt, less current installments

1,353,659

1,319,829

Other liabilities

139,632

141,124

Total shareholders’ deficit

(539,028)

(493,681)

Total liabilities and shareholders’ deficit

$

1,368,625

$

1,403,633

(a)

At Sept. 27, 2017, the company owned the land and buildings for 190 of the 1,003 company-owned restaurants. The net book values of the land totaled $143.2 million and the buildings totaled $94.6 million associated with these restaurants.

BRINKER INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Thirteen Week Periods Ended

Sept. 27, 2017

Sept. 28, 2016

Cash Flows From Operating Activities:

Net income

$

9,877

$

23,233

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

38,520

38,886

Stock-based compensation

3,480

4,034

Restructure charges and other impairments

9,019

5,150

Net loss on disposal of assets

417

481

Changes in assets and liabilities

(11,083)

(4,026)

Net cash provided by operating activities

50,230

67,758

Cash Flows from Investing Activities:

Payments for property and equipment

(22,460)

(27,111)

Proceeds from sale of assets

85

Net cash used in investing activities

(22,375)

(27,111)

Cash Flows from Financing Activities:

Borrowings on revolving credit facility

110,000

70,000

Payments on revolving credit facility

(77,000)

(83,000)

Purchases of treasury stock

(41,718)

(349,963)

Payments of dividends

(16,978)

(18,298)

Payments on long-term debt

(2,514)

(890)

Proceeds from issuances of treasury stock

245

3,396

Proceeds from issuance of long-term debt

350,000

Payments for debt issuance costs

(9,183)

Net cash used in financing activities

(27,965)

(37,938)

Net change in cash and cash equivalents

(110)

2,709

Cash and cash equivalents at beginning of period

9,064

31,446

Cash and cash equivalents at end of period

$

8,954

$

34,155

BRINKER INTERNATIONAL, INC.

RESTAURANT SUMMARY

First Quarter
Openings
Fiscal 2018

Total Restaurants
Sept. 27, 2017

Projected
Openings
Fiscal 2018

Company-owned restaurants:

Chili’s domestic

1

937

5-6

Chili’s international

14

Maggiano’s

1

52

1

Total company-owned

2

1,003

6-7

Franchise restaurants:

Chili’s domestic

3

315

6-8

Chili’s international

10

364

38-43

Total franchise

13

679

44-51

Total restaurants:

Chili’s domestic

4

1,252

11-14

Chili’s international

10

378

38-43

Maggiano’s

1

52

1

Grand total

15

1,682

50-58

SOURCE Brinker International, Inc.

For further information: Mika Ware, Investor Relations, investor.relations@brinker.com or Aisha Fletcher, Media Relations, media.requests@brinker.com, (800) 775-7290