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CHILI’S TEAM MEMBER RECEIVES 2018 NATIONAL GED TESTING SERVICE AWARD

Team Member nominated for national GED award with the help of Brinker International’s education program, Best You EDU
DALLASJuly 26, 2018 /PRNewswire/ — Today, Chili’s® Grill & Bar Team Member (better known as ChiliHead internally), Robert Valencia, accepted the 2018 National GED Testing Service Award during the Annual Testing Service Conference hosted in San Diego, CA.

GED Award Recipient, Chili's Team Member Robert Valencia

The National GED Testing Service Award recognizes students who have earned their GED credential in the past year and demonstrated exceptional dedication and achievement throughout the process.

Robert has been a dedicated ChiliHead since 2017 and has dreamed of getting his GED for many years. In Jan. 2018, Robert jumped at the opportunity to apply for the GED pathway through the comprehensive education program, Best You EDU™. This first-of-its-kind program launched on Jan. 22, 2018 by Brinker International, Inc. (owner of Chili’s and Maggiano’s Little Italy®) in partnership with Pearson to offer Brinker Team Members, from hourly to management, education opportunities at absolutely no cost to participants.

In only four weeks, Robert quickly earned his GED credentials. From there, he immediately applied for the associate degree program in Best You EDU, was accepted into college and started his first semester in June!

“I am enrolled to start college this summer and I plan on giving it all of my effort to finish top of my class,” said Robert Valencia, Chili’s Team Member. “I often catch myself telling other Team Members about the Best You EDU program at work because it has benefited me in more ways than one…a diploma is great, but a GED can do just as much for you. Look at me – I’m starting college already!”

Best You EDU was designed to meet Team Members where they are on their educational journey, offering three main components: Foundational Education and ESL, GED and associate degrees. Robert is proof that a Team Member can obtain his or her GED and get into college in months versus years with help from his or her employer.

“Robert’s story, and countless others like his, is the reason why we developed the Best You EDU program,” said Rick Badgley, chief people officer at Brinker. “We value our Team Members and their professional growth and our goal is to invest in our current Team Members in order to promote from within versus seeking talent elsewhere. Robert’s dedication to his professional development and education has paved the way for other Team Members to follow in his footsteps.”

Robert is just one of the many Chili’s and Maggiano’s Team Members who have benefitted from Brinker’s Best You EDU program. To date, the program has helped 12 Team Members graduate with their GEDs and 65 Team Members are actively working towards earning an associate’s degree, but Brinker doesn’t plan to stop there. Learn more about Best You EDU by visiting, http://www.chilisjobs.com/growth-development/education-advantage/

About Brinker International, Inc.
Brinker International, Inc. is one of the world’s leading casual dining restaurant companies. Founded in 1975 and based in Dallas, Texas, as of the fiscal first quarter ended Sept. 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).

 

SOURCE Brinker International, Inc.

For further information: Chili’s® Grill & Bar | 800.775.7290

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BRINKER INTERNATIONAL NAMES KELLY C. BALTES PRESIDENT OF MAGGIANO’S LITTLE ITALY

DALLAS, July 24, 2018 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) today announced that Kelly C. Baltes has been named executive vice president and president of Maggiano’s Little Italy®. In this role, Baltes will be responsible for overseeing all aspects of Maggiano’s restaurants including strategies for future growth of the brand.

Baltes brings more than 30 years of extensive and proven restaurant experience to Brinker, including leadership positions held at Cheddar’s Scratch Kitchen, Red Lobster and Olive Garden. As chairman and chief executive officer of Cheddar’s, Inc., he exemplified inspirational leadership with a commitment to visit every restaurant and meet all management team members in his first 90 days. During his tenure with the brand, he more than doubled its size, built a leadership team, initiated the name change to Cheddar’s Scratch Kitchen and achieved industry recognition as a Nation’s Restaurant News Golden Chain Award winner. Prior to that, Baltes served as executive vice president of operations for Red Lobster where he led the operational and profitability transformation that put the brand at its top performance in almost a decade.

“When you ask a Guest about their experience at Maggiano’s, they often tell stories of how we made them feel special in the restaurant and go above and beyond to make a celebratory moment even more memorable,” said Wyman Roberts, chief executive officer and president of Brinker. “I’m excited for Kelly to join our team because his experience and leadership style will be instrumental in the strategic thinking around how we continue to differentiate and perfect the Guest experience at Maggiano’s.”

“It is an honor for me to join the incredible Maggiano’s family. I have been a longtime admirer and guest of Maggiano’s and have a great deal of respect for the culture, hospitality and made-from-scratch Italian-American cuisine,” said Kelly C. Baltes. “I look forward to visiting each restaurant, meeting Teammates and working with the leadership teams for continued success of the brand.”

Brinker International, Inc. is one of the world’s leading casual dining restaurant companies. Founded in 1975 and based in Dallas, Texas, as of the fiscal third quarter ended March 28, 2018, Brinker owned, operated or franchised 1,686 restaurants under the names Chili’s® Grill & Bar (1,634 restaurants) and Maggiano’s Little Italy® (52 restaurants).

SOURCE Brinker International, Inc.

For further information: Chili’s® Grill & Bar | 800.775.7290

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MAGGIANO’S CELEBRATES 15 YEARS OF PARTNERSHIP WITH MAKE-A-WISH®

DALLAS, June 1, 2018 /PRNewswire/ — For 15 years, Maggiano’s Little Italy® has partnered with Make-A-Wish® to grant wishes for children with critical illnesses. Today, Maggiano’s Teammates nationwide are excited to kick off the annual Eat-A-Dish for Make-A-Wish campaign, which has raised more than $8 million and granted more than 1,100 life-changing wishes.

Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/8246356-maggianos-eat-a-dish-for-make-a-wish/

Eat-A-Dish For Make-A-Wish

Learn more about Maggiano’s longstanding partnership and how you can get involved here – https://www.maggianos.com/make-a-wish-2018

How can Guests help grant wishes?

  • Enjoy a chef-featured item between May 31 to Aug. 8 and choose from dishes such as Shrimp & Calamari Siciliano, Zio’s Shells & Sausage or Chicken Fontina in June and Pepperoni Fondue or Chicken & Truffle Tortellacci in July. For every select featured menu item ordered, $1 will be donated to Make-A-Wish and for every glass of Wish Lemonade ordered $0.50 will also be donated
  • Order a carryout lasagna bundle between June 11June 22 or Meal for Two between July 22Aug. 8 and $1 will be donated to Make-A-Wish
  • Savor each bite of fluffy chef-featured pancakes during brunch or order the chef-featured dessert any time you visit Maggiano’s and $1 will be donated to Make-A-Wish year-round. During the campaign, Guests can look forward to Mint Chocolate Chip and Banana Split pancakes
  • Give $10, get $10. For every $10 and above donation, Guests will receive a Star Card with a special offer for $10 toward their next Maggiano’s visit
  • Get social by sharing a photo of your experience at Maggiano’s on Twitter and/or Instagram using #EatADish4MAW

When Guests participate in the Eat-A-Dish for Make-A-Wish campaign, they are partnering with Maggiano’s to grant wishes for kids like Meghna, a 15-year-old battling cancer. Meghna’s wish is to travel to Italy to experience the Blue Grotto of Capri, the “water city” of Venice and the wonders of Rome.

“At Maggiano’s, we want every Guest to feel special while dining with us and we are so thankful to have Guests who eagerly partner with us to make the wish kids feel special,” said Larry Konecny, vice president and chief marketing officer of Maggiano’s. “Year after year, I’m amazed by the Maggiano’s Teammates who go above and beyond to host over-the-top wish parties and directly connect with the wish kids and their families in our restaurants across the nation. Let our favorite time of year begin!”

“Maggiano’s has been deeply committed to helping children with critical illnesses for the past 15 years,” said David Williams, president and chief executive officer for Make-A-Wish America. “We are grateful to partner and have the long-time support of Maggiano’s, its Guests and Teammates. We are excited to continue the tradition and, together, help grant more wishes, one dish at a time.”

The Maggiano’s and Make-A-Wish partnership

Since 2003, Maggiano’s and Make-A-Wish have teamed up to grant wishes to children with critical illnesses through the annual Eat-A-Dish for Make-A-Wish campaign. Over the past 15 years, Maggiano’s has become one of the highest grossing national sponsors for Make-A-Wish. Maggiano’s has raised more than $8 million and granted more than 1,100 wishes.

To learn more, visit https://www.maggianos.com/make-a-wish-2018

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.

About Make-A-Wish

Make-A-Wish creates life-changing wishes for children with critical illnesses. We seek to bring every eligible child’s wish to life because a wish is an integral part of a child’s treatment journey. Research shows children who have wishes granted can build the physical and emotional strength they need to fight their illness. Headquartered in Phoenix, Arizona, Make-A-Wish is the world’s leading children’s wish-granting organization, serving children in every community in the United States and in more than 50 countries worldwide. Together, generous donors, supporters, staff and more than 35,000 volunteers across the U.S., grant a wish every 34 minutes, on average, somewhere in the country. Since 1980, Make-A-Wish has granted more than 300,000 wishes to children in the U.S. and its territories; more than 15,400 in 2017 alone. For more information about Make-A-Wish America, visit wish.org.

Make-A-Wish Ambassador, Meghna
Zio's Shells and Sausage
Mint Chocolate Chip Pancakes
Chicken & Truffle Tortellaci
Banana Split Cheesecake

SOURCE Maggiano’s Little Italy

For further information: Maggiano’s Little Italy, Media Relations, [email protected], (800) 775-7290

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NOTICE OF UNAUTHORIZED ACCESS TO CHILI’S® GRILL & BAR GUEST DATA

DALLAS, May 12, 2018 /PRNewswire/ — On May 11th, 2018, we learned that payment card information of some of our Guests who visited certain Chili’s® Grill & Bar corporate-owned restaurants have been compromised in a data incident. Currently, we believe the data incident was limited to between March – April 2018; however, we continue to assess the scope of the incident.

Upon learning of this incident, we immediately activated our response plan. We are working with third-party forensic experts to conduct a thorough investigation to determine the details of what happened. Law enforcement has been notified of this incident and we will continue to fully cooperate.

While the investigation is still ongoing, we believe that malware was used to gather payment card information, including credit or debit card numbers and cardholder names, from our payment-related systems for in-restaurant purchases at certain Chili’s restaurants.

We deeply value our relationships with our Guests and our priority remains doing what is right for them. We are committed to sharing additional information on this ongoing investigation. More details can be found at: http://brinker.mediaroom.com/ChilisDataIncident.

About Chili’s Grill & Bar

Chili’s Grill & Bar is the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT), a recognized leader in casual dining. Known for their signature menu items – burgers, ribs and fajitas– Chili’s offers fresh, bold and unexpected flavors. Each ChiliHead at more than 1,600 locations in 31 countries and two territories takes great pride in Chili’s purpose of connecting with and serving Guests and giving back to the communities in which they are located. In addition to Chili’s, Brinker owns and operates Maggiano’s Little Italy®. For more brand-related information, visit chilis.com.

SOURCE Chili’s Grill & Bar

For further information: Chili’s Grill & Bar, [email protected], 800.775.7290

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FIRST LOOK: CHILI’S DEBUTS CUSTOM FASCINATORS AND CUFFLINKS FOR THE ROYAL WEDDING

DALLAS, May 9, 2018 /PRNewswire/ — Sound crazy? Well it just might be! Seeing is believing so let's cut to the chase. When we said we created Chili's® Grill & Bar inspired fascinators and cufflinks to celebrate the royal wedding, we understand that may be hard to fathom – so, have a look for yourself.

Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/8246354-chilis-royal-wedding/

Fashion meats Chili’s burgers, ribs, fajitas and margaritas

 

Bigger Big Mouth Burgers

 

Texas Sized Ribs

 

Sizzling Fajitas

 

Presidente Margaritas

We'll give you a minute to let that marinate.

Now that you're following, we like to have fun around here. With that in mind + our excitement about the royal wedding (whoop whoop!) + the fact that we're always thinking about our core equities (duh!), we designed custom accessories just in time for the royal wedding on May 19.

You're probably wondering "Why? Why did Chili's create burger, rib, fajita and margarita-inspired fascinators and cufflinks?" Well, because – "Why not?"

We don't take ourselves too seriously and ever since we had a moment of self-realization in Sept. 2017, (remember that?) we have made great strides to 1) show you our true personality and 2) not waver on our promise to focus on what we do best: burgers, ribs, fajitas and margaritas.

"The royal wedding is such an iconic event, which compels many of us on this side of the pond to wake up early to witness the nuptials of the royal couple. My team and I wanted to show our support for the royals and pay tribute to Meghan Markle and Prince Harry on their blessed day in our own 'ChiliHead' way," said Steve Provost, chief marketing officer at Chili's.

If you're looking to purchase one of these custom fascinators or cufflinks, unfortunately you can't because we only made a select few. However, you can follow along on social media with the hashtag #ChilisRoyalWedding and tag us on Facebook, Twitter and Instagram and you just might be delighted.

About Chili's Grill & Bar
Chili's® Grill & Bar is the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT), a recognized leader in casual dining. Known for their signature menu items – burgers, fajitas, ribs and margaritas – Chili's offers fresh, bold and unexpected flavors. Each ChiliHead at more than 1,600 locations in 33 countries and two territories takes great pride in Chili's purpose of connecting with and serving Guests and giving back to the communities in which they are located. In addition to Chili's, Brinker owns and operates Maggiano's Little Italy®. For more brand-related information, visit chilis.com.

SOURCE Chili's(R) Grill & Bar

For further information: Chili’s Grill & Bar | media.requests@brinker.com | 800.775.7290

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BRINKER INTERNATIONAL REPORTS THIRD QUARTER RESULTS

DALLAS, May 1, 2018 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) today announced results for the fiscal third quarter ended March 28, 2018.

Highlights include the following:

  • On a GAAP basis, earnings per diluted share were $1.02 for the third quarter of fiscal 2018 representing an 18.6 percent increase from $0.86 in the third quarter of fiscal 2017
  • Earnings per diluted share, excluding special items, were $1.08 for the third quarter of fiscal 2018 representing a 14.9 percent increase from $0.94 in the third quarter of fiscal 2017 (see non-GAAP reconciliation below)
  • Brinker International’s total revenues were $812.5 million in the third quarter of fiscal 2018 increasing 0.2 percent compared to the third quarter of fiscal 2017, and company sales were $790.5 million in the third quarter of fiscal 2018 which were flat compared to the third quarter of fiscal 2017
  • Chili’s company-owned comparable restaurant sales decreased 0.4 percent in the third quarter of fiscal 2018 compared to the third quarter of fiscal 2017. Chili’s U.S. franchise comparable restaurant sales decreased 3.2 percent in the third quarter of fiscal 2018 compared to the third quarter of fiscal 2017
  • Chili’s international franchise comparable restaurant sales decreased 0.2 percent in the third quarter of fiscal 2018 compared to the third quarter of fiscal 2017
  • Maggiano’s comparable restaurant sales increased 0.5 percent in the third quarter of fiscal 2018 compared to the third quarter of fiscal 2017
  • Operating income, as a percent of total revenues, was 8.9 percent for the third quarter of fiscal 2018 compared to 9.0 percent for the third quarter of fiscal 2017 representing a decrease of approximately 10 basis points
  • Restaurant operating margin, as a percent of company sales, was 16.1 percent for the third quarter of fiscal 2018 compared to 17.0 percent for the third quarter of fiscal 2017 (see non-GAAP reconciliation below)
  • For the first thirty-nine weeks of fiscal 2018, cash flows provided by operating activities were $237.7 million and capital expenditures totaled $69.5 million. Free cash flow was $168.2 million (see non-GAAP reconciliation below)
  • The Company’s Board of Directors approved a quarterly dividend of $0.38 per share on the common stock of the Company. The dividend will be payable June 28, 2018 to shareholders of record as of June 8, 2018
  • Brinker has entered into the first Chili’s franchise partnership in China, which will cover the Shanghai region.

"Brinker continued to gain momentum during the third quarter, especially related to our foundational strategy to drive positive traffic at Chili’s," said Wyman Roberts, Chief Executive Officer and President. "Our investments into our food, our value equation and our curbside To Go offering are working and creating a more compelling guest experience."

Quarterly Operating Performance

CHILI’S company sales in the third quarter of fiscal 2018 decreased 0.1 percent to $688.9 million from $689.7 million in the third quarter of fiscal 2017 primarily due to a decline in comparable restaurant sales, partially offset by an increase in capacity in the United States. As compared to the prior year, Chili’s restaurant operating margin1 declined. Cost of sales, as a percent of company sales, increased compared to the prior year due to food investments into beef and chicken and our promotional activities. These investments were partially offset by increased menu pricing. Restaurant labor, as a percent of company sales, increased compared to the prior year due to higher wage rates and employee health insurance expenses, partially offset by lower incentive bonuses. Restaurant expenses, as a percent of company sales, decreased due to lower technology-related operating lease expenses and lower loyalty program related expenses, partially offset by increased repairs and maintenance expenses.

MAGGIANO’S company sales in the third quarter of fiscal 2018 increased 0.6 percent to $101.6 million from $101.0 million in the third quarter of fiscal 2017 primarily due to an increase in comparable restaurant sales. As compared to the prior year, Maggiano’s restaurant operating margin1 improved. Restaurant labor, as a percent of company sales, decreased compared to the prior year due to sales leverage and labor efficiencies, partially offset by higher wage rates. Restaurant expenses, as a percent of company sales, decreased primarily due to sales leverage, lower property taxes, and lower restaurant opening expenses, partially offset by increased repairs and maintenance expenses. Cost of sales, as a percent of company sales, was positively impacted by favorable menu item mix and increased menu pricing, partially offset by unfavorable commodity pricing.

1

Restaurant 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 in the third quarter of fiscal 2018 increased 10.1 percent to $22.0 million from $20.0 million in the third quarter of fiscal 2017 primarily due to higher gift card-related revenues and development fees. Brinker franchisees generated approximately $337.0 million in sales2 for the third quarter of fiscal 2018.

2

Royalty revenues are recognized based on the sales generated and reported to the Company by franchisees.

Other

Depreciation and amortization expense for the third quarter of fiscal 2018 decreased $1.8 million compared to the third quarter of fiscal 2017 primarily due to an increase in fully-depreciated assets and restaurant closures, partially offset by depreciation on asset replacements, new restaurant openings and new technology-related capital lease depreciation.

General and administrative expense for the third quarter of fiscal 2018 increased $0.7 million compared to the third quarter of fiscal 2017 primarily due to higher performance-based compensation expenses.

Income Taxes

The Tax Cuts and Jobs Act of 2017 (the "Tax Act") enacted during the second quarter of fiscal 2018 lowered federal statutory tax rates. Brinker’s federal statutory tax rate for fiscal 2018 decreased to 28.1 percent, representing a blended tax rate for the current fiscal year based on the number of days in the fiscal year before and after the effective date of the Tax Act. For subsequent years, our federal statutory tax rate will be 21.0 percent under the Tax Act.

On a GAAP basis, the effective income tax rate decreased to 20.4 percent in the third quarter of fiscal 2018 from 28.9 percent in the third quarter of fiscal 2017. This decrease was driven primarily by the positive impact of the lower federal statutory tax rate. Excluding the impact of special items (see non-GAAP reconciliation below for details), the effective income tax rate decreased to 19.6 percent in the third quarter of fiscal 2018 compared to 29.9 percent in the third quarter of fiscal 2017 primarily due to the lower federal statutory tax rate.

Fiscal 2018 Outlook Update

Revenues for fiscal 2018 are now estimated to be flat to down 0.5 percent compared to fiscal 2017. Comparable restaurant sales for fiscal 2018 are estimated to be down 0.5 percent to down 1.0 percent. In addition, restaurant operating margin is now estimated to be down approximately 65-75 basis points on a year-over-year basis.

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 consolidated statements of comprehensive income and will only provide updates if there is a material change versus the original guidance. We are unable to reliably forecast special items such as restaurant impairments, restaurant closures, reorganization charges and legal settlements without unreasonable effort. As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures. If special items are reported in the remainder of fiscal 2018, reconciliations to the appropriate GAAP measures will be provided.

Table 1: Q3 Comparable Restaurant Sales1

Company-owned, reported brands and franchise; percentage

Q3 18

Q3 17

Brinker International

(0.3)

(2.2)

Chili’s Company-Owned

Comparable Restaurant Sales

(0.4)

(2.3)

Pricing Impact

1.1

2.9

Mix-Shift2

0.6

1.0

Traffic

(2.1)

(6.2)

Maggiano’s

Comparable Restaurant Sales

0.5

(1.6)

Pricing Impact

1.3

2.4

Mix-Shift2

0.6

1.4

Traffic

(1.4)

(5.4)

Chili’s Franchise3

(2.1)

(2.5)

U.S. Comparable Restaurant Sales

(3.2)

0.3

International Comparable Restaurant Sales

(0.2)

(7.1)

Chili’s Domestic4

(1.1)

(1.7)

System-wide5

(0.8)

(2.3)

1

Comparable restaurant sales includes all restaurants that have been in operation for more than 18 months

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

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.

Table 2: Reconciliation of Net Income Excluding Special Items

Q3 18 and Q3 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.

Q3 18

EPS Q3 18

Q3 17

EPS Q3 17

Net income

$

46.9

$

1.02

$

42.4

$

0.86

Special items1

2.8

0.06

6.6

0.13

Income tax effect related to special items2

(0.9)

(0.02)

(2.6)

(0.05)

Special items, net of taxes

1.9

0.04

4.0

0.08

Adjustment for special tax items3

0.8

0.02

Net income excluding special items

$

49.6

$

1.08

$

46.4

$

0.94

1

See footnote "2" to the Consolidated Statements of Comprehensive Income for additional details on the composition of these amounts.

2

The income tax effect related to special items is based on the statutory tax rate in effect at the end of each quarter presented. The tax rate used for the third quarter of fiscal 2018 is based on the tax rate stipulated by the Tax Act.

3

Amount primarily relates to deferred taxes pursuant to prior year tax return adjustments.

Table 3: Reconciliation of Restaurant Operating Margin

Q3 18 and Q3 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 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 in that 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 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 expense represents 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.

Q3 18

Q3 17

Operating income – GAAP

$

72.7

$

72.9

Operating income as a percent of total revenue

8.9%

9.0%

Operating income

72.7

72.9

Less: Franchise and other revenue

(22.0)

(20.0)

Plus: Depreciation and amortization

37.6

39.3

General and administrative

36.6

35.9

Other gains and charges

2.8

6.6

Restaurant operating margin – non-GAAP

$

127.7

$

134.7

Restaurant operating margin as a percent of company sales

16.1%

17.0%

Table 4: Reconciliation of Free Cash Flow

Q3 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.

Thirty-Nine Week
Period Ended
Mar. 28, 2018

Cash flows provided by operating activities – GAAP

$

237.7

Capital expenditures

(69.5)

Free cash flow – non-GAAP

$

168.2

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 today, May 1, 2018 at 9 a.m. CDT:

http://investors.brinker.com/phoenix.zhtml?c=119205&p=irol-eventDetails&EventId=5269454

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 May 29, 2018.

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 third quarter of fiscal 2018 filing on or before May 7, 2018; and
  • Fourth quarter earnings release, before market opens, Aug. 14, 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 March 28, 2018, Brinker owned, operated, or franchised 1,686 restaurants under the names Chili’s® Grill & Bar (1,634 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, tax reform, 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 Period Ended

Thirty-Nine Week Period Ended

March 28, 2018

March 29, 2017

March 28, 2018

March 29, 2017

Revenues:

Company sales

$

790,495

$

790,624

$

2,250,125

$

2,276,743

Franchise and other revenues1

22,039

20,017

68,199

63,433

Total revenues

812,534

810,641

2,318,324

2,340,176

Operating costs and expenses:

Company restaurants (excluding depreciation and amortization)

Cost of sales

207,328

201,903

587,808

587,742

Restaurant labor

265,367

261,632

766,858

760,894

Restaurant expenses

190,205

192,372

566,983

582,146

Company restaurant expenses

662,900

655,907

1,921,649

1,930,782

Depreciation and amortization

37,553

39,335

113,728

117,526

General and administrative

36,619

35,931

102,065

102,014

Other gains and charges2

2,752

6,600

25,167

13,984

Total operating costs and expenses

739,824

737,773

2,162,609

2,164,306

Operating income

72,710

72,868

155,715

175,870

Interest expense

14,549

13,658

42,754

36,108

Other, net

(755)

(402)

(2,246)

(1,084)

Income before provision for income taxes

58,916

59,612

115,207

140,846

Provision for income taxes

12,000

17,243

33,048

40,607

Net income

$

46,916

$

42,369

$

82,159

$

100,239

Basic net income per share

$

1.03

$

0.87

$

1.76

$

1.96

Diluted net income per share

$

1.02

$

0.86

$

1.74

$

1.93

Basic weighted average shares outstanding

45,433

48,954

46,719

51,211

Diluted weighted average shares outstanding

45,973

49,506

47,195

51,854

Other comprehensive income (loss):

Foreign currency translation adjustments3

$

(243)

$

734

$

577

$

(1,411)

Other comprehensive income (loss)

(243)

734

577

(1,411)

Comprehensive income

$

46,673

$

43,103

$

82,736

$

98,828

1

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.

2

Other gains and charges include:

Thirteen Week Period Ended

Thirty-Nine Week Period Ended

March 28, 2018

March 29, 2017

March 28, 2018

March 29, 2017

Restaurant closure charges

$

2,777

$

794

$

7,321

$

3,621

Lease guarantee charges

510

1,943

Accelerated depreciation

483

1,449

Hurricane-related costs

240

5,460

Foreign currency transaction gain

(948)

(66)

Restaurant impairment charges

9,133

1,851

Gain on the sale of assets, net

(55)

(303)

(2,624)

Severance

5,929

6,222

Information technology restructuring

2,700

Other

(310)

(68)

230

2,214

$

2,752

$

6,600

$

25,167

$

13,984

3

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 (prior to divestiture) 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)

March 28, 2018

June 28, 2017

ASSETS

Current assets

$

144,019

$

144,325

Net property and equipment1

943,865

1,000,614

Total other assets

248,995

258,694

Total assets

$

1,336,879

$

1,403,633

LIABILITIES AND SHAREHOLDERS’ DEFICIT

Current installments of long-term debt

$

7,301

$

9,649

Other current liabilities

441,696

426,712

Long-term debt, less current installments

1,361,705

1,319,829

Other liabilities

134,719

141,124

Total shareholders’ deficit

(608,542)

(493,681)

Total liabilities and shareholders’ deficit

$

1,336,879

$

1,403,633

1

At March 28, 2018, the Company owned the land and buildings for 190 of the 997 company-owned restaurants. The net book values of the land totaled $143.2 million and the buildings totaled $90.4 million associated with these restaurants.

BRINKER INTERNATIONAL, INC.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Thirty-Nine Week Period Ended

March 28, 2018

March 29, 2017

Cash Flows from Operating Activities:

Net income

$

82,159

$

100,239

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

Depreciation and amortization

113,728

117,526

Stock-based compensation

11,037

13,237

Restructure charges and other impairments

16,047

8,837

Net loss (gain) on disposal of assets

1,360

(628)

Changes in assets and liabilities

13,371

6,452

Net cash provided by operating activities

237,702

245,663

Cash Flows from Investing Activities:

Payments for property and equipment

(69,503)

(79,730)

Proceeds from sale of assets

14,825

3,077

Insurance recoveries

1,747

Proceeds from note receivable

1,185

Net cash used in investing activities

(51,746)

(76,653)

Cash Flows from Financing Activities:

Borrowings on revolving credit facility

524,000

200,000

Payments on revolving credit facility

(484,000)

(328,000)

Purchases of treasury stock

(162,004)

(350,768)

Payments of dividends

(53,098)

(54,087)

Payments on long-term debt

(7,834)

(2,847)

Proceeds from issuances of treasury stock

1,316

4,505

Proceeds from issuance of long-term debt

350,000

Payments for debt issuance costs

(10,216)

Net cash used in financing activities

(181,620)

(191,413)

Net change in cash and cash equivalents

4,336

(22,403)

Cash and cash equivalents at beginning of period

9,064

31,446

Cash and cash equivalents at end of period

$

13,400

$

9,043

BRINKER INTERNATIONAL, INC.

Restaurant Summary

Third Quarter
Openings
Fiscal 2018

Total
Restaurants
Mar. 28, 2018

Projected
Openings
Fiscal 2018

Company-owned restaurants:

Chili’s domestic

1

940

5-6

Chili’s international

5

Maggiano’s

52

1

Total company-owned

1

997

6-7

Franchise restaurants:

Chili’s domestic

1

314

5

Chili’s international

8

375

36-39

Total franchise

9

689

41-44

Total restaurants:

Chili’s domestic

2

1,254

10-11

Chili’s international

8

380

36-39

Maggiano’s

52

1

Grand total

10

1,686

47-51

SOURCE Brinker International, Inc.

For further information: MIKA WARE, INVESTOR RELATIONS, [email protected]; AISHA FLETCHER, MEDIA RELATIONS, [email protected], (800) 775-7290, 6820 LBJ FREEWAY, DALLAS, TEXAS 75240

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BRINKER INTERNATIONAL, INC. TO HOST THIRD QUARTER FISCAL 2018 EARNINGS CALL

DALLAS, April 24, 2018 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) has scheduled its earnings conference call at 10:00 a.m. Eastern Time on Tuesday, May 1, 2018 to review third quarter fiscal 2018 earnings, which will be announced before the market opens on May 1, 2018.

The live audio webcast can be accessed through the Investor Relations section of Brinker’s web site at http://investors.brinker.com/phoenix.zhtml?c=119205&p=irol-eventDetails&EventId=5269454. A replay of the conference call will also be available on the company’s web site for 30 days after the event and via Thomson StreetEvents for their service subscribers.

Brinker International owns, operates, franchises, or is involved in the ownership of restaurants under the names Chili’s® Grill & Bar and Maggiano’s Little Italy®.

SOURCE Brinker International, Inc.

For further information: For further information: media.requests@brinker.com, 800-775-7290

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NEW LOYALTY PROGRAM AT CHILI’S REWARDS THE GUEST ON EVERY VISIT

DALLAS, March 19, 2018 /PRNewswire/ — We, Chili’s® Grill & Bar, just made things a whole lot simpler for Guests participating in our loyalty program, My Chili’s Rewards. Have you noticed that loyalty programs have turned into crazy math equations? Like, let me calculate how many points I’ve earned. But, the rate of earning isn’t even clear. Then, let me solve to understand what the heck that means I get in return for keeping track of all of these points! Well, starting today, we’re breaking away from the norm and promise that you don’t need to solve equations to know what you’re getting as a My Chili’s Rewards Guest. It’s simple! My Chili’s Rewards Guests will get their choice of chips and salsa or a non-alcoholic beverage during every (yes, every) visit to Chili’s.

Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/8246353-chilis-rewards-loyalty-program/

"It’s raining chips, hallelujah, it’s raining chips!" sang Steve Provost, chief marketing and innovation officer of Chili’s. "Well, and free non-alcoholic beverages!"

But, how did we come to this marvelous and simple update to our loyalty program you ask? By taking the time to listen to our Guests. We heard the feedback loud and clear that loyalty programs feel too complicated so what would keep them coming back is to make things simple. We then took that and tested it in a few markets starting in August 2017 to confirm we were giving Guests what they want. The results? We are! In test markets, approximately 50 percent of My Chili’s Rewards members opt for free chips and salsa and the other 50 percent choose a non-alcoholic beverage.

"The reality is a loyalty program is a way of saying ‘thank you’ to our Guests for being one of their top dining options and we weren’t doing a good job of that until now," added Steve Provost.

If you’ve lost faith in loyalty programs over the years, we’re delighted to share Chili’s is giving you a reason to care again. Join My Chili’s Rewards at https://www.chilis.com/rewards and experience the simplicity yourself.

Side note, if you’re thinking, "wow, Chili’s has been really self aware lately!" You’re right. It started back in Sept. 2017 when we slashed the menu and focused on what made us famous – burgers, ribs and fajitas – and now we’re applying that thinking to all aspects. Loyalty was next up and we’ve realized what it takes to make our Guests happy. More to come…

About Chili’s Grill & Bar
Chili’s® Grill & Bar is the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT), a recognized leader in casual dining. Known for their signature menu items – burgers, fajitas, ribs and margaritas – Chili’s offers fresh, bold and unexpected flavors. Each ChiliHead at more than 1,600 locations in 33 countries and two territories takes great pride in Chili’s purpose of connecting with and serving Guests and giving back to the communities in which they are located. In addition to Chili’s, Brinker owns and operates Maggiano’s Little Italy®. For more brand-related information, visit chilis.com.

New Loyalty Program at Chili’s Rewards the Guest on Every Visit

New Loyalty Program at Chili’s Rewards the Guest on Every Visit

New Loyalty Program at Chili’s Rewards the Guest on Every Visit

SOURCE Chili’s(R) Grill & Bar

For further information: Chili’s Grill & Bar, media.requests@brinker.com, 800.775.7290

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Chili’s Celebrates its Birthday on March 13 with $3.13 Presidente Margaritas

DALLAS, March 12, 2018 /PRNewswire/ — Happy, happy birthday from the Chili’s crew, we wish it was our birthday… wait, it is our birthday and we want to party with you! On March 13 (3/13), we, Chili’s® Grill & Bar, are celebrating our birthday externally for the first time and want our Guests to join in on the fun with Presidente Margaritas™ for only $3.13 all day long at participating locations. See what we did there? Gave you a reason to remember 3/13 with $3.13 Presidente Margaritas J.

Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/8246352-chilis-birthday-march-13-presidente-margaritas/

We know that our Guests deserve the very best. So, to commemorate the big day, it only made sense to offer our best-selling drink that is shaken precisely 25 times on the way to the table and has been perfected to what many call "the best margarita."

March 13 has always been a special day for ChiliHeads across the nation to rejoice in another year of burgers, ribs, fajitas and margaritas, but this day hasn’t meant much to those outside of the brand. This year marks the first time we’re celebrating our birthday with our beloved Guests and everyone is invited to their local Chili’s to raise a glass (preferably a Presidente Margarita glass) to another year of Chili’s.

Guests should mark their calendars for years to come because we plan to make March 13 an annual celebration for #ChilisBirthday. Follow us on Facebook, Twitter and Instagram to join in on the birthday fun. And, visit www.chilis.com to find a participating Chili’s near you to visit on March 13. We hope to see you there!

About Chili’s Grill & Bar
Chili’s® Grill & Bar is the flagship brand of Dallas-based Brinker International, Inc. (NYSE: EAT), a recognized leader in casual dining. Known for their signature menu items – burgers, fajitas, ribs and margaritas – Chili’s offers fresh, bold and unexpected flavors. Each ChiliHead at more than 1,600 locations in 33 countries and two territories takes great pride in Chili’s purpose of connecting with and serving Guests and giving back to the communities in which they are located. In addition to Chili’s, Brinker owns and operates Maggiano’s Little Italy®. For more brand-related information, visit chilis.com.

Enjoy Chili's Presidente Margarita for $3.13 on 3/13

It's #ChilisBirthday on 3/13

Chili's Guest enjoying Presidente Margarita

SOURCE Chili’s(R) Grill & Bar

For further information: Chili’s Grill & Bar, media.requests@brinker.com, 800.775.7290

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DURING THE MONTH OF LOVE, MAGGIANO’S OPENS ‘CELEBRATE LOVE’ CONTEST

Now through March 9, Guests are invited to win a special event hosted by Maggiano’s

DALLAS, Feb. 27, 2018 /PRNewswire/ — At the heart of every celebration is love. Known as one of the best places to go to celebrate special occasions, Maggiano’s Little Italy® sees love expressed in its banquet rooms every day, hosting more than 22,000 special events in 2017. From anniversaries to baby showers, class reunions to bar mitzvahs, there’s something special about celebrating others. Now through March 9, Maggiano’s invites Guests to nominate someone in their life who deserves to be celebrated.

How to enter?

What you can win!

  • First place winner will receive a $5,000 credit towards a banquet event at their local Maggiano’s
  • Second place winner will receive a $3,000 credit towards a banquet event at their local Maggiano’s
  • Third place winner will receive a $1,500 credit towards a banquet event at their local Maggiano’s

It’s that easy! Entries will be accepted starting today, Feb. 27, through March 9. The top ten finalists will be announced on March 17. From there, the top three winners will be determined through public voting from March 17 through March 27. Nominees are encouraged to share their story within their communities and networks to help drive votes. The three grand prize winners will be announced on March 30 and then the fun part begins – planning an event to remember.

To enter Maggiano’s ‘Celebrate Love’ contest, visit www.maggianos.com/celebrate-love. To follow the contest on social use hashtags, #Maggianos and #CelebrateLove. For more information on Maggiano’s banquets and special event expertise, visit https://www.maggianos.com/banquets.

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