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BRINKER INTERNATIONAL, INC. TO HOST FIRST QUARTER FISCAL 2019 EARNINGS CALL

DALLAS, Oct. 23, 2018 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) has scheduled its earnings conference call at 10:00 a.m. Eastern Time on Tuesday, Oct. 30, 2018 to review first quarter fiscal 2019 earnings, which will be announced before the market opens on Oct. 30, 2018.

Brinker International, Inc. (PRNewsfoto/Brinker International, Inc.)

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=5275870. 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: Chili’s® Grill & Bar | 800.775.7290

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HI, WELCOME TO CHILI’S

DALLAS, Oct. 11, 2018 /PRNewswire/ — Don’t be a basic witch this year for Halloween because honestly you deserve better and no one wants to see you in a taco foam costume for the third year in a row. Transform into the “Hi, welcome to Chili’s” vine with our first-ever Halloween costume. Go to welcometochilis.com to get your hands on this Halloween treat while supplies last.

Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/8246359-chilis-halloween-costume-of-2018/

This one-of-a-kind Chili’s® Grill & Bar costume is sourced from tears of pure laughter, made with the finest cotton-polyester blend known to man and designed with a custom pattern you won’t find anywhere else. This Halloween, slip on your boxers and hold up that cardboard cell and get ready to welcome people to Chili’s all night long!

For just $25, your costume will include:

  • One set of Chili’s boxers
  • One cardboard cellphone perfect for mirror selfies
  • A chance to become an instant viral internet sensation

We can’t wait to see the viral sensation you’ll become thanks to a bathroom mirror near you. Feel free to tweet us your photos @chilis or tag us on Instagram.

Now, go order the best costume of the year here before it sells out!

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.

This Halloween, slip on your boxers and hold up that cardboard cell and get ready to welcome people to Chili’s all night long!

 

This Halloween, slip on your boxers and hold up that cardboard cell and get ready to welcome people to Chili’s all night long!

 

This Halloween, slip on your boxers and hold up that cardboard cell and get ready to welcome people to Chili’s all night long!

 

This Halloween, slip on your boxers and hold up that cardboard cell and get ready to welcome people to Chili’s all night long!

 

This Halloween, slip on your boxers and hold up that cardboard cell and get ready to welcome people to Chili’s all night long!

 

SOURCE Chili’s Grill & Bar

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

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CHILI’S PARADISE PIE IS BACK, BABY!

The fan-favorite dessert will return to select Chili’s menus nationwide on Oct. 1 to benefit St. Jude year-round 

DALLAS, Oct. 1, 2018 /PRNewswire/ — If you’ve been tracking our menu updates as any good Chili’s-loving Guest should, you know that the Paradise Pie took a break from our menus a few years ago. That news made many of our loyal Guests passionately clap back. So this is for all of you who were upset with us. Today, we’re announcing the return of our beloved Paradise Pie to select Chili’s® Grill & Bar menus nationwide.

Chili's Paradise Pie is Back, Benefiting St. Jude

Not only is the Paradise Pie back, but it’s also giving back. Starting today, every purchase of this mouthwatering dessert will benefit both your taste buds and St. Jude Children’s Research Hospital® because $.50 from each Paradise Pie purchase will be donated to St. Jude.

To understand why this is such a big deal, here’s a look at just how much our Guests missed the Paradise Pie during its sabbatical:

They cried…

“I used to work at Chili’s during college and I would eat that dessert all of the time. Now I save it for special occasions, like my birthday and I almost started to cry when I saw it was gone.”

Had health scares…

“Ohmigosh. I went to Chili’s today for the Paradise Pie and almost had heart failure when they said it was taken off the menu. Why?”

Pleaded…

“Bring back the paradise pie! I was devastated when I heard it was gone. It is my favorite. It is my birthday dessert. Please bring it back.”

And downright begged…

“PLEASE BRING THE PARADISE PIE BACK!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! I went to Chili’s every other day of the week just for the pie! I drove 100 miles there and back! OMG.”

So, if those testimonials don’t tell you the kind of treat you’re in for, I’m not sure what will.

If you missed the first appearance of the Paradise Pie on the menu a few years ago, here’s the deal. The Paradise Pie is a dessert packed with chocolate chips, walnuts and coconut that sits under a heavenly bed of vanilla ice cream, hot fudge and caramel. What more could you ask for? It’s basically a mountain of sweet treats bundled into one ooey gooey dessert. Eat it for yourself or share it with a friend, or two; we’re not here to judge because if we’re being honest with ourselves (and you) we may or may not have just devoured one too.

So, ultimately, we had no choice but to bring back the Paradise Pie.

And we’re excited to benefit St. Jude year-round with the help of an iconic menu item. Since 2002, we’ve proudly supported the lifesaving work of St. Jude and are dedicated to its mission of Finding cures. Saving children®. To date, we have raised more than $68 million with the help of our gracious Guests and Team Members to ensure that no family ever receives a bill from St. Jude for treatment, travel, housing or food – because all a family should worry about is helping their child live. And now you can easily help give back too by simply ordering the Paradise Pie. Really. It’s that simple. Find a Chili’s near you here.

If you’re curious to learn more about our longstanding partnership with St. Jude, read along here.

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.

About St. Jude Children’s Research Hospital
St. Jude Children’s Research Hospital is leading the way the world understands, treats and defeats childhood cancer and other life-threatening diseases. Its purpose is clear: Finding cures. Saving children.® It is the only National Cancer Institute-designated Comprehensive Cancer Center devoted solely to children. Treatments invented at St. Jude have helped push the overall childhood cancer survival rate from 20 percent to more than 80 percent since the hospital opened more than 50 years ago. St. Jude won’t stop until no child dies from cancer. St. Jude freely shares the discoveries it makes, and every child saved at St. Jude means doctors and scientists worldwide can use that knowledge to save thousands more children. Families never receive a bill from St. Jude for treatment, travel, housing or food – because all a family should worry about is helping their child live. Join the St. Jude mission by visiting stjude.org, liking St. Jude on Facebook, following St. Jude on Twitter and Instagram and subscribing to its YouTube channel.

SOURCE Chili’s(R) Grill & Bar

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

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BRINKER INTERNATIONAL BOARD DECLARES COMMON DIVIDEND

DALLAS, Feb. 6, 2018 /PRNewswire/ — On Feb. 6, the Board of Directors for Brinker International, Inc. (NYSE: EAT) declared a quarterly dividend of $0.38 per share on the common stock of the company, representing a 12 percent increase over the prior year. The dividend will be payable March 29, 2018 to shareholders of record as of March 9, 2018.

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 second quarter ended Dec. 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: For further information: Mika Ware, Investor Relations, investor.relations@brinker.com, or Aisha Fletcher, Media Relations, media.requests@brinker.com, (800) 775-7290, 6820 LBJ Freeway, Dallas, Texas 75240

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BRINKER INTERNATIONAL REPORTS SECOND QUARTER RESULTS

DALLAS, Jan. 30, 2018 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) today announced results for the fiscal second quarter ended Dec. 27, 2017.

Highlights include the following:

  • On a GAAP basis, earnings per diluted share were $0.54 for the second quarter of fiscal 2018 representing a 21.7 percent decrease from $0.69 in the second quarter of fiscal 2017
  • Earnings per diluted share, excluding special items, were $0.87 for the second quarter of fiscal 2018 representing a 22.5 percent increase from $0.71 in the second quarter of fiscal 2017 (see non-GAAP reconciliation below)
  • The Tax Cuts and Jobs Act of 2017 (the "Tax Act") negatively impacted GAAP net income by $3.9 million or $0.08 per diluted share, consisting of $8.7 million or $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 $4.8 million or $0.10 per diluted share for the second quarter of 2017
  • Brinker International’s total revenues were $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 $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 (see non-GAAP reconciliation below)
  • For the first six months of fiscal 2018, cash flows provided by operating activities were $119.7 million and capital expenditures totaled $48.6 million. Free cash flow was $71.1 million (see non-GAAP reconciliation below)
  • 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 $3.42 to $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."

Table 1: Q2 comparable restaurant sales1

Company-owned, reported brands and franchise; percentage

Q2 18

Q2 17

Brinker International

(1.0)

(2.9)

Chili’s Company-Owned

Comparable Restaurant Sales

(1.5)

(3.3)

Pricing Impact

2.3

1.8

Mix-Shift2

0.6

1.4

Traffic

(4.4)

(6.5)

Maggiano’s

Comparable Restaurant Sales

1.8

(0.8)

Pricing Impact

1.1

2.6

Mix-Shift2

1.1

(0.9)

Traffic

(0.4)

(2.5)

Chili’s Franchise3

(1.0)

(3.5)

U.S. Comparable Restaurant Sales

(1.7)

(3.0)

International Comparable Restaurant Sales

0.1

(4.2)

Chili’s Domestic4

(1.6)

(3.2)

System-wide5

(1.0)

(3.1)

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.

Quarterly Operating Performance

CHILI’S second quarter company sales decreased 1.3 percent to $623.6 million from $632.1 million in the prior year primarily due to a decline in comparable restaurant sales. 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, partially offset by lower employee health insurance costs and incentive bonuses. Cost of sales, as a percent of company sales, increased slightly compared to the prior year due to unfavorable product mix on beef, ribs and chicken and unfavorable commodity pricing on produce, partially offset by increased menu pricing and favorable commodity pricing on beef. Restaurant expenses, as a percent of company sales, decreased due to lower advertising and repairs and maintenance expenses, partially offset by sales deleverage.

MAGGIANO’S second quarter company sales increased 2.1 percent to $119.1 million from $116.6 million in the prior year primarily due to an increase in comparable restaurant sales. As compared to the prior year, Maggiano’s restaurant operating margin1 improved. Restaurant expenses, as a percent of company sales, decreased primarily due to sales leverage and lower property taxes, preopening and workers’ compensation insurance expenses. Restaurant labor, as a percent of company sales, decreased compared to the prior year due to sales leverage and lower incentive bonuses, partially offset by higher wage rates. Cost of sales, as a percent of company sales, was negatively impacted by unfavorable commodity pricing, partially offset by increased menu pricing.

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 6.3 percent to $23.7 million for the second quarter of fiscal 2018 compared to $22.3 million in the prior year second quarter primarily due to higher gift card-related revenues. Brinker franchisees generated approximately $324 million in sales2 for the second quarter of fiscal 2018.

2Royalty revenues are recognized based on the sales generated and reported to the Company by franchisees.

Other

Depreciation and amortization expense decreased $1.7 million for the current quarter compared to the second 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 $0.5 million for the current quarter compared to the second quarter of fiscal 2017 primarily due to lower compensation-related expenses.

Income Taxes

The Tax Act was enacted on December 22, 2017 with an effective date of January 1, 2018. The enactment date occurred prior to the end of the second quarter of fiscal 2018 and therefore the federal statutory tax rate changes stipulated by the Tax Act were reflected in the current quarter. The Tax Act lowered the federal statutory tax rate from 35 percent to 21 percent effective January 1, 2018. Brinker’s federal statutory tax rate for fiscal 2018 is now 28 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. For subsequent years, our federal statutory tax rate will be 21%. We were also required to revalue our deferred tax accounts using the new federal statutory tax rate in the period in which the Tax Act was enacted. The Company’s deferred tax position is a net asset and as a result, the reduction in the federal statutory tax rate resulted in a one-time non-cash adjustment to our net deferred tax balance of $8.7 million with a corresponding increase to the provision for income taxes in the second quarter of fiscal 2018.

On a GAAP basis, the effective income tax rate increased to 38.3 percent in the second quarter of fiscal 2018 from 28.2 percent in the second quarter of fiscal 2017. This increase was driven by the revaluation of the Company’s deferred tax accounts pursuant to the Tax Act, partially offset by the positive impact of lowering the federal statutory tax rate and lower profits. Excluding the impact of special items and the revaluation of the Company’s deferred tax accounts, the effective income tax rate decreased to 19.5 percent in the second quarter of fiscal 2018 compared to 28.1 percent in the second quarter of fiscal 2017 primarily due to the lower corporate tax rate and lower profits.

Fiscal 2018 Outlook Update

The Tax Act will have a material impact on the Company’s effective tax rate for fiscal 2018. The Company estimates adjusted earnings per diluted share, excluding special items and the revaluation of the Company’s deferred tax accounts, for fiscal 2018 will be in the range of $3.42 to $3.52 including the effective rate impact of the Tax Act. Previously, the Company expected the effective income tax rate excluding the impact of special items to be approximately 27 to 29 percent for fiscal 2018. The Company’s effective tax rate excluding the impact of special items and the revaluation of the deferred tax accounts is now expected to be approximately 20 to 22 percent. The Company believes providing estimated fiscal 2018 earnings per diluted share guidance provides investors the appropriate insight into the Company’s ongoing operating performance.

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 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.

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

Q2 18 and Q2 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.

Q2 18

EPS Q2 18

Q2 17

EPS Q2 17

Net Income

$

25.4

$

0.54

$

34.6

$

0.69

Special items1

9.3

0.20

1.3

0.03

Income tax effect related to special items2

(2.4)

(0.05)

(0.3)

(0.01)

Special items, net of taxes

6.9

0.15

1.0

0.02

Adjustment for tax items3

8.3

0.18

Net Income excluding special items

$

40.6

$

0.87

$

35.6

$

0.71

1

See footnote "b" 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 Q2 fiscal 2018 is based on the tax rate stipulated by the Tax Act enacted on December 22, 2017.

3

Amounts represent the revaluation of our net deferred taxes using the new lower corporate tax rate pursuant to the Tax Act. Additionally, this amount includes $0.4 million of tax benefits from the settlement of stock-based compensation awards in the provision for income taxes.

Table 3: Reconciliation of restaurant operating margin

Q2 18 and Q2 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. 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.

Q2 18

Q2 17

Operating income – GAAP

$

54.4

$

61.5

Operating income as a percent of total revenues

7.1

%

8.0

%

Operating income

54.4

61.5

Less: Franchise and other revenues

(23.7)

(22.3)

Plus: Depreciation and amortization

37.7

39.3

General and administrative

33.1

33.5

Other gains and charges

9.3

1.3

Restaurant operating margin – non-GAAP

$

110.8

$

113.3

Restaurant operating margin as a percent of company sales

14.9

%

15.1

%

Table 4: Reconciliation of free cash flow

Q2 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.

Twenty-six Week Period
Ended Dec. 27, 2017

Cash flows provided by operating activities – GAAP

$

119.7

Capital expenditures

(48.6)

Free cash flow – non-GAAP

$

71.1

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. CST today (Jan. 30) –

http://investors.brinker.com/phoenix.zhtml?c=119205&p=irol-EventDetails&EventId=5266817

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 Feb. 27, 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 second quarter of fiscal 2018 filing on or before Feb. 5, 2018; and
– Third quarter earnings release, before market opens, May 1, 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 December 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, 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 Periods Ended

Twenty-Six Week Periods Ended

Dec. 27, 2017

Dec. 28, 2016

Dec. 27, 2017

Dec. 28, 2016

Revenues:

Company sales

$

742,688

$

748,709

$

1,459,630

$

1,486,119

Franchise and other revenues (a)

23,712

22,334

46,160

43,416

Total revenues

766,400

771,043

1,505,790

1,529,535

Operating costs and expenses:

Company restaurants (excluding depreciation and amortization)

Cost of sales

192,883

193,537

380,480

385,839

Restaurant labor

250,416

248,692

501,491

499,262

Restaurant expenses

188,649

193,131

376,778

389,774

Company restaurant expenses

631,948

635,360

1,258,749

1,274,875

Depreciation and amortization

37,655

39,305

76,175

78,191

General and administrative

33,088

33,546

65,446

66,083

Other gains and charges (b)

9,261

1,306

22,415

7,384

Total operating costs and expenses

711,952

709,517

1,422,785

1,426,533

Operating income

54,448

61,526

83,005

103,002

Interest expense

14,321

13,641

28,205

22,450

Other, net

(1,015)

(383)

(1,491)

(682)

Income before provision for income taxes

41,142

48,268

56,291

81,234

Provision for income taxes

15,776

13,631

21,048

23,364

Net income

$

25,366

$

34,637

$

35,243

$

57,870

Basic net income per share

$

0.55

$

0.70

$

0.74

$

1.11

Diluted net income per share

$

0.54

$

0.69

$

0.74

$

1.09

Basic weighted average shares outstanding

46,432

49,833

47,362

52,339

Diluted weighted average shares outstanding

46,880

50,480

47,806

53,028

Other comprehensive income (loss):

Foreign currency translation adjustment (c)

$

(198)

$

(1,664)

$

820

$

(2,145)

Other comprehensive income (loss)

(198)

(1,664)

820

(2,145)

Comprehensive income

$

25,168

$

32,973

$

36,063

$

55,725

(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

Twenty-Six Week Periods Ended

Dec. 27, 2017

Dec. 28, 2016

Dec. 27, 2017

Dec. 28, 2016

Restaurant closure charges

$

4,306

$

321

$

4,544

$

2,827

Restaurant impairment charges

1,974

1,851

9,133

1,851

Lease guarantee charges

1,433

1,433

Foreign currency transaction loss

882

882

Hurricane-related costs

572

5,220

Accelerated depreciation

483

966

Gain on the sale of assets, net

(348)

(2,569)

(303)

(2,569)

Information technology restructuring

209

2,700

Severance

293

Other

(41)

1,494

540

2,282

$

9,261

$

1,306

$

22,415

$

7,384

(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 (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)

Dec. 27, 2017

June 28, 2017

ASSETS

Current assets

$

194,474

$

144,325

Net property and equipment (a)

958,084

1,000,614

Total other assets

247,987

258,694

Total assets

$

1,400,545

$

1,403,633

LIABILITIES AND SHAREHOLDERS’ DEFICIT

Current installments of long-term debt

$

8,265

$

9,649

Other current liabilities

443,611

426,712

Long-term debt, less current installments

1,365,255

1,319,829

Other liabilities

136,274

141,124

Total shareholders’ deficit

(552,860)

(493,681)

Total liabilities and shareholders’ deficit

$

1,400,545

$

1,403,633

(a)

At Dec. 27, 2017, 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 $91.7 million associated with these restaurants.

BRINKER INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Twenty-Six Week Periods Ended

Dec. 27, 2017

Dec. 28, 2016

Cash Flows From Operating Activities:

Net income

$

35,243

$

57,870

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

Depreciation and amortization

76,175

78,191

Stock-based compensation

6,287

8,152

Restructure charges and other impairments

14,457

8,000

Net loss (gain) on disposal of assets

1,294

(811)

Changes in assets and liabilities

(13,747)

(8,578)

Net cash provided by operating activities

119,709

142,824

Cash Flows from Investing Activities:

Payments for property and equipment

(48,559)

(60,055)

Proceeds from sale of assets

325

3,022

Insurance recoveries

1,000

Proceeds from note receivable

480

Net cash used in investing activities

(46,754)

(57,033)

Cash Flows from Financing Activities:

Borrowings on revolving credit facility

320,000

100,000

Payments on revolving credit facility

(276,000)

(138,000)

Purchases of treasury stock

(71,792)

(349,994)

Payments of dividends

(35,445)

(36,944)

Payments on long-term debt

(5,091)

(1,862)

Proceeds from issuances of treasury stock

1,042

3,837

Proceeds from issuance of long-term debt

350,000

Payments for debt issuance costs

(10,216)

Net cash used in financing activities

(67,286)

(83,179)

Net change in cash and cash equivalents

5,669

2,612

Cash and cash equivalents at beginning of period

9,064

31,446

Cash and cash equivalents at end of period

$

14,733

$

34,058

BRINKER INTERNATIONAL, INC.

RESTAURANT SUMMARY

Second Quarter
Openings
Fiscal 2018

Total Restaurants
Dec. 27, 2017

Projected
Openings
Fiscal 2018

Company-owned restaurants:

Chili’s domestic

3

940

5-6

Chili’s international

5

Maggiano’s

52

1

Total company-owned

3

997

6-7

Franchise restaurants:

Chili’s domestic

1

316

5-7

Chili’s international

9

369

38-43

Total franchise

10

685

43-50

Total restaurants:

Chili’s domestic

4

1,256

10-13

Chili’s international

9

374

38-43

Maggiano’s

52

1

Grand total

13

1,682

49-57

SOURCE Brinker International, Inc.

For further information: MIKA WARE, INVESTOR RELATIONS, investor.relations@brinker.com, AISHA FLETCHER, MEDIA RELATIONS, media.requests@brinker.com, (800) 775-7290, 6820 LBJ FREEWAY, DALLAS, TEXAS 75240

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

DALLAS, Jan. 23, 2018 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT) has scheduled its earnings conference call at 10:00 a.m. Eastern Time on Tuesday, Jan. 30, 2018 to review second quarter fiscal 2018 earnings, which will be announced before the market opens on Jan. 30, 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=5266817. 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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BRINKER INTERNATIONAL AND PEARSON
PARTNER TO OFFER NO COST EDUCATION TO
CHILI’S AND MAGGIANO’S EMPLOYEES

DALLAS, Jan. 22, 2018 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT), one of the world’s leading casual dining restaurant companies and owner of Chili’s® Grill & Bar and Maggiano’s Little Italy®, announced today the launch of a comprehensive educational program, Best You EDU. In partnership with Pearson, Best You EDU is an employer-education program that provides opportunities for Brinker Team Members, ranging from hourly to management. At absolutely no cost to participants, Best You EDU is open to all Team Members who work at least 24 hours per week with a minimum tenure of 90 days and registration is now open.

Experience the interactive Multichannel News Release here: https://www.multivu.com/players/English/8246351-brinker-pearson-education-chilis-maggianos-best-you-edu/

Best You EDU was designed to meet Team Members where they are on their educational journey, offering three main components: Foundational, GED and associate degrees.

  • No cost Foundational Program: Provides language, skills development and bilingual coaching in a mobile-first environment.
  • No cost GED Program: Provides online GED prep curriculum, bilingual advisory support and unlimited test-pass GED credential guarantees.
  • No cost associate degree: Provides an online pathway to an associate degree in business or general studies through a regionally accredited college, including all courses, text and study materials, advising and coaching support.

"We firmly believe that education is the single best benefit we can provide to our Team Members. The confidence that education provides is what encourages our Team Members to achieve the next step in their career," said Rick Badgley, Chief People Officer, Brinker. "Best You EDU is personal to me and the larger Brinker leadership team as many of us started our careers as a cook, dishwasher or host at a restaurant. Through education, we gained the confidence necessary to further pursue our careers."

"Pearson is proud to partner with Brinker to develop a custom education program," said Kevin Capitani, president, Pearson North America. "Only 2-3 percent of workers are in a position to use employer-tuition programs because of upfront costs, difficulty fitting education into their busy lives, or a lack of foundational skills. Brinker is one of the few companies addressing this range of barriers to a better job and to a better life."

To support Team Members throughout the education process, all participants will have access to a coach specific to their educational pathway. Coaches will provide help with everything from gaining internet access and encouraging participation and persistence to navigating work and school simultaneously and defining a career path. For associate degree candidates, coaches will help students with college applications, course selections and academic struggles while in school.

Here’s what some Brinker Team Members had to say when they learned about Best You EDU:

  • "We already work for a company that has the drive to make our lives better. So, to see that they are taking more steps to help us achieve a more purposeful life is amazing to hear," said Katie McGee, Assistant Manager at Chili’s.
  • "I would be one of many who would greatly appreciate and be grateful for working and being a part of a company that supports free education. That to me means that not only select individuals have an opportunity to succeed, but now that opportunity is available to all," said Victoria Castillo, host at Chili’s.
  • "I’m excited to hear conversations among Teammates evolve to include ‘and how are your classes going?’ because the goal is to help each individual achieve their very best. And, to make that happen with no financial burden to our Teammates is the right way to do it," said Brooke Burgiel, PeopleWorks Director at Maggiano’s.

By offering life-changing opportunities through Best You EDU, Guests will also reap benefits. Happier Team Members provide exceptional service to Guests, enhancing the overall dining experience. "When you feel supported and understood by your employer, you are more likely to go above and beyond," said Badgley. "We would much rather search and promote within our existing talent pool to find our next managers and general managers. Through great training and exceptional growth opportunities, we are using Best You EDU as a launching pad to expand our benefits offerings and this is just the beginning of what’s to come."

For more information about Best You EDU, please visit https://www.brinkerjobs.com/why-choose-us/our-culture/ and http://www.pearsonlearningnews.com/building-a-movement-how-a-new-initiative-empowers-workers-through-education/

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).

About Pearson
Pearson is the world’s learning company, with expertise in educational courseware and assessment, and a range of teaching and learning services powered by technology. Our mission is to help people make progress through access to better learning. We believe that learning opens up opportunities, creating fulfilling careers and better lives. For more, visit www.pearson.com.

SOURCE Brinker International, Inc.

For further information: Brinker International, Inc., media.requests@brinker.com, 800.775.7290; Pearson, media@pearson.com, 202.909.4520

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BRINKER INTERNATIONAL ADDS JAMES KATZMAN TO BOARD OF DIRECTORS, BRINGING FINANCIAL AND BUSINESS EXPERTISE

DALLAS, Jan. 22, 2018 /PRNewswire/ — Brinker International, Inc. (NYSE: EAT), a recognized leader in casual dining, announces the election of James Katzman to its Board of Directors.

Katzman is a retired partner of Goldman Sachs. A seasoned, accomplished investment banking professional, he spent his career advising companies on corporate financial matters and merger transactions. He also serves as a trustee for the Hershey Trust Company and Milton Hershey School, San Francisco Ballet, and Boys & Girls Clubs of Metro Phoenix. In addition, he is on the advisory board for the Program for Financial Studies at Columbia Business School, where he guest lectures on financial topics.

"Jim brings tremendous business and financial experience to our board that will enlighten our discussions around creating value for our shareholders," said Joe DePinto, chairman of the board of Brinker.

"We are pleased to welcome a business leader with such strong experience in shareholder value, capital structure and corporate governance," added Wyman Roberts, CEO and president of Brinker. "Jim’s addition further strengthens our board’s breadth of talent, which will be extremely valuable as Brinker continues to grow."

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: Aisha Fletcher, Media Relations, media.requests@brinker.com, (800) 775-7290, 6820 LBJ Freeway, Dallas, Texas 75240