DALLAS, Nov. 1, 2023
/PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) today
announced its financial results for the first quarter ended
September 27, 2023.
First Quarter Fiscal 2024 Financial
Highlights
Brinker International reported net income per diluted share of
$0.16, in the first quarter of fiscal
2024, compared to a net loss per diluted share of $0.69 in the first quarter of fiscal 2023. Net
income per diluted share, excluding special items (non-GAAP), was
$0.28 in the first quarter of fiscal
2024, compared to a net loss per diluted share, excluding special
items (non-GAAP), of $0.57 in the
first quarter of fiscal 2023.
Our results for the first quarter of fiscal 2024 were primarily
driven by an increase in Company sales and favorable food and
beverage costs as a percentage of Company sales. Comparable
restaurant sales increased 5.8%, with an increase in comparable
restaurant sales of 6.1% for Chili's and 2.6% for Maggiano's.
Comparable restaurant sales improved primarily due to increased
menu pricing and favorable item mix. A strategic decision to
de-emphasize our virtual brands: It's Just
Wings® and Maggiano's Italian
Classics®, contributed approximately 4.0% of an overall
5.8% traffic decline. Operating income margin increased to 2.4% and
restaurant operating margin (non-GAAP) increased to 10.4% for the
first quarter.
"The first quarter results are a great start to the fiscal year
and indicate our strategy is working and building momentum," said
Kevin Hochman, Chief Executive
Officer and President of Brinker International, Inc. "Our
investments in guest and team member experiences are paying off,
and I am confident we are rebuilding the business in a way that
will deliver sustainable top and bottom-line growth over the long
term."
First
Quarter Financial Results
|
|
|
First
Quarter
|
|
2024
|
|
2023
|
|
Variance
|
Company
sales
|
$ 1,002.0
|
|
$
946.1
|
|
$ 55.9
|
Total
revenues
|
$ 1,012.5
|
|
$
955.5
|
|
$ 57.0
|
|
|
|
|
|
|
Operating income
(loss)
|
$ 24.2
|
|
$
(19.8)
|
|
$ 44.0
|
Operating income (loss)
as a % of Total revenues
|
2.4 %
|
|
(2.1) %
|
|
4.5 %
|
Restaurant operating
margin, non-GAAP(1)
|
$
104.3
|
|
$ 57.2
|
|
$ 47.1
|
Restaurant operating
margin as a % of Company sales, non-GAAP(1)
|
10.4 %
|
|
6.0 %
|
|
4.4 %
|
Net income
(loss)
|
$
7.2
|
|
$
(30.2)
|
|
$ 37.4
|
Adjusted EBITDA,
non-GAAP(1)
|
$ 72.4
|
|
$ 27.1
|
|
$ 45.3
|
|
|
|
|
|
|
Net income (loss) per
diluted share
|
$ 0.16
|
|
$
(0.69)
|
|
$ 0.85
|
Net income (loss) per
diluted share, excluding special items,
non-GAAP(1)
|
$ 0.28
|
|
$
(0.57)
|
|
$ 0.85
|
Comparable
Restaurant Sales(2)
|
|
|
Q1:24 vs
23
|
Brinker
|
5.8 %
|
Chili's
|
6.1 %
|
Maggiano's
|
2.6 %
|
(1)
|
See Non-GAAP
Information and Reconciliations section below for more
details.
|
|
|
(2)
|
Comparable Restaurant
Sales include restaurants that have been in operation for more than
18 full months. Restaurants temporarily closed for 14 days or more
are excluded from comparable restaurant sales. Percentage amounts
are calculated based on the comparable periods
year-over-year.
|
Update to Full Year Fiscal 2024 Guidance
We are providing the following update to our full year fiscal
2024 guidance:
- Net income per diluted share, excluding special items,
non-GAAP, is expected to be in the range of $3.35 - $3.65.
We are reiterating the following full year fiscal 2024
guidance:
- Total revenues are expected to be in the range of $4.27 billion - $4.35
billion;
- Weighted average shares are expected to be in the range of 45
million - 46 million; and
- Capital expenditures are expected to be in the range of
$175 million - $195 million.
The potential for changes in macroeconomic conditions, among
other risks, could cause actual results to differ materially from
those projected. We are unable to reliably forecast special items
without unreasonable effort. As such, we do not present a
reconciliation of forecasted non-GAAP measures to the corresponding
GAAP measures.
First Quarter of Fiscal 2024 Operating
Performance
Segment Performance
The table below presents selected financial information (in
millions, except as noted) related to our segments' operational
performance for the thirteen week periods ended September 27, 2023 and September 28, 2022:
|
Chili's
|
|
Maggiano's
|
|
First
Quarter
|
|
Variance
|
|
First
Quarter
|
|
Variance
|
|
2024
|
|
2023
|
|
|
2024
|
|
2023
|
|
Company
sales
|
$ 897.8
|
|
$ 840.6
|
|
$ 57.2
|
|
$ 104.2
|
|
$ 105.5
|
|
$
(1.3)
|
Franchise
revenues
|
10.3
|
|
9.3
|
|
1.0
|
|
0.2
|
|
0.1
|
|
0.1
|
Total
revenues
|
$ 908.1
|
|
$ 849.9
|
|
$ 58.2
|
|
$ 104.4
|
|
$ 105.6
|
|
$
(1.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Company restaurant
expenses(1)
|
$ 802.6
|
|
$ 792.2
|
|
$ 10.4
|
|
$ 95.0
|
|
$ 96.5
|
|
$
(1.5)
|
Company restaurant
expenses as a % of Company sales
|
89.4 %
|
|
94.2 %
|
|
(4.8) %
|
|
91.2 %
|
|
91.5 %
|
|
(0.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$ 55.6
|
|
$
9.2
|
|
$ 46.4
|
|
$
3.6
|
|
$
2.9
|
|
$
0.7
|
Operating income as a %
of Total revenues
|
6.1 %
|
|
1.1 %
|
|
5.0 %
|
|
3.4 %
|
|
2.7 %
|
|
0.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant operating
margin, non-GAAP(2)
|
$ 95.2
|
|
$ 48.4
|
|
$ 46.8
|
|
$
9.2
|
|
$
9.0
|
|
$
0.2
|
Restaurant operating
margin as a % of Company sales, non-GAAP(2)
|
10.6 %
|
|
5.8 %
|
|
4.8 %
|
|
8.8 %
|
|
8.5 %
|
|
0.3 %
|
(1)
|
Company restaurant
expenses includes Food and beverage costs, Restaurant labor and
Restaurant expenses, and excludes Depreciation and amortization,
General and administrative and Other (gains) and
charges.
|
|
|
(2)
|
See Non-GAAP
Information and Reconciliations section below for more
details.
|
Chili's
- Chili's Company sales increased primarily due to increased menu
pricing and favorable menu item mix, partially offset by lower
traffic.
- Chili's Company restaurant expenses, as a percentage of Company
sales, decreased primarily due to sales leverage and menu pricing,
favorable menu item mix and commodity costs, as well as lower
delivery fees & to-go supplies, partially offset by increased
advertising, hourly labor, and other restaurant expenses.
- Chili's franchisees generated sales of approximately
$202.8 million for the first quarter
of fiscal 2024 compared to $203.3
million for the first quarter of fiscal 2023.
Maggiano's
- Maggiano's Company sales decreased slightly primarily due to
restaurant closures, partially offset by favorable comparable
restaurant sales driven by increased menu pricing.
- Maggiano's Company restaurant expenses, as a percentage of
Company sales, decreased slightly primarily due to menu pricing and
favorable commodity costs, partially offset by increased hourly
labor and other restaurant expenses.
Income Taxes
- On a GAAP basis, the effective income tax rate was 0.0% in the
first quarter of fiscal 2024. The effective income tax rate is
lower than the statutory rate of 21% due primarily to leverage of
the FICA tip credit. Excluding the impact of special items, the
effective income tax rate was an expense of 6.7% in the first
quarter of fiscal 2024.
Webcast Information
Investors and interested parties are invited to listen to
today's conference call, as management will provide further details
of the quarter and business updates. The call will be broadcast
live on Brinker's website today, November 1, 2023 at
9 a.m. CDT:
https://investors.brinker.com/events/event-details/q1-2024-brinker-international-earnings-conference-call
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 at least the end of the day
November 1, 2024.
Additional financial information, including statements of income
which detail operations excluding special items, franchise
revenues, and comparable restaurant sales trends by brand, is also
available on Brinker's website under the Financial Information
section of the Investor tab.
Forward Calendar
- SEC Form 10-Q for the first quarter of fiscal 2024 filing on or
before November 6, 2023
- Earnings release call for the second quarter of fiscal 2024 on
January 31, 2024
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.
About Brinker
Brinker International, Inc. is one of the world's leading
casual dining restaurant companies and home of Chili's®
Grill & Bar, Maggiano's Little Italy,® and the It's
Just Wings® virtual
brand. Founded in 1975 in Dallas,
Texas, we've ventured far from home, but stayed true to our
roots. Brinker owns, operates or franchises more than 1,600
restaurants in the United States
and 29 other countries and two U.S. territories. Our passion is
making everyone feel special, and we hope you feel that passion
each time you visit one of our restaurants or invite us into your
home through takeout or delivery. Learn more about Brinker and its
brands at brinker.com.
Forward-Looking Statements
The statements and tables 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. We intend all forward-looking
statements to be covered by the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. All
forward-looking statements are made only based on our current plans
and expectations as of the date such statements are made, and we
undertake no obligation to update forward-looking statements to
reflect events or circumstances arising after the date such
statements are made. Forward-looking statements are neither
predictions nor guarantees of future events or performance and are
subject to risks and uncertainties which could cause actual results
to differ materially from our historical results or from those
projected in forward-looking statements. Such risks and
uncertainties include, among other things, the impact of general
economic conditions, including inflation, on economic activity and
on our operations; disruptions on our business including consumer
demand, costs, product mix, our strategic initiatives, our
partners' supply chains, operations, technology and assets, and our
financial performance; the impact of competition; changes in
consumer preferences; consumer perception of food safety; reduced
consumer discretionary spending; unfavorable publicity;
governmental regulations; the Company's ability to meet its
business strategy plan; loss of key management personnel; failure
to hire and retain high-quality restaurant management and team
members: increasing regulation surrounding wage inflation and
competitive labor markets; the impact of social media or other
unfavorable publicity; reliance on technology and third party
delivery providers; failure to protect the security of data of our
guests and team members; product availability and supply chain
disruptions; regional business and economic conditions; volatility
in consumer, commodity, transportation, labor, currency and capital
markets; litigation; franchisee success; technology failures;
failure to protect our intellectual property; outsourcing;
impairment of goodwill or assets; failure to maintain effective
internal control over financial reporting; downgrades in credit
ratings; changes in estimates regarding our assets; actions of
activist shareholders; failure to comply with new environmental,
social and governance ("ESG") requirements; failure to achieve any
goals, targets or objectives with respect to ESG matters; adverse
weather conditions; terrorist acts; health epidemics or pandemics;
tax reform; inadequate insurance coverage and limitations imposed
by our credit agreements as well as the risks and uncertainties
described in "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 (Loss)
(Unaudited)
(In millions, except
per share amounts)
|
|
|
Thirteen Week
Periods Ended
|
|
September 27,
2023
|
|
September 28,
2022
|
Revenues
|
|
|
|
Company
sales
|
$
1,002.0
|
|
$
946.1
|
Franchise
revenues
|
10.5
|
|
9.4
|
Total
revenues
|
1,012.5
|
|
955.5
|
Operating costs and
expenses
|
|
|
|
Food and beverage
costs
|
258.8
|
|
289.5
|
Restaurant
labor
|
348.1
|
|
330.6
|
Restaurant
expenses
|
290.8
|
|
268.8
|
Depreciation and
amortization
|
41.9
|
|
41.9
|
General and
administrative
|
42.4
|
|
39.5
|
Other (gains) and
charges(1)
|
6.3
|
|
5.0
|
Total operating costs
and expenses
|
988.3
|
|
975.3
|
Operating income
(loss)
|
24.2
|
|
(19.8)
|
Interest
expenses
|
17.0
|
|
12.3
|
Other income,
net
|
—
|
|
(0.4)
|
Income (loss) before
income taxes
|
7.2
|
|
(31.7)
|
Benefit for income
taxes
|
—
|
|
(1.5)
|
Net income
(loss)
|
$
7.2
|
|
$
(30.2)
|
|
|
|
|
Basic net income (loss)
per share
|
$
0.16
|
|
$
(0.69)
|
|
|
|
|
Diluted net income
(loss) per share
|
$
0.16
|
|
$
(0.69)
|
|
|
|
|
Basic weighted average
shares outstanding
|
44.6
|
|
43.9
|
|
|
|
|
Diluted weighted
average shares outstanding
|
45.4
|
|
43.9
|
|
|
|
|
Other comprehensive
loss
|
|
|
|
Foreign currency
translation adjustments
|
$
(0.2)
|
|
$
(1.0)
|
Comprehensive income
(loss)
|
$
7.0
|
|
$
(31.2)
|
(1)
|
Other (gains) and
charges included in the Consolidated Statements of Comprehensive
Income (Loss) (Unaudited) included (in millions):
|
|
Thirteen Week
Periods Ended
|
|
September 27,
2023
|
|
September 28,
2022
|
Litigation &
claims, net
|
$
2.2
|
|
$
0.5
|
Enterprise system
implementation costs
|
2.0
|
|
1.0
|
Restaurant closure
asset write-offs and charges
|
0.6
|
|
1.5
|
Lease
contingencies
|
0.5
|
|
—
|
Remodel-related asset
write-offs
|
0.2
|
|
0.8
|
Other
|
0.8
|
|
1.2
|
Total other (gains) and
charges
|
$
6.3
|
|
$
5.0
|
BRINKER
INTERNATIONAL, INC.
Condensed
Consolidated Balance Sheets (Unaudited)
(In
millions)
|
|
|
September
27,
2023
|
|
June 28,
2023
|
ASSETS
|
|
|
|
Total current
assets
|
$
177.1
|
|
$
183.3
|
Net property and
equipment
|
815.9
|
|
808.3
|
Operating lease
assets
|
1,115.9
|
|
1,134.9
|
Deferred income taxes,
net
|
95.4
|
|
93.4
|
Other
assets
|
270.5
|
|
267.1
|
Total
assets
|
$
2,474.8
|
|
$
2,487.0
|
LIABILITIES AND
SHAREHOLDERS' DEFICIT
|
|
|
|
Total current
liabilities
|
$
541.6
|
|
$
535.9
|
Long-term debt and
finance leases, less current installments
|
923.9
|
|
912.2
|
Long-term operating
lease liabilities, less current portion
|
1,104.9
|
|
1,125.8
|
Other
liabilities
|
60.7
|
|
57.4
|
Total shareholders'
deficit
|
(156.3)
|
|
(144.3)
|
Total liabilities and
shareholders' deficit
|
$
2,474.8
|
|
$
2,487.0
|
BRINKER
INTERNATIONAL, INC.
Condensed
Consolidated Statements of Cash Flows (Unaudited)
(In
millions)
|
|
|
Thirteen Week
Periods Ended
|
|
September 27,
2023
|
|
September 28,
2022
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$
7.2
|
|
$
(30.2)
|
Adjustments to
reconcile Net income (loss) to Net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
41.9
|
|
41.9
|
Deferred income taxes,
net
|
(2.0)
|
|
(4.1)
|
Stock-based
compensation
|
5.7
|
|
4.7
|
Non-cash other (gains)
and charges
|
4.3
|
|
2.4
|
Net loss on disposal
of assets
|
1.7
|
|
1.5
|
Other
|
0.6
|
|
0.4
|
Changes in assets and
liabilities
|
(0.3)
|
|
8.0
|
Net cash
provided by operating activities
|
59.1
|
|
24.6
|
Cash flows from
investing activities
|
|
|
|
Payments for property
and equipment
|
(46.9)
|
|
(46.7)
|
Proceeds from note
receivable
|
1.3
|
|
1.1
|
Net cash used in
investing activities
|
(45.6)
|
|
(45.6)
|
Cash flows from
financing activities
|
|
|
|
Borrowings on
revolving credit facility
|
129.0
|
|
135.0
|
Payments on revolving
credit facility
|
(115.0)
|
|
(100.0)
|
Payments on long-term
debt
|
(2.8)
|
|
(5.8)
|
Purchases of treasury
stock
|
(24.7)
|
|
(2.0)
|
Payments for debt
issuance costs
|
(0.7)
|
|
—
|
Payments of
dividends
|
—
|
|
(0.2)
|
Net cash (used in)
provided by financing activities
|
(14.2)
|
|
27.0
|
Net change in cash and
cash equivalents
|
(0.7)
|
|
6.0
|
Cash and cash
equivalents at beginning of period
|
15.1
|
|
13.5
|
Cash and cash
equivalents at end of period
|
$
14.4
|
|
$
19.5
|
BRINKER
INTERNATIONAL, INC.
Restaurant
Summary
|
|
|
|
|
|
|
Fiscal 2024 New
Openings
|
|
Total Restaurants
Open at September 27, 2023
|
|
Total Restaurants
Open at September 28, 2022
|
|
First Quarter
Openings
|
|
Full Year Projected
Openings
|
Company-owned
restaurants
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,126
|
|
1,126
|
|
—
|
|
11
|
Chili's
international
|
5
|
|
5
|
|
—
|
|
—
|
Maggiano's
domestic
|
50
|
|
51
|
|
—
|
|
—
|
Total
Company-owned
|
1,181
|
|
1,182
|
|
—
|
|
11
|
Franchise
restaurants
|
|
|
|
|
|
|
|
Chili's
domestic
|
100
|
|
102
|
|
—
|
|
0-1
|
Chili's
international
|
368
|
|
359
|
|
3
|
|
19-24
|
Maggiano's
domestic
|
2
|
|
2
|
|
—
|
|
—
|
Total
franchise
|
470
|
|
463
|
|
3
|
|
19-25
|
Total Company-owned and
franchise
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,226
|
|
1,228
|
|
—
|
|
11-12
|
Chili's
international
|
373
|
|
364
|
|
3
|
|
19-24
|
Maggiano's
domestic
|
52
|
|
53
|
|
—
|
|
—
|
Total
|
1,651
|
|
1,645
|
|
3
|
|
30-36
|
NON-GAAP INFORMATION
AND RECONCILIATIONS
Comparable
Restaurant Sales
|
|
|
Comparable
Restaurant Sales(1)
|
|
Price
Impact
|
|
Mix-Shift(2)
|
|
Traffic
|
|
Q1:24 vs
23
|
|
Q1:23 vs
22
|
|
Q1:24 vs
23
|
|
Q1:23 vs
22
|
|
Q1:24 vs
23
|
|
Q1:23 vs
22
|
|
Q1:24 vs
23
|
|
Q1:23 vs
22
|
Company-owned
|
5.8 %
|
|
5.3 %
|
|
8.9 %
|
|
7.2 %
|
|
2.7 %
|
|
3.0 %
|
|
(5.8) %
|
|
(4.9) %
|
Chili's
|
6.1 %
|
|
3.8 %
|
|
8.8 %
|
|
7.4 %
|
|
3.1 %
|
|
3.0 %
|
|
(5.8) %
|
|
(6.6) %
|
Maggiano's
|
2.6 %
|
|
18.2 %
|
|
9.5 %
|
|
5.8 %
|
|
(1.2) %
|
|
3.1 %
|
|
(5.7) %
|
|
9.3 %
|
Franchise(3)
|
4.0 %
|
|
6.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
5.0 %
|
|
0.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
3.4 %
|
|
10.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Chili's
domestic(4)
|
6.0 %
|
|
3.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide(5)
|
5.5 %
|
|
5.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Comparable Restaurant
Sales include all restaurants that have been in operation for more
than 18 full months. Restaurants temporarily closed 14 days or more
are excluded from Comparable Restaurant Sales. Percentage amounts
are calculated based on the comparable periods
year-over-year.
|
|
|
(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)
|
Chili's
and Maggiano's franchise sales generated by franchisees are
not included in Total revenues in the Consolidated Statements of
Comprehensive Income (Loss) (Unaudited); however, we generate
royalty revenues and advertising fees based on franchisee revenues,
where applicable. We believe presenting Franchise Comparable
Restaurant Sales provides investors relevant information regarding
total brand performance.
|
|
|
(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 Chili's and
Maggiano's Company-owned and franchise-operated
restaurants.
|
Reconciliation of Net Income (Loss) Excluding Special Items
(in millions, except per share amounts)
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.
|
First
Quarter
|
|
Q1 24
|
|
EPS Q1
24
|
|
Q1 23
|
|
EPS Q1
23
|
Net income (loss),
GAAP
|
$ 7.2
|
|
$ 0.16
|
|
$
(30.2)
|
|
$
(0.69)
|
Special items - Other
(gains) and charges(1)
|
6.3
|
|
0.14
|
|
5.0
|
|
0.11
|
Special items -
Depreciation
|
0.0
|
|
—
|
|
0.1
|
|
—
|
Income tax effect
related to special items(2)
|
(1.6)
|
|
(0.04)
|
|
(1.3)
|
|
(0.02)
|
Special items, net of
taxes
|
4.7
|
|
0.10
|
|
3.8
|
|
0.09
|
Adjustment for special
tax items
|
0.7
|
|
0.02
|
|
1.1
|
|
0.03
|
Net income (loss),
excluding special items, non-GAAP
|
$ 12.6
|
|
$ 0.28
|
|
$
(25.3)
|
|
$
(0.57)
|
(1)
|
See footnote (1) to the
Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
for additional details on the composition of Other (gains) and
charges.
|
|
|
(2)
|
Income tax effect
related to special items is based on the statutory tax rate in
effect at the end of each period.
|
Reconciliation of
Restaurant Operating Margin (in millions, except
percentages)
|
|
Q1
24
|
|
|
Chili's
|
|
Maggiano's
|
|
Brinker
|
|
Q1 24
|
|
Q1 23
|
|
Q1 24
|
|
Q1 23
|
|
Q1 24
|
|
Q1 23
|
Operating income
(loss), GAAP
|
$
55.6
|
|
$ 9.2
|
|
$ 3.6
|
|
$ 2.9
|
|
$
24.2
|
|
$ (19.8)
|
Operating income as a %
of Total revenues
|
6.1 %
|
|
1.1 %
|
|
3.4 %
|
|
2.7 %
|
|
2.4 %
|
|
(2.1) %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss), GAAP
|
$
55.6
|
|
$ 9.2
|
|
$ 3.6
|
|
$ 2.9
|
|
$
24.2
|
|
$ (19.8)
|
Less: Franchise
revenues
|
(10.3)
|
|
(9.3)
|
|
(0.2)
|
|
(0.1)
|
|
(10.5)
|
|
(9.4)
|
Plus:
Depreciation and amortization
|
36.2
|
|
36.0
|
|
3.2
|
|
3.2
|
|
41.9
|
|
41.9
|
General and
administrative
|
10.0
|
|
9.5
|
|
2.4
|
|
2.5
|
|
42.4
|
|
39.5
|
Other (gains) and
charges
|
3.7
|
|
3.0
|
|
0.2
|
|
0.5
|
|
6.3
|
|
5.0
|
Restaurant operating
margin, non-GAAP
|
$
95.2
|
|
$
48.4
|
|
$ 9.2
|
|
$ 9.0
|
|
$ 104.3
|
|
$
57.2
|
Restaurant operating
margin as a % of Company sales, non-GAAP
|
10.6 %
|
|
5.8 %
|
|
8.8 %
|
|
8.5 %
|
|
10.4 %
|
|
6.0 %
|
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 because
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 Food
and beverage costs, Restaurant labor and Restaurant expenses. 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 expenses, Depreciation and amortization,
and Other (gains) and charges. Restaurant operating margin as
presented may not be comparable to other similarly titled measures
of other companies in our industry.
Reconciliation of Adjusted EBITDA (in millions)
Adjusted EBITDA is not a measurement determined in accordance
with GAAP and should not be considered in isolation, or as an
alternative to net income as an indicator of financial performance.
Brinker believes presenting Adjusted EBITDA provides a useful
measure of our operating performance, excluding the impacts of
financing costs, capital expenditures and special items. We define
Adjusted EBITDA as Net income (loss) before Provision (benefit) for
income taxes, Other income, net, Interest expenses, Depreciation
and amortization and Other (gains) and charges.
|
First
Quarter
|
|
Q1 24
|
|
Q1 23
|
Net income (loss) -
GAAP
|
$
7.2
|
|
$
(30.2)
|
Provision (benefit)
for income taxes
|
—
|
|
(1.5)
|
Other income,
net
|
—
|
|
(0.4)
|
Interest
expenses
|
17.0
|
|
12.3
|
Depreciation and
amortization
|
41.9
|
|
41.9
|
Other (gains) and
charges
|
6.3
|
|
5.0
|
Adjusted EBITDA,
non-GAAP
|
$
72.4
|
|
$
27.1
|
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SOURCE Brinker International Payroll Company, L.P.