DALLAS, Oct. 30,
2024 /PRNewswire/ -- Brinker International, Inc.
(NYSE: EAT) today announced financial results for the first quarter
ended September 25, 2024.
First Quarter Fiscal 2025 Financial Highlights
"Great food, with great service at industry leading value is
driving strong Chili's sales and traffic," said President and CEO,
Kevin Hochman, "Our continued
success proves the importance of listening to our guests & team
members and delivering on the critical things important to
them."
Company sales were $1,127.3
million in the first quarter of fiscal 2025 compared to
$1,002.0 million in the first quarter
of fiscal 2024. Comparable restaurant sales increased 13.0%, with
an increase in comparable restaurant sales of 14.1% for Chili's and
4.2% for Maggiano's. The comparable restaurant sales increase at
Chili's was primarily due to menu pricing and higher traffic.
Chili's advertising and social media campaigns continued to drive
new guests and increased frequency in the first quarter. The "Big
Smasher" burger and Triple Dipper® are resonating well with guests,
and our "3 for Me" combos provide a compelling everyday value.
Higher Company sales resulted in operating income margin increasing
to 5.0% and restaurant operating margin (non-GAAP) increasing to
13.5% for the first quarter. We continue to prioritize our guest
experience by enhancing restaurant staffing and focusing on keeping
our restaurants well maintained. As expected, these initiatives
resulted in incremental labor and repairs and maintenance expense
during the quarter. Additionally, stronger expected operating
performance drove higher incentive compensation within General and
administrative expenses during the quarter.
Financial results for the first quarter of fiscal 2025 and
fiscal 2024 were as follows:
|
First
Quarter
|
|
2025
|
|
2024
|
|
Variance
|
|
Company
sales
|
$ 1,127.3
|
|
$ 1,002.0
|
|
$
125.3
|
|
Total
revenues
|
$ 1,139.0
|
|
$ 1,012.5
|
|
$
126.5
|
|
|
|
|
|
|
|
Operating
income
|
$ 56.4
|
|
$ 24.2
|
|
$ 32.2
|
|
Operating income as a %
of Total revenues
|
5.0 %
|
|
2.4 %
|
|
2.6 %
|
|
Restaurant operating
margin, non-GAAP(1)
|
$
151.7
|
|
$
104.3
|
|
$ 47.4
|
|
Restaurant operating
margin as a % of Company sales, non-GAAP(1)
|
13.5 %
|
|
10.4 %
|
|
3.1 %
|
|
Net income
|
$ 38.5
|
|
$
7.2
|
|
$ 31.3
|
|
Adjusted EBITDA,
non-GAAP(1)
|
$
111.6
|
|
$ 72.4
|
|
$ 39.2
|
|
|
|
|
|
|
|
Net income per diluted
share
|
$ 0.84
|
|
$ 0.16
|
|
$ 0.68
|
|
Net income per diluted
share, excluding special items, non-GAAP(1)
|
$ 0.95
|
|
$ 0.28
|
|
$ 0.67
|
Comparable Restaurant Sales(2)
|
Q1:25 vs
24
|
|
Brinker
|
13.0 %
|
|
Chili's
|
14.1 %
|
|
Maggiano's
|
4.2 %
|
|
|
|
(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.
|
Updates to Full Year Fiscal 2025 Guidance
We are providing the following updated guidance for fiscal 2025
based on our current outlook:
- Total revenues are expected to be in the range of $4.70 billion - $4.75
billion; and
- Net income per diluted share, excluding special items,
non-GAAP, is expected to be in the range of $5.20 - $5.50.
We are reiterating the following full year fiscal 2025
guidance:
- Weighted average shares are expected to be in the range of 45
million - 47 million; and
- Capital expenditures are expected to be in the range of
$195 million - $215 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 2025 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 25, 2024 and September 27, 2023:
|
Chili's
|
|
Maggiano's
|
|
First
Quarter
|
|
Variance
|
|
First
Quarter
|
|
Variance
|
|
2025
|
|
2024
|
|
|
2025
|
|
2024
|
|
|
Company
sales
|
$
1,018.9
|
|
$ 897.8
|
|
$ 121.1
|
|
$ 108.4
|
|
$ 104.2
|
|
$
4.2
|
|
Franchise
revenues
|
11.5
|
|
10.3
|
|
1.2
|
|
0.2
|
|
0.2
|
|
—
|
|
Total
revenues
|
$
1,030.4
|
|
$ 908.1
|
|
$ 122.3
|
|
$ 108.6
|
|
$ 104.4
|
|
$
4.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company restaurant
expenses(1)
|
$ 881.3
|
|
$ 802.6
|
|
$ 78.7
|
|
$ 94.0
|
|
$ 95.0
|
|
$
(1.0)
|
|
Company restaurant
expenses as a % of Company sales
|
86.5 %
|
|
89.4 %
|
|
(2.9) %
|
|
86.7 %
|
|
91.2 %
|
|
(4.5) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$ 93.9
|
|
$ 55.6
|
|
$ 38.3
|
|
$
7.8
|
|
$
3.6
|
|
$
4.2
|
|
Operating income as a %
of Total revenues
|
9.1 %
|
|
6.1 %
|
|
3.0 %
|
|
7.2 %
|
|
3.4 %
|
|
3.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant operating
margin, non-GAAP(2)
|
$ 137.6
|
|
$ 95.2
|
|
$ 42.4
|
|
$ 14.4
|
|
$
9.2
|
|
$
5.2
|
|
Restaurant operating
margin as a % of Company sales, non-GAAP(2)
|
13.5 %
|
|
10.6 %
|
|
2.9 %
|
|
13.3 %
|
|
8.8 %
|
|
4.5 %
|
|
|
|
(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 favorable
comparable restaurant sales driven by menu pricing, higher traffic,
and favorable menu item mix.
- Chili's Company restaurant expenses, as a percentage of Company
sales, decreased primarily due to sales leverage, partially offset
by higher repairs and maintenance and hourly labor.
- Chili's franchisees generated sales of $225.7 million for the first quarter of fiscal
2025 compared to $202.8 million for
the first quarter of fiscal 2024.
Maggiano's
- Maggiano's Company sales increased primarily due to favorable
comparable restaurant sales driven by menu pricing and favorable
menu item mix, partially offset by lower traffic.
- Maggiano's Company restaurant expenses, as a percentage of
Company sales, decreased, primarily due to sales leverage and lower
hourly labor, partially offset by unfavorable commodity costs and
other restaurant expenses.
Corporate
- On a GAAP basis, the effective income tax rate was 9.0% in the
first quarter of fiscal 2025. The effective income tax rate is
lower than the statutory rate of 21.0% due primarily to leverage of
the FICA tip credit. Excluding the impact of special items, the
effective income tax rate was 15.0% in the first quarter of fiscal
2025.
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, October 30, 2024 at
8 a.m. CDT:
https://investors.brinker.com/events/event-details/q1-2025-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
October 30, 2025.
Additional financial information, including statements of income
which detail operations excluding special items, and comparable
restaurant sales trends by brand, is also available on Brinker's
website under the Financial Information and Events &
Presentations sections of the Investor tab.
Forward Calendar
- SEC Form 10-Q for the first quarter of fiscal 2025 filing on or
before November 4, 2024
- Earnings release call for the second quarter of fiscal 2025 on
January 29, 2025
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 and Maggiano's Little Italy.® 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 28 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 (Unaudited)
|
|
(In millions, except
per share amounts)
|
|
|
Thirteen Week
Periods Ended
|
|
September 25,
2024
|
|
September 27,
2023
|
|
Revenues
|
|
|
|
|
Company
sales
|
$
1,127.3
|
|
$
1,002.0
|
|
Franchise
revenues
|
11.7
|
|
10.5
|
|
Total
revenues
|
1,139.0
|
|
1,012.5
|
|
Operating costs and
expenses
|
|
|
|
|
Food and beverage
costs
|
284.3
|
|
258.8
|
|
Restaurant
labor
|
377.4
|
|
348.1
|
|
Restaurant
expenses
|
313.9
|
|
290.8
|
|
Depreciation and
amortization
|
46.3
|
|
41.9
|
|
General and
administrative
|
51.8
|
|
42.4
|
|
Other (gains) and
charges(1)
|
8.9
|
|
6.3
|
|
Total operating costs
and expenses
|
1,082.6
|
|
988.3
|
|
Operating
income
|
56.4
|
|
24.2
|
|
Interest
expenses
|
14.3
|
|
17.0
|
|
Other income,
net
|
(0.2)
|
|
—
|
|
Income before income
taxes
|
42.3
|
|
7.2
|
|
Provision for income
taxes
|
3.8
|
|
—
|
|
Net income
|
$
38.5
|
|
$
7.2
|
|
|
|
|
|
Basic net income per
share
|
$
0.86
|
|
$
0.16
|
|
|
|
|
|
Diluted net income per
share
|
$
0.84
|
|
$
0.16
|
|
|
|
|
|
Basic weighted average
shares outstanding
|
44.9
|
|
44.6
|
|
|
|
|
|
Diluted weighted
average shares outstanding
|
45.9
|
|
45.4
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
Foreign currency
translation adjustment
|
$
0.1
|
|
$
(0.2)
|
|
Comprehensive
income
|
$
38.6
|
|
$
7.0
|
|
(1)
|
Other (gains) and
charges included in the Consolidated Statements of Comprehensive
Income (Unaudited) included (in millions):
|
|
Thirteen Week
Periods Ended
|
|
September 25,
2024
|
|
September 27,
2023
|
|
Enterprise system
implementation costs
|
$
4.4
|
|
$
2.0
|
|
Litigation &
claims, net
|
2.5
|
|
2.2
|
|
Restaurant closure
asset write-offs and charges
|
0.7
|
|
0.6
|
|
Lease
contingencies
|
—
|
|
0.5
|
|
Other
|
1.3
|
|
1.0
|
|
Total other (gains) and
charges
|
$
8.9
|
|
$
6.3
|
|
BRINKER INTERNATIONAL, INC.
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
(In
millions)
|
|
|
September 25,
2024
|
|
June 26,
2024
|
|
ASSETS
|
|
|
|
|
Total current
assets
|
$
183.6
|
|
$
234.1
|
|
Net property and
equipment
|
882.1
|
|
879.7
|
|
Operating lease
assets
|
1,084.8
|
|
1,095.2
|
|
Deferred income taxes,
net
|
112.1
|
|
113.9
|
|
Other
assets
|
270.5
|
|
270.2
|
|
Total
assets
|
$
2,533.1
|
|
$
2,593.1
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Total current
liabilities
|
$
577.5
|
|
$
622.3
|
|
Long-term debt and
finance leases, less current installments
|
806.9
|
|
786.3
|
|
Long-term operating
lease liabilities, less current portion
|
1,073.0
|
|
1,084.5
|
|
Other
liabilities
|
63.0
|
|
60.6
|
|
Total shareholders'
equity
|
12.7
|
|
39.4
|
|
Total liabilities and
shareholders' equity
|
$
2,533.1
|
|
$
2,593.1
|
|
BRINKER INTERNATIONAL, INC.
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
(In
millions)
|
|
|
Thirteen Week
Periods Ended
|
|
September 25,
2024
|
|
September 27,
2023
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
$
38.5
|
|
$
7.2
|
|
Adjustments to
reconcile Net income to Net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
46.3
|
|
41.9
|
|
Stock-based
compensation
|
7.1
|
|
5.7
|
|
Deferred income taxes,
net
|
1.8
|
|
(2.0)
|
|
Non-cash other (gains)
and charges
|
4.0
|
|
4.3
|
|
Net loss on disposal
of assets
|
2.9
|
|
1.7
|
|
Other
|
0.7
|
|
0.6
|
|
Changes in assets and
liabilities
|
(38.5)
|
|
(0.3)
|
|
Net cash provided by
operating activities
|
62.8
|
|
59.1
|
|
Cash flows from
investing activities
|
|
|
|
|
Payments for property
and equipment
|
(56.5)
|
|
(46.9)
|
|
Proceeds from note
receivable
|
—
|
|
1.3
|
|
Net cash used in
investing activities
|
(56.5)
|
|
(45.6)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings on
revolving credit facility
|
90.0
|
|
129.0
|
|
Payments on revolving
credit facility
|
(65.0)
|
|
(115.0)
|
|
Purchases of treasury
stock
|
(74.8)
|
|
(24.7)
|
|
Payments on long-term
debt
|
(8.2)
|
|
(2.8)
|
|
Payments for debt
issuance costs
|
(0.1)
|
|
(0.7)
|
|
Proceeds from issuance
of treasury stock
|
3.4
|
|
—
|
|
Net cash used in
financing activities
|
(54.7)
|
|
(14.2)
|
|
Net change in cash and
cash equivalents
|
(48.4)
|
|
(0.7)
|
|
Cash and cash
equivalents at beginning of period
|
64.6
|
|
15.1
|
|
Cash and cash
equivalents at end of period
|
$
16.2
|
|
$
14.4
|
|
BRINKER INTERNATIONAL, INC.
|
|
Restaurant
Summary
|
|
|
|
|
|
|
Fiscal 2025 New
Openings
|
|
Restaurants
Open at
September 25, 2024
|
|
Restaurants
Open at
September 27, 2023
|
|
First Quarter
Openings
|
|
Full Year
Projected
Openings
|
|
Company-owned
restaurants
|
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,116
|
|
1,126
|
|
1
|
|
7
|
|
Chili's
international
|
4
|
|
5
|
|
—
|
|
—
|
|
Maggiano's
domestic
|
50
|
|
50
|
|
—
|
|
—
|
|
Total
Company-owned
|
1,170
|
|
1,181
|
|
1
|
|
7
|
|
Franchise
restaurants
|
|
|
|
|
|
|
|
|
Chili's
domestic
|
99
|
|
100
|
|
2
|
|
2-4
|
|
Chili's
international
|
354
|
|
368
|
|
12
|
|
19-24
|
|
Maggiano's
domestic
|
2
|
|
2
|
|
—
|
|
1
|
|
Total
franchise
|
455
|
|
470
|
|
14
|
|
22-29
|
|
Total Company-owned and
franchise
|
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,215
|
|
1,226
|
|
3
|
|
9-11
|
|
Chili's
international
|
358
|
|
373
|
|
12
|
|
19-24
|
|
Maggiano's
domestic
|
52
|
|
52
|
|
—
|
|
1
|
|
Total
|
1,625
|
|
1,651
|
|
15
|
|
29-36
|
|
NON-GAAP INFORMATION
AND RECONCILIATIONS
|
|
Comparable
Restaurant Sales
|
|
|
Comparable
Restaurant
Sales(1)
|
|
Price
Impact
|
|
Mix-Shift(2)
|
|
Traffic
|
|
Q1:25 vs
24
|
|
Q1:24 vs
23
|
|
Q1:25 vs
24
|
|
Q1:24 vs
23
|
|
Q1:25 vs
24
|
|
Q1:24 vs
23
|
|
Q1:25 vs
24
|
|
Q1:24 vs
23
|
|
Company-owned
|
13.0 %
|
|
5.8 %
|
|
7.2 %
|
|
8.9 %
|
|
0.9 %
|
|
2.7 %
|
|
4.9 %
|
|
(5.8) %
|
|
Chili's
|
14.1 %
|
|
6.1 %
|
|
6.8 %
|
|
8.8 %
|
|
0.8 %
|
|
3.1 %
|
|
6.5 %
|
|
(5.8) %
|
|
Maggiano's
|
4.2 %
|
|
2.6 %
|
|
10.8 %
|
|
9.5 %
|
|
2.1 %
|
|
(1.2) %
|
|
(8.7) %
|
|
(5.7) %
|
|
Franchise(3)
|
6.8 %
|
|
4.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
12.3 %
|
|
5.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
3.7 %
|
|
3.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chili's
domestic(4)
|
13.9 %
|
|
6.0 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide(5)
|
12.0 %
|
|
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)
|
Franchise sales
generated by franchisees are not included in Total revenues in the
Consolidated Statements of Comprehensive Income (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 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.
|
Q1 25
|
|
EPS Q1
25
|
|
Q1 24
|
|
EPS Q1
24
|
|
Net income,
GAAP
|
$
38.5
|
|
$
0.84
|
|
$
7.2
|
|
$
0.16
|
|
Special items - Other
(gains) and charges(1)
|
8.9
|
|
0.19
|
|
6.3
|
|
0.14
|
|
Income tax effect
related to special items(2)
|
(2.2)
|
|
(0.04)
|
|
(1.6)
|
|
(0.04)
|
|
Special items, net of
taxes
|
6.7
|
|
0.15
|
|
4.7
|
|
0.10
|
|
Adjustment for special
tax items(3)
|
(1.7)
|
|
(0.04)
|
|
0.7
|
|
0.02
|
|
Net income, excluding
special items, non-GAAP
|
$
43.5
|
|
$
0.95
|
|
$
12.6
|
|
$
0.28
|
|
|
|
(1)
|
See footnote (1) to the
Consolidated Statements of Comprehensive Income (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.
|
|
|
|
(3)
|
Adjustment for special
tax items primarily represents excess tax benefits associated with
stock-based compensation.
|
Reconciliation of Restaurant Operating Margin (in millions,
except percentages)
|
Chili's
|
|
Maggiano's
|
|
Brinker
|
|
Q1 25
|
|
Q1 24
|
|
Q1 25
|
|
Q1 24
|
|
Q1 25
|
|
Q1 24
|
|
Operating income,
GAAP
|
$
93.9
|
|
$
55.6
|
|
$ 7.8
|
|
$ 3.6
|
|
$
56.4
|
|
$
24.2
|
|
Operating income as a %
of Total revenues
|
9.1 %
|
|
6.1 %
|
|
7.2 %
|
|
3.4 %
|
|
5.0 %
|
|
2.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income,
GAAP
|
$
93.9
|
|
$
55.6
|
|
$ 7.8
|
|
$ 3.6
|
|
$
56.4
|
|
$
24.2
|
|
Less: Franchise
revenues
|
(11.5)
|
|
(10.3)
|
|
(0.2)
|
|
(0.2)
|
|
(11.7)
|
|
(10.5)
|
|
Plus:
Depreciation and amortization
|
40.5
|
|
36.2
|
|
3.4
|
|
3.2
|
|
46.3
|
|
41.9
|
|
General and
administrative
|
11.8
|
|
10.0
|
|
3.0
|
|
2.4
|
|
51.8
|
|
42.4
|
|
Other (gains) and
charges
|
2.9
|
|
3.7
|
|
0.4
|
|
0.2
|
|
8.9
|
|
6.3
|
|
Restaurant operating
margin, non-GAAP
|
$ 137.6
|
|
$
95.2
|
|
$
14.4
|
|
$ 9.2
|
|
$ 151.7
|
|
$ 104.3
|
|
Restaurant operating
margin as a % of Company sales, non-GAAP
|
13.5 %
|
|
10.6 %
|
|
13.3 %
|
|
8.8 %
|
|
13.5 %
|
|
10.4 %
|
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 before Provision for income taxes,
Other income, net, Interest expenses, Depreciation and amortization
and Other (gains) and charges.
|
Q1 25
|
|
Q1 24
|
|
Net income,
GAAP
|
$
38.5
|
|
$
7.2
|
|
Provision (benefit)
for income taxes
|
3.8
|
|
—
|
|
Other income,
net
|
(0.2)
|
|
—
|
|
Interest
expenses
|
14.3
|
|
17.0
|
|
Depreciation and
amortization
|
46.3
|
|
41.9
|
|
Other (gains) and
charges
|
8.9
|
|
6.3
|
|
Adjusted EBITDA,
non-GAAP
|
$
111.6
|
|
$
72.4
|
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SOURCE Brinker International Payroll Company, L.P.