Brinker International Announces Preliminary Second Quarter Fiscal 2008 EPS From Continuing Operations, Before Special Items, and Reports Preliminary Comparable Restaurant Sales
Brinker International, Inc. (NYSE:EAT) today estimates earnings per diluted share from continuing operations, before special items, of $0.30 to $0.31 for the company's second quarter ended Dec. 26, 2007 as compared to earnings per diluted share from continuing operations, before special items, of $0.33 for the second quarter of fiscal 2007. For the second quarter of fiscal 2008, special items of approximately $0.13 per diluted share consist primarily of a gain on the sale of restaurants to a franchisee, partially offset by charges for the impairment of long-lived assets. For the second quarter of fiscal 2007, special items of ($0.01) were related to impairment charges for restaurant closures. As a result, the company estimates earnings per diluted share from continuing operations on a GAAP basis to be $0.43 to $0.44 for the second quarter of fiscal 2008 compared to $0.32 for the second quarter of the prior year.
For the second quarter of fiscal 2008, earnings before special items were primarily impacted by a decrease in Brinker comparable restaurant sales of approximately 2 percent (see Table 1) and the associated impact of sales deleverage on fixed costs. "It is obviously a very challenging time for our business, and we are not at all satisfied with our results. While we are confident we are focused on the right fundamentals to deliver what our guests are looking for, we will continue to look for additional opportunities to meet our guests' current needs and capitalize on future consumer trends," said Doug Brooks, Chairman and CEO of Brinker International.
Q2 preliminary comparable restaurant sales
Q2 08 and Q2 07, company and three reported brands, percentage
Q2 08 Q2 07 Q2 08
Comparable Comparable Pricing Q2 08
Sales Sales Impact Mix-Shift
Brinker
International(1) (2.1) (1.4) 2.8 0.3
Chili's (2.4) (1.2) 2.8 0.9
On The
Border (4.3) (3.6) 2.2 0.1
Maggiano's 1.7 (1.3) 3.1 (2.7)
(1) Brinker International preliminary comparable restaurant sales exclude
the impact of Macaroni Grill