Brinker International Comparable Restaurant Sales Down 2%

2008-01-08
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  • Brinker International 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.

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    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


    Logos, product and company names mentioned are the property of their respective owners.

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