SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): October 18, 1995
BRINKER INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Delaware 75-1914582
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
1-10275
(Commission File Number)
6820 LBJ Freeway, Dallas, Texas 75240
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code (214) 980-9917
Item 5: The registrant incorporates herein the text of two
Press Releases, one issued on October 18, 1995, and
the other issued on November 2, 1995, copies of which
are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
BRINKER INTERNATIONAL, INC.,
a Delaware corporation
By: /Debra L. Smithart
Debra L. Smithart, Executive Vice President
and Chief Financial Officer
Date: November 3, 1995
ITEM 5
FOR IMMEDIATE RELEASE
DALLAS, TEXAS (October 18, 1995) BRINKER INTERNATIONAL, INC. REPORTS REVENUES
UP 17.2% FOR THE FIRST FISCAL QUARTER.
Brinker International, Inc. ("Brinker or the Company") reported revenues of
$289.5 million for the first fiscal quarter ended September 27, 1995, an
increase of 17.2% over the $247.1 million reported for the same quarter of
fiscal 1995. Net income and primary net income per share declined 16.0% from
$18.5 million to $15.6 million and from $0.25 to $0.21.
Brinker owns and operates eight restaurant concepts under the names Chili's
Grill & Bar ("Chili's"), Grady's American Grill ("Grady's"), Romano's Macaroni
Grill ("Macaroni Grill"), On The Border Cafes ("On The Border"), Spageddies
Italian Kitchen ("Spageddies"), Cozymel's - A Very Mexican Grill
("Cozymel's"), Maggiano's Little Italy ("Maggiano's"), and Corner Bakery
("Corner Bakery"). The previously announced acquisitions of the Cozymel's and
Maggiano's/Corner Bakery concepts were completed on July 19 and August 29,
1995, respectively. The results of operations for the first quarter of fiscal
1996 include the operations of the Cozymel's and Maggiano's/Corner Bakery
restaurants from the dates of their acquisition.
Brinker increased its capacity (as measured in store weeks) by 21.3% in the
first quarter of fiscal 1996, as compared to the same quarter in fiscal 1995.
During the quarter, 29 company-owned restaurants and nine franchise units were
opened and one company-owned unit and one franchise unit were closed. Average
weekly sales at company-owned stores declined 3.3% in the first quarter of
fiscal 1996, as compared to the same quarter in fiscal 1995, including
declines of 2.8% and 8.3% at Chili's and Macaroni Grill, respectively.
On October 17, 1995, the Board of Directors approved a strategic plan intended
to support the Company's long-term growth target that focuses on continued
development of those restaurant concepts that have the greatest return
potential for the Company and it's shareholders. In conjunction with this
plan, the Company will dispose of or convert 30-40 company-owned restaurants
that have not met management's expectation. As of today, 10 units have ceased
operations under this plan. The remaining restaurants will be disposed of or
converted during the current fiscal year. The Company expects to record an
estimated pre-tax charge of approximately $50 million in the second quarter of
fiscal 1996 to cover the costs related to the execution of this plan.
Notwithstanding the above, the Company's overall development plan will remain
on track for fiscal 1996, bolstered by the recent acquisitions of the
Cozymel's and Maggiano's/Corner Bakery concepts. Store weeks for Brinker are
expected to increase approximately 19-20% for the year.
BRINKER INTERNATIONAL, INC.
UNIT SUMMARY
First Quarter Fiscal 1996
Total Units Total Units
June 28, 1995 Acquisitions Openings Closings Sept. 27, 1995
Company Units
Chili's 316 -- 14 -- 330
Macaroni Grill 50 -- 4 -- 54
On The Border 16 -- 2 (1) 17
Cozymel's -- 3 1 -- 4
Maggiano's -- 3 -- -- 3
Corner Bakery -- 5 -- -- 5
Grady's 44 -- 5 -- 49
Spageddies 12 -- 3 -- 15
Test Concept 1 -- -- -- 1
439 11 29 (1) 478
JV/Franchise Units
Chili's 108 -- 8 -- 116
Macaroni Grill 1 -- -- -- 1
On The Border 5 -- -- (1) 4
Cozymel's 3 (3) -- -- --
Spageddies 4 -- 1 -- 5
121 (3) 9 (1) 126
Total Units
Chili's 424 -- 22 -- 446
Macaroni Grill 51 -- 4 -- 55
On The Border 21 -- 2 (2) 21
Cozymel's 3 -- 1 -- 4
Maggiano's -- 3 -- -- 3
Corner Bakery -- 5 -- -- 5
Grady's 44 -- 5 -- 49
Spageddies 16 -- 4 -- 20
Test Concept 1 -- -- -- 1
560 8 38 (2) 604
BRINKER INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Thirteen Week Periods Ended
September 27, 1995 September 28, 1994
Revenues $ 289,460 $ 247,072
Costs and Expenses:
Cost of Sales 83,658 66,276
Restaurant Expenses 152,905 126,847
Depreciation and Amortization 16,072 13,786
General and Administrative 12,997 12,224
Interest Expense 767 ---
Other, Net (906) (817)
Total Costs and Expenses 265,493 218,316
Income Before Provision
for Income Taxes 23,967 28,756
Provision for Income Taxes 8,388 28,756
Net Income $ 15,579 $ 18,548
Primary Net Income Per Share $ 0.21 $ 0.25
Primary Weighted Average
Shares Outstanding 75,721 74,799
FOR ADDITIONAL INFORMATION, CONTACT:
DEBRA SMITHART
EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
6820 LBJ FREEWAY
DALLAS, TEXAS 75240
(214) 980-9917
FOR IMMEDIATE RELEASE
BRINKER INTERNATIONAL, INC. AND QUALITY DINING, INC.
ANNOUNCE PURCHASE AGREEMENTS
Agreements Involve Grady's American Grill
and Spageddies Italian Kitchen Concepts
Mishawaka, Indiana (November 2, 1995) - Brinker International, Inc. (NYSE/EAT)
and Quality Dining, Inc. (Nasdaq/NM:QDIN) today announced that they have
executed agreements providing for the sale of the Grady's American Grill and
Spageddies Italian Kitchen concepts to Quality Dining.
Pursuant to the Grady's agreement, Quality Dining will acquire 37
Grady's American Grill restaurants for $70 million, payable in cash. The
restaurants to be purchased are located in 14 states and have annualized
revenues in excess of $100 million. The acquisition is subject to due
diligence as well as other customary conditions and is expected to close by
December 31, 1995.
Ronald A. McDougall, President and Chief Executive Officer of Brinker
International, commented on the Grady's agreement, "Brinker International and
Quality Dining have had an outstanding relationship for many years. As one of
our franchise partners, Quality Dining has demonstrated superior management
skills. We have confidence in the company's ability to effectively manage the
Grady's concept today and in the future. While the Grady's American Grill
concept does not strategically fit with Brinker International's development
plans, it is a promising concept for Quality Dining; and we are excited for
the Grady's team."
Daniel B. Fitzpatrick, Chairman, President and Chief Executive Officer
of Quality Dining, Inc., added, "We are extremely pleased to have reached an
agreement with Brinker International. Grady's American Grill is a successful
casual dining concept which represents not only a value-laden asset presently
for our shareholders, but a concept with significant long-term growth
potential. Brinker International has done an outstanding job of developing
the Grady's concept, as evidenced by great locations, an outstanding
management team and strong sales volumes. Grady's will become an important
component of our restaurant portfolio and is expected to have a positive
impact on our earnings per share. We look forward to working with the entire
Grady's team."
Pursuant to the Spageddies agreement, Brinker International will
transfer to Quality Dining all rights to the Spageddies concept in the United
States while Brinker will retain the international rights to the concept.
Effective with the execution of the agreement, all development and franchise
agreements will terminate. In addition to Brinker's international rights, it
will retain the right to operate a core group of Spageddies units domestically
under a license agreement with Quality Dining.
Fitzpatrick commented on the Spageddies agreement, "Spageddies
represents a viable concept with significant growth potential. The
development of Spageddies to its current prototype, menu and service format
should allow the concept to evolve as a powerful, mid-priced Italian casual
dining success. We enthusiastically look forward to continuing the evolution
of this concept and the development of new units in various markets."
FOR ADDITIONAL INFORMATION, CONTACT:
DAVID M. FINDLAY
VICE PRESIDENT STRATEGIC PLANNING & INVESTOR RELATIONS
QUALITY DINING, INC.
(219) 271-4600
or
ROBERT T. VIVIAN
VICE PRESIDENT - INVESTOR RELATIONS
BRINKER INTERNATIONAL, INC.
(214) 980-9917
