Form 8-K

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 21, 2003

BRINKER INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)

Delaware
(State of incorporation)

1-10275
(Commission File Number)

            74-1914582
            (IRS employment
            identification no.)

6820 LBJ Freeway
Dallas, Texas 75240
(Address of principal executive offices)

 

Registrant's telephone number, including area code    972-980-9917


 

Item 7.  Financial Statements and Exhibits.

              (c)     Exhibits.

               99   Press Release, dated October 21, 2003.

Item 12.  Results of Operations and Financial Condition.

              On October 21, 2003, Brinker International, Inc. issued a Press Release announcing its first quarter fiscal 2004 results.  The information in the Press Release attached hereto as Exhibit 99 is furnished pursuant to Item 12.

SIGNATURE

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.

Date: October 24, 2003

By:        /s/ Roger F. Thomson                       

     Roger F. Thomson,

     Executive Vice President and

     General Counsel

Exhibit 99

EXHIBIT 99

FOR IMMEDIATE RELEASE                                           

Contacts:  Louis Adams, Media Relations                                    Hil Davis, Investor Relations

                (972) 770-4967                                                                           (972) 770-7228

                        BRINKER INTERNATIONAL REPORTS FIRST QUARTER EARNINGS

DALLAS (Oct. 21, 2003) - Casual dining leader Brinker International, Inc. (NYSE - EAT), reported earnings per share of $0.45 for the company's first quarter ended Sept. 24, 2003.  Net income for the first quarter of fiscal 2004 was $44.6 million or $0.45 diluted earnings per share as compared to $45.0 million or $0.45 per share reported in the same quarter of fiscal 2003.  First quarter fiscal 2003 net income would have been $42.8 million or $0.43 diluted earning per share exclusive of a $2.2 million insurance gain.

Brinker reported first quarter revenues for the 13-week period of $870.9 million, an increase of 12.5 percent compared with the $773.9 million reported for the same period in fiscal 2003.  These revenue gains were primarily driven by a combination of 10.6 percent capacity gains as measured by average-weighted sales weeks and a 1.9 percent increase in comparable store sales for all Brinker concepts.  By brand, quarterly comparable store sales increased 1.9 percent at Chili's, 0.9 percent at Macaroni Grill, 2.4 percent at Maggiano's and 3.2 percent at On The Border.

For the four-week period ending September 24, 2003, comparable store sales increased 1.5 percent. September comparable store sales for the four reported brands were as follows:

                                                     Sept FY '04          Sept FY '03
               Chili's                                   2.0%                      2.2%
               Macaroni Grill     &n
bsp;                -1.2%                    3.0%
               Maggiano's                          1.3%                      9.5%
               On The Border                    4.1%                      -1.1%

Comparable store sales included an overall price increase of 1.1 percent for Brinker International. 
By brand, price increases were 1.1 percent at Chili's, 1.3 percent at Macaroni Grill, 0.8 percent at
On The Border and there was a price decrease of 0.2 percent at Maggiano's.  Product mix-shift
declined by 0.2 percent for Brinker International.  By brand, product mix-shift was flat for Chili's and
Macaroni Grill and declined 0.9 percent at Maggiano's and 1.3 percent at On The Border.  
Brinker's initial estimate for second quarter fiscal 2004 earnings per share is $0.44 to $0.45.  Second
quarter estimates are based on expectations of capacity growth of approximately 9 to 10 percent as
measured by average-weighted sales weeks and comparable store sales growth in the 2 to 4 percent
range.  This comparable store sales range includes a 1 percent benefit due to a favorable holiday shift with
Christmas Day moving from the December period this fiscal year to the January period.  

The company continues to be active in its share repurchase program, acquiring approximately 1,615,000 shares during the first quarter.  At the end of the quarter, approximately $66 million was available under the company's share repurchase program.

Investors and interested parties are invited to listen to today's conference call as management will provide further details of the quarter and an outlook for future periods.  The call will be broadcast live on the Brinker Web site (www.brinker.com) at 10 a.m. CDT today (Oct. 21).  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 the Brinker Web site until the end of the day Oct. 24, 2003.     

            At the end of the first quarter of fiscal 2004, Brinker International either owned, operated, franchised, or was involved in the ownership of 1,434 restaurants under the names Chili's Grill & Bar (921 units), Romano's Macaroni Grill (207 units), Maggiano's Little Italy (28 units), On The Border Mexican Grill & Cantina (132 units), Cozymel's Coastal Grill (16 units), Corner Bakery Cafe (89 units), Big Bowl Asian Kitchen (19 units), and Rockfish Seafood Grill (22 units).


The statements contained in this release that are not historical facts are forward-looking statements. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by general business and economic conditions, the impact of competition, the seasonality of the company's business, adverse weather conditions, future commodity prices, fuel and utility costs and availability, governmental regulations and inflation.      

# # #



BRINKER INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

(Unaudited)

                                                                                  Thirteen Week Periods Ended

September 24,
2003

September 25,
2002

 

 

 

 

Revenues

$   870,898

$   773,892

 

 

 

 

 

Operating Costs and Expenses:

 

 

 

  Cost of sales

239,902

210,426

 

  Restaurant expenses

486,358

423,606

 

  Depreciation and amortization

42,409

37,157

 

  General and administrative

     33,296

     32,545

 

   Total operating costs and expenses

    801,965

    703,734

 

 

 

 

 

Operating income

68,933

70,158

 

 

 

 

 

Interest expense

3,318

3,971

 

Other, net

      (257)

    (1,590)

 

 

 

 

Income before provision for income taxes

65,872

67,777

 

Provision for income taxes

     21,277

     22,773

 

 

 

 

 

    Net income

$    44,595

$    45,004

 

 

 

 

 

 

 

 

 

Basic net income per share

$      0.46

$      0.46

 

 

 

 

 

 

 

 

 

Diluted net income per share

$      0.45

$      0.45

 

 

 

 

 

Basic weighted average

 

 

 

  shares outstanding

     97,404

     97,177

 

 

 

 

 

Diluted weighted average

 

 

 

  shares outstanding

     99,367

     99,235

 

 

 

 

 

 


BRINKER INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

September 24,
2003

June 25,
2003

 

ASSETS

 

 

 

  Total current assets

$    148,233

$    166,467

 

  Net property and equipment

   1,523,505

   1,499,572

 

  Total other assets

     271,812

     277,251

 

  Total assets

$  1,943,550

$  1,943,290

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

  Total current liabilities

$    308,885

$    310,211

 

  Long-term debt, less current installments

     354,745

     353,785

 

  Other liabilities

     140,588

     139,044

 

  Total shareholders' equity

   1,139,332

   1,140,250

 

  Total liabilities and shareholders' equity

$  1,943,550

$  1,943,290

 

 

 

   FOR ADDITIONAL INFORMATION, CONTACT:

HIL DAVIS
INVESTOR RELATIONS
(972) 770-7228
6820 LBJ FREEWAY
DALLAS, TEXAS 75240



BRINKER INTERNATIONAL, INC.

UNITS SUMMARY

 


Total Units


First Quarter Fiscal 2004


Total Units


Projected Openings

June 25, 2003

Net Activity

Sep. 24, 2003

Fiscal 2004

 

Company-Owned Units:

 

  

 

 

  Chili's

693

18

711

70-75

  Macaroni Grill

194

4

198

21-23

  On The Border

114

    -

114

4-5

  Maggiano's

25

3

28

3-4

  Cozymel's 

16

    -

16

-

  Corner Bakery

85

1

86

5-8

  Big Bowl

   18

    1

   19

    2-3

1,145

   27

1,172

105-118

 

 

 

 

JV/Franchise Units:

 

 

 

 

  Chili's

207

3

210

20-24

  Macaroni Grill

8

1

9

2-4

  On The Border

19

(1)

18

0-1

  Corner Bakery

3

-

3

-

  Rockfish

   20

    2

   22

    4-6

  257

    5

  262

  26-35

 

 

 

 

Total Units:

 

 

 

 

  Chili's

900

21

921

90-99

  Macaroni Grill

202

5

207

23-27

  On The Border

133

(1)

132

4-6

  Maggiano's

25

3

28

3-4

  Cozymel's

16

-

16

-

  Corner Bakery

88

1

89

5-8

  Big Bowl

18

1

19

2-3

  Rockfish

   20

    2

   22

    4-6

1,402

   32

1,434

131-153