Brinker International, Inc. Files 10-Q for Period Ending March 27, 2024

TL;DR

<b>Brinker International reported $2.36 billion in revenue for the first nine months of fiscal year 2024.</b>

AI Summary

BRINKER INTERNATIONAL, INC (EAT) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. Total revenue for the nine months ended March 27, 2024, was $2,360.8 million. Company sales for the nine months ended March 27, 2024, totaled $2,128.7 million. Franchise revenues for the nine months ended March 27, 2024, amounted to $232.1 million. Total revenue for the third quarter ended March 27, 2024, was $798.4 million. Company sales for the third quarter ended March 27, 2024, were $717.7 million.

Why It Matters

For investors and stakeholders tracking BRINKER INTERNATIONAL, INC, this filing contains several important signals. The filing details revenue streams from both company-owned restaurants and franchise operations, providing insight into the company's operational performance and growth strategies. Key financial data presented in the 10-Q allows investors to assess the company's financial health, profitability, and market position within the restaurant industry.

Risk Assessment

Risk Level: medium — BRINKER INTERNATIONAL, INC shows moderate risk based on this filing. The company operates in the highly competitive restaurant industry, facing risks from changing consumer preferences, economic downturns, and increased competition, which could impact financial performance.

Analyst Insight

Investors should monitor Brinker International's ability to drive same-store sales growth and manage costs effectively in the current economic environment.

Revenue Breakdown

Key Numbers

• 2,360.8 — Total Revenue (9 months ended Mar 27, 2024) (in millions USD)
• 2,128.7 — Company Sales (9 months ended Mar 27, 2024) (in millions USD)
• 232.1 — Franchise Revenues (9 months ended Mar 27, 2024) (in millions USD)
• 798.4 — Total Revenue (Q3 ended Mar 27, 2024) (in millions USD)
• 717.7 — Company Sales (Q3 ended Mar 27, 2024) (in millions USD)

Key Players & Entities

• BRINKER INTERNATIONAL, INC (company) — Filer name
• EAT (company) — Ticker symbol
• 2024-03-27 (date) — Reporting period end date
• 2024-04-30 (date) — Filing date
• DALLAS (location) — Business address city
• TX (location) — Business address state
• 75019 (postal_code) — Business address zip
• 9729809917 (phone_number) — Business phone number

FAQ

Risk Factors

• Competition [high — market]: The company operates in a highly competitive restaurant industry, facing competition from various sources, including other casual dining restaurants, quick-service restaurants, and other food service providers.
• Economic Conditions [medium — financial]: Adverse economic conditions, such as recessions, inflation, or changes in consumer spending habits, could negatively impact the company's financial performance and results of operations.

Key Financial Figures

• $0.10 — nge on which registered Common Stock, $0.10 par value EAT NYSE Indicate by chec
• $900.0 million — ance with our covenants pursuant to the $900.0 million revolving credit facility and under the

Filing Documents

• eat-20240327.htm (10-Q) — 1402KB
• fy24q3ex-31a10xq.htm (EX-31.A) — 11KB
• fy24q3ex-31b10xq.htm (EX-31.B) — 11KB
• fy24q3ex-32a10xq.htm (EX-32.A) — 5KB
• fy24q3ex-32b10xq.htm (EX-32.B) — 4KB
• eat-20240327_g1.jpg (GRAPHIC) — 107KB
• 0000703351-24-000015.txt (&nbsp;) — 6033KB
• eat-20240327.xsd (EX-101.SCH) — 37KB
• eat-20240327_cal.xml (EX-101.CAL) — 71KB
• eat-20240327_def.xml (EX-101.DEF) — 224KB
• eat-20240327_lab.xml (EX-101.LAB) — 402KB
• eat-20240327_pre.xml (EX-101.PRE) — 281KB
• eat-20240327_htm.xml (XML) — 871KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3 Consolidated Statements of Comprehensive Income (Unaudited) - Thirteen and Thirty-Nine Week Periods Ended March 27, 2024 and March 29, 2023 3 Consolidated Balance Sheets - March 27, 202 4 (Unaudited) and June 28, 2023 4 Consolidated Statements of Cash Flows (Unaudited) - Thirty-Nine Week Periods Ended March 27, 2024 and March 29, 2023 5 Consolidated Statements of Shareholders' Deficit (Unaudited) - Thirty-Nine Week Periods Ended March 27, 2024 and March 29, 2023 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4. Controls and Procedures 35

OTHER INFORMATION

PART II. OTHER INFORMATION 36

Legal Proceedings

Item 1. Legal Proceedings 36

Risk Factors

Item 1A. Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36

Other Information

Item 5. Other Information 36

Exhibits

Item 6. Exhibits 37

SIGNATURES

SIGNATURES 37 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS BRINKER INTERNATIONAL, INC. Consolidated Statements of Comprehensive Income (Unaudited) (In millions, except per share amounts) Thirteen Week Periods Ended Thirty-Nine Week Periods Ended March 27, 2024 March 29, 2023 March 27, 2024 March 29, 2023 Revenues Company sales $ 1,108.9 $ 1,072.9 $ 3,174.6 $ 3,028.4 Franchise revenues 11.4 10.3 32.3 29.3 Total revenues 1,120.3 1,083.2 3,206.9 3,057.7 Operating costs and expenses Food and beverage costs 277.8 287.5 809.7 866.4 Restaurant labor 370.6 361.2 1,074.8 1,026.4 Restaurant expenses 303.4 280.9 888.9 818.1 Depreciation and amortization 42.6 42.5 125.8 126.2 General and administrative 46.1 40.6 131.7 115.7 Other (gains) and charges 9.9 6.3 19.5 19.8 Total operating costs and expenses 1,050.4 1,019.0 3,050.4 2,972.6 Operating income 69.9 64.2 156.5 85.1 Interest expenses 16.2 14.2 49.9 40.4 Other income, net ( 0.2 ) ( 0.6 ) ( 0.3 ) ( 1.3 ) Income before income taxes 53.9 50.6 106.9 46.0 Provision (benefit) for income taxes 5.2 ( 0.1 ) 8.9 ( 2.4 ) Net income $ 48.7 $ 50.7 $ 98.0 $ 48.4 Basic net income per share $ 1.10 $ 1.15 $ 2.21 $ 1.10 Diluted net income per share $ 1.08 $ 1.12 $ 2.17 $ 1.08 Basic weighted average shares outstanding 44.3 44.1 44.4 44.0 Diluted weighted average shares outstanding 45.2 45.1 45.2 44.8 Other comprehensive income (loss) Foreign currency translation adjustment $ ( 0.2 ) $ 0.1 $ ( 0.2 ) $ ( 0.8 ) Comprehensive income $ 48.5 $ 50.8 $ 97.8 $ 47.6 See accompanying Notes to Consolidated Financial Statements (Unaudited) 3 Table of Contents BRINKER INTERNATIONAL, INC. Consolidated Balance Sheets (In millions, except per share amounts) Unaudited March 27, 2024 June 28, 2023 ASSETS Current assets Cash and cash equivalents $ 15.5 $ 15.1 Accounts receivable, net 47.6 60.9 Inventories 32.5 34.5 Restaurant supplies 54.7 55.6 Prepaid expenses 20.2 17.2 Income taxes receivable 0.4 — Total current assets 170.9 183.3

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Footnote Index Note # Description Page Note 1 Basis of Presentation 9 Note 2 Revenue Recognition 10 Note 3 Fair Value Measurements 11 Note 4 Accrued Liabilities 12 Note 5 Leases 12 Note 6 Debt 13 Note 7 Contingencies 13 Note 8 Income Taxes 15 Note 9 Shareholders' Deficit 15 Note 10 Net Income Per Share 15 Note 11 Other Gains and Charges 16 Note 12 Segment Information 17 8 Table of Contents Footnote Index 1. BASIS OF PRESENTATION References to "Brinker," the "Company," "we," "us," and "our" in this Form 10-Q refer to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc. Our Consolidated Financial Statements (Unaudited) as of March 27, 2024 and June 28, 2023, and for the thirteen and thirty-nine week periods ended March 27, 2024 and March 29, 2023, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The Company is principally engaged in the ownership, operation, development and franchising of the Chili's Grill & Bar ("Chili's") and Maggiano's Little Italy ("Maggiano's") restaurant brands. As of March 27, 2024, we owned, operated or franchised 1,618 restaurants, consisting of 1,176 Company-owned restaurants and 442 franchised restaurants, located in the United States, 27 other countries and two United States territories. Use of Estimates The preparation of the Consolidated Financial Statements (Unaudited) is in conformity with generally accepted accounting principles in the United States ("GAAP") and requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements (Unaudited), and the reported amounts of revenues and costs and expenses in the reporting periods. Actual results could differ from thos