UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 29, 2000
Commission File Number 1-10275
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.)
6820 LBJ FREEWAY, DALLAS, TEXAS 75240
(Address of principal executive offices)
(Zip Code)
(972) 980-9917
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes X No
Number of shares of common stock of registrant outstanding at March
29, 2000: 65,241,022
BRINKER INTERNATIONAL, INC.
INDEX
Part I - Financial Information
Condensed Consolidated Balance Sheets -
March 29, 2000 (Unaudited) and June 30, 1999 3 - 4
Condensed Consolidated Statements of Income
(Unaudited) - Thirteen week and thirty-nine week
periods ended March 29, 2000 and March 24, 1999 5
Condensed Consolidated Statements of Cash Flows
(Unaudited) - Thirty-nine week periods ended
March 29, 2000 and March 24, 1999 6
Notes to Condensed Consolidated
Financial Statements (Unaudited) 7 - 8
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9 - 14
Part II - Other Information 15 - 17
PART I. FINANCIAL INFORMATION
BRINKER INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets
(In thousands)
March 29, June 30,
2000 1999
ASSETS (Unaudited)
Current Assets:
Cash and Cash Equivalents $ 9,987 $ 12,597
Accounts Receivable 18,418 21,390
Inventories 15,440 15,050
Prepaid Expenses 49,434 46,431
Deferred Income Taxes 2,210 5,585
Other 4,197 2,097
Total Current Assets 99,686 103,150
Property and Equipment, at Cost:
Land 178,893 169,368
Buildings and Leasehold Improvements 718,219 650,000
Furniture and Equipment 382,249 351,729
Construction-in-Progress 68,566 46,186
1,347,927 1,217,283
Less Accumulated Depreciation
and Amortization 463,890 403,907
Net Property and Equipment 884,037 813,376
Other Assets:
Goodwill 72,114 74,190
Other 93,372 94,928
Total Other Assets 165,486 169,118
Total Assets $ 1,149,209 $ 1,085,644
(continued)
BRINKER INTERNATIONAL, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
March 29, June 30,
2000 1999
LIABILITIES AND SHAREHOLDERS' EQUITY (Unaudited)
Current Liabilities:
Current Installments of Long-term Debt $ 14,635 $ 14,635
Accounts Payable 91,487 74,100
Accrued Liabilities 111,011 101,384
Total Current Liabilities 217,133 190,119
Long-term Debt, Less Current Installments 166,006 183,158
Deferred Income Taxes 11,648 9,140
Other Liabilities 41,113 41,788
Commitments and Contingencies
Shareholders' Equity:
Preferred Stock - 1,000,000 Authorized
Shares; $1.00 Par Value; No Shares Issued - -
Common Stock - 250,000,000 Authorized
Shares; $.10 Par Value; 78,362,441
Shares Issued and 65,241,022 Shares
Outstanding at March 29, 2000, and
78,150,054 Shares Issued and 65,899,445
Shares Outstanding at June 30, 1999 7,836 7,815
Additional Paid-In Capital 288,960 285,448
Retained Earnings 624,048 542,918
920,844 836,181
Less:
Treasury Stock, at Cost (13,121,419
shares at March 29, 2000 and 12,250,609
shares at June 30, 1999) 203,920 174,742
Unearned Compensation 3,615 -
Total Shareholders' Equity 713,309 661,439
Total Liabilities and Shareholders'
Equity $ 1,149,209 $ 1,085,644
See accompanying notes to condensed consolidated financial
statements.
<TABLE>
BRINKER INTERNATIONAL, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
13 Week Periods Ended 39 Week Periods Ended
Mar. 29, Mar. 24, Mar. 29, Mar. 24,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Revenues $ 551,191 $ 459,192 $1,583,124 $1,335,268
Operating Costs and Expenses:
Cost of Sales 146,490 123,901 422,219 363,495
Restaurant Expenses 307,730 257,620 883,090 746,601
Depreciation and Amortization 22,432 19,804 67,333 58,327
General and Administrative 26,554 22,890 74,466 66,441
Total Operating Costs and Expenses 503,206 424,215 1,447,108 1,234,864
Operating Income 47,985 34,977 136,016 100,404
Interest Expense 2,882 2,375 8,400 6,764
Other, Net 828 1,155 2,900 4,572
Income Before Provision for
Income Taxes and Cumulative Effect
of Accounting Change 44,275 31,447 124,716 89,068
Provision for Income Taxes 15,673 10,912 43,586 30,907
Income Before Cumulative
Effect of Accounting Change 28,602 20,535 81,130 58,161
Cumulative Effect of Accounting Change - - - 6,407
Net Income $ 28,602 $ 20,535 $ 81,130 $ 51,754
Basic Earnings Per Share:
Income Before Cumulative Effect
of Accounting Change $ 0.44 $ 0.31 $ 1.24 $ 0.89
Cumulative Effect of
Accounting Change - - - 0.10
Basic Net Income Per Share $ 0.44 $ 0.31 $ 1.24 $ 0.79
Diluted Earnings Per Share:
Income Before Cumulative Effect
of Accounting Change $ 0.43 $ 0.30 $ 1.21 $ 0.86
Cumulative Effect of
Accounting Change - - - 0.10
Diluted Net Income Per Share $ 0.43 $ 0.30 $ 1.21 $ 0.76
Basic Weighted Average
Shares Outstanding 65,266 66,316 65,491 65,899
Diluted Weighted Average
Shares Outstanding 66,814 68,852 67,207 68,073
</TABLE>
See accompanying notes to condensed consolidated financial
statements.
BRINKER INTERNATIONAL, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
39 Week Periods Ended
March 29, March 24,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 81,130 $ 51,754
Adjustments to Reconcile Net Income
to Net Cash Provided by Operating
Activities:
Depreciation and Amortization 68,783 58,327
Deferred Income Taxes 5,883 4,173
Cumulative Effect of Accounting Change - 6,407
Changes in Assets and Liabilities:
Receivables 872 (4,674)
Inventories (390) (1,238)
Prepaid Expenses (105) (1,491)
Other Assets 1,932 4,024
Accounts Payable 17,387 334
Accrued Liabilities 9,740 7,628
Other Liabilities (675) (900)
Net Cash Provided by Operating Activities 184,557 124,344
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for Property and Equipment (138,239) (137,013)
Investment in Equity Method Investees (953) (4,479)
Net Advances to Affiliates - (13,838)
Net Cash Used in Investing Activities (139,192) (155,330)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (Payments) Borrowings on Credit Facilities (17,152) 40,266
Proceeds from Issuances of Treasury Stock 14,467 24,011
Purchases of Treasury Stock (45,290) (25,941)
Net Cash (Used in) Provided by
Financing Activities (47,975) 38,336
Net (Decrease) Increase in Cash and
Cash Equivalents (2,610) 7,350
Cash and Cash Equivalents at Beginning
of Period 12,597 9,382
Cash and Cash Equivalents at End
of Period $ 9,987 $ 16,732
CASH PAID DURING THE PERIOD:
Interest, Net of Amounts Capitalized $ 5,836 $ 4,712
Income Taxes, Net of Refunds $ 41,153 $ 33,764
NON-CASH TRANSACTIONS DURING THE PERIOD:
Restricted Common Stock Issued $ 5,200 $ -
See accompanying notes to condensed consolidated financial
statements.
BRINKER INTERNATIONAL, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. Basis of Presentation
The condensed consolidated financial statements of Brinker
International, Inc. and its wholly-owned subsidiaries
(collectively, the "Company") as of March 29, 2000 and June 30,
1999 and for the thirteen week and thirty-nine week periods ended
March 29, 2000 and March 24, 1999, respectively, have been
prepared by the Company pursuant to the rules and regulations of
the Securities and Exchange Commission ("SEC"). The Company owns
and operates or franchises various restaurant concepts under the
names of Chili's Grill & Bar ("Chili's"), Romano's Macaroni Grill
("Macaroni Grill"), On The Border Mexican Grill & Cantina ("On The
Border"), Cozymel's Coastal Mexican Grill ("Cozymel's"),
Maggiano's Little Italy ("Maggiano's"), and Corner Bakery Cafe
("Corner Bakery"). In addition, the Company is involved in the
operation and development of the Eatzi's Market and Bakery
("Eatzi's"), Big Bowl, and Wildfire concepts.
The information furnished herein reflects all adjustments
(consisting only of normal recurring accruals and adjustments)
which are, in the opinion of management, necessary to fairly state
the operating results for the respective periods. However, these
operating results are not necessarily indicative of the results
expected for the full fiscal year. Certain information and
footnote disclosures normally included in annual financial
statements prepared in accordance with generally accepted
accounting principles have been omitted pursuant to SEC rules and
regulations. The notes to the condensed consolidated financial
statements should be read in conjunction with the notes to the
consolidated financial statements contained in the June 30, 1999
Form 10-K. Company management believes that the disclosures are
sufficient for interim financial reporting purposes.
Certain prior year amounts have been reclassified in the
accompanying condensed consolidated financial statements to
conform with current year presentation.
2. Commitments
In September 1999, the Company entered into a $25.0 million
equipment leasing facility. During fiscal 2000, the Company has
utilized $16.2 million of the facility. The facility, which is
accounted for as an operating lease, expires in fiscal 2006. The
Company guarantees a residual value related to the equipment of
approximately 87% of the total amount funded under the facility.
At the end of the lease term, the Company has the option to
purchase all of the leased equipment for an amount equal to the
unamortized lease balance, which amount will be no more than 75%
of the total amount funded under the facility.
In September 1999, the Company also entered into a $50.0 million
real estate leasing facility. During fiscal 2000, the Company has
utilized $5.2 million of the facility. The facility, which is
accounted for as an operating lease, expires in fiscal 2007. The
Company guarantees the residual value related to the properties,
which will be approximately 87% of the total amount funded under
the facility. At the end of the lease term, the Company has the
option to purchase all of the leased real estate for an amount
equal to the unamortized lease balance.
3. Preopening Costs
The Company elected early adoption of Statement of Position 98-5
("SOP 98-5"), "Reporting on the Costs of Start-Up Activities,"
retroactive to the first quarter of fiscal 1999. This new
accounting standard required the Company to expense all start-up
and preopening costs as they are incurred. The Company previously
deferred such costs and amortized them over the twelve-month
period following the opening of each restaurant. The Condensed
Consolidated Statement of Income for the thirty-nine week period
ended March 24, 1999 reflects the cumulative effect of this
accounting change, net of related income tax benefit.
4. Treasury Stock
The Company's Board of Directors previously approved a plan to
repurchase up to $110.0 million of the Company's common stock.
During the third quarter of fiscal 2000, the Company's Board of
Directors approved an additional $100.0 million increase in the
existing plan. Pursuant to the plan and in accordance with
applicable securities regulations, the Company repurchased
approximately 635,100 shares of its common stock for approximately
$14.1 million during the third quarter of fiscal 2000, resulting
in a cumulative repurchase total of 4,910,100 shares of its common
stock for approximately $110.5 million. The Company's repurchase
plan is used by the Company to offset the dilutive effect of stock
option exercises and increase shareholder value. The repurchased
common stock is reflected as a reduction of shareholders' equity.
5. Long Term Incentive Plan
Pursuant to shareholder approval in November 1999, the Company
implemented the Long Term Incentive Plan (the "Plan") for certain
key employees, one component of which is the award of restricted
common stock in lieu of cash. During fiscal 2000, approximately
218,000 shares of restricted common stock have been awarded, the
majority of which vests over a three-year period. Unearned
compensation was recorded at the date of award based on the market
value of the shares and is being amortized to compensation expense
over the vesting period. Unearned compensation related to these
shares, included as a separate component of shareholders' equity,
was approximately $3.6 million at March 29, 2000.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following table sets forth selected operating data as a
percentage of total revenues for the periods indicated. All
information is derived from the accompanying condensed consolidated
statements of income.
<TABLE>
13 Week Periods Ended 39 Week Periods Ended
Mar. 29, Mar. 24, Mar. 29, Mar. 24,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Revenues 100.0% 100.0% 100.0% 100.0%
Operating Costs and Expenses:
Cost of Sales 26.6% 27.0% 26.7% 27.2%
Restaurant Expenses 55.8% 56.1% 55.8% 55.9%
Depreciation and Amortization 4.1% 4.3% 4.3% 4.4%
General and Administrative 4.8% 5.0% 4.7% 5.0%
Total Operating Costs and Expenses 91.3% 92.4% 91.4% 92.5%
Operating Income 8.7% 7.6% 8.6% 7.5%
Interest Expense 0.5% 0.5% 0.5% 0.5%
Other, Net 0.2% 0.3% 0.2% 0.3%
Income Before Provision for Income
Taxes and Cumulative Effect of
Accounting Change 8.0% 6.8% 7.9% 6.7%
Provision for Income Taxes 2.8% 2.3% 2.8% 2.3%
Income Before Cumulative Effect
of Accounting Change 5.2% 4.5% 5.1% 4.4%
Cumulative Effect of Accounting
Change - - - 0.5%
Net Income 5.2% 4.5% 5.1% 3.9%
</TABLE>
The following table details the number of restaurant openings
during the third quarter and year-to-date, as well as total
restaurants open at the end of the third quarter.
<TABLE>
Total Open at End
Third Quarter Openings Year-to-Date Openings of Third Quarter
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal
2000 1999 2000 1999 2000 1999
<S> <C> <C> <C> <C> <C> <C>
Chili's:
Company-owned 8 5 28 20 462 433
Franchised 9 7 25 22 211 181
Total 17 12 53 42 673 614
Macaroni Grill:
Company-owned 2 5 11 13 139 124
Franchised 1 1 1 1 4 3
Total 3 6 12 14 143 127
On The Border:
Company-owned 3 8 13 15 80 65
Franchised 2 1 5 6 28 21
Total 5 9 18 21 108 86
Maggiano's 1 -- 2 3 12 10
Cozymel's -- -- -- 1 13 13
Corner Bakery:
Company-owned - 4 6 19 55 49
Franchised - -- 1 -- 1 --
Total - 4 7 19 56 49
Eatzi's -- 1 -- 3 4 6
Wildfire -- -- -- 1 3 2
Big Bowl -- -- -- 2 4 4
Grand total 26 32 92 106 1,016 911
</TABLE>
REVENUES
Revenues for the third quarter of fiscal 2000 increased to $551.2
million, 20.0% over the $459.2 million generated for the same
quarter of fiscal 1999. Revenues for the thirty-nine week period
ended March 29, 2000 rose 18.6% to $1,583.1 million from the
$1,335.3 million generated for the same period of fiscal 1999. The
increases are primarily attributable to a net increase of 67
company-owned restaurants since March 24, 1999 and an increase in
comparable store sales for both the third quarter and year-to-date
of fiscal 2000 compared to fiscal 1999. The Company increased its
capacity (as measured in sales weeks) for the third quarter and
year-to-date of fiscal 2000 by 10.9% and 12.0%, respectively,
compared to the respective prior year periods. Comparable store
sales increased 8.6% and 6.4% for the third quarter and year-to-
date, respectively, from the same periods of fiscal 1999. Menu
prices in the aggregate increased 1.5% in fiscal 2000 as compared
to fiscal 1999.
COSTS AND EXPENSES (as a percent of Revenues)
Cost of sales decreased for the third quarter and year-to-date of
fiscal 2000 as compared to the respective periods of fiscal 1999.
Improved purchasing leverage, menu price increases, and favorable
commodity price variances for poultry, dairy, produce, and contract
items (such as eggrolls and shortening) attributed to the decrease
in cost of sales for both the quarter and year-to-date. These
favorable variances were partially offset by unfavorable commodity
price variances for meat and unfavorable product mix changes.
Restaurant expenses decreased for the third quarter and year-to-
date of fiscal 2000 compared to the respective periods of fiscal
1999. Restaurant labor wage rates were higher than in the prior
year, but were fully offset by increased sales leverage,
improvements in labor productivity, and menu price increases.
Additionally, pre-opening costs have decreased for both the third
quarter and year-to-date due to fewer store openings year-over-
year.
Depreciation and amortization decreased for both the third quarter
and year-to-date of fiscal 2000 compared to the respective periods
of fiscal 1999. Depreciation and amortization decreases resulted
from the utilization of the equipment leasing facilities, increased
sales leverage and a declining depreciable asset base for older
units. Partially offsetting these decreases were increases in
depreciation related to new unit construction and ongoing remodel
costs.
General and administrative expenses decreased for both the third
quarter and year-to-date of fiscal 2000 compared to the respective
periods of fiscal 1999 as a result of the Company's continued focus
on controlling corporate expenditures relative to increasing
revenues and number of restaurants and increased sales leverage.
Interest expense remained flat for both the third quarter and year-
to-date of fiscal 2000 compared with the respective periods of
fiscal 1999. Interest expense increased as a result of increased
borrowings on the Company's credit facilities primarily used to
fund the Company's continuing stock repurchase plan and a decrease
in interest capitalization due to fewer store openings year-over-
year. These increases were fully offset by increased sales
leverage as well as a decrease in interest expense on senior notes
due to the scheduled repayment made in April 1999.
Other, net decreased for both the third quarter and year-to-date of
fiscal 2000 compared to the respective periods of fiscal 1999
primarily due to a decrease in the Company's share of net losses in
unconsolidated equity method investees.
CUMULATIVE EFFECT OF ACCOUNTING CHANGE
The cumulative effect of accounting change is the result of the
Company's early adoption of SOP 98-5 retroactive to the first
quarter of fiscal 1999 as discussed previously in the "Notes to
Condensed Consolidated Financial Statements" section. The
cumulative effect of this accounting change, net of income tax
benefit, was $6.4 million or $0.10 per diluted share. This new
accounting standard accelerates the Company's recognition of
preopening costs, but benefits the post-opening results of new
restaurants.
NET INCOME AND NET INCOME PER SHARE
Net income for the third quarter and year-to-date of fiscal 2000
increased 39.3% and 56.8%, respectively, compared to the respective
periods of fiscal 1999. Diluted net income per share for the third
quarter and year-to-date of fiscal 2000 increased 43.3% and 59.2%,
respectively, compared to the respective periods of fiscal 1999.
Excluding the effects of the adoption of SOP 98-5 in the first
quarter of fiscal 1999, net income for the year-to-date period of
fiscal 2000 increased 39.5% from $58.2 million to $81.1 million and
diluted net income per share increased 40.7% from $.86 to $1.21.
The increase in both net income and diluted net income per share
before consideration of the adoption of SOP 98-5 was mainly due to
an increase in revenues resulting from increases in capacity (as
measured in sales weeks), comparable store sales, and menu prices
and decreases in commodity prices and general and administrative
expenses as a percent of revenues. Diluted weighted average shares
outstanding for the third quarter decreased 3.0% compared to the
prior year period due to the effect of treasury stock repurchases,
partially offset by stock option exercises and restricted common
stock awards.
IMPACT OF INFLATION
The Company has not experienced a significant overall impact from
inflation. As operating expenses increase, the Company, to the
extent permitted by competition, recovers increased costs by
either increasing menu prices or reviewing, then implementing,
alternative products or processes.
LIQUIDITY AND CAPITAL RESOURCES
The working capital deficit increased from $87.0 million at June
30, 1999 to $117.4 million at March 29, 2000. Net cash provided by
operating activities increased to $184.6 million for the third
quarter of fiscal 2000 from $124.3 million during the same period
in fiscal 1999 due to increased profitability, partially offset by
the timing of operational receipts and payments.
Long-term debt outstanding at March 29, 2000 consisted of $71.4
million of unsecured senior notes, $108.1 million of borrowings on
credit facilities, and obligations under capital leases. The
Company has credit facilities totaling $330.0 million, and at March
29, 2000, the Company had $220.1 million in available funds from
these facilities.
During the first quarter of fiscal 2000, the Company entered into a
$25.0 million equipment leasing facility. As of March 29, 2000,
$16.2 million of the facility had been utilized. The remaining
equipment leasing facility can be used to lease equipment during
the remainder of fiscal year 2000 and through the first quarter of
fiscal year 2001. In addition, the Company entered into a $50.0
million real estate leasing facility. As of March 29, 2000, $5.2
million of the facility had been utilized. The remaining real
estate leasing facility will be used to lease real estate during
the remainder of fiscal year 2000 and all of fiscal year 2001.
Capital expenditures consist of purchases of land for future
restaurant sites, new restaurants under construction, purchases of
new and replacement restaurant furniture and equipment, and ongoing
remodeling programs. Capital expenditures, net of amounts funded
under the respective equipment and real estate leasing facilities,
were $138.2 million for the first three quarters of fiscal 2000 as
compared to $137.0 million for the same period of fiscal 1999. The
amount of capital expenditures in the first three quarters of
fiscal 2000 was essentially unchanged compared to the same period
in fiscal 1999 due to differences in the mix of unit openings
during fiscal 2000 as compared to fiscal 1999, partially offset by
a decrease in the number of store openings year-over-year. The
Company estimates that its capital expenditures during the fourth
quarter will approximate $47.0 million. These capital expenditures
will be funded from internal operations, cash equivalents, and
drawdowns on the Company's available lines of credit.
The Company is not aware of any other event or trend which would
potentially affect its liquidity. In the event such a trend
develops, the Company believes that there are sufficient funds
available under its lines of credit and that it has strong internal
cash generating capabilities to adequately manage the expansion of
business.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to market risk from changes in interest
rates on debt and changes in commodity prices.
The Company's net exposure to interest rate risk consists of
floating rate instruments that are benchmarked to U.S. and
European short-term interest rates. The Company may from time to
time utilize interest rate swaps and forwards to manage overall
borrowing costs and reduce exposure to adverse fluctuations in
interest rates. The Company does not use derivative instruments
for trading purposes and the Company has procedures in place to
monitor and control derivative use. The impact on the Company's
results of operations of a one-point interest rate change on the
outstanding balance of the variable rate debt as of March 29, 2000
would be immaterial.
The Company purchases certain commodities such as beef, chicken,
flour and cooking oil. These commodities are generally purchased
based upon market prices established with vendors. The purchase
arrangements may contain contractual features that limit the price
paid by establishing certain price floors or caps. The Company
does not use financial instruments to hedge commodity prices
because these purchase arrangements help control the ultimate cost
paid and any commodity price aberrations that are not covered by
contracts are generally short term in nature.
This market risk discussion contains forward-looking statements.
Actual results may differ materially from this discussion based
upon general market conditions and changes in domestic and global
financial markets.
NEW ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards No. 133 ("SFAS
No. 133"), "Accounting for Derivative Instruments and Hedging
Activities," subsequently amended by Statement of Financial
Accounting Standards No. 137 ("SFAS No. 137"), "Accounting for
Derivative Instruments and Hedging Activities - Deferral of the
Effective Date of FASB Statement No. 133," which is required to be
adopted in fiscal years beginning after June 15, 2000. SFAS No.
133 will require the Company to recognize all derivatives on the
balance sheet at fair value. If the derivative is a hedge,
depending on the nature of the hedge, changes in the fair value of
derivatives will either be offset against the change in fair value
of the hedged item through earnings, or recognized in other
comprehensive income until the hedged item is recognized in
earnings. The Company expects to adopt SFAS No. 133 effective
June 29, 2000 and does not anticipate that the adoption will have
a material effect on the Company's results of operations or
financial position.
FORWARD-LOOKING STATEMENTS
Certain statements contained herein are forward-looking regarding
future economic performance, restaurant openings, operating
margins, the availability of acceptable real estate locations for
new restaurants, the sufficiency of cash balances and cash
generated from operating and financing activities for future
liquidity and capital resource needs, and other matters. These
forward-looking statements involve risks and uncertainties and,
consequently, could be affected by general business conditions,
the impact of competition, the seasonality of the Company's
business, governmental regulations, inflation, changes in economic
conditions, consumer perceptions of food safety, changes in
consumer tastes, governmental monetary policies, changes in
demographic trends, identification and availability of suitable
and economically viable locations for new restaurants, food and
labor costs, availability of materials and employees, or weather
and other acts of God.
PART II. OTHER INFORMATION
Item 6: EXHIBITS
Exhibit 27 Financial Data Schedules. Filed with EDGAR version.
(a) Financial Data Schedule as of and for the 39 week period ended
March 29, 2000.
(b) Restated Financial Data Schedule as of and for the 39 week
period ended March 24, 1999.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Company has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
BRINKER INTERNATIONAL, INC.
Date: May 11, 2000 By:________________________________________
Ronald A. McDougall, Vice Chairman and
Chief Executive Officer
(Duly Authorized Signatory)
Date: May 11, 2000 By:__________________________________________
Russell G. Owens, Executive Vice President
and Chief Financial and Strategic Officer
(Principal Financial and Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AND RELATED CONDENSED CONSOLIDATED
STATEMENT OF INCOME OF BRINKER INTERNATIONAL, INC. AS OF AND FOR THE 39 WEEK
PERIOD ENDED MARCH 29, 2000, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> MAR-29-2000
<CASH> 9,987
<SECURITIES> 0
<RECEIVABLES> 23,082
<ALLOWANCES> (467)
<INVENTORY> 15,440
<CURRENT-ASSETS> 99,686
<PP&E> 1,347,927
<DEPRECIATION> (463,890)
<TOTAL-ASSETS> 1,149,209
<CURRENT-LIABILITIES> 217,133
<BONDS> 166,006
0
0
<COMMON> 7,836
<OTHER-SE> 705,473
<TOTAL-LIABILITY-AND-EQUITY> 1,149,209
<SALES> 1,566,405
<TOTAL-REVENUES> 1,583,124
<CGS> 422,219
<TOTAL-COSTS> 1,372,642
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 663
<INTEREST-EXPENSE> 8,400
<INCOME-PRETAX> 124,716
<INCOME-TAX> 43,586
<INCOME-CONTINUING> 81,130
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 81,130
<EPS-BASIC> 1.24
<EPS-DILUTED> 1.21
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED BALANCE SHEET AND RELATED CONDENSED CONSOLIDATED
STATEMENT OF INCOME OF BRINKER INTERNATIONAL, INC. AS OF AND FOR THE 39 WEEK
PERIOD ENDED MARCH 24, 1999, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> MAR-24-1999
<CASH> 16,732<F1>
<SECURITIES> 0
<RECEIVABLES> 26,530<F1>
<ALLOWANCES> (255)
<INVENTORY> 15,012
<CURRENT-ASSETS> 102,543<F1>
<PP&E> 1,173,082<F2>
<DEPRECIATION> (388,051)
<TOTAL-ASSETS> 1,065,532<F1><F2>
<CURRENT-LIABILITIES> 182,106<F1>
<BONDS> 187,537
0
0
<COMMON> 7,815
<OTHER-SE> 635,748<F2>
<TOTAL-LIABILITY-AND-EQUITY> 1,065,532<F1><F2>
<SALES> 1,321,828
<TOTAL-REVENUES> 1,335,268
<CGS> 363,495
<TOTAL-COSTS> 1,168,423<F2>
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 488
<INTEREST-EXPENSE> 6,764
<INCOME-PRETAX> 89,068<F2>
<INCOME-TAX> 30,907<F2>
<INCOME-CONTINUING> 58,161<F2>
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 6,407<F2>
<NET-INCOME> 51,754<F2>
<EPS-BASIC> 0.79<F2>
<EPS-DILUTED> 0.76<F2>
<FN>
<F1> Restated to reflect reclassifications in the condensed consolidated
financial statements to conform with current year presentation.
<F2> Restated to reflect the adoption of Statement of Position 98-5,
"Reporting on the Costs of Start-Up Activities."
</FN>
</TABLE>
