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Brinker International Inc. Reports Operating Results (10-Q)

May 07, 2012 | About:
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10qk

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Brinker International Inc. (EAT) filed Quarterly Report for the period ended 2012-03-28.

Brinker Intl has a market cap of $2.47 billion; its shares were traded at around $32.33 with a P/E ratio of 17 and P/S ratio of 0.9. The dividend yield of Brinker Intl stocks is 2%. Brinker Intl had an annual average earning growth of 3.5% over the past 10 years.

Highlight of Business Operations:

Maggianos revenues increased 3.4% to $94.7 million in the third quarter of fiscal 2012 from $91.6 million in the same quarter of fiscal 2011. For the year-to-date period, Maggianos revenues increased 3.4% to $290.9 million from $281.2 million in fiscal 2011. The increase in revenue was driven by comparable restaurant sales increases of 3.9% and 3.4% for the third quarter and year-to-date periods of fiscal 2012, respectively, resulting from favorable menu prices and improved traffic, partially offset by a $0.7 million reduction related to the gift card breakage adjustment recorded in the third quarter.

Royalty and franchise revenues increased 1.8% to $17.4 million in the third quarter of fiscal 2012 compared to $17.1 million in the prior year. For the year-to-date period, royalty and franchise revenues increased 3.3% to $49.8 million compared to $48.2 million in fiscal 2011. The increase is primarily due to an increase in royalty revenues driven by the net addition of seven franchised restaurants since March 30, 2011. Royalty revenues are recognized based on the sales generated by our franchisees and reported to us. Our franchisees generated approximately $415 million in sales for the third quarter of fiscal 2012, an increase of 3.5% over the prior year. For the year-to-date period, our franchisees generated approximately $1,193 million in sales, an increase of 4.0% over prior year.

Cost of sales, as a percent of revenues, increased to 27.6% for the third quarter and 27.3% for the year-to-date periods of fiscal 2012 from 27.2% and 26.9% for the respective prior year periods. Cost of sales was negatively impacted in the current year by an increase in commodity pricing on beef, oils and dairy, partially offset by favorable menu pricing. Third quarter cost of sales as a percent of revenues was also negatively impacted by approximately 0.1% due to the gift card breakage adjustment to revenues.

The effective income tax rate increased to 28.2% for the third quarter compared to 27.5% in the prior year primarily due to increased earnings. The effective income tax rate increased to 28.8% for the year-to-date period compared to 22.5% in the prior year primarily due to the resolution of certain state tax positions resulting in a positive impact in the prior year as well as increased earnings in the current year.

Read the The complete Report

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