Brinker International Inc. (EAT, Financial) filed Quarterly Report for the period ended 2010-03-24.
Brinker International Inc. has a market cap of $1.9 billion; its shares were traded at around $18.52 with a P/E ratio of 13.72 and P/S ratio of 0.52. The dividend yield of Brinker International Inc. stocks is 2.38%. Brinker International Inc. had an annual average earning growth of 7.5% over the past 10 years.EAT is in the portfolios of David Dreman of Dreman Value Management, Robert Olstein of Olstein Financial Alert Fund, John Hussman of Hussman Economtrics Advisors, Inc., Richard Snow of Snow Capital Management, L.P., Kenneth Fisher of Fisher Asset Management, LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC, Chuck Royce of Royce& Associates.
Revenues for the third quarter of fiscal 2010 decreased to $713.4 million, a 7.8% decrease from the $774.1 million generated for the same quarter of fiscal 2009. Revenues for the thirty-nine week period ended March 24, 2010 were $2,115.4 million, a 16.5% decrease from the $2,534.3 million generated for the same period in fiscal 2009. The decrease in revenue was primarily attributable to a net decrease in comparable restaurant sales and net declines in capacity at company-owned restaurants as follows:
Royalty and franchise revenues increased 4.4% to $16.5 million in the third quarter of fiscal 2010 compared to $15.8 million in the prior year. The increase is primarily due to the net addition of 67 franchised restaurants since March 25, 2009. For the year-to-date period, royalty and franchise revenues decreased 1.2% to $47.8 million compared to $48.4 million in fiscal 2009. The decrease is primarily due to the sale of Macaroni Grill, partially offset by the net addition of 67 franchised restaurants since March 25, 2009.
Other gains and charges in fiscal 2010 included a $15.2 million impairment charge related to 15 underperforming restaurants that are continuing to operate. We also recorded $4.0 million in lease termination charges and $5.4 million in long-lived asset impairments resulting from the decision to close nine underperforming restaurants. Additionally, we recorded $2.4 million in lease termination charges related to restaurants closed in prior years and $1.8 million in severance and other benefits resulting from organizational changes. These charges were partially offset by gains of $3.5 million related to the sale of 21 restaurants to a franchisee and land sales.
Other gains and charges in fiscal 2009 included $8.0 million in lease termination charges and $35.2 million in long-lived asset impairments primarily resulting from the decision to close 29 underperforming restaurants. Additionally, we recorded $2.4 million in lease termination charges associated with restaurants closed in prior years. Organizational changes resulted in net charges of $4.9 million for severance and other costs. In December 2008, we sold Macaroni Grill to Mac Acquisition and recorded a loss on the sale of $43.3 million.
Interest expense was $6.5 million for the third quarter of fiscal 2010 and $20.3 million for the year-to date period of fiscal 2010 compared to $7.5 million for the third quarter and $27.4 million for the year-to-date period of the prior year. The decrease in interest expense is primarily due to lower average borrowing balances on our credit facilities and lower interest rates on our debt carrying variable interest rates.
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Brinker International Inc. has a market cap of $1.9 billion; its shares were traded at around $18.52 with a P/E ratio of 13.72 and P/S ratio of 0.52. The dividend yield of Brinker International Inc. stocks is 2.38%. Brinker International Inc. had an annual average earning growth of 7.5% over the past 10 years.EAT is in the portfolios of David Dreman of Dreman Value Management, Robert Olstein of Olstein Financial Alert Fund, John Hussman of Hussman Economtrics Advisors, Inc., Richard Snow of Snow Capital Management, L.P., Kenneth Fisher of Fisher Asset Management, LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors, Jeremy Grantham of GMO LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
At March 24, 2010, we owned the land and buildings for 191 of the 871 company-owned restaurants (excluding On The Border). The net book values of the land and buildings associated with these restaurants totaled $148.1 million and $145.8 million, respectively.Revenues for the third quarter of fiscal 2010 decreased to $713.4 million, a 7.8% decrease from the $774.1 million generated for the same quarter of fiscal 2009. Revenues for the thirty-nine week period ended March 24, 2010 were $2,115.4 million, a 16.5% decrease from the $2,534.3 million generated for the same period in fiscal 2009. The decrease in revenue was primarily attributable to a net decrease in comparable restaurant sales and net declines in capacity at company-owned restaurants as follows:
Royalty and franchise revenues increased 4.4% to $16.5 million in the third quarter of fiscal 2010 compared to $15.8 million in the prior year. The increase is primarily due to the net addition of 67 franchised restaurants since March 25, 2009. For the year-to-date period, royalty and franchise revenues decreased 1.2% to $47.8 million compared to $48.4 million in fiscal 2009. The decrease is primarily due to the sale of Macaroni Grill, partially offset by the net addition of 67 franchised restaurants since March 25, 2009.
Other gains and charges in fiscal 2010 included a $15.2 million impairment charge related to 15 underperforming restaurants that are continuing to operate. We also recorded $4.0 million in lease termination charges and $5.4 million in long-lived asset impairments resulting from the decision to close nine underperforming restaurants. Additionally, we recorded $2.4 million in lease termination charges related to restaurants closed in prior years and $1.8 million in severance and other benefits resulting from organizational changes. These charges were partially offset by gains of $3.5 million related to the sale of 21 restaurants to a franchisee and land sales.
Other gains and charges in fiscal 2009 included $8.0 million in lease termination charges and $35.2 million in long-lived asset impairments primarily resulting from the decision to close 29 underperforming restaurants. Additionally, we recorded $2.4 million in lease termination charges associated with restaurants closed in prior years. Organizational changes resulted in net charges of $4.9 million for severance and other costs. In December 2008, we sold Macaroni Grill to Mac Acquisition and recorded a loss on the sale of $43.3 million.
Interest expense was $6.5 million for the third quarter of fiscal 2010 and $20.3 million for the year-to date period of fiscal 2010 compared to $7.5 million for the third quarter and $27.4 million for the year-to-date period of the prior year. The decrease in interest expense is primarily due to lower average borrowing balances on our credit facilities and lower interest rates on our debt carrying variable interest rates.
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