Brinker International, Inc. (NYSE:EAT) Q2 2015 Earnings Conference Call - Final Transcript

Jan 28, 2015 • 10:00 am ET


Brinker International, Inc. (NYSE:EAT) Q2 2015 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen and welcome to Brinker International Second Quarter Fiscal 2015 Earnings Release Conference Call. At this time, all participants will be placed on a listen-only mode and we will open up the floor for your questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Jill Cuthbertson. Ma'am, the floor is yours.

Jill Cuthbertson

Thank you, Dave. Good morning everyone and welcome to Brinker International's second quarter fiscal 2015 earnings call which is also being broadcast live over the Internet. Before turning the call over, let me quickly remind you of our Safe Harbor regarding forward-looking statements.

During our management comments and in our responses to your questions, certain items may be discussed which are not based entirely on historical facts. Any such items should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated. Such risks and uncertainties include factors more completely described in this morning's press release and the company's filings with the SEC.

On the call, we may refer to certain non-GAAP financial measures that management uses in its review of the business and believes will provide insight into the company's ongoing operations. Reconciliations are provided in the tables in the press release and on Brinker's website under the financial section of the Investor tab. Consistent with prior practice, we will be silent on intra-period sales or other key operating results yet to be reported as the data may not accurately reflect the final results of the quarter referenced.

On our call today, you will hear from Wyman Roberts, Chief Executive Officer and President, Brinker International; and Marie Perry, Interim CFO, Controller and Treasurer. Following their remarks, we will take your questions.

Now, I will turn the call over to Wyman.

Wyman Roberts

Thank you, Jill and good morning everyone. We appreciate you joining us on the call today. As you saw from our press release this morning, Brinker reported first quarter earnings per share before special items of $0.71, representing a 20.3% increase over the same quarter last year. We delivered positive comp sales of 3.7% primarily driven by a 2% lift in traffic before we adjust for the holiday shift. This shift allowed us to benefit from an extra day in the quarter or about a 110 basis points in sales and traffic since Christmas moved into the third quarter of this year. As a remainder we will give this good guy[Phonetics] back next quarter.

Nonetheless, another solid quarter behind us. We're optimistic about continuing our positive momentum as we have seen our traffic driving strategies take hold and produce results. First, let's talk about Chili's results for the quarter and the progress we have made in our strategy initiatives. Chili has delivered positive comp sales of 4% with positive traffic of 2.1% and even as we have seen the industry strength