Brinker International, Inc. (NYSE:EAT) Q1 2018 Earnings Conference Call - Final Transcript
May 01, 2018 • 10:00 am ET
Good morning, ladies and gentlemen and welcome to the Brinker International Q3 Earnings Call. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation.
It is now my pleasure to turn the floor over to your host, Mika Ware. Ma'am, the floor is yours.
Thank you, Paul. Good morning, everyone. This is Mika Ware, Vice President of Finance and Investor Relations, and welcome to the earnings call for Brinker International's third quarter fiscal year 2018. Results for the third quarter were released earlier this morning and are available on our website at brinker.com. Wyman Roberts, Chief Executive Officer and President; and Joe Taylor, Chief Financial Officer, join me here this morning in Dallas.
During the comments portion of the call, Wyman and Joe will provide a more detailed overview of the third quarter and will update the progress of our strategic initiatives underway at the Company.
Of course before beginning our comments, please let me remind everyone of our safe harbor regarding forward-looking statements. During our call, management may discuss certain items 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.
Additionally, 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.
With that, now I will turn the call over to Wyman.
Thanks, Mika. Good morning, everyone, and thanks for joining us to review third quarter results and our plans to build on our momentum in the quarters ahead. Brinker delivered improved performance in the third quarter with comp sales of minus 0.3%, despite a challenging winter, which had a negative 60 basis point impact. So adjusting for weather, sales would have been positive.
We saw a sequential growth both quarter-to-quarter and throughout the quarter and the trajectory of our business continues to hold strong. And though third quarter sales were slightly below Black Box. Our traffic results significantly outperformed the category. We understand the importance of reversing traffic trends, and our plans are built on strategies designed to, first, close the gap, which we've done, and then move to positive traffic.
First quarter was about putting the strategy in place. Second quarter was about implementation. And in the third quarter, we started to see momentum with significant changes in traffic. Now, it's about building on our progress by maximizing our ability to connect with our guests and deliver on their needs. I will touch on our Maggiano's and global business first and then we'll spend the remainder of our time on the Chili's