Brinker International, Inc. (NYSE:EAT) Q4 2019 Earnings Conference Call - Final Transcript

Aug 13, 2019 • 10:00 am ET

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Brinker International, Inc. (NYSE:EAT) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen. And welcome to the Brinker International Earnings Conference Call. At this time, all participants have been placed on a listen-only mode, and we will open up 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.

Executive
Mika Ware

Thank you, Holly. And good morning, everyone. Welcome to the earnings call for Brinker International's fourth quarter of fiscal year 2019. With me on today's call are Wyman Roberts, Chief Executive Officer and President; and Joe Taylor, Chief Financial Officer. Results for the quarter were released earlier this morning and are available on our website at brinker.com.

As is our practice, Wyman and Joe will first make prepared comments related to our operating performance and strategic initiatives. In addition, we will provide guidance for modeling fiscal year 2020 performance. We will then open the call for your questions. 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 risk 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. And of course, 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.

And with that said, I will turn the call over to Wyman.

Executive
Wyman Roberts

Thanks, Mika. Good morning, everyone. And thanks for joining us as we review our fiscal '19 performance and share how we're going to build on our momentum into fiscal '20. Brinker delivered a strong quarter and a great year with adjusted earnings at a $1.36 for the quarter, up 14%, which took us to $3.93 for the year, up 12%. We drove those results primarily through the strength of Chili's comp sales, which ended the year up 2.3%, a 120 basis points beat to the industry. And those sales were driven by comp traffic, up 2.3%, a 380 basis points beat to the industry.

During fiscal '19, we achieved or beat the performance levels we expected and set the business up for strong future performance. So we remain committed to our strategy. First, because it continues to drive results. And second, because there's still plenty of upside, which gives us confidence in our ability to continue to take share and grow the business. Now, when we laid the strategy out a year and a half ago, our objectives were threefold. First, strengthen our value proposition. Second, improve our operational execution. And third, leverage digital technology to increase convenience for our guests. In terms of value,