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February 27, 2013
13:06 EDTEATBrinker provides FY13 outlook, long term vision
Leaders from Brinker International provided an update on the company's fiscal 2013 outlook and shared long-term goals being discussed in today's investor conference. "Brinker expects to deliver on our promise of doubling earnings per share. This could happen by fiscal 2014, a full year earlier than initially projected," said Wyman Roberts, CEO and President of Brinker International. "We're now looking to the next milestone by setting another long-term goal: to double our fiscal 2012 earnings per share by fiscal 2017. This is yet another aggressive goal, but we are committed to attaining it by driving 10 to 15 percent annual EPS growth during this period." The business strategies for the next five years build upon the foundation of Brinker's current successes. The company has evolved to operate in a mature space by reducing costs in the middle of the P&L while reinvesting back into the business with initiatives that enhance the guest experience. Moving forward, the company will continue to have a balanced approach to doubling EPS, with topline initiatives playing a greater role in overall growth. Chili's Grill & Bar will focus on food innovation, improved operational consistency and moderate unit growth. Maggiano's Little Italy will leverage a new restaurant prototype to grow their brand. The global side of the business will step up unit development to become the guests' top choice for casual dining internationally. Brinker projects 3%-5% revenue growth, driven by 2%-3% domestic comp sales growth, and approximately 3% international comp sales growth. Starting in fiscal 2014, the company projects unit growth of 1%-2% for Chili's in the U.S., 5%-10% for Maggiano's, and ongoing 10%-15% global growth. Brinker will generate up to 1% annual margin improvement, driven by sales leverage on restaurant labor and restaurant expenses, continued emphasis on labor productivity improvements and flat cost of sales. The company expects to continue to generate strong cash flow and maintain a consistent strategy regarding the prudent allocation of capital. This will add to Brinker's commitment to return cash to shareholders through a competitively favorable dividend, and at least $1B of share repurchase over the next five years. The combination of focusing on these outlined strategies will result in Brinker delivering annual EPS growth of 10%-15% and doubling EPS to at least $4.00 per share by fiscal 2017.
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