Brinker International (EAT) Updates FY16, Q4 Outlook; Sees FY17 EPS at Low-End of Expectations

In advance of its Investor Day tomorrow, June 9th, Brinker International, Inc. (NYSE: EAT) announced the following items:

Fiscal 2016 and Fourth Quarter Outlook:

• The company continues to expect fiscal 2016 earnings per diluted share, excluding special items, to be near the low end of our original guidance range of $3.55 to $3.65. (The Street sees EPS of $3.53.)
• The company continues to expect fiscal fourth quarter 2016 comparable restaurant sales to improve from fiscal third quarter 2016 results; although remain negative. As of June 2, quarter-to-date Brinker International company-owned comparable restaurant sales decreased 2.0 percent which includes a 2.0 percent and 1.5 percent decrease for Chili's and Maggiano's company-owned restaurants, respectively, as of that date. The quarter-to-date Brinker company-owned comparable restaurant sales figure represents an improvement of 160 basis points from the third quarter reported number.

Fiscal 2017 Select Guidance:

• Brinker International comparable restaurant sales growth for fiscal 2017 is expected to be in a range of 0.5 to 2.0 percent.
• The company anticipates fiscal 2017 earnings per diluted share, excluding special items, to be in a range of $3.40 to $3.50. (The Street sees EPS of $3.47.)
• Fiscal 2017 capital expenditures are expected to be in a range of $110 to $120 million.
• Full detailed guidance for fiscal 2017 will be provided with the company's fourth quarter earnings announcement on August 11, 2016.

"We are encouraged by the quarter-to-date progress of our brands," said Wyman Roberts, chief executive officer and president. "We look forward to discussing a number of initiatives designed to build on this progress and continue momentum into fiscal 2017 and beyond at our investor day tomorrow."

Webcast InformationA simulcast of the presentation will be available on the Brinker website (www.brinker.com) at 7:30 a.m. CDT tomorrow (June 9th). An online replay of the presentation will be available for two weeks. To access the live simulcast of the presentation, please go to the company's Web site at least 15 minutes prior to the presentation to download and install any necessary audio software.

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