Brinker International, Inc. (NYSE: EAT) operates and franchises 1,689 casual dining restaurants in 49 states and 24 countries. Brinker owns approximately 75% of its restaurants and franchises the remaining 25%. The company's chains include Chili's Grill & Bar, Romano's Macaroni Grill , On the Border Mexican Grill and Cantina, and Maggiano's Little Italy. The company earned $3.6 billion in revenue and $79 million in net income in 2009.
Brinker's is highly leveraged to the success of its Chili's brand. Although Brinker's has 4 different brands, Chili's, its flagship chain accounts for 76% of its restaurants. The company plans to grow this number to 2000, over the next several years. The company has announced no similar plans to expand its other chains. However, growth has been stunted by a sluggish economy, which in turn has also hurt Brinker's sales. In 2009, the company's comparable store sales fell by more than 4% in all of its restaurants.
Brinker's International Inc. (EAT) owns and franchises four brands of causal dining restaurants: Chili's, Macaroni Grill, On the Border, and Maggiano's. Brinker's restaurants can be found nationwide, including Washington D.C. and it has a small international presence.
Although Brinker's has 5 different restaurant chains, the company's success is highly dependent on the continued growth of its Chili's franchise. Chili's constitutes three-quarters of Brinker's restaurants and is by far Brinker's largest, most popular brand. Brinker's plans on expanding Chili's to approximately 2,000 restaurants but has not announced any formal plans to expand any of its other brands in so dramatic a fashion.
Slowing economic growth and concerns among consumers, economists and business owners alike began to take their toll on the restaurant and foodservice industries. This downturn has largely been a result of lower consumer spending. Initially, rising interest rates combined with slowing home appreciation resulted in tighter economic constraints for many consumers. Since the home is considered the primary form of wealth or savings for many Americans, millions of homeowners have suddenly found themselves significantly poorer while facing higher costs in the form of food and energy inflation, and thus are less willing to spend money on eating out. As evidenced by falling levels of foot traffic to Brinker's various chains, the company has been far from immune to this trend. In 2009, comparable store sales fell by more than 4% at all of the company's restaurants.
The restaurant and foodservice industries are extremely competitive, especially within the casual dining sector. Brinker's had $4.4 billion in revenue operating 1801 restaurants. Brinker's main competition includes: