Question

Question: Perform a common size analysis and percentage change analysis for 2016 and 2017. What do these analyses tell you about Brinker?

BRINKER INTERNATIONAL INC
6/2 8/2017
10-K
CONSOLIDATED STATEMENTS OF INCOME
	Fiscal Years
	2017	2016	2015
Revenues:
Company sales	3,062,579	3,166,659	$2,904,746
Franchise and other revenues (a)	88,258	90,830	97,532
Total revenues	3,150,837	3,257,489	3,002,278
Operating Costs and Expenses:
Company restaurants (excluding depreciation
and amortization)
Cost of sales	791,321	840,204	775,063
Restaurant labor	1,017,945	1,036,005	929,206
Restaurant expenses (a)	773,510	762,663	703,334
Company restaurant expenses	2,582,776	2,638,872	2,407,603
Depreciation and amortization	156,409	156,368	145,242
General and administrative	132,819	127,593	133,467
Other gains and charges	22,655	17,180	4,764
Total operating costs and expenses	2,894,659	2,940,013	2,691,076
Operating income	256,178	317,476	311,202
Interest expense	49,547	32,574	29,006
Other, net	(1,877)	(1,485)	(2,081)
Income before provision for income taxes	208,508	286,387	284,277
Provision for income taxes	57,685	85,642	87,583
Net income	150,823	200,745	$196,694
Basic net income per share	2.98	3.47	$3.12
Diluted net income per share	2.94	3.42	$3.05
Basic weighted average shares outstanding	50,638	57,895	63,072
Diluted weighted average shares outstanding	51,250	58,684	64,404
Other comprehensive loss:
Foreign currency translation adjustment	($327)	($2,964)	($7,690)
Other comprehensive loss	($327)	($2,964)	($7,690)
Comprehensive income	150,496	197,781	189,004
Dividends per share	1.36	1.28	$1.12

Answer 1