On April 24, restaurant operator Brinker International (NASDAQ:EAT) released third-quarter earnings for the period ended March 28.

  • Revenues increased 2.8% as a 4.4% decrease in comparable restaurant sales offset a 7.9% increase in dining capacity.
  • Margins spoiled this quarter, especially operating margin, because of increased labor costs and "facilities investments."
  • The company repurchased 3.2 million shares during the quarter. It has spent $222.1 million buying back 7.7 million shares year to date.
  • The company expects to open 80 to 90 new company-owned restaurants in the fiscal year 2008.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$1,123.4

$1,092.8

2.8%

Net Profit

$54.6

$63.1

(13.6%)

EPS

$0.43

$0.48

(10.4%)

Diluted Shares

125.7

130.2

(3.4%)

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

71.7%

71.9%

(0.2)

Operating Margin

7.4%

8.8%

(1.4)

Net Margin

4.9%

5.8%

(0.9)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

The balance sheet data wasn't the best thing on the menu, but here's a taste of what the company provided.

Liabilities

Q3 2007

Q3 2006

Change

Current Assets

$250.8

$234.9

6.8%

Current Liabilities

$551.5

$525.2

5%

Long-Term Debt

$593.4

$437.1

35.7%

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$390.5

$390.9

(0.1%)

Capital Expenditures

$301.1

$253.6

18.7%

Free Cash Flow

$89.4

$137.3

(34.9%)

Free cash flow is a Fool's best friend.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.