Brinker International, Inc. · NYSE:EAT
Brinker International — Investor Day (June 2023)
109 slides from Brinker International's investor day presentation, Jun 7, 2023
Slide 1: Investor Day
I N V E S TO R DAY June 7, 2023
Slide 2: Investor Day Agenda
INVESTOR DAY AGENDA Kevin Hochman, Joe Taylor, Aaron White, Doug Comings, George Felix, Steve Provost, Chief Executive Officer Chief Financial Officer Chief People Officer Chief Operating Officer Chief Marketing Officer President, Maggiano’s Topic Presenter How Our Strategy Will Create Value Kevin H
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT During these presentations, and in response to your questions, certain items may be discussed which are not based entirely on historical facts. Any such items should be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1
Slide 4: Kevin Hochman
KEVIN HOCHMAN President and CEO, Brinker International 4
Slide 5: Leading Brands, Scale and Footprint
LEADING BRANDS, SCALE AND FOOTPRINT Brinker Today: • 1,657 restaurants • ~$4.1B sales • 92% domestic owned vs. franchised • 60,000 employees • 78% domestic vs. international • 31 countries *As of May 3, 2023 5
Slide 6: What You Will Hear Today
WHAT YOU WILL HEAR TODAY Executing multi-year Clear path Strategy is now strategy to unlock to drive top and coming to life brand value bottom line 6
Slide 7: Value Creation Strategy
VALUE CREATION STRATEGY Value Vibrant Creation Atmosphere Consistently Good Experience Craveable Differentiated Food Items Brand Experience 7
Slide 8: 8
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Slide 9: Our New Strategy Will Create Consistent Value for Brinker Over Time
OUR NEW STRATEGY WILL CREATE CONSISTENT VALUE FOR BRINKER OVER TIME Strong foundation The new Chili’s we are building 4 Key Pillars strategy How our strategy will create value 9
Slide 10: Chili's Strengths
CHILI’S STRENGTHS 1. Iconic American Brand 2. Relevant Food Offering Strong 3. Size and Scale Foundation 4. Chilihead Culture 10
Slide 11: Iconic American Brand
S T R O N G F O U N DAT I O N F O R G R O W T H 1. ICONIC AMERICAN BRAND ICONIC AMERICAN BRAND 11
Slide 12: Relevant Food Offering
S T R O N G F O U N DAT I O N F O R G R O W T H 2. RELEVANT FOOD OFFERING 12
Slide 13: Size and Scale
S T R O N G F O U N DAT I O N F O R G R O W T H 3. SIZE AND SCALE 13
Slide 14: Chilihead Culture
S T R O N G F O U N DAT I O N F O R G R O W T H 4. CHILIHEAD CULTURE 14
Slide 15: Our New Strategy Will Create Consistent Value for Brinker Over Time
OUR NEW STRATEGY WILL CREATE CONSISTENT VALUE FOR BRINKER OVER TIME Strong foundation The new Chili’s we are building 4 Key Pillars strategy How our strategy will create value 15
Slide 16: The New Chili's We Are Building
THE NEW CHILI’S WE ARE BUILDING The New Chili’s Menu Simplified: Four core items Operations Simplified, invest in labor Atmosphere Fun, clean and well maintained Off - Premise Core Chili’s focus Pricing Strategy Pricing power, value leadership Advertising Ramping up Capital Allocation Invest to grow
Slide 17: Core Four Focus
NEW CHILI’S WE ARE BUILDING CORE FOUR FOCUS 17
Slide 18: Simplify Complex Operations, Invest in Labor
NEW CHILI’S WE ARE BUILDING SIMPLIFY COMPLEX OPERATIONS, INVEST IN LABOR 18
Slide 19: Advertising – Ramping Up
NEW CHILI’S WE ARE BUILDING ADVERTISING – RAMPING UP 19
Slide 20: Off Premise – Core Chili's Focus
NEW CHILI’S WE ARE BUILDING OFF PREMISE – CORE CHILI’S FOCUS 20
Slide 21: The New Chili's We Are Building
THE NEW CHILI’S WE ARE BUILDING The New Chili’s Menu Simplified: Four Core items Operations Simplified, invest in labor Atmosphere Fun, clean and well maintained Off - Premise Core Chili’s focus Pricing Strategy Pricing power, value leadership Advertising Ramping up Capital Allocation Invest to grow
Slide 22: Our New Strategy Will Create Consistent Value for Brinker Over Time
OUR NEW STRATEGY WILL CREATE CONSISTENT VALUE FOR BRINKER OVER TIME Strong foundation The new Chili’s we are building 4 Key Pillars strategy How our strategy will create value 22
Slide 23: Aaron White
AARON WHITE Chief People Officer, Operations and Culinary, Brinker International 23
Slide 24: Strategic Pillars Designed to Improve the Base Business
STRATEGIC PILLARS DESIGNED TO IMPROVE THE BASE BUSINESS TEAM MEMBERS FOOD & BEVERAGE HOSPITALITY ATMOSPHERE Make the job easier, Win on Burgers, Deliver hospitality Ensure every more fun & more Fajitas, with every Guest restaurant is clean rewarding Crispers & ‘Ritas touchpoint & well maintained 24
Slide 25: Early Signs of Success – Lower Turnover
EARLY SIGNS OF SUCCESS – LOWER TURNOVER PILLAR #1: TEAM MEMBERS Making The Job Easier, Making The Job Easier, More Fun & More Rewarding More Fun & More Rewarding Quarterly Manager Turnover Quarterly Hourly Turnover 46% 8.6% 36% 6.1% 5.9% 26% Pre-Pandemic Q3 F22 Q3 F23 Pre-Pandemic Q3 F22 Q3 F23 25
Slide 26: Strategic Pillars Designed to Improve the Base Business
STRATEGIC PILLARS DESIGNED TO IMPROVE THE BASE BUSINESS TEAM MEMBERS FOOD & BEVERAGE HOSPITALITY ATMOSPHERE Make the job easier, Win on Burgers, Deliver hospitality Ensure every more fun & more Fajitas, with every Guest restaurant is clean rewarding Crispers & ‘Ritas touchpoint & well maintained 26
Slide 27: Early Signs of Success – Better Food Scores
EARLY SIGNS OF SUCCESS – BETTER FOOD SCORES PILLAR #2: FOOD & BEVERAGE Win On Burgers, Fajitas, Crispers & ‘Ritas Food Great Guest Score 70% 65% 66% Pre-Pandemic Q3 F22 Q3 F23 27
Slide 28: Strategic Pillars Designed to Improve the Base Business
STRATEGIC PILLARS DESIGNED TO IMPROVE THE BASE BUSINESS TEAM MEMBERS FOOD & BEVERAGE HOSPITALITY ATMOSPHERE Make the job easier, Win on Burgers, Deliver hospitality Ensure every more fun & more Fajitas, with every Guest restaurant is clean rewarding Crispers & ‘Ritas touchpoint & well maintained 28
Slide 29: Early Signs of Success – Less Guests with a Problem
EARLY SIGNS OF SUCCESS – LESS GUESTS WITH A PROBLEM PILLAR #3: HOSPITALITY Deliver Hospitality With Every Guest Touch Point Dine In Guest with a Problem 5.0% 4.7% 4.1% Pre-Pandemic Q3 F22 Q3 F23 29
Slide 30: Early Signs of Success – Cleaner Restaurants
EARLY SIGNS OF SUCCESS – CLEANER RESTAURANTS PILLAR #4: ATMOSPHERE Every Restaurant Clean & Well Maintained Clean and Well Maintained 65% 61% 60% Pre-Pandemic Q3 F22 Q3 F23 30
Slide 31: Our New Strategy Will Create Consistent Value for Brinker Over Time
OUR NEW STRATEGY WILL CREATE CONSISTENT VALUE FOR BRINKER OVER TIME Strong foundation The new Chili’s we are building 4 Key Pillars strategy How our strategy will create value 31
Slide 32: Multiple Growth Drivers
IN SUMMARY MULTIPLE GROWTH DRIVERS • Better guest experience drives traffic over time • Improved pricing power • Multi year mix drivers • Enhanced marketing drives trial and frequency 32
Slide 33: George Felix
GEORGE FELIX Senior VP and Chief Marketing Officer, Chili’s® Grill & Bar 33
Slide 34: Launching New Marketing Strategy
LAUNCHING NEW MARKETING STRATEGY Brand positioning 3-year menu vision Building top of mind awareness and traffic Loyalty program – a key to driving traffic 34
Slide 35: The Chili's Brand Before – Existing Opportunities
THE CHILI’S BRAND BEFORE – EXISTING OPPORTUNITIES Advertising Spend Redirected Trailing in Top-of-Mind Complex Menu to Heavy Discounting Awareness Q3 F23 34% 29% 26% 35
Slide 36: The Chili's Brand Today – A Marketer's Dream
THE CHILI’S BRAND TODAY – A MARKETER’S DREAM A Brand People Know Food Americans Crave Distinctive Assets and Love 36
Slide 37: Creating a R.E.D. Brand
CREATING A R.E.D. BRAND The Elements of RED* Relevance Ease Distinctiveness *RED marketing. A guide by Greg Creed & Ken Muench 37
Slide 38: What Makes Chili's Different?
WHAT MAKES CHILI’S DIFFERENT? • Come as you are • ChiliHead Hospitality • A place that makes you feel special 38
Slide 39: What Makes a Chili's Experience Relevant and Unique?
WHAT MAKES A CHILI’S EXPERIENCE RELEVANT AND UNIQUE? 39
Slide 40: Shift to Occasion-Based Segmentation Approach
SHIFT TO OCCASION-BASED SEGMENTATION APPROACH Occasion-Based Segmentation 3 Key Occasions Dine In Off Premise Bar 40
Slide 41: Case Study: Family of Four
CASE STUDY: FAMILY OF FOUR The Jones Family – Chicago, IL 2 Kids – Ages 11 & 8 3 Key Occasions Dine In Off Premise Bar • An escape for the • Busy nights with kids’ • The game I want to family activities watch will be on TV • Not in a rush • Ease of ordering • Beer/Cocktails at a • A chance to connec
Slide 42: Launching New Marketing Plan
LAUNCHING NEW MARKETING PLAN Brand positioning 3-year menu vision Building top of mind awareness and traffic Loyalty program – a key to driving traffic 42
Slide 43: Where to Play, How We Win
WHERE TO PLAY, HOW WE WIN Merchandising to Drive Focus on Core 4 Traffic-Driving Value Trade-Up 43
Slide 44: Why These Are the Right Choices
WHY THESE ARE THE RIGHT CHOICES Burgers, Fajitas (Mexican), Crispers, and Fries Margarita is the Top Cocktail Across are all in the Top 10 Foods for Menu Importance All Categories(1) Source: NPD Source: Datassential Winning Combination Note 1: Excludes Fine Dining 44
Slide 45: Launching Our Products with New, More Disciplined Innovation Approach
LAUNCHING OUR PRODUCTS WITH NEW, MORE DISCIPLINED INNOVATION APPROACH • Stage-gate process aligns resources, investment, and objectives at each stage • Cross-functional in nature to ensure all key parties are engaged • Formalized check-ins with Leadership Team to align on progressing through each ga
Slide 46: Checklist for Relevance in the Chicken Tender Category
CHECKLIST FOR RELEVANCE IN THE CHICKEN TENDER CATEGORY ✓ Hot & fresh every time ✓ Variety of sauces because over 90% of consumers dip tenders in sauce ✓ Relevant sides for Millennial families & Gen Z ✓ Ability to buy larger counts for bigger eaters ✓ Craveable fries 46
Slide 47: Case Study: Chicken Crispers Before
CASE STUDY: HOW THIS APPLIES TO CHICKEN CRISPERS BEFORE • Multiple batters (tempura & crispy) • Buried on the menu with no imagery 9.5% • Only one option for Crisper count of page • Limited sauce variety area • Served with outdated side – corn on the cob 47
Slide 48: Case Study: Chicken Crispers After
CASE STUDY: HOW THIS APPLIES TO CHICKEN CRISPERS AFTER • Featured on the menu with craveable photography • Variety of piece counts (4, 5, and 6) to encourage trade up • Leveraging IJW to offer more sauce variety • New mac and cheese to modernize our sides 48
Slide 49: Case Study: Margaritas Before
CASE STUDY: HOW THIS APPLIES TO MARGARITAS BEFORE Innovation Multiple focused on margs with discounted similar flavor margs profiles 49
Slide 50: Case Study: Margaritas After
CASE STUDY: HOW THIS APPLIES TO MARGARITAS AFTER GOOD BETTER BEST 50
Slide 51: A Creative Platform to Drive Association with Margaritas
A CREATIVE PLATFORM TO DRIVE ASSOCIATION WITH MARGARITAS 51
Slide 52: Starts with a Marg
ABLE TO BE USED OVER TIME FOR DIFFERENT OCCASIONS STARTS WITH A MARG 52
Slide 53: Celebrity Spokespeople
@ CELEBRITY SPOKESPEOPLE
Slide 54: PR Coverage in Lifestyle Publications
PR COVERAGE IN LIFESTYLE PUBLICATIONS
Slide 55: Menu Before: Lacking a Strong Point of View
MENU BEFORE: LACKING A STRONG POINT OF VIEW BEFORE 55
Slide 56: Menu After: Clear Focus on Core 4 and Trade Up
MENU AFTER: CLEAR FOCUS ON CORE 4 AND TRADE UP AFTER 56
Slide 57: Menu After: Clear Focus on Core 4 and Trade Up
MENU AFTER: CLEAR FOCUS ON CORE 4 AND TRADE UP AFTER AFTER Simplification: – Removed 50+ menu items and SKUs from the menu to simplify operations and focus on strategic growth areas 57
Slide 58: Right-Sizing Value Menu Prominence
RIGHT-SIZING VALUE MENU PROMINENCE 62% reduction in area 58
Slide 59: Launching New Marketing Plan
LAUNCHING NEW MARKETING PLAN Brand positioning 3-year menu vision Building top of mind awareness and traffic Loyalty program – a key to driving traffic 59
Slide 60: New Advertising Strategy
NEW ADVERTISING STRATEGY Media Spikes around Steady Cadence of Distinctive Advertising That the Core 4 and Cultural Pops in Between is Unmistakably Chili’s Traffic-Driving Value Media Spikes 60
Slide 61: Driving Sales Overnight and Brand Over Time in March
DRIVING SALES OVERNIGHT AND BRAND OVER TIME IN MARCH Hard Hitting, Craveable Brand-Building Creative That Breaks Food-Focused Advertising Through in Culture 61
Slide 62: Craveable Food-Focused Advertising
CRAVEABLE FOOD-FOCUSED ADVERTISING 62
Slide 63: Creative That Breaks Through in Culture
CREATIVE THAT BREAKS THROUGH IN CULTURE 63
Slide 64: TV Complemented with Digital and Social Media Plan
TV COMPLEMENTED WITH DIGITAL AND SOCIAL MEDIA PLAN TV Advertising Across Highly Rated Primetime Digital Advertising Across Social Media and Programming and Live Sports to Breakthrough Streaming Platforms to Ensure Mass Reach 64
Slide 65: Social Media Strategy to Put Chili's Back in Culture
SOCIAL MEDIA STRATEGY TO PUT CHILI’S BACK IN CULTURE Organic Food Chili’s Meets Platform-Specific Craveability Culture Creative Approachable Connect Chili’s & cultural Content is curated technique to showcase moments together in uniquely for each our Core 4 real time social media platform 65
Slide 66: Chili's Is in the Cultural Conversation
CHILI’S IS IN THE CULTURAL CONVERSATION 66
Slide 67: Moving at the Speed of Culture
MOVING AT THE SPEED OF CULTURE 67
Slide 68: Advertising Is Improving Top of Mind Awareness
ADVERTISING IS IMPROVING TOP OF MIND AWARENESS Unaided Awareness 26% 25% 24% 23% 22% F22 Q2 F22 Q3 F22 Q4 F23 Q1 F23 Q2 F23 Q3 Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar ‘21 ‘22 ‘22 ‘22 ‘22 ‘23 68
Slide 69: Chili's F24 Marketing Strategy – Expect Sustained Impact
CHILI’S F24 MARKETING STRATEGY – EXPECT SUSTAINED IMPACT Media is Planned to Drive Both Traffic and Brand Relevance Leveraging the Right Cadence and Touchpoints Media Type Frequency Tentpoles Large, integrated, equity- driving 360 campaigns Culture Pops Concentrated swings at cultural relevance Orga
Slide 70: Chili's Estimated Marketing Spend - Set to Increase
CHILI’S ESTIMATED MARKETING SPEND - SET TO INCREASE 4.6% 4.7% 4.6% 0.3% 3.6% 3.6% 2.6% 3.2% 0.4% 0.4% 3.0% 0.7% 0.9% 2.8% 1.4% 2.5% 2.4% 2.1% 1.8% 1.6% 1.4% F'19 F'20 F'21 F'22 F'23E F'24E CRM Comps Advertising Delivery Promo *Advertising and deliver promo shown as a percentage of Chili’s company- 7
Slide 71: Launching New Marketing Plan
LAUNCHING NEW MARKETING PLAN Brand positioning 3-year menu vision Building top of mind awareness and traffic CRM & Loyalty – a key to driving traffic 71
Slide 72: Large Customer Database to Leverage
LARGE CUSTOMER DATABASE TO LEVERAGE ~11M Members 72
Slide 73: 2 Year Vision for My Chili's Rewards
2 YEAR VISION FOR MY CHILI’S REWARDS Year 1: Sharpen Focus Year 2: Drive Segmentation • Reduced discounting • Strategic segmenting to compress frequency • Increased relevance • More local capabilities for operators 73
Slide 74: Year 1: Fewer Discounts, More Relevance
YEAR 1: FEWER DISCOUNTS, MORE RELEVANCE BEFORE AFTER Discounts Relevant offers for guests 74
Slide 75: Year 2: Smarter Segmenting with Local Capabilities
YEAR 2: SMARTER SEGMENTING WITH LOCAL CAPABILITIES Slow Nights Local Relevance Enhanced segmentation capabilities to drive slower days of week, slower dayparts, or allowing restaurant general managers to send localized messaging about local beers on tap. 75
Slide 76: New Marketing Plan to Drive Brand Awareness, Traffic
IN SUMMARY NEW MARKETING PLAN TO DRIVE BRAND AWARENESS, TRAFFIC • Our Core 4 represent large, growing segments in American cuisine • New merchandising strategy driving trade up and profitability • A traffic-driving advertising program that will put Chili’s back in the cultural conversation • An evol
Slide 77: Steve Provost
STEVE PROVOST EVP and President, Maggiano’s Little Italy® 77
Slide 78: Maggiano's New Day
MAGGIANO’S NEW DAY Full recovery post COVID Better business model Shifting to growth 78
Slide 79: Maggiano's Today
MAGGIANO’S TODAY 52 restaurants 22 states ~$480M annual sales 4.5 Google Star Rating Annual sales TTM as of Q3 F23 79
Slide 80: Full Recovery Post COVID
FULL RECOVERY POST COVID Average Unit Volume $9.3M $8.3M +12% Pre-Pandemic Today F23 AAV’S TTM as of Q3 F23 80
Slide 81: Maggiano's New Day: Distinctive Sales Channels
MAGGIANO’S NEW DAY: 3 DISTINCTIVE SALES CHANNELS Post-Pandemic Sales Mix 14% Banquet 25% 61% Off Premise Dining Room All numbers TTM as of Q3 F23 81
Slide 82: Highly Incremental Off-Premise Channel
HIGHLY INCREMENTAL OFF-PREMISE CHANNEL Off Premise Average Weekly Sales per Restaurant 2X $44,991 $38,852 $39,350 $23,419 PRE COVID F21 F22 F23 F23 numbers TTM as of Q3 F23 82
Slide 83: Maggiano's New Day
MAGGIANO’S NEW DAY Full recovery post COVID Better business model Shifting to growth 83
Slide 84: Eliminated Free Pasta
1. ELIMINATED FREE PASTA THEN… NOW… 84
Slide 85: Improved Labor Model
2. IMPROVED LABOR MODEL Managers Rewrite Prep Simplification Labor Model 85
Slide 86: Leveraging Pricing Power
3. LEVERAGING PRICING POWER +11.4% Premium positioning +9.0% allows for price F23 PPA F23 Traffic All numbers YTD as of Q3 F23 86
Slide 87: Maggiano's New Day
MAGGIANO’S NEW DAY Full recovery post COVID Better business model Shifting to growth 87
Slide 88: Maggiano's North Star
MAGGIANO’S NORTH STAR OUR SPECIALTIES OUR PASSION A BEAUTIFUL RESTAURANT We do “whatever it takes” We create a warm and to make people feel inviting atmosphere. special. 88
Slide 89: Core Food Innovation to Drive PPA
CORE FOOD INNOVATION TO DRIVE PPA Craveable Signature Pasta Selections Beverage Desserts 89
Slide 90: Continued Off-Premise Growth
CONTINUED OFF-PREMISE GROWTH Make Ordering Easier Increase Throughput Incremental Marketing 90
Slide 91: Old Equities for a New Generation
OLD EQUITIES FOR A NEW GENERATION BEFORE AFTER 91
Slide 92: Maggiano's Shifting to Growth
MAGGIANO’S SHIFTING TO GROWTH +$10M AAV 3 Channel Leadership 92
Slide 93: Joe Taylor
JOE TAYLOR Executive VP and Chief Financial Officer, Brinker International 93
Slide 94: Investments Drive Long Term Growth
INVESTMENTS DRIVE LONG TERM GROWTH Financial Progress To-Date Capital Allocation Priorities Multi-Year Financial Targets 94
Slide 95: Revenue Growth Driven by New Strategies
REVENUE GROWTH DRIVEN BY NEW STRATEGIES Revenue F22 vs. F23 Top Drivers ~$4.1B $3.8B • Using a broader marketing voice • Improved guest experience • Increased price • Favorable mix F22 F23E Source: Brinker data 95
Slide 96: Price and Mix Driving Chili's F23 Comp Sales
PRICE AND MIX DRIVING CHILI’S F23 COMP SALES SSS Price Mix Traffic 10.0% 9.8% 9.6% 5.6% 5.6% 8.0% 7.4% 3.0% 3.8% -5.8% -6.6% -7.6% Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Source: Brinker data 96
Slide 97: Margins: Reflecting Ability to Drive Topline
MARGINS: REFLECTING ABILITY TO DRIVE TOPLINE Restaurant Operating Margin1 Drivers Q1 Q2 Q3 Q4 • Achieved stabilized margins 13.1% 13.4% 12.5% 12.1% 11.6% • More than $200M in inflation hit the P&L 11.0% in F23 • Margin improvement even with ~$55M investment into the guest and 6.0% marketing initiati
Slide 98: F23 Chili's Openings Performing Above Existing Fleet
F23 CHILI’S OPENINGS PERFORMING ABOVE EXISTING FLEET ($ in thousands) $140 $120 New Opening AWS $100 $80 Existing Chili’s AWS $60 $40 $20 $- Athens Saratoga Tyler Relo Owensboro San Juan Inverness Wentzville Anna Avon Central Tanglewood Springs Park Source: Brinker data AWS: Average Weekly Sales as
Slide 99: Investments Drive Long Term Growth
INVESTMENTS DRIVE LONG TERM GROWTH Financial Progress To-Date Capital Allocation Priorities Multi-Year Financial Targets 99
Slide 100: Disciplined Capital Allocation
DISCIPLINED CAPITAL ALLOCATION Invest for Growth Strengthen the Balance Sheet • Improve the Guest • Provide more Experience operational • Grow profitable traffic flexibility • Target of <2X debt/EBITDA Setting Brinker Up for Long-Term Growth 100
Slide 101: Capital Expenditures: Investing in Our Fleet
CAPITAL EXPENDITURES: INVESTING IN OUR FLEET Key Capital Investments 1. R&M: $75-80M F24-F26 Annual CAPEX: 2. NRO’S: $50-55M $175-$200M 3. Technology: $20-25M Source: Brinker data 101
Slide 102: Reducing Debt Is a Key Priority
REDUCING DEBT IS A KEY PRIORITY Our Focus Funded Debt to EBITDA 2.7x 2.1x • Debt reduction will be a key focus of capital 1.7x allocation strategy • Target of <2X debt/EBITDA F23E F24E F25E Source: Brinker data 102
Slide 103: Investments Drive Long Term Growth
INVESTMENTS DRIVE LONG TERM GROWTH Financial Progress To-Date Capital Allocation Priorities Multi-Year Financial Targets 103
Slide 104: 3 Year Annual Growth Targets
3 YEAR ANNUAL GROWTH TARGETS Total Revenue EBITDA EPS Growth Growth Growth 3-5% 5-8% 13-17% Source: Brinker data 104
Slide 105: F24 Considerations
F24 CONSIDERATIONS Investments In The Brands Forecasting Factors • Advertising: ~$50M* • Cloudy macro environment • Labor Model: ~$20M* • Continuation of price/mix • Hourly: ~$17M dynamic • Manager: ~$3M • Commodity inflation moderation • Repair and Maintenance • Higher interest rate environment Sou
Slide 106: Investments Will Lead to Topline Sales Growth
IN SUMMARY INVESTMENTS WILL LEAD TO TOPLINE SALES GROWTH • Investing in the business to generate topline sales • Improved guest experience to earn pricing power • Stronger balance sheet • Long-term EPS and EBITDA expansion 106
Slide 107: Kevin Hochman
KEVIN HOCHMAN President and CEO, Brinker International 107
Slide 108: What You Have Heard Today
WHAT YOU HAVE HEARD TODAY Executing multi-year Clear path Strategy is now strategy to unlock to drive top and coming to life brand value bottom line 108
Slide 109: Feedback on Today's Event
FEEDBACK ON TODAY’S EVENT Thank you for joining us for our 2023 Investor Day. We hope you found it informative. Your feedback is important to us, so we would appreciate it if you could fill out a quick survey - it should take only 2-3 minutes. The answers are all anonymous. This survey will be onlin