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Brinker International Announces Preliminary Second Quarter Fiscal 2008 EPS From Continuing Operations, Before Special Items, and Reports Preliminary Comparable Restaurant Sales

01/07/08

DALLAS, Jan. 7 /PRNewswire-FirstCall/ -- Brinker International, Inc. (NYSE: EAT) today estimates earnings per diluted share from continuing operations, before special items, of $0.30 to $0.31 for the company's second quarter ended Dec. 26, 2007 as compared to earnings per diluted share from continuing operations, before special items, of $0.33 for the second quarter of fiscal 2007. For the second quarter of fiscal 2008, special items of approximately $0.13 per diluted share consist primarily of a gain on the sale of restaurants to a franchisee, partially offset by charges for the impairment of long-lived assets. For the second quarter of fiscal 2007, special items of ($0.01) were related to impairment charges for restaurant closures. As a result, the company estimates earnings per diluted share from continuing operations on a GAAP basis to be $0.43 to $0.44 for the second quarter of fiscal 2008 compared to $0.32 for the second quarter of the prior year.

For the second quarter of fiscal 2008, earnings before special items were primarily impacted by a decrease in Brinker comparable restaurant sales of approximately 2 percent (see Table 1) and the associated impact of sales deleverage on fixed costs. It is obviously a very challenging time for our business, and we are not at all satisfied with our results. While we are confident we are focused on the right fundamentals to deliver what our guests are looking for, we will continue to look for additional opportunities to meet our guests' current needs and capitalize on future consumer trends, said Doug Brooks, Chairman and CEO of Brinker International.


    Table 1: Q2 preliminary comparable restaurant sales
    Q2 08 and Q2 07, company and three reported brands; percentage

                             Q2 08        Q2 07        Q2 08
                           Comparable   Comparable    Pricing          Q2 08
                             Sales        Sales       Impact         Mix-Shift
    Brinker
     International(1)        (2.1)        (1.4)         2.8            0.3
      Chili's                (2.4)        (1.2)         2.8            0.9
      On The
       Border                (4.3)        (3.6)         2.2            0.1
      Maggiano's              1.7         (1.3)         3.1           (2.7)

     (1) Brinker International preliminary comparable restaurant sales exclude
         the impact of Macaroni Grill.



    Forward Calendar
    -- Second quarter earnings release, before market opens on Jan. 23, 2008.
    -- Second quarter conference call, via a live webcast on Jan. 23, 2008.

At the end of the first quarter of fiscal 2008, Brinker International either owned, operated, or franchised 1,827 restaurants under the names Chili's Grill & Bar (1,383 units), Romano's Macaroni Grill (241 units), On The Border Mexican Grill & Cantina (162 units), and Maggiano's Little Italy (41 units).

The statements contained in this release that are not historical facts are forward-looking statements. These forward-looking statements involve risks and uncertainties and, consequently, could be affected by general business and economic conditions, the impact of competition, the impact of mergers, acquisitions, divestitures and other strategic transactions, the seasonality of the company's business, adverse weather conditions, future commodity prices, fuel and utility costs and availability, terrorists acts, consumer perception of food safety, changes in consumer taste, health epidemics or pandemics, changes in demographic trends, availability of employees, unfavorable publicity, the company's ability to meet its growth plan, acts of God, governmental regulations, and inflation.


     Contacts: Stacey Sullivan Calbert, Media Relations
               (800) 775-7290

               Marie Perry, Investor Relations
               (972) 770-1276


SOURCE  Brinker International, Inc.
    -0-                             01/07/2008
    /CONTACT:  Stacey Sullivan Calbert, Media Relations, 1-800-775-7290, or
Marie Perry, Investor Relations, +1-972-770-1276, both of Brinker
International, Inc./
    /Web site:  http://www.brinker.com/
    (EAT)

CO:  Brinker International, Inc.
ST:  Texas
IN:  FOD REA RST
SU:  ERP CCA

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2829 01/07/2008 17:30 EST http://www.prnewswire.com