8/8/2019 CA Presentation v5

1/22

Competitive AnalysisCompetitive Analysis

Team BaldwinTeam Baldwin

8/8/2019 CA Presentation v5

2/22

Discussion JourneyDiscussion Journey

Company BackgroundCompany Background

FinancialsFinancials

Restaurants AnalysisRestaurants Analysis Strengthsand WeaknessesStrengthsand Weaknesses

ConclusionsandtheFutureConclusionsandtheFuture

8/8/2019 CA Presentation v5

3/22

Company BackgroundCompany Background

Founded 1975 withoriginal brand:ChilisFounded 1975 withoriginal brand:ChilisGrill & BarinDallasGrill & BarinDallas

1984: Goespublic1984: Goespublic 1991:Changesnameto Brinker1991:Changesnameto Brinker

1994: Acquire Onthe Border1994: Acquire Onthe Border

1995: Acquire Maggianos1995: Acquire Maggianos 1999:Fourdiningoptions:Chilis, Onthe1999:Fourdiningoptions:Chilis, Onthe

Border, Maggianos, Macaroni GrillBorder, Maggianos, Macaroni Grill

8/8/2019 CA Presentation v5

4/22

Brinker TodayBrinker Today

MinorityshareinRomanos Macaroni GrillMinorityshareinRomanos Macaroni Grill

1,700 Restaurants1,700 Restaurants

27 Countries27 Countries

Chilis

Maggianos

8/8/2019 CA Presentation v5

5/22

CurrentFinancialSnapshotCurrentFinancialSnapshot

8/8/2019 CA Presentation v5

6/22

Historical GrowthHistorical Growth

8/8/2019 CA Presentation v5

7/22

RestaurantSegment

Casualdining

Familydiningwithlaid back, youngrestaurants (Chilis)

FamiliesalsowelcomeatMaggianos forhomestyledishes

8/8/2019 CA Presentation v5

8/22

Company ImageCompany Image

Serving the worldagreat tasteoflifeServing the worldagreat tasteoflifethrough the PowerofWelcomethrough the PowerofWelcome

8/8/2019 CA Presentation v5

9/22

DifferentRestaurants,SameDifferentRestaurants,Same

ImageImage Chilis GrillandBarChilis GrillandBar

TexMex cuisinewithalaid backatmosphere.TexMex cuisinewithalaid backatmosphere.

Allarewelcometo enjoyAllarewelcometo enjoy

Maggianos Little ItalyMaggianos Little Italy

Made fromscratch Italianwitha familyrunMade fromscratch Italianwitha familyrun

feel.feel. Allarewelcometo enjoyAllarewelcometo enjoy

8/8/2019 CA Presentation v5

10/22

DifferentiationStrategyDifferentiationStrategy

Highquality food forreasonablepricesHighquality food forreasonableprices

Unique,welcomingatmosphereUnique,welcomingatmosphere

Uniquemenus fortraditional foodstylesUniquemenus fortraditional foodstyles

8/8/2019 CA Presentation v5

11/22

DistinctTastesDistinctTastes

Chilis GrillandBarChilis GrillandBar

Basic food farewithakickBasic food farewithakick

FrozenmargaritasFrozenmargaritas

Maggionos Little ItalyMaggionos Little Italy

Delectable Italian foodDelectable Italian food

UniquecocktailsUniquecocktails

LargewinemenuLargewinemenu

8/8/2019 CA Presentation v5

12/22

ServicesServices

Chilis GrillandBarChilis GrillandBar

YouthfulwaitersandwaitressesYouthfulwaitersandwaitresses

Laid backatmosphereLaid backatmosphere KeepingtruetotheoriginalrestaurantKeepingtruetotheoriginalrestaurant

Maggionos Little ItalyMaggionos Little Italy

A elegantdining experienceA elegantdining experience

Stafftomakeyou feellike familyStafftomakeyou feellike family

8/8/2019 CA Presentation v5

13/22

Organizational CapabilitiesOrganizational Capabilities

Routinevisits fromalllevelsofsupervisionRoutinevisits fromalllevelsofsupervision

Continuousmanagementtraining formanagersandContinuousmanagementtraining formanagersandsupervisorstoimprove effectivenesssupervisorstoimprove effectiveness

Strictproductandsafetyspecifications forrestaurantsandStrictproductandsafetyspecifications forrestaurantsandsupplierssuppliers

PurchasecommitmentcontractstostabilizevolatilepricingPurchasecommitmentcontractstostabilizevolatilepricing

Encouragevendorsto evaluatenewtechnologies for foodEncouragevendorsto evaluatenewtechnologies for foodsafetyandhumaneprocessingimprovements.safetyandhumaneprocessingimprovements.

SophisticatedconsumermarketingresearchSophisticatedconsumermarketingresearch

8/8/2019 CA Presentation v5

14/22

Cost AdvantageCost Advantage

Newkitchen equipmentandtechnology =Newkitchen equipmentandtechnology =reducedlaborcostreducedlaborcost

Effectivemanagementof foodand fixedcostsEffectivemanagementof foodand fixedcostsandlaborproductivityandlaborproductivity

Restaurantinformationcosts = reducedRestaurantinformationcosts = reducedoperationcostoperationcost

Improvedservice,lowercostswithnewmodelsImprovedservice,lowercostswithnewmodels

8/8/2019 CA Presentation v5

15/22

CompanyAwardsCompanyAwards

Fortune MagazineFortune Magazine Worlds MostAdmiredWorlds MostAdmiredFoodServicesCompanies (2009)FoodServicesCompanies (2009)

Institutional Investor MagazineInstitutional Investor MagazineAmericas MostShareholderAmericas MostShareholder--FriendlyFriendlyCompanies (2008)Companies (2008)

FORBES MagazineFORBES Magazine-- 400 BestCompanies400 BestCompaniesinAmerica (2002inAmerica (2002--2007)2007)

NationalRetailFederationNationalRetailFederation Top 100 USTop 100 USRetailers (2007)Retailers (2007)

8/8/2019 CA Presentation v5

16/22

AdditionalAwardsAdditionalAwards

U.SChamberofCommerceU.SChamberofCommerce AlfredP.AlfredP.SloanAward forBusinessExcellenceinSloanAward forBusinessExcellenceinWorkplaceFlexibility (2006)WorkplaceFlexibility (2006)

Fortune Magazine:Fortune Magazine:MostAdmiredCompanies (2001MostAdmiredCompanies (2001 -- 2006)2006)TopCompanies for Women (2005)TopCompanies for Women (2005)

Top 30 Companies for Minorities (2005 &Top 30 Companies for Minorities (2005 &2006)2006)

8/8/2019 CA Presentation v5

17/22

Strengths

Internationalcustomer base

Resourcesharing

IncentivePrograms

ConsistentQuality

Pricing/CostStructure

1700 Restaurants,27 Countries

8/8/2019 CA Presentation v5

18/22

Weaknesses

Narrow focus,only2restaurantchains

Darden = 6 primarychains

DineEquity = 3,000+ restaurants,2chains

8/8/2019 CA Presentation v5

19/22

Opportunities

Lotsofcash fromsaleof OntheBorder,usetorefreshimageandstrengthencustomer base

Remodelstores fora fresh,updatedlook

Newmenuitems

Lowercoststhroughnewtechnology

8/8/2019 CA Presentation v5

20/22

Threats

Customersarepicky,tasteschangefrequently

Use existingandnewmarketresearchtochangemenus

Marketdownturnhasshakenconfidence

andlimited familydining Cashanddiscountingarekeystosuccess

8/8/2019 CA Presentation v5

21/22

Recommendations

Continuetolowercosts

Frequentmenuchanges/additions

Highlightthequalityof food forlowercost

Newsupplychaintechnologytolowercosts

8/8/2019 CA Presentation v5

22/22

ConclusionsConclusions

AtmosphereisagreatstrengthAtmosphereisagreatstrength

AllarewelcomeAllarewelcome

CoststructureandresourcesharingareCoststructureandresourcesharingarekeykey

Uniquemenus fortraditional foodstylesUniquemenus fortraditional foodstyles

Affordableprices,lowcostsAffordableprices,lowcosts Broadcustomer baseprovidesstrengthBroadcustomer baseprovidesstrength