Chili's 2012 Annual Report Download - page 40

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RESULTS OF OPERATIONS FOR FISCAL YEARS 2012, 2011, AND 2010
The following table sets forth income and expense items as a percentage of total revenues for the periods
indicated:
Percentage of Total Revenues
Fiscal Years
2012 2011 2010
Revenues ............................................ 100.0% 100.0% 100.0%
Operating Costs and Expenses:
Cost of sales ..................................... 27.3% 26.9% 28.5%
Restaurant labor ................................... 31.6% 32.1% 32.4%
Restaurant expenses ............................... 23.1% 23.7% 23.1%
Depreciation and amortization ....................... 4.4% 4.7% 4.8%
General and administrative .......................... 5.1% 4.8% 4.8%
Other gains and charges ............................ 0.3% 0.4% 1.0%
Total operating costs and expenses ................ 91.8% 92.6% 94.6%
Operating income ..................................... 8.2% 7.4% 5.4%
Interest expense ....................................... 0.9% 1.0% 1.0%
Other, net ............................................ (0.1)% (0.2)% (0.2)%
Income before provision for income taxes .................. 7.4% 6.6% 4.6%
Provision for income taxes .............................. 2.0% 1.5% 1.0%
Income from continuing operations ................... 5.4% 5.1% 3.6%
Income from discontinued operations, net of taxes ....... 0.0% 0.0% 1.2%
Net income .................................. 5.4% 5.1% 4.8%
REVENUES
Revenues for fiscal 2012 increased to $2,820.7 million, a 2.1% increase from the $2,761.4 million generated
for fiscal 2011. The increase in revenue was primarily attributable to an increase in comparable restaurant sales
resulting from favorable menu pricing and improved guest traffic at company-owned restaurants as follows:
Fiscal Year Ended June 27, 2012
Comparable
Sales
Price
Increase
Mix
Shift Traffic Capacity
Company-owned ................. 2.6% 1.5% (0.3)% 1.4% (0.4)%
Chili’s ..................... 2.5% 1.4% (0.4)% 1.5% (0.4)%
Maggiano’s ................. 3.0% 2.2% 0.0% 0.8% 0.0%
Franchise(1) ..................... 2.9%
Domestic ................... 2.4%
International ................ 4.2%
System-wide(2) .................. 2.7%
(1) Revenues generated by franchisees are not included in revenues on the consolidated
statements of income; however, we generate royalty revenue and advertising fees based
on franchisee revenues, where applicable. We believe including franchisee comparable
restaurants revenues provides investors information regarding brand performance that is
relevant to current operations and may impact future restaurant development.
(2) System-wide comparable restaurant sales are derived from sales generated by company-
owned Chili’s and Maggiano’s restaurants in addition to the sales generated at
franchisee operated restaurants.
F-4