Chili's 2012 Annual Report Download - page 41

Chili’s revenues increased to $2,366.2 million in fiscal 2012, a 1.9% increase from $2,321.7 million in fiscal
2011. The increase was primarily driven by an increase in comparable restaurant sales of 2.5% resulting from
improved guest traffic and favorable menu pricing. Revenues were negatively impacted by a decrease in capacity
of 0.4% for fiscal 2012 (as measured by average-weighted sales weeks) primarily due to three net restaurant
closures during fiscal 2012.
Maggiano’s revenues increased to $388.6 million in fiscal 2012, a 3.9% increase from $374.0 million in
fiscal 2011 driven primarily by favorable menu pricing and improved guest traffic.
Royalty and franchise revenues increased slightly to $65.9 million in fiscal 2012 compared to $65.7 million
in fiscal 2011 primarily due to the net addition of five franchised restaurants during fiscal 2012. Royalty revenues
are recognized based on the sales generated by our franchisees and reported to us. Our franchisees generated
approximately $1,610 million in sales in fiscal 2012.
Revenues for fiscal 2011 decreased to $2,761.4 million, a 3.4% decrease from the $2,858.5 million
generated for fiscal 2010. Excluding revenues of approximately $52 million attributable to the additional
operating week in fiscal 2010, the decrease in revenue was primarily attributable to the change in comparable
restaurant sales resulting from a decline in guest traffic, partially offset by favorable menu pricing, as well as a
decline in capacity at company-owned restaurants as follows:
Fiscal Year Ended June 29, 2011(1)
Comparable
Sales
Price
Increase
Mix
Shift Traffic Capacity
Company-owned ......................... (1.2)% 1.1% (0.1)% (2.2)% (1.9)%
Chili’s .............................. (2.0)% 1.2% 0.0% (3.2)% (2.0)%
Maggiano’s .......................... 3.9% 0.7% (0.6)% 3.8% 0.2%
Franchise(2) ............................. (1.5)%
Domestic ............................ (3.2)%
International ......................... 3.5%
System-wide(3) .......................... (1.3)%
(1) Amounts are calculated based on 52 weeks in each fiscal year.
(2) 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.
(3) 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.
Chili’s revenues decreased to $2,321.7 million in fiscal 2011, a 4.9% decrease from $2,441.9 million in
fiscal 2010. The decrease was primarily driven by the impact of the additional operating week in fiscal 2010 and
a decline in comparable restaurant sales of 2.0% attributable to a decrease in guest traffic, partially offset by
favorable menu pricing. Revenues were also impacted by a decrease in capacity of 2.0% for fiscal 2011 (as
measured by average-weighted sales weeks) primarily due to three restaurant closures during fiscal 2011.
Maggiano’s revenues increased to $374.0 million in fiscal 2011, a 6.3% increase from $352.0 million in
fiscal 2010 driven primarily by an increase in guest traffic partially offset by the impact of the additional
operating week in fiscal 2010.
Royalty and franchise revenues increased 1.7% to $65.7 million in fiscal 2011 compared to $64.6 million in
fiscal 2010. The increase is primarily due to the net addition of six domestic and 23 international franchised
restaurants during fiscal 2011. Our franchisees generated approximately $1,559 million in sales.
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