Brinker International (EAT) 10-Q 2 Feb 15 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Dec. 24, 2014	Jan. 26, 2015
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	24-Dec-14
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Entity Registrant Name	BRINKER INTERNATIONAL INC
Entity Central Index Key	703351
Current Fiscal Year End Date	-18
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		63,118,600

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Dec. 24, 2014	Jun. 25, 2014
In Thousands, unless otherwise specified
Current Assets:
Cash and cash equivalents	$78,409	$57,685
Accounts receivable	100,501	47,850
Inventories	25,158	23,643
Prepaid expenses and other	64,103	65,506
Deferred income taxes	17,282	16,170
Total current assets	285,453	210,854
Property and Equipment, at Cost:
Land	148,054	149,184
Buildings and leasehold improvements	1,522,354	1,483,894
Furniture and equipment	604,192	593,344
Construction-in-progress	14,558	32,844
Property plant and equipment gross	2,289,158	2,259,266
Less accumulated depreciation and amortization	-1,243,711	-1,202,812
Net property and equipment	1,045,447	1,056,454
Other Assets:
Goodwill	132,823	133,434
Deferred income taxes	32,947	30,090
Intangibles, net	17,587	18,841
Other	35,574	40,931
Total other assets	218,931	223,296
Total assets	1,549,831	1,490,604
Current Liabilities:
Current installments of long-term debt	28,036	27,884
Accounts payable	77,561	102,931
Accrued liabilities	397,551	328,017
Income taxes payable	7,961	7,278
Total current liabilities	511,109	466,110
Long-term debt, less current installments	901,241	832,302
Other liabilities	132,540	129,098
Commitments and Contingencies (Note 9)
Shareholders’ Equity:
Common stock—250,000,000 authorized shares; $0.10 par value; 176,246,649 shares issued and 63,194,877 shares outstanding at December 24, 2014, and 176,246,649 shares issued and 64,558,909 shares outstanding at June 25, 2014	17,625	17,625
Additional paid-in capital	480,625	484,320
Accumulated Other Comprehensive Income (Loss)	-5,276	-940
Retained earnings	2,344,026	2,306,532
Shareholders' equity including treasury stock	2,837,000	2,807,537
Less treasury stock, at cost (113,051,772 shares at December 24, 2014 and 111,687,740 shares at June 25, 2014)	-2,832,059	-2,744,443
Total shareholders’ equity	4,941	63,094
Total liabilities and shareholders’ equity	$1,549,831	$1,490,604

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Dec. 24, 2014	Jun. 25, 2014
Common Stock, authorized shares	250,000,000	250,000,000
Common Stock, par value	$0.10	$0.10
Common Stock, shares issued	176,246,649	176,246,649
Common Stock, shares outstanding	63,194,877	64,558,909
Treasury Stock, shares	113,051,772	111,687,740

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 24, 2014	Dec. 25, 2013	Dec. 24, 2014	Dec. 25, 2013
Statement of Comprehensive Income [Abstract]
Company sales	$717,768	$684,385	$1,404,632	$1,348,887
Franchise and other revenues	25,130	21,277	49,284	41,435
Total revenues	742,898	705,662	1,453,916	1,390,322
Operating costs and expenses:
Cost of sales	193,762	185,179	378,547	365,837
Restaurant labor	227,733	219,919	455,009	438,635
Restaurant expenses	178,898	171,144	354,436	338,834
Company restaurant expenses	600,393	576,242	1,187,992	1,143,306
Depreciation and amortization	36,072	33,538	71,614	66,694
General and administrative	32,660	30,362	65,294	64,783
Other gains and charges	8,291	1,221	9,224	2,227
Total operating costs and expenses	677,416	641,363	1,334,124	1,277,010
Operating income	65,482	64,299	119,792	113,312
Interest expense	7,349	7,047	14,348	14,060
Other, net	-611	-461	-1,114	-1,043
Income before provision for income taxes	58,744	57,713	106,558	100,295
Provision for income taxes	17,438	17,969	32,514	31,339
Net income	41,306	39,744	74,044	68,956
Basic net income per share	$0.65	$0.59	$1.15	$1.03
Diluted net income per share	$0.64	$0.58	$1.13	$1
Basic weighted average shares outstanding	63,590	66,811	64,129	66,752
Diluted weighted average shares outstanding	64,963	68,628	65,613	68,715
Other Comprehensive Income (Loss) [Abstract]
Foreign Currency Translation Adjustment	-3,529	-819	-4,336	-754
Other Comprehensive Loss	-3,529	-819	-4,336	-754
Comprehensive Income	$37,777	$38,925	$69,708	$68,202
Dividends per share	$0.28	$0.24	$0.56	$0.48

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Dec. 24, 2014	Dec. 25, 2013
Cash Flows from Operating Activities:
Net income	$74,044	$68,956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	71,614	66,694
Stock-based compensation	6,992	8,196
Deferred income taxes	-3,969	2,318
Restructure charges and other impairments	8,326	2,091
Net loss on disposal of assets	2,974	2,051
Gain on equity investments	-188	-206
Other	418	331
Changes in assets and liabilities:
Accounts receivable	-49,665	-49,444
Inventories	-1,564	185
Prepaid expenses and other	2,495	3,617
Intangibles and other assets	-2,018	-1,708
Accounts payable	-12,107	-10,512
Accrued liabilities	60,569	51,071
Current income taxes	-2,286	5,285
Other liabilities	6,830	-1,604
Net cash provided by operating activities	162,465	147,321
Cash Flows from Investing Activities:
Payments for property and equipment	-79,481	-69,692
Proceeds from sale of assets	1,950	833
Net cash used in investing activities	-77,531	-68,859
Cash Flows from Financing Activities:
Purchases of treasury stock	-112,789	-93,101
Borrowings on revolving credit facility	83,000	80,000
Payments of dividends	-35,409	-31,345
Excess tax benefits from stock-based compensation	10,351	14,569
Payments on long-term debt	-13,338	-13,260
Proceeds from issuances of treasury stock	3,975	7,963
Payments on revolving credit facility	0	-40,000
Net cash used in financing activities	-64,210	-75,174
Net change in cash and cash equivalents	20,724	3,288
Cash and cash equivalents at beginning of period	57,685	59,367
Cash and cash equivalents at end of period	$78,409	$62,655

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Dec. 24, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION
	References to “Brinker,” the "Company,” “we,” “us” and “our” in this Form 10-Q are references to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc.
	Our consolidated financial statements as of December 24, 2014 and June 25, 2014 and for the thirteen week and twenty-six week periods ended December 24, 2014 and December 25, 2013 have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). We are principally engaged in the ownership, operation, development, and franchising of the Chili’s Grill & Bar (“Chili’s”) and Maggiano’s Little Italy (“Maggiano’s”) restaurant brands. At December 24, 2014, we owned, operated or franchised 1,634 restaurants in the United States and 29 countries and two territories outside of the United States.
	We discovered an immaterial error related to the classification of certain revenues and expenses in the consolidated statements of comprehensive income in the previously issued financial statements for the year ended June 25, 2014 primarily related to Maggiano’s delivery services.  The amounts had previously been reported net instead of gross. The error did not impact net income as previously reported or any prior amounts reported on the consolidated balance sheets, statements of cash flows or statements of shareholders' equity.  We corrected the error by adjusting the previously reported consolidated statement of comprehensive income for the thirteen week and twenty-six week periods ended December 25, 2013, which resulted in a $1.3 million and a $2.0 million increase in franchise and other revenues and restaurant expenses, respectively.
	The foreign currency translation adjustment included in comprehensive income on the consolidated statements of comprehensive income represents the unrealized impact of translating the financial statements of the Canadian restaurants and the Mexican joint venture from their respective functional currencies to U.S. dollars. This amount is not included in net income and would only be realized upon disposition of the businesses. The accumulated other comprehensive loss is presented on the consolidated balance sheets. We reinvest foreign earnings, therefore, United States deferred income taxes have not been provided on foreign earnings.
	The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and costs and expenses during the reporting period. Actual results could differ from those estimates.
	The information furnished herein reflects all adjustments (consisting only of normal recurring accruals and adjustments) which are, in our opinion, necessary to fairly state the interim operating results for the respective periods. However, these operating results are not necessarily indicative of the results expected for the full fiscal year. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to SEC rules and regulations. The notes to the consolidated financial statements (unaudited) should be read in conjunction with the notes to the consolidated financial statements contained in the June 25, 2014 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	6 Months Ended
	Dec. 24, 2014
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE
	Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the reporting periods. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. For the calculation of diluted earnings per share, the basic weighted average number of shares is increased by the dilutive effect of stock options and restricted share awards determined using the treasury stock method. We had approximately 235,000 stock options and restricted share awards outstanding at December 24, 2014 and 271,000 stock options and restricted share awards outstanding at December 25, 2013 that were not included in the dilutive earnings per share calculation because the effect would have been anti-dilutive.
	Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands):
		Thirteen Week Periods Ended		Twenty-Six Week Periods Ended
		December 24, 2014	December 25, 2013	December 24, 2014	December 25, 2013
	Basic weighted average shares outstanding	63,590	66,811	64,129	66,752
	Dilutive stock options	673	918	663	925
	Dilutive restricted shares	700	899	821	1,038
		1,373	1,817	1,484	1,963
	Diluted weighted average shares outstanding	64,963	68,628	65,613	68,715

LONGTERM_DEBT

LONG-TERM DEBT	6 Months Ended
	Dec. 24, 2014
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT
	Long-term debt consists of the following (in thousands):
		December 24,			June 25,
		2014			2014
	3.88% notes	$	299,751		$	299,736
	2.60% notes	249,882			249,864
	Term loan	175,000			187,500
	Revolving credit facility	163,000			80,000
	Capital lease obligations	41,644			43,086
		929,277			860,186
	Less current installments	(28,036		)	(27,884		)
		$	901,241		$	832,302
	During the first six months of fiscal 2015, $83 million was drawn from the $250 million revolving credit facility primarily to fund share repurchases, leaving $87 million of credit available under the revolving credit facility as of December 24, 2014.
	The term loan and revolving credit facility bear interest of LIBOR plus an applicable margin, which is a function of our credit rating and debt to cash flow ratio, but is subject to a maximum of LIBOR plus 2.50%. Based on our current credit rating, we are paying interest at a rate of LIBOR plus 1.63%. One month LIBOR at December 24, 2014 was approximately 0.17%. Our debt agreements contain various financial covenants that, among other things, require the maintenance of certain leverage and fixed charge coverage ratios. We are currently in compliance with all financial covenants.

OTHER_GAINS_AND_CHARGES

OTHER GAINS AND CHARGES	6 Months Ended
	Dec. 24, 2014
Other Gains and Charges [Abstract]
OTHER GAINS AND CHARGES	OTHER GAINS AND CHARGES
	Other gains and charges consist of the following (in thousands):
		Thirteen Week Periods Ended						Twenty-Six Week Periods Ended
		December 24,			December 25,			December 24,		December 25,
		2014			2013			2014		2013
	Litigation reserves	$	5,800		$	0		$	5,800	$	0
	Restaurant impairment charges	747			1,285			747		1,285
	Restaurant closure charges	509			265			1,381		1,107
	Loss (Gain) on the sale of assets, net	1,069			(579		)	1,093		(579		)
	Impairment of liquor licenses	175			0			175		0
	Other	(9		)	250			28		414
		$	8,291		$	1,221		$	9,224	$	2,227
	In the second quarter of fiscal 2015, the Hohnbaum case was finalized resulting in an additional charge of approximately $5.8 million to adjust our previous estimate of the final settlement amount. See Note 9 for additional disclosures. Additionally, we recorded restaurant impairment charges of $0.7 million related to underperforming restaurants that either continue to operate or are scheduled to close and $0.2 million for the excess of the carrying amount of a transferable liquor license over the fair value. We also recorded a $1.1 million charge primarily related to the sale of two company owned restaurants located in Mexico and restaurant closure charges of $0.5 million primarily related to lease termination charges.
	In the second quarter of fiscal 2014, we recorded restaurant impairment charges of $1.3 million related to underperforming restaurants that either continue to operate or are scheduled to close. We also recorded $0.3 million of restaurant closure charges consisting primarily of lease termination charges and a $0.6 million gain primarily related to land sales in the second quarter.
	Restaurant closure charges for the first six months of fiscal 2015 and 2014 are $1.4 million and $1.1 million and consist primarily of lease termination charges and other costs associated with closed restaurants.

ACCRUED_AND_OTHER_LIABILITIES

ACCRUED AND OTHER LIABILITIES	6 Months Ended
	Dec. 24, 2014
ACCRUED AND OTHER LIABILITIES [Abstract]
ACCRUED AND OTHER LIABILITIES	ACCRUED AND OTHER LIABILITIES
	Accrued liabilities consist of the following (in thousands):
		December 24,		June 25,
		2014		2014
	Gift cards	$	166,671	$	104,378
	Payroll	72,913		77,585
	Litigation reserves	45,175		39,500
	Sales tax	20,914		19,622
	Insurance	21,933		20,652
	Property tax	16,239		14,209
	Dividends	17,752		15,625
	Other	35,954		36,446
		$	397,551	$	328,017
	Other liabilities consist of the following (in thousands):
		24-Dec-14		June 25,
				2014
	Straight-line rent	$	58,947	$	57,462
	Insurance	33,993		36,352
	Landlord contributions	25,972		23,404
	Unrecognized tax benefits	6,424		5,247
	Other	7,204		6,633
		$	132,540	$	129,098

FAIR_VALUE_MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Dec. 24, 2014
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. In determining fair value, the accounting standards establish a three level hierarchy for inputs used in measuring fair value, as follows:
	•	Level 1 – inputs are quoted prices in active markets for identical assets or liabilities.
	•	Level 2 – inputs are observable for the asset or liability, either directly or indirectly, including quoted prices in active markets for similar assets or liabilities.
	•	Level 3 – inputs are unobservable and reflect our own assumptions.
	(a)	Non-Financial Assets Measured on a Non-Recurring Basis
	We review the carrying amount of property and equipment and transferable liquor licenses semi-annually or when events or circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value.
	We determine fair value of property and equipment based on projected discounted future operating cash flows of the restaurants over their remaining service life using a risk adjusted discount rate that is commensurate with the risk inherent in our current business model. Based on our semi-annual review, during fiscal 2015, long-lived assets with a carrying value of $0.7 million, primarily related to two underperforming restaurants, were determined to have no fair value resulting in an impairment charge of $0.7 million. During fiscal 2014, long-lived assets with a carrying value of $2.6 million, primarily related to four underperforming restaurants, were written down to their fair value of $1.3 million resulting in an impairment charge of $1.3 million.
	We determine fair value of transferable liquor licenses based on prices in the open market for licenses in same or similar jurisdictions. Based on our semi-annual review, during fiscal 2015, one transferable liquor license with a carrying value of $225,000 was written down to the fair value of $50,000 resulting in an impairment charge of $175,000. During fiscal 2014, we reviewed the transferable liquor licenses and determined there was no impairment.
	All impairment charges related to underperforming restaurants and liquor licenses were included in other gains and charges in the consolidated statement of comprehensive income for the periods presented.
	The following table presents fair values for those assets measured at fair value on a non-recurring basis at December 24, 2014 and December 25, 2013 (in thousands):
		Fair Value Measurements Using
		(Level 1)		(Level 2)		(Level 3)		Total
	Long-lived assets held for use:
	At December 24, 2014	$	0	$	0	$	0	$	0
	At December 25, 2013	$	0	$	0	$	1,342	$	1,342
	Liquor licenses:
	At December 24, 2014	$	0	$	50	$	0	$	50
	At December 25, 2013	$	0	$	0	$	0	$	0
	We review the carrying amount of goodwill and reacquired franchise rights annually or when events or circumstances indicate that the carrying amount may not be recoverable. If the carrying amount is not recoverable, we record an impairment charge for the excess of the carrying amount over the fair value. We determined that there was no impairment of goodwill during our annual test in fiscal 2015 and fiscal 2014 as the fair value of our reporting units was substantially in excess of the carrying value. We also determined that there was no impairment of reacquired franchise rights during our annual test in fiscal 2015 and fiscal 2014. No indicators of impairment were identified through the end of the second quarter of fiscal 2015.
	(b)	Other Financial Instruments
	Our financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and long-term debt. The fair values of cash and cash equivalents, accounts receivable and accounts payable approximate their carrying amounts because of the short maturity of these items. The fair values of the 2.60% notes and 3.88% notes are based on quoted market prices and are considered Level 2 fair value measurements. At December 24, 2014, the 2.60% notes had a carrying value of $249.9 million and a fair value of $248.6 million and the 3.88% notes had a carrying value of $299.8 million and a fair value of $296.2 million. At June 25, 2014, the 2.60% notes had a carrying value of $249.9 million and a fair value of $250.4 million and the 3.88% notes had a carrying value of $299.7 million and a fair value of $290.2 million. The carrying amount of debt outstanding pursuant to the term loan and revolving credit facility approximates fair value as interest rates on these instruments approximate current market rates (Level 2).

SHAREHOLDERS_EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Dec. 24, 2014
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	SHAREHOLDERS’ EQUITY
	In August 2014, our Board of Directors authorized a $350.0 million increase to our existing share repurchase program. We repurchased approximately 2.2 million shares of our common stock for $112.8 million during the first two quarters of fiscal 2015 including 2.0 million shares purchased under the share repurchase program. As of December 24, 2014, approximately $553.9 million was available under our share repurchase authorizations. Our stock repurchase plan has been and will be used to return capital to shareholders and to minimize the dilutive impact of stock options and other share-based awards. We evaluate potential share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, proceeds from divestitures, borrowings, and planned investment and financing needs. Repurchased common stock is reflected as a reduction of shareholders’ equity.
	During the first two quarters of fiscal 2015, we granted approximately 226,000 stock options with a weighted average exercise price of $49.18 and a weighted average fair value of $11.64, and approximately 227,000 restricted share awards with a weighted average fair value of $49.05. Additionally, during the first two quarters of fiscal 2015, approximately 172,000 stock options were exercised resulting in cash proceeds of approximately $4.0 million. We received an excess tax benefit from stock-based compensation of approximately $10.4 million during the first two quarters primarily as a result of the normally scheduled vesting and distribution of restricted stock grants and performance shares. The excess tax benefit from stock-based compensation represents the additional income tax benefit received resulting from the increase in the fair value of awards from the time of grant to the exercise date.
	During the first two quarters of fiscal 2015, we paid dividends of $35.4 million to common stock shareholders, compared to $31.3 million in the prior year. Additionally, our Board of Directors approved a 17 percent increase in the quarterly dividend from $0.24 to $0.28 per share effective with the dividend declared in August 2014. We also declared a quarterly dividend of $17.8 million in October 2014 which was paid on December 26, 2014. The dividend accrual was included in accrued liabilities on our consolidated balance sheet as of December 24, 2014.

SUPPLEMENTAL_CASH_FLOW_INFORMA

SUPPLEMENTAL CASH FLOW INFORMATION	6 Months Ended
	Dec. 24, 2014
Supplemental Cash Flow Information [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	SUPPLEMENTAL CASH FLOW INFORMATION
	Cash paid for income taxes and interest in the first two quarters of fiscal 2015 and 2014 are as follows (in thousands):
		December 24,		December 25,
		2014		2013
	Income taxes, net of refunds	$	26,643	$	7,182
	Interest, net of amounts capitalized	13,002		12,766
	Non-cash investing and financing activities for the first two quarters of fiscal 2015 and 2014 are as follows (in thousands):
		December 24,		December 25,
		2014		2013
	Retirement of fully depreciated assets	$	25,029	$	37,241
	Accrued dividends	17,752		16,009
	Accrued capital expenditures	1,745		2,166

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Dec. 24, 2014
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES
	In connection with the sale of restaurants to franchisees and brand divestitures, we have, in certain cases, guaranteed lease payments. As of December 24, 2014 and June 25, 2014, we have outstanding lease guarantees or are secondarily liable for $108.2 million and $116.5 million, respectively. These amounts represent the maximum potential liability of future payments under the guarantees. These leases have been assigned to the buyers and expire at the end of the respective lease terms, which range from fiscal 2015 through fiscal 2024. In the event of default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover damages incurred. No liabilities have been recorded as of December 24, 2014, as the likelihood of default by the buyers on the assignment agreements was deemed to be less than probable.
	We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of December 24, 2014, we had $32.1 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable annually.
	The aggregate litigation reserves of approximately $45.2 million at December 24, 2014 are based on the terms set forth in the applicable agreements and our reasonable expectations regarding future events. Evaluating contingencies related to litigation is a complex process involving subjective judgment on the potential outcome of future events and the ultimate resolution of litigated claims may differ from our current analysis. Accordingly, we review the adequacy of accruals and disclosures pertaining to litigated matters each quarter in consultation with legal counsel and we assess the probability and range of possible losses associated with contingencies for potential accrual in the consolidated financial statements.
	In August 2004, certain current and former hourly restaurant team members filed a putative class action lawsuit against us in California Superior Court alleging violations of California labor laws with respect to meal periods and rest breaks, styled as Hohnbaum, et al. v. Brinker Restaurant Corp., et al. The lawsuit sought penalties and attorney’s fees and was certified as a class action by the trial court in July 2006. In July 2008, the California Court of Appeal decertified the class action on all claims with prejudice. In October 2008, the California Supreme Court granted a writ to review the decision of the Court of Appeal and oral arguments were heard by the California Supreme Court on November 8, 2011. On April 12, 2012, the California Supreme Court issued an opinion affirming in part, reversing in part, and remanding in part for further proceedings. The California Supreme Court’s opinion resolved many of the legal standards for meal periods and rest breaks in our California restaurants. On September 26, 2013, the trial court granted plaintiffs’ motion to certify a meal period subclass and denied our motion to decertify the rest period subclass.
	On April 8, 2014, the parties participated in mediation where preliminary settlement discussions began, but a settlement was not achieved and significant issues remained outstanding.  On August 6, 2014, the parties reached a preliminary settlement agreement, which remained subject to court approval, to resolve all claims in exchange for a settlement payment not to exceed $56.5 million.  On December 12, 2014, the court granted final approval of the settlement agreement. We expect the final settlement amount to be approximately $44.3 million and have established a reserve for this amount. We expect to fund the settlement in February 2015 subject to the validation of all submitted claims. We do not expect any significant deviation from the established reserve.
	We are engaged in various other legal proceedings and have certain unresolved claims pending. Reserves have been established based on our best estimates of our potential liability in certain of these matters. Based upon consultation with legal counsel, Management is of the opinion that there are no matters pending or threatened which are likely to have a material adverse effect, individually or in the aggregate, on our consolidated financial condition or results of operations.

SUBSEQUENT_EVENTS_Notes

SUBSEQUENT EVENTS (Notes)	6 Months Ended
	Dec. 24, 2014
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS
	In January 2015, an additional $14 million was borrowed from the revolver for general corporate purposes, including share repurchases. Subsequent to the end of the quarter, we repurchased approximately 600,000 shares for $36.2 million.
	We were a plaintiff in the antitrust litigation against Visa and MasterCard styled as Progressive Casualty Insurance Co., et al. v. Visa, Inc., et al.  A settlement agreement was fully executed by all parties in January 2015 and we received approximately $8.6 million in January 2015 per the terms of this agreement.  This amount will be included in other gains and charges in the consolidated statement of comprehensive income in the third quarter of fiscal 2015.

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	6 Months Ended
	Dec. 24, 2014
Earnings Per Share [Abstract]
Schedule of Weighted Average Number of Shares	Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands):
		Thirteen Week Periods Ended		Twenty-Six Week Periods Ended
		December 24, 2014	December 25, 2013	December 24, 2014	December 25, 2013
	Basic weighted average shares outstanding	63,590	66,811	64,129	66,752
	Dilutive stock options	673	918	663	925
	Dilutive restricted shares	700	899	821	1,038
		1,373	1,817	1,484	1,963
	Diluted weighted average shares outstanding	64,963	68,628	65,613	68,715

LONGTERM_DEBT_Tables

LONG-TERM DEBT (Tables)	6 Months Ended
	Dec. 24, 2014
Debt Disclosure [Abstract]
Long-Term Debt	Long-term debt consists of the following (in thousands):
		December 24,			June 25,
		2014			2014
	3.88% notes	$	299,751		$	299,736
	2.60% notes	249,882			249,864
	Term loan	175,000			187,500
	Revolving credit facility	163,000			80,000
	Capital lease obligations	41,644			43,086
		929,277			860,186
	Less current installments	(28,036		)	(27,884		)
		$	901,241		$	832,302

OTHER_GAINS_AND_CHARGES_Tables

OTHER GAINS AND CHARGES (Tables)	6 Months Ended
	Dec. 24, 2014
Other Gains and Charges [Abstract]
Schedule Of Other Gains And Charges	Other gains and charges consist of the following (in thousands):
		Thirteen Week Periods Ended						Twenty-Six Week Periods Ended
		December 24,			December 25,			December 24,		December 25,
		2014			2013			2014		2013
	Litigation reserves	$	5,800		$	0		$	5,800	$	0
	Restaurant impairment charges	747			1,285			747		1,285
	Restaurant closure charges	509			265			1,381		1,107
	Loss (Gain) on the sale of assets, net	1,069			(579		)	1,093		(579		)
	Impairment of liquor licenses	175			0			175		0
	Other	(9		)	250			28		414
		$	8,291		$	1,221		$	9,224	$	2,227

ACCRUED_AND_OTHER_LIABILITIES_

ACCRUED AND OTHER LIABILITIES (Tables)	6 Months Ended
	Dec. 24, 2014
ACCRUED AND OTHER LIABILITIES [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands):
		December 24,		June 25,
		2014		2014
	Gift cards	$	166,671	$	104,378
	Payroll	72,913		77,585
	Litigation reserves	45,175		39,500
	Sales tax	20,914		19,622
	Insurance	21,933		20,652
	Property tax	16,239		14,209
	Dividends	17,752		15,625
	Other	35,954		36,446
		$	397,551	$	328,017
Schedule Of Other Liabilities	Other liabilities consist of the following (in thousands):
		24-Dec-14		June 25,
				2014
	Straight-line rent	$	58,947	$	57,462
	Insurance	33,993		36,352
	Landlord contributions	25,972		23,404
	Unrecognized tax benefits	6,424		5,247
	Other	7,204		6,633
		$	132,540	$	129,098

FAIR_VALUE_MEASUREMENTS_FAIR_V

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Dec. 24, 2014
Fair Value Disclosures [Abstract]
Fair Value Measurements, Nonrecurring [Table Text Block]	The following table presents fair values for those assets measured at fair value on a non-recurring basis at December 24, 2014 and December 25, 2013 (in thousands):
		Fair Value Measurements Using
		(Level 1)		(Level 2)		(Level 3)		Total
	Long-lived assets held for use:
	At December 24, 2014	$	0	$	0	$	0	$	0
	At December 25, 2013	$	0	$	0	$	1,342	$	1,342
	Liquor licenses:
	At December 24, 2014	$	0	$	50	$	0	$	50
	At December 25, 2013	$	0	$	0	$	0	$	0

SUPPLEMENTAL_CASH_FLOW_INFORMA1

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	6 Months Ended
	Dec. 24, 2014
Supplemental Cash Flow Information [Abstract]
Cash Paid for Interest and Income Taxes	Cash paid for income taxes and interest in the first two quarters of fiscal 2015 and 2014 are as follows (in thousands):
		December 24,		December 25,
		2014		2013
	Income taxes, net of refunds	$	26,643	$	7,182
	Interest, net of amounts capitalized	13,002		12,766
Non-Cash Investing and Financing Activities	Non-cash investing and financing activities for the first two quarters of fiscal 2015 and 2014 are as follows (in thousands):
		December 24,		December 25,
		2014		2013
	Retirement of fully depreciated assets	$	25,029	$	37,241
	Accrued dividends	17,752		16,009
	Accrued capital expenditures	1,745		2,166

Basis_of_Presentation_Addition

Basis of Presentation - Additional Information (Detail) (USD $)	3 Months Ended	6 Months Ended
In Millions, unless otherwise specified	Dec. 25, 2013	Dec. 25, 2013	Dec. 24, 2014
			restaurant
			Country
			Location
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of entity restaurants			1,634
Number of countries in which entity operates			29
Number of territories in which entity operates			2
Quantifying Immaterial Error in Prior Period	$1.30	$2

Earning_Per_Share_Additional_I

Earning Per Share - Additional Information (Detail)	3 Months Ended
	Dec. 24, 2014	Dec. 25, 2013
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	235,000	271,000

Schedule_of_Weighted_Average_N

Schedule of Weighted Average Number of Shares (Details)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Dec. 24, 2014	Dec. 25, 2013	Dec. 24, 2014	Dec. 25, 2013
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Basic weighted average shares outstanding	63,590	66,811	64,129	66,752
Weighted Average Number Diluted Shares Outstanding Adjustment	1,373	1,817	1,484	1,963
Diluted weighted average shares outstanding	64,963	68,628	65,613	68,715
Employee Stock Option [Member]
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	673	918	663	925
Restricted Share Award [Member]
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	700	899	821	1,038

LongTerm_Debt_Schedule_of_Long

Long-Term Debt - Schedule of Long-Term Debt (Detail) (USD $)	Dec. 24, 2014	Jun. 25, 2014
In Thousands, unless otherwise specified
Debt Instrument [Line Items]
Capital lease obligations	$41,644	$43,086
Long-term debt and capital lease obligations, including current maturities	929,277	860,186
Less current installments	-28,036	-27,884
Long-term debt, less current installments	901,241	832,302
3.88% notes [Member]
Debt Instrument [Line Items]
Senior Notes	299,751	299,736
2.60% notes [Member]
Debt Instrument [Line Items]
Senior Notes	249,882	249,864
Revolver Borrowings [Member]
Debt Instrument [Line Items]
Revolving credit facility	163,000	80,000
Term Loan [Member]
Debt Instrument [Line Items]
Term loan	$175,000	$187,500

LongTerm_Debt_Additional_Infor

Long-Term Debt - Additional Information (Detail) (USD $)	6 Months Ended
	Dec. 24, 2014	Dec. 25, 2013
Line of Credit Facility [Line Items]
Repayments of Lines of Credit	$0	$40,000,000
Revolver Borrowings [Member]
Line of Credit Facility [Line Items]
Proceeds from Lines of Credit	83,000,000
Debt available under revolving credit facility	$87,000,000
Revised Unsecured Senior Credit Facility [Member]
Line of Credit Facility [Line Items]
One-month LIBOR	0.17%
Revised Unsecured Senior Credit Facility [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%
Revised Unsecured Senior Credit Facility [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.63%

Other_Gains_and_Charges_Schedu

Other Gains and Charges - Schedule of Other Gains and Charges (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Dec. 24, 2014	Dec. 25, 2013	Dec. 24, 2014	Dec. 25, 2013
Other Gains and Charges [Abstract]
Loss Contingency Accrual, Period Increase (Decrease)	$5,800	$0	$5,800	$0
Restaurant impairment charges	747	1,285	747	1,285
Restaurant closure charges	509	265	1,381	1,107
Gain loss on sale of assets	1,069	-579	1,093	-579
Other Asset Impairment Charges	175	0	175	0
Other Gains And Charges Other	-9	250	28	414
Other gains and charges	$8,291	$1,221	$9,224	$2,227

Other_Gains_and_Charges_Additi

Other Gains and Charges - Additional Information (Detail) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Dec. 24, 2014	Dec. 25, 2013	Dec. 24, 2014	Dec. 25, 2013
Other Gains and Charges [Abstract]
Loss Contingency Accrual, Period Increase (Decrease)	$5,800	$0	$5,800	$0
Restaurant impairment charges	747	1,285	747	1,285
Other Asset Impairment Charges	175	0	175	0
Restaurant closure charges	509	265	1,381	1,107
Gain loss on sale of assets	$1,069	($579)	$1,093	($579)

Recovered_Sheet1

Accrued and Other Liabilities (Accrued Liabilities) (Details) (USD $)	Dec. 24, 2014	Jun. 25, 2014
In Thousands, unless otherwise specified
ACCRUED AND OTHER LIABILITIES [Abstract]
Gift Cards	$166,671	$104,378
Payroll	72,913	77,585
Litigation reserves	45,175	39,500
Sales Tax	20,914	19,622
Insurance	21,933	20,652
Property tax	16,239	14,209
Dividends	17,752	15,625
Other	35,954	36,446
Accrued Liabilities, Current	$397,551	$328,017

Accrued_and_Other_Liabilities_1

Accrued and Other Liabilities (Other Liabilities) (Details) (USD $)	Dec. 24, 2014	Jun. 25, 2014
In Thousands, unless otherwise specified
Accrued and Other Liabilities (Other Liabilities) [Abstract]
Straight-line rent	$58,947	$57,462
Insurance	33,993	36,352
Landlord contributions	25,972	23,404
Unrecognized tax benefits	6,424	5,247
Other	7,204	6,633
Other liabilities	$132,540	$129,098

Recovered_Sheet2

FAIR VALUE MEASUREMENTS Fair Value Disclosures (Assets Measured At Fair Value On Non-Recurring Basis) (Details) (USD $)	6 Months Ended
	Dec. 24, 2014	Dec. 25, 2013
	Restaurants	Restaurants
Fair Value Disclosure [Line Items]
Goodwill, Impairment Loss	$0
Carrying Value Of Impaired Long Lived Assets	700,000	2,600,000
Number Of Underperforming Restaurants	2	4
Fair Value Of Impaired Long Lived Assets	0	1,342,000
Impairment of Long-Lived Assets Held-for-use	700,000	1,300,000
Impairment of Intangible Assets, Finite-lived	0
Fair Value, Inputs, Level 1 [Member]
Fair Value Disclosure [Line Items]
Fair Value Of Impaired Long Lived Assets	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value Disclosure [Line Items]
Fair Value Of Impaired Long Lived Assets	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value Disclosure [Line Items]
Fair Value Of Impaired Long Lived Assets	0	1,342,000
Liquor Licenses [Member]
Fair Value Disclosure [Line Items]
Number of Impaired Indefinite-Lived Assets	1
Carrying Value Of Impaired Indefinite Lived Assets	225,000
Fair Value Of Impaired Indefinite Lived Assets	50,000	0
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	175,000	0
Liquor Licenses [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value Disclosure [Line Items]
Fair Value Of Impaired Indefinite Lived Assets	0	0
Liquor Licenses [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value Disclosure [Line Items]
Fair Value Of Impaired Indefinite Lived Assets	50,000	0
Liquor Licenses [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Disclosure [Line Items]
Fair Value Of Impaired Indefinite Lived Assets	$0	$0

Fair_Value_Measurements_Additi

Fair Value Measurements - Additional information (Detail) (USD $)	Dec. 24, 2014	Jun. 25, 2014
2.60% notes [Member]
Fair Value Disclosure [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.60%
Senior Notes	$249,882,000	$249,864,000
Long-term Debt, Fair Value	248,600,000	250,400,000
3.88% notes [Member]
Fair Value Disclosure [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.88%
Senior Notes	299,751,000	299,736,000
Long-term Debt, Fair Value	$296,200,000	$290,200,000

Shareholders_Equity_Additional

Shareholder's Equity - Additional information (Detail) (USD $)	3 Months Ended		6 Months Ended
	Dec. 24, 2014	Dec. 25, 2013	Dec. 24, 2014	Dec. 25, 2013
Stockholders' Equity Note [Abstract]
Increase in share repurchase program			$350,000,000
Shares repurchased, shares			2,200,000
Payments for Repurchase of Common Stock			112,789,000	93,101,000
Program shares repurchased, shares			2,000,000
Amount available under share repurchase authorizations	553,900,000		553,900,000
Stock option, granted			226,000
Stock option, exercise price			$49.18
Stock option, fair value			$11.64
Restricted share awards, granted			227,000
Restricted share awards, weighted average fair value			$49.05
Stock option exercised, shares			172,000
Cash proceeds from stock option exercised			3,975,000	7,963,000
Excess tax benefits from stock-based compensation			10,351,000	14,569,000
Payments of dividends			$35,409,000	$31,345,000
Percentage increase in quarterly dividend declared	17.00%
Dividends per share declared	$0.28	$0.24	$0.56	$0.48

Recovered_Sheet3

Supplemental Cash Flow Information - Cash Paid for Interest and Income Taxes (Detail) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Dec. 24, 2014	Dec. 25, 2013
Supplemental Cash Flow Information [Abstract]
Income taxes, net of refunds	$26,643	$7,182
Interest, net of amounts capitalized	$13,002	$12,766

Recovered_Sheet4

Supplemental Cash Flow Information - Non-Cash Investing and Financing Activities (Detail) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Dec. 24, 2014	Dec. 25, 2013
Supplemental Cash Flow Information [Abstract]
Retirement of fully depreciated assets	$25,029	$37,241
Dividends Payable	17,752	16,009
Capital Expenditures Incurred but Not yet Paid	$1,745	$2,166

Contingencies_Additional_infor

Contingencies - Additional information (Detail) (USD $)	Dec. 24, 2014	Jun. 25, 2014
Guarantor Obligations [Line Items]
Litigation reserves	$45,175,000	$39,500,000
Letters of Credit Outstanding, Amount	32,100,000
Lease Guarantees And Secondary Obligations [Member]
Guarantor Obligations [Line Items]
Litigation reserves	0
Loss Contingency, Range of Possible Loss, Maximum	$108,200,000	$116,500,000

Loss_Contingencies_Details

Loss Contingencies (Details) (USD $)	Dec. 24, 2014	Jun. 25, 2014	Aug. 06, 2014
	LegalMatter
Loss Contingencies [Line Items]
Litigation reserves	$45,175,000	$39,500,000
Loss Contingency, Pending Claims, Number	0
August 2004 California lawsuit [Member]
Loss Contingencies [Line Items]
Litigation reserves	44,300,000
Loss Contingency, Range of Possible Loss, Maximum			$56,500,000

SUBSEQUENT_EVENTSDetails

SUBSEQUENT EVENTS(Details) (USD $)	6 Months Ended		0 Months Ended	1 Months Ended
	Dec. 24, 2014	Dec. 25, 2013	Dec. 26, 2014	Feb. 02, 2015	Jan. 28, 2015
Subsequent Event [Line Items]
Payments of dividends	$35,409,000	$31,345,000
Shares repurchased, shares	2,200,000
Payments for Repurchase of Common Stock	112,789,000	93,101,000
Dividend Paid [Member]
Subsequent Event [Line Items]
Payments of dividends			17,800,000
Dividends Payable, Date to be Paid			26-Dec-14
Treasury Stock [Member]
Subsequent Event [Line Items]
Shares repurchased, shares				600,000
Payments for Repurchase of Common Stock				36,200,000
Positive Outcome of Litigation [Member]
Subsequent Event [Line Items]
Proceeds from Legal Settlements					8,600,000
Revolver Borrowings [Member]
Subsequent Event [Line Items]
Proceeds from Lines of Credit	83,000,000
Revolver Borrowings [Member] | Revolver Borrowings [Member]
Subsequent Event [Line Items]
Proceeds from Lines of Credit					$14,000,000