Brinker International (EAT) 10-Q 3 Nov 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 23, 2015	Oct. 26, 2015
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 23, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	BRINKER INTERNATIONAL INC
Entity Central Index Key	703,351
Current Fiscal Year End Date	--06-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		59,554,938

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 23, 2015	Jun. 24, 2015
Current Assets:
Cash and cash equivalents	$ 66,027	$ 55,121
Accounts receivable, net	36,744	46,588
Inventories	25,164	23,035
Prepaid expenses and other	64,262	62,480
Deferred income taxes	0	2,493
Total current assets	192,197	189,717
Property and Equipment, at Cost:
Land	147,763	147,763
Buildings and leasehold improvements	1,609,074	1,546,957
Furniture and equipment	641,834	618,084
Construction-in-progress	15,716	15,001
Property plant and equipment gross	2,414,387	2,327,805
Less accumulated depreciation and amortization	(1,329,346)	(1,295,761)
Net property and equipment	1,085,041	1,032,044
Other Assets:
Goodwill	160,448	132,381
Deferred income taxes	45,306	30,644
Intangibles, net	31,710	16,642
Other	34,629	34,445
Total other assets	272,093	214,112
Total assets	1,549,331	1,435,873
Current Liabilities:
Current installments of long-term debt	3,521	3,439
Accounts payable	84,541	92,947
Gift card liability	107,671	114,726
Accrued payroll	65,669	82,915
Other accrued liabilities	127,215	111,197
Income taxes payable	3,971	13,251
Deferred income taxes	565	0
Total current liabilities	393,153	418,475
Long-term debt, less current installments	1,125,410	970,825
Other liabilities	$ 138,908	$ 125,033
Commitments and Contingencies (Note 9)
Shareholders’ Deficit:
Common stock—250,000,000 authorized shares; $0.10 par value; 176,246,649 shares issued and 60,131,396 shares outstanding at September 23, 2015, and 176,246,649 shares issued and 60,585,608 shares outstanding at June 24, 2015	$ 17,625	$ 17,625
Additional paid-in capital	485,147	490,111
Accumulated other comprehensive loss	(11,435)	(8,630)
Retained earnings	2,445,602	2,431,683
Shareholders' equity including treasury stock	2,936,939	2,930,789
Less treasury stock, at cost (116,115,253 shares at September 23, 2015 and 115,661,041 shares at June 24, 2015)	(3,045,079)	(3,009,249)
Total shareholders’ deficit	(108,140)	(78,460)
Total liabilities and shareholders’ deficit	$ 1,549,331	$ 1,435,873

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 23, 2015	Jun. 24, 2015
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	60,131,396	60,585,608
Treasury Stock, shares	116,115,253	115,661,041

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 23, 2015	Sep. 24, 2014
Statement of Comprehensive Income [Abstract]
Company sales	$ 740,481	$ 686,864
Franchise and other revenues	22,078	24,154
Total revenues	762,559	711,018
Operating costs and expenses:
Cost of sales	196,603	184,785
Restaurant labor	246,577	227,276
Restaurant expenses	189,173	175,538
Company restaurant expenses	632,353	587,599
Depreciation and amortization	39,171	35,542
General and administrative	33,111	32,634
Other gains and charges	1,677	933
Total operating costs and expenses	706,312	656,708
Operating income	56,247	54,310
Interest expense	7,767	6,999
Other, net	(273)	(503)
Income before provision for income taxes	48,753	47,814
Provision for income taxes	15,546	15,076
Net income	$ 33,207	$ 32,738
Basic net income per share	$ 0.55	$ 0.51
Diluted net income per share	$ 0.54	$ 0.49
Basic weighted average shares outstanding	60,225	64,668
Diluted weighted average shares outstanding	61,208	66,263
Other Comprehensive Loss
Foreign Currency Translation Adjustment	$ (2,805)	$ (807)
Other Comprehensive Loss	(2,805)	(807)
Comprehensive Income	$ 30,402	$ 31,931
Dividends per share	$ 0.32	$ 0.28

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 23, 2015	Sep. 24, 2014
Cash Flows from Operating Activities:
Net income	$ 33,207	$ 32,738
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	39,171	35,542
Stock-based compensation	4,189	3,788
Deferred income taxes	1,375	1,218
Restructure charges and other impairments	574	933
Net (gain) loss on disposal of assets	(1,233)	714
Undistributed earnings on equity investments	(173)	(108)
Other	98	219
Changes in assets and liabilities:
Accounts receivable	6,904	8,324
Inventories	22	(518)
Prepaid expenses and other	(814)	4,315
Intangibles and other assets	(526)	(932)
Accounts payable	(12,175)	(4,322)
Accrued liabilities	(21,140)	(9,305)
Current income taxes	(7,427)	(5,113)
Other liabilities	3,497	3,405
Net cash provided by operating activities	45,549	70,898
Cash Flows from Investing Activities:
Payments for property and equipment	(23,731)	(40,183)
Payment for business acquisition, net of cash acquired	(105,577)	0
Proceeds from sale of assets	2,756	1,216
Net cash used in investing activities	(126,552)	(38,967)
Cash Flows from Financing Activities:
Borrowings on revolving credit facility	155,500	40,000
Purchases of treasury stock	(51,061)	(53,316)
Payments of dividends	(18,076)	(17,198)
Excess tax benefits from stock-based compensation	4,752	9,376
Proceeds from issuances of treasury stock	1,306	1,882
Payments on long-term debt	(512)	(6,669)
Net cash provided by (used in) financing activities	91,909	(25,925)
Net change in cash and cash equivalents	10,906	6,006
Cash and cash equivalents at beginning of period	55,121	57,685
Cash and cash equivalents at end of period	$ 66,027	$ 63,691

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Sep. 23, 2015
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 September 23, 2015 and June 24, 2015 and for the thirteen week periods ended September 23, 2015 and September 24, 2014 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 September 23, 2015 , we owned, operated or franchised 1,632 restaurants in the United States and 30 countries and two territories outside of the United States. 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 24, 2015 Form 10-K. We believe the disclosures are sufficient for interim financial reporting purposes.

ACQUISITION OF CHILI'S RESTAURA

ACQUISITION OF CHILI'S RESTAURANTS ACQUISITION OF CHILI'S RESTAURANTS	3 Months Ended
	Sep. 23, 2015
ACQUISITION OF CHILI'S RESTAURANTS [Abstract]
ACQUISITION OF CHILI'S RESTAURANTS	ACQUISITION OF CHILI'S RESTAURANTS On June 25, 2015, we completed the stock acquisition of Pepper Dining Holding Corp. ("Pepper Dining"), a franchisee of 103 Chili's Grill & Bar restaurants primarily located in the Northeast and Southeast United States. The purchase price of $106.5 million , excluding cash and customary working capital adjustments of $0.9 million , was funded with borrowings from our existing credit facility. The results of operations of these restaurants are included in our consolidated financial statements from the date of acquisition. The assets and liabilities of the restaurants were recorded at their preliminary respective fair values as of the date of acquisition. We are in the process of finalizing the fair value of the acquired assets and liabilities through internal studies and third-party valuations. The preliminary allocation of the purchase price is as follows (in thousands): Current assets including cash and cash equivalents $ 6,331 Current deferred income taxes 2,050 Property and equipment 70,576 Goodwill 28,543 Reacquired franchise rights (1) 10,400 Deferred income taxes 10,928 Favorable leases 5,496 Total assets acquired 134,324 Current liabilities 18,065 Unfavorable leases 8,846 Total liabilities assumed 26,911 Net assets acquired (2) $ 107,413 (1) The reacquired franchise rights have an amortization period of 12 years . (2) The net assets acquired includes cash and cash equivalents of $1.8 million . We expect $12.8 million of the goodwill balance to be deductible for tax purposes. The portion of the purchase price attributable to goodwill represents the benefits expected as a result of the acquisition, including sales and unit growth opportunities. The acquired restaurants generated approximately $61.8 million of revenue for the period ended September 23, 2015 and are expected to generate approximately $2.5 million of average annual revenue per restaurant in fiscal 2016, partially offset by the loss of average annual royalty revenues of approximately $104,000 per restaurant. Pro-forma financial information of the combined entities are not presented due to the immaterial impact of the financial results of the acquired restaurants on our consolidated financial statements.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Sep. 23, 2015
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. Stock options and restricted share awards with an anti-dilutive effect are not included in the diluted earnings per share calculation. Basic weighted average shares outstanding is reconciled to diluted weighted average shares outstanding as follows (in thousands): Thirteen Week Periods Ended September 23, 2015 September 24, 2014 Basic weighted average shares outstanding 60,225 64,668 Dilutive stock options 400 653 Dilutive restricted shares 583 942 983 1,595 Diluted weighted average shares outstanding 61,208 66,263 Awards excluded due to anti-dilutive effect on earnings per share 357 450

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Sep. 23, 2015
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Long-term debt consists of the following (in thousands): September 23, June 24, Revolving credit facility $ 539,250 $ 383,750 3.88% notes 299,774 299,766 2.60% notes 249,908 249,899 Capital lease obligations 39,999 40,849 1,128,931 974,264 Less current installments (3,521 ) (3,439 ) $ 1,125,410 $ 970,825 During the first three months of fiscal 2016 , $155.5 million was drawn from the $750 million revolving credit facility primarily to fund the acquisition of Pepper Dining and share repurchases. The maturity date of the $750 million revolving credit facility is March 12, 2020 . The revolving credit facility bears 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 2.00% . Based on our current credit rating, we are paying interest at a rate of LIBOR plus 1.38% . One month LIBOR at September 23, 2015 was approximately 0.19% . As of September 23, 2015 , $210.8 million of credit is available under the revolving credit facility. 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.

ACCRUED AND OTHER LIABILITIES

ACCRUED AND OTHER LIABILITIES	3 Months Ended
	Sep. 23, 2015
Accrued Liabilities and Other Liabilities [Abstract]
ACCRUED AND OTHER LIABILITIES	ACCRUED AND OTHER LIABILITIES Other accrued liabilities consist of the following (in thousands): September 23, June 24, Sales tax $ 19,726 $ 20,308 Insurance 23,764 22,658 Property tax 19,135 14,224 Dividends 19,241 16,961 Other 45,349 37,046 $ 127,215 $ 111,197 Other liabilities consist of the following (in thousands): September 23, June 24, Straight-line rent $ 57,777 $ 56,345 Insurance 35,368 30,988 Landlord contributions 24,352 24,785 Unfavorable leases 8,944 663 Unrecognized tax benefits 5,207 5,144 Other 7,260 7,108 $ 138,908 $ 125,033

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Sep. 23, 2015
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 amounts 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. No impairment charges were recorded in the first quarters of fiscal 2016 and fiscal 2015. We review the carrying amounts 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. No impairment charges were recorded in the first quarters of fiscal 2016 and fiscal 2015 and no indicators of impairment were identified through the end of the first quarter of fiscal 2016. (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 carrying amount of debt outstanding related to the revolving credit facility approximates fair value as the interest rate on this instrument approximates current market rates (Level 2). 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. The carrying amounts and fair values of the 2.60% notes and 3.88% notes are as follows (in thousands): September 23, 2015 June 24, 2015 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,908 $ 250,490 $ 249,899 $ 250,583 3.88% Notes $ 299,774 $ 291,180 $ 299,766 $ 290,706

SHAREHOLDERS' DEFICIT

SHAREHOLDERS' DEFICIT	3 Months Ended
	Sep. 23, 2015
Stockholders' Equity Note [Abstract]
Shareholders' Deficit Note Disclosure	SHAREHOLDERS’ DEFICIT In August 2015, our Board of Directors authorized a $250.0 million increase to our existing share repurchase program resulting in total authorizations of $4,185.0 million . We repurchased approximately 894,000 shares of our common stock for $51.1 million during the first quarter of fiscal 2016 , including shares purchased as part of our share repurchase program and shares repurchased to satisfy team member tax withholding obligations on the vesting of restricted shares. As of September 23, 2015 , approximately $566.6 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 an increase in treasury stock within shareholders’ deficit. During the first quarter of fiscal 2016 , we granted approximately 277,000 stock options with a weighted average exercise price of $54.15 and a weighted average fair value of $11.19 , and approximately 264,000 restricted share awards with a weighted average fair value of $49.89 . Additionally, during the first quarter of fiscal 2016 , approximately 50,000 stock options were exercised resulting in cash proceeds of approximately $1.3 million . We received an excess tax benefit from stock-based compensation of approximately $4.8 million during the first quarter primarily as a result of the vesting and distribution of restricted stock grants and performance shares and stock option exercises. 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 quarter of fiscal 2016 , we paid dividends of $18.1 million to common stock shareholders, compared to $17.2 million in the prior year. Additionally, our Board of Directors approved a 14% increase in the quarterly dividend from $0.28 to $0.32 per share effective with the dividend declared in August 2015 of $19.2 million , which was paid on September 24, 2015 . The dividend accrual was included in other accrued liabilities on our consolidated balance sheet as of September 23, 2015 .

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	3 Months Ended
	Sep. 23, 2015
Supplemental Cash Flow Information [Abstract]
SUPPLEMENTAL CASH FLOW INFORMATION	SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for income taxes and interest in the first quarter of fiscal 2016 and 2015 are as follows (in thousands): September 23, September 24, Income taxes, net of refunds $ 15,266 $ 8,758 Interest, net of amounts capitalized 2,280 1,774 Non-cash investing and financing activities for the first quarter of fiscal 2016 and 2015 are as follows (in thousands): September 23, September 24, Retirement of fully depreciated assets $ 3,757 $ 12,376 Dividends declared but not paid 19,288 18,583 Accrued capital expenditures 3,010 5,827

CONTINGENCIES

CONTINGENCIES	3 Months Ended
	Sep. 23, 2015
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 September 23, 2015 and June 24, 2015 , we have outstanding lease guarantees or are secondarily liable for $84.7 million and $98.9 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 2016 through fiscal 2025. In the event of default, the indemnity and default clauses in our assignment agreements govern our ability to pursue and recover damages incurred. No material liabilities have been recorded as of September 23, 2015 . Our secondary liability position was reduced by approximately $19.0 million in the first quarter of fiscal 2016 related to the Pepper Dining acquisition. See Note 2 for additional disclosures related to the acquisition. We provide letters of credit to various insurers to collateralize obligations for outstanding claims. As of September 23, 2015 , we had $34.0 million in undrawn standby letters of credit outstanding. All standby letters of credit are renewable annually. 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. We are engaged in various 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 expected to have a material adverse effect, individually or in the aggregate, on our consolidated financial condition or results of operations.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Sep. 23, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS In October 2015, an additional $32 million was borrowed from the revolver for general corporate purposes, including share repurchases. Subsequent to the end of the quarter, we repurchased approximately 760,000 shares for $37.8 million . On October 29, 2015 , our Board of Directors declared a quarterly dividend of $0.32 per share to be paid on December 24, 2015 to shareholders of record as of December 4, 2015 .

EFFECT OF NEW ACCOUNTING STANDA

EFFECT OF NEW ACCOUNTING STANDARDS EFFECT OF NEW ACCOUNTING STANDARDS	3 Months Ended
	Sep. 23, 2015
EFFECT OF NEW ACCOUNTING STANDARDS [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	EFFECT OF NEW ACCOUNTING STANDARDS In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, Simplifying the Presentation of Debt Issuance Costs. This update requires that debt issuance costs be presented in the balance sheet as a direct deduction from the associated debt liability. This update is effective for annual and interim periods beginning after December 15, 2015, which will require us to adopt this guidance in the first quarter of fiscal 2017. Early adoption is permitted for financial statements that have not been previously issued. The new guidance will be applied on a retrospective basis. We do not expect the updated guidance to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This update provides a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU 2015-14 delaying the effective date of adoption. This update is now effective for annual and interim periods beginning after December 15, 2017, which will require us to adopt these provisions in the first quarter of fiscal 2019. Early application in fiscal 2018 is permitted. This update permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

ACQUISITION OF CHILI'S RESTAU17

ACQUISITION OF CHILI'S RESTAURANTS ACQUISITION OF CHILI'S RESTAURANTS (Tables)	3 Months Ended
	Sep. 23, 2015
ACQUISITION OF CHILI'S RESTAURANTS [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	The preliminary allocation of the purchase price is as follows (in thousands): Current assets including cash and cash equivalents $ 6,331 Current deferred income taxes 2,050 Property and equipment 70,576 Goodwill 28,543 Reacquired franchise rights (1) 10,400 Deferred income taxes 10,928 Favorable leases 5,496 Total assets acquired 134,324 Current liabilities 18,065 Unfavorable leases 8,846 Total liabilities assumed 26,911 Net assets acquired (2) $ 107,413 (1) The reacquired franchise rights have an amortization period of 12 years . (2) The net assets acquired includes cash and cash equivalents of $1.8 million .

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Sep. 23, 2015
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 September 23, 2015 September 24, 2014 Basic weighted average shares outstanding 60,225 64,668 Dilutive stock options 400 653 Dilutive restricted shares 583 942 983 1,595 Diluted weighted average shares outstanding 61,208 66,263 Awards excluded due to anti-dilutive effect on earnings per share 357 450

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Sep. 23, 2015
Debt Disclosure [Abstract]
Long-Term Debt	Long-term debt consists of the following (in thousands): September 23, June 24, Revolving credit facility $ 539,250 $ 383,750 3.88% notes 299,774 299,766 2.60% notes 249,908 249,899 Capital lease obligations 39,999 40,849 1,128,931 974,264 Less current installments (3,521 ) (3,439 ) $ 1,125,410 $ 970,825

ACCRUED AND OTHER LIABILITIES (

ACCRUED AND OTHER LIABILITIES (Tables)	3 Months Ended
	Sep. 23, 2015
Accrued Liabilities and Other Liabilities [Abstract]
Schedule of Other Accrued Liabilities	Other accrued liabilities consist of the following (in thousands): September 23, June 24, Sales tax $ 19,726 $ 20,308 Insurance 23,764 22,658 Property tax 19,135 14,224 Dividends 19,241 16,961 Other 45,349 37,046 $ 127,215 $ 111,197
Schedule Of Other Liabilities	Other liabilities consist of the following (in thousands): September 23, June 24, Straight-line rent $ 57,777 $ 56,345 Insurance 35,368 30,988 Landlord contributions 24,352 24,785 Unfavorable leases 8,944 663 Unrecognized tax benefits 5,207 5,144 Other 7,260 7,108 $ 138,908 $ 125,033

FAIR VALUE MEASUREMENTS FAIR VA

FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Sep. 23, 2015
Fair Value Disclosures [Abstract]
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments	The carrying amounts and fair values of the 2.60% notes and 3.88% notes are as follows (in thousands): September 23, 2015 June 24, 2015 Carrying Amount Fair Value Carrying Amount Fair Value 2.60% Notes $ 249,908 $ 250,490 $ 249,899 $ 250,583 3.88% Notes $ 299,774 $ 291,180 $ 299,766 $ 290,706

SUPPLEMENTAL CASH FLOW INFORM22

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	3 Months Ended
	Sep. 23, 2015
Supplemental Cash Flow Information [Abstract]
Cash Paid for Interest and Income Taxes	Cash paid for income taxes and interest in the first quarter of fiscal 2016 and 2015 are as follows (in thousands): September 23, September 24, Income taxes, net of refunds $ 15,266 $ 8,758 Interest, net of amounts capitalized 2,280 1,774
Non-Cash Investing and Financing Activities	Non-cash investing and financing activities for the first quarter of fiscal 2016 and 2015 are as follows (in thousands): September 23, September 24, Retirement of fully depreciated assets $ 3,757 $ 12,376 Dividends declared but not paid 19,288 18,583 Accrued capital expenditures 3,010 5,827

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail)	Sep. 23, 2015LocationrestaurantCountry
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of entity restaurants | restaurant	1,632
Number of countries in which entity operates | Country	30
Number of territories in which entity operates	2

ACQUISITION OF CHILI'S RESTAU24

ACQUISITION OF CHILI'S RESTAURANTS Acquisition of Chili's Restaurants - Additional Information (Details) - USD ($)	Jun. 25, 2015	Sep. 23, 2015
ACQUISITION OF CHILI'S RESTAURANTS [Abstract]
Purchase price excluding customary working capital adjustments	$ 106,500,000
Cash and customary working capital purchase price adjustments	900,000
Goodwill deductible for tax purposes		$ 12,800,000
Revenue of acquiree since acquisition date, actual		$ 61,800,000
Average annual revenue per acquired restaurant	2,500,000
Average annual royalty revenues lost per acquired restaurant	$ 104,000

ACQUISITION OF CHILI'S RESTAU25

ACQUISITION OF CHILI'S RESTAURANTS Acquisition of Chili's Restaurants - Schedule of Assets Acquired and Liabilities Assumed (Details) $ in Thousands	3 Months Ended
	Sep. 23, 2015USD ($)
Schedule of Assets Acquired and Liabilities Assumed [Abstract]
Current assets including cash and cash equivalents	$ 6,331
Current deferred income taxes	2,050
Property and equipment	70,576
Goodwill	28,543
Reacquired franchise rights (1)	$ 10,400	[1]
Reacquired franchise rights amortization period	12 years
Deferred income taxes	$ 10,928
Favorable leases	5,496
Total assets acquired	134,324
Current liabilities	18,065
Unfavorable leases	8,846
Total liabilities assumed	26,911
Net assets acquired (2)	107,413	[2]
Cash and cash equivalents	$ 1,800
[1]	(1) The reacquired franchise rights have an amortization period of 12 years.
[2]	(2) The net assets acquired includes cash and cash equivalents of $1.8 million.

Schedule of Weighted Average Nu

Schedule of Weighted Average Number of Shares (Details) - shares shares in Thousands	3 Months Ended
	Sep. 23, 2015	Sep. 24, 2014
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Basic weighted average shares outstanding	60,225	64,668
Weighted Average Number Diluted Shares Outstanding Adjustment	983	1,595
Diluted weighted average shares outstanding	61,208	66,263
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	357	450
Employee Stock Option [Member]
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	400	653
Restricted Stock Units (RSUs) [Member]
Reconciliation of Weighted Average Shares Outstanding [Line Items]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	583	942

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-Term Debt (Detail) - USD ($) $ in Thousands	Sep. 23, 2015	Jun. 24, 2015
Debt Instrument [Line Items]
Capital lease obligations	$ 39,999	$ 40,849
Long-term debt and capital lease obligations, including current maturities	1,128,931	974,264
Less current installments	(3,521)	(3,439)
Long-term debt, less current installments	1,125,410	970,825
3.88% notes [Member]
Debt Instrument [Line Items]
Senior notes	299,774	299,766
2.60% notes [Member]
Debt Instrument [Line Items]
Senior notes	249,908	249,899
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facility	$ 539,250	$ 383,750

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - Revolving Credit Facility [Member]	3 Months Ended
	Sep. 23, 2015USD ($)
Line of Credit Facility [Line Items]
Proceeds from Lines of Credit	$ 155,500,000
Line of Credit Facility, Maximum Borrowing Capacity	$ 750,000,000
Line of Credit Facility, Expiration Date	Mar. 12, 2020
Line of Credit Facility, Remaining Borrowing Capacity	$ 210,800,000
Debt Instrument, Description of Variable Rate Basis	One month LIBOR
Maximum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Minimum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.375%
London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.19%

Accrued and Other Liabilities29

Accrued and Other Liabilities (Other Accrued Liabilities) (Details) - USD ($) $ in Thousands	Sep. 23, 2015	Jun. 24, 2015
Accrued Liabilities and Other Liabilities [Abstract]
Sales tax	$ 19,726	$ 20,308
Insurance	23,764	22,658
Property tax	19,135	14,224
Dividends	19,241	16,961
Other	45,349	37,046
Other accrued liabilities	$ 127,215	$ 111,197

Accrued and Other Liabilities30

Accrued and Other Liabilities (Other Liabilities) (Details) - USD ($) $ in Thousands	Sep. 23, 2015	Jun. 24, 2015
Accrued and Other Liabilities (Other Liabilities) [Abstract]
Straight-line rent	$ 57,777	$ 56,345
Insurance	35,368	30,988
Landlord contributions	24,352	24,785
Unfavorable leases	8,944	663
Unrecognized tax benefits	5,207	5,144
Other	7,260	7,108
Other liabilities	$ 138,908	$ 125,033

FAIR VALUE MEASUREMENTS Fair 31

FAIR VALUE MEASUREMENTS Fair Value Disclosures (Assets Measured At Fair Value On Non-Recurring Basis) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 23, 2015	Sep. 24, 2014
Fair Value Disclosure [Line Items]
Impairment of Long-Lived Assets Held-for-use	$ 0	$ 0
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)	0	0
Goodwill, Impairment Loss	0	0
Impairment of Intangible Assets, Finite-lived	$ 0	$ 0

Fair Value Measurements - Addit

Fair Value Measurements - Additional information (Detail) - USD ($) $ in Thousands	Sep. 23, 2015	Jun. 24, 2015
2.60% notes [Member]
Fair Value Disclosure [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	2.60%
Senior notes	$ 249,908	$ 249,899
Long-term Debt, Fair Value	$ 250,490	250,583
3.88% notes [Member]
Fair Value Disclosure [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	3.88%
Senior notes	$ 299,774	299,766
Long-term Debt, Fair Value	$ 291,180	$ 290,706

Shareholder's Deficit - Additio

Shareholder's Deficit - Additional information (Detail) - USD ($)	3 Months Ended
	Sep. 23, 2015	Sep. 24, 2014	Jun. 24, 2015
Stockholders' Equity Note [Abstract]
Increase in share repurchase program	$ 250,000,000
Stock Repurchase Program, Authorized Amount	$ 4,185,000,000
Shares repurchased, shares	894,000
Payments for Repurchase of Common Stock	$ 51,061,000	$ 53,316,000
Amount available under share repurchase authorizations	$ 566,600,000
Stock option, granted	277,000
Stock option, weighted average exercise price	$ 54.15
Stock option, weighted average fair value	$ 11.19
Restricted share awards, granted	264,000
Restricted share awards, weighted average fair value	$ 49.89
Stock option exercised, shares	50,000
Cash proceeds from stock option exercised	$ 1,306,000	1,882,000
Excess tax benefits from stock-based compensation	4,752,000	9,376,000
Payments of dividends	$ 18,076,000	$ 17,198,000
Percentage increase in quarterly dividend declared	14.00%
Dividends per share declared	$ 0.32	$ 0.28
Dividends	$ 19,241,000		$ 16,961,000
Dividends Payable, Date to be Paid	Sep. 24, 2015

Supplemental Cash Flow Inform34

Supplemental Cash Flow Information - Cash Paid for Interest and Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 23, 2015	Sep. 24, 2014
Supplemental Cash Flow Information [Abstract]
Income taxes, net of refunds	$ 15,266	$ 8,758
Interest, net of amounts capitalized	$ 2,280	$ 1,774

Supplemental Cash Flow Inform35

Supplemental Cash Flow Information - Non-Cash Investing and Financing Activities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 23, 2015	Sep. 24, 2014
Other Significant Noncash Transactions [Line Items]
Retirement of fully depreciated assets	$ 3,757	$ 12,376
Accrued capital expenditures	3,010	5,827
Dividends Payable [Member]
Other Significant Noncash Transactions [Line Items]
Dividends declared but not paid	$ 19,288	$ 18,583

Contingencies - Additional info

Contingencies - Additional information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Sep. 23, 2015	Jun. 24, 2015
Guarantor Obligations [Line Items]
Description of Material Contingencies of Parent Company	No material liabilities have been recorded
Letters of Credit Outstanding, Amount	$ 34,000
Lease Guarantees And Secondary Obligations [Member]
Guarantor Obligations [Line Items]
Loss Contingency, Accrual, Current	0
Loss Contingency, Range of Possible Loss, Maximum	84,700	$ 98,900
Loss contingency, range of possible loss, change to maximum	$ (19,000)

Loss Contingencies (Details)

Loss Contingencies (Details)	Sep. 23, 2015LegalMatter
Loss Contingencies [Line Items]
Loss Contingency, Pending Claims, Number	0

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	Oct. 29, 2015	Oct. 30, 2015	Oct. 30, 2015	Sep. 23, 2015	Sep. 24, 2014
Subsequent Event [Line Items]
Shares repurchased, shares				894,000
Payments for Repurchase of Common Stock				$ 51,061,000	$ 53,316,000
Dividends per share				$ 0.32	$ 0.28
Dividends Payable, Date to be Paid				Sep. 24, 2015
Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Proceeds from Lines of Credit				$ 155,500,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends Payable, Date of Record	Dec. 4, 2015
Shares repurchased, shares			760,000
Payments for Repurchase of Common Stock			$ 37,800,000
Dividends Payable, Date Declared	Oct. 29, 2015
Dividends per share	$ 0.32
Dividends Payable, Date to be Paid	Dec. 24, 2015
Subsequent Event [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Proceeds from Lines of Credit		$ 32,000,000