Brinker International, Inc. (NYSE:EAT) Q2 2024 Earnings Call Transcript

Mika Ware: I’m going to start out with that. So the majority of that was really the lapse from prior year. So we had two big things that we did. We had — first, we had lapped a happy hour program where we did less discounting a year ago, and then we lapped the original restructure of the 3 for Me. So that is the majority of the change. And that would get you to about flat so you can take 300 basis points from the last 100 basis points that we reported. That’s what Kevin was talking about. We think a lot of that was self-inflicted and we can get some of that back.

Jim Sanderson : Alright, so the idea that you can get to kind of a flattish mix impact is still in process.

Mika Ware: Yes.

Jim Sanderson : Alright, just another question on balance sheet real quick. Any feedback on how we should look at the impact on interest expense for once you refinance your second terms of debt in October?

Kevin Hochman: No, I think we’ve kind of give you the guidance for the some thought processes on the year. That’s an F ’25 action. That I think you’re referring to the remaining bonds that come that mature in the fall of this year. So that’d be ‘25 and that’ll get incorporated into the F ‘25 guidance, which will dependent be dependent upon rate curves at that time. Our intent is to refinance those under our existing revolving credit with all the capacity we have on that side of the equation. So more to come as you kind of refine that view and we head into the next fiscal year.

Mika Ware: And Jim we’ve talked about year over year interest being about $10 million to $12 million a year-over-year.

Operator: That is all the time we have for questions today.

Mika Ware: Thank you everyone for joining us, and we look forward to talking to everyone on our next earnings call.

Joe Taylor: Thank you, everybody. Have a good day.

Kevin Hochman: Thank you for your time.

Operator: Thank you. This concludes today’s conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.