<SUBMISSION>
<ACCESSION-NUMBER>0000703351-04-000018
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20031224
<FILING-DATE>20040209
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BRINKER INTERNATIONAL INC
<CIK>0000703351
<ASSIGNED-SIC>5812
<IRS-NUMBER>751914582
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-10275
<FILM-NUMBER>04577674
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>6820 LBJ FREEWAY
<CITY>DALLAS
<STATE>TX
<ZIP>75240
<PHONE>9729809917
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>6820 LBJ FREEWAY
<CITY>DALLAS
<STATE>TX
<ZIP>75240
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CHILIS INC
<DATE-CHANGED>19910528
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>q20410q1.htm
<DESCRIPTION>FORM 10Q
<TEXT>
<html>

<head>

<title>FORM 10-Q</title>

</head>

<body link=blue vlink=purple>

<p align=center>UNITED
STATES</p>



<p align=center>SECURITIES
AND EXCHANGE COMMISSION</p>



<p align=center>WASHINGTON
D.C. 20549</p>



<p align=center>FORM
10-Q</p>



<p align=center>QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE</p>



<p align=center>SECURITIES
EXCHANGE ACT OF 1934<br>
&nbsp;</p>







<p align=center>For
the Quarterly Period Ended December 24, 2003<br>
<br>
Commission
File Number 1&#8209;10275</p>







<p align=center>&nbsp;</p>





<p align=center>BRINKER
INTERNATIONAL, INC.</p>



<p align=center>(Exact
name of registrant as specified in its charter)</p>



<table cellspacing=0 cellpadding=0>
 <tr>
  <td width=338 valign=top>
  <p align=center>DELAWARE</p>
  </td>
  <td width=338 valign=top>
  <p align=center>75-1914582</p>
  </td>
 </tr>
 <tr>
  <td width=338 valign=top>
  <p align=center>(State
  or other jurisdiction of</p>
  </td>
  <td width=338 valign=top>
  <p align=center>(I.R.S.
  Employer</p>
  </td>
 </tr>
 <tr>
  <td width=338 valign=top>
  <p align=center>incorporation
  or organization)</p>
  </td>
  <td width=338 valign=top>
  <p align=center>Identification
  No.)</p>
  </td>
 </tr>
</table>





<p align=center>6820
LBJ FREEWAY, DALLAS, TEXAS&nbsp; 75240<br>
(Address
of principal executive offices)<br>
(Zip
Code)</p>



<p align=center>(972)
980&#8209;9917<br>
(Registrant's
telephone number, including area code)</p>





<p>Indicate by
check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.<br>
Yes <u>&nbsp;&nbsp;X&nbsp; </u>No <i>_____</i></p>



<p>Indicate by check mark
whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the
Exchange Act).<br>
Yes <u>&nbsp;&nbsp;X&nbsp; </u>No <i>_____</i></p>



<p>Number of shares of
common stock of registrant outstanding at December 24, 2003: <u>95,755,578</u></p>

<hr><P Style="page-break-after: always"></P>


<p align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>BRINKER INTERNATIONAL, INC.</b></p>

<h6 align="center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3">&nbsp;&nbsp; INDEX</font></h6>







<p align="right"><u>Page</u></p>

<p>Part I -&nbsp;Financial
Information&nbsp;<br>
Item 1.&nbsp; Financial Statements</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated
Balance Sheets -<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December
24, 2003 (Unaudited) and June 25, 2003&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated
Statements of Income<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited) - Thirteen week and
twenty-six week<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; periods ended December 24, 2003 and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
December 25, 2002&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated
Statements of Cash Flows<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited) - Twenty-six week periods
ended <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
December 24, 2003 and December 25, 2002&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes
to Consolidated<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial
Statements (Unaudited)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7 - 9</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item
2.&nbsp; Management's Discussion and Analysis
of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Financial Condition and Results of Operations&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
10 - 15</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Item 3.&nbsp; Quantitative and Qualitative Disclosures<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
About Market Risk&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
15</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 4.&nbsp; Controls and Procedures&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
16</p>



<p>Part II - Other Information</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Item 1.&nbsp; Legal Proceedings&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
19</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Item 4.&nbsp; Submission of Matters to a Vote of Security Holders&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Item 6.&nbsp; Exhibits and Reports on Form 8-K&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
20</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signatures&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
21</p>



<hr><P Style="page-break-after: always"></P>


<p><b>PART I.&nbsp; FINANCIAL INFORMATION<br>
Item 1.&nbsp; FINANCIAL STATEMENTS</b></p>



<table cellspacing=0 cellpadding=0 width=515 height="1200">
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p align=center><b><font size="2">BRINKER
  INTERNATIONAL, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p align=center><b><font size="2">Consolidated
  Balance Sheets</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p align=center><b><font size="2">(In thousands, except share and per share
  amounts)</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">

  </td>
 </tr>
 <tr>
  <td width=267 colspan=2 valign=top height="19">
  &nbsp;</td>
  <td width=111 colspan=2 valign=top height="19">
  <p align="right"><b><font size="2">December&nbsp; 24, 2003<br>
  (Unaudited)</font></b></td>
  <td width=137 colspan=2 valign=top height="19">
  <p align="right"><b><font size="2">June 25,<br>
&nbsp;2003&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></b>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">ASSETS</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">Current
  Assets:</font></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Cash and cash equivalents</font></p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><font size="2">$&nbsp;&nbsp; 43,195 </font> </p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">$&nbsp;&nbsp; 33,492 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Accounts receivable </font> </p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><font size="2">46,138</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">34,619</font></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Inventories</font></p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><font size="2">24,036</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">24,403</font></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Prepaid expenses and other</font></p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 95,206</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 73,953</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets
  </font> </p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp; 208,575</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp; 166,467</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">Property
  and Equipment, at cost:</font></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Land</font></p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><font size="2">275,801</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">269,212</font></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Buildings and leasehold improvements
  </font> </p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><font size="2">1,310,450</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">1,245,546</font></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Furniture and equipment</font></p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><font size="2">634,688</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">588,815</font></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Construction-in-progress</font></p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 63,324</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 71,913</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; &nbsp;</font></p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><font size="2">2,284,263</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">2,175,486</font></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Less accumulated depreciation and
  amortization </font> </p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><u><font size="2">&nbsp; (746,730</font></u><font size="2">)</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp; (675,914</font></u><font size="2">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net property and equipment
  </font> </p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;1,537,533</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;1,499,572</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">Other
  Assets:</font></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Goodwill</font></p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><font size="2">185,068</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">185,068</font></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Other</font></p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 93,235</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 92,183</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other assets</font></p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp; 278,303</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp; 277,251</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=267 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets
  </font> </p>
  </td>
  <td width=109 colspan=4 valign=top height="19">
  <p align=right><u><font size="2">$2,024,411</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">$1,943,290</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">

  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">LIABILITIES AND SHAREHOLDERS' EQUITY</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="18">
  <p><font size="2">Current
  Liabilities:</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Current installments of long-term debt
  </font> </p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><font size="2">$&nbsp;&nbsp; 17,656</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">$&nbsp;&nbsp; 17,629</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Accounts payable</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><font size="2">88,231</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">108,068</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Accrued liabilities</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><font size="2">&nbsp;&nbsp; 218,422</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">&nbsp;&nbsp; 176,583</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Income taxes payable</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 41,362</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 7,931</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><u><font size="2">&nbsp;&nbsp; 365,671</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp; 310,211</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">Long-term debt, less
  current installments</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><font size="2">354,415</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">353,785</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">Deferred
  income taxes</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><font size="2">65,901</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">55,096</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">Other
  liabilities</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><font size="2">86,267</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">83,948</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">

  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">Contingencies
  (Note 6) </font> </p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">

  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">Shareholders'
  Equity:</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Common stock - 250,000,000 authorized
  shares; $0.10 </font> </p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; par value; 117,499,541 shares issued
  and </font> </p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 95,755,578 shares outstanding at December
  24,</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2003, and 117,499,541 shares issued
  and</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 97,854,952 shares outstanding at June
  25, 2003</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><font size="2">11,750</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">11,750</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Additional paid-in capital</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><font size="2">344,488</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">344,486</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Accumulated other comprehensive income</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><font size="2">587</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">609</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Retained earnings</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><u><font size="2">&nbsp;1,212,043</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;1,123,337</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p>&nbsp;</p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><font size="2">1,568,868</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><font size="2">1,480,182</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Less:</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Treasury stock, at cost (21,743,963 shares
  at December</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 24, 2003 and 19,644,589 shares at June
  25, 2003)</font></td>
  <td width=56 valign=top height="19" colspan="2">
  <p align="right"><font size="2">(414,537)</font></td>
  <td width=139 valign=top height="19">
  <p align="right"><font size="2">(337,946)</font></td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp; Unearned compensation</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; (2,174</font></u><font size="2">)</font></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; (1,986</font></u><font size="2">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders' equity
  </font> </p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><u><font size="2">&nbsp;1,152,157</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">&nbsp;1,140,250</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=320 colspan=3 valign=top height="19">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
  liabilities and shareholders' equity</font></p>
  </td>
  <td width=56 valign=top height="19" colspan="2">
  <p align=right><u><font size="2">$2,024,411</font></u></p>
  </td>
  <td width=139 valign=top height="19">
  <p align=right><u><font size="2">$1,943,290</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 colspan=6 valign=top height="19">

  <p><font size="2">See accompanying
  notes to consolidated financial statements.</font></p>
  </td>
 </tr>
 </table>

<hr><P Style="page-break-after: always"></P>




<table cellspacing=0 cellpadding=0 width=639>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=733 colspan=6 valign=top>
  <p align=center><b><font size="2">BRINKER
  INTERNATIONAL, INC.</font></b></p>
  </td>
  <td
  width=1><p><font size="2">&nbsp;</font></td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=733 colspan=6 valign=top>
  <p align=center><b><font size="2">Consolidated
  Statements of Income</font></b></p>
  </td>
  <td
  width=1><p><font size="2">&nbsp;</font></td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=733 colspan=6 valign=top>
  <p align=center><b><font size="2">(In thousands, except per share amounts)</font></b></p>
  </td>
  <td
  width=1><p><font size="2">&nbsp;</font></td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=733 colspan=6 valign=top>
  <p align=center><b><font size="2">(Unaudited)</font></b></p>
  </td>
  <td
  width=1><p><font size="2">&nbsp;</font></td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=733 colspan=6 valign=top>

  </td>
  <td
  width=1><p><font size="2">&nbsp;</font></td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=733 colspan=6 valign=top>
  <p><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Thirteen
  Week Periods Ended</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size="2">Twenty-Six Week Periods Ended</font></u></b></p>
  </td>
  <td
  width=1><p><font size="2">&nbsp;</font></td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>

  </td>
  <td width=143 valign=top>
  <p align=center><b><font size="2">December 24,</font></b></p>
  </td>
  <td width=118 valign=top>
  <p align=center><b><font size="2">December 25,</font></b></p>
  </td>
  <td width=127 valign=top>
  <p align=center><b><font size="2">December 24,</font></b></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=center><b><font size="2">December 25,</font></b></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>

  </td>
  <td width=143 valign=top>
  <p align=center><b><font size="2">&nbsp; </font> <u><font size="2">2003</font></u></b></p>
  </td>
  <td width=118 valign=top>
  <p align=center><b><font size="2">&nbsp; </font> <u><font size="2">2002</font></u></b></p>
  </td>
  <td width=127 valign=top>
  <p align=center><b><font size="2">&nbsp;</font><u><font size="2">2003</font></u></b></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=center><b><font size="2">&nbsp;</font><u><font size="2">2002</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>

  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">Revenues</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right><u><font size="2">$
  886,490</font></u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><font size="2">$
  794,510</font></u></p>
  </td>
  <td width=127 valign=top>
  <p align=right><u><font size="2">$
  1,757,388</font></u></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><u><font size="2">$
  1,568,402</font></u></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">Operating
  Costs and Expenses:</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; Cost of sales </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right><font size="2">245,217</font></p>
  </td>
  <td width=118 valign=top>
  <p align=right><font size="2">217,671</font></p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">485,119</font></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><font size="2">428,097</font></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; Restaurant expenses </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right><font size="2">492,064</font></p>
  </td>
  <td width=118 valign=top>
  <p align=right><font size="2">447,343</font></p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">978,422</font></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><font size="2">870,949</font></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; Depreciation and amortization </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right><font size="2">43,366</font></p>
  </td>
  <td width=118 valign=top>
  <p align=right><font size="2">38,701</font></p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">85,775</font></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><font size="2">75,858</font></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; General and administrative</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; 36,626</font></u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; 31,776</font></u></p>
  </td>
  <td width=127 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; &nbsp;&nbsp;69,922</font></u></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 64,321</font></u></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp;&nbsp; Total operating costs and expenses </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right><u><font size="2">&nbsp; 817,273</font></u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><font size="2">&nbsp; 735,491</font></u></p>
  </td>
  <td width=127 valign=top>
  <p align=right><u><font size="2">&nbsp; 1,619,238</font></u></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><u><font size="2">&nbsp; 1,439,225</font></u></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">Operating
  income </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right><font size="2">69,217</font></p>
  </td>
  <td width=118 valign=top>
  <p align=right><font size="2">59,019</font></p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">138,150</font></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><font size="2">129,177</font></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">Interest
  expense</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right><font size="2">2,933</font></p>
  </td>
  <td width=118 valign=top>
  <p align=right><font size="2">2,450</font></p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">6,251</font></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><font size="2">6,421</font></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">Other,
  net</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 1,127</font></u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 760</font></u></p>
  </td>
  <td width=127 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;870</font></u></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (830</font></u><font size="2">)</font></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>

  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">Income
  before provision for</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp;income taxes</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right><font size="2">65,157</font></p>
  </td>
  <td width=118 valign=top>
  <p align=right><font size="2">55,809</font></p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">131,029</font></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><font size="2">123,586</font></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>

  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">Provision
  for income taxes </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; 21,046</font></u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; 18,584</font></u></p>
  </td>
  <td width=127 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 42,323</font></u></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 41,357</font></u></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; &nbsp;
  Net income</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right><u><font size="2">$&nbsp; 44,111</font></u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><font size="2">$&nbsp; 37,225</font></u></p>
  </td>
  <td width=127 valign=top>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 88,706</font></u></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 82,229</font></u></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">Basic
  net income per share</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.46</font></u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.38</font></u></p>
  </td>
  <td width=127 valign=top>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.92</font></u></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.85</font></u></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">Diluted
  net income per share</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.45</font></u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.38</font></u></p>
  </td>
  <td width=127 valign=top>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.90</font></u></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.83</font></u></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">Basic
  weighted average</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; shares outstanding</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; 96,156</font></u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; 96,784</font></u></p>
  </td>
  <td width=127 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 96,780</font></u></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 96,981</font></u></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">Diluted
  weighted average </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; shares outstanding</font></p>
  </td>
  <td width=143 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; 97,731</font></u></p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; 98,848</font></u></p>
  </td>
  <td width=127 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 98,535</font></u></p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 99,041</font></u></p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td
  width=5><p>&nbsp;</td>
  <td width=222 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=143 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=115 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=676 colspan=6 valign=top>
  <p><font size="2">&nbsp;See accompanying notes to consolidated
  financial statements.</font></p>
  </td>
  <td
  width=54 colspan=2><p>&nbsp;</td>
 </tr>
 <tr height=0>
  <td width=5></td>
  <td width=222></td>
  <td width=143></td>
  <td width=118></td>
  <td width=127></td>
  <td width=60></td>
  <td width=62></td>
  <td width=1></td>
 </tr>
</table><hr><P Style="page-break-after: always"></P>




<table border=0 cellspacing=0 cellpadding=0 width=681>
 <tr>
  <td width=667 colspan=4 valign=top><b><font size="2"><br clear=all>
  </font>
  </b>
  <p align=center><b><font size="2">BRINKER INTERNATIONAL, INC.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p align=center><b><font size="2">Consolidated
  Statements of Cash Flows</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p align=center><b><font size="2">(In thousands)</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p align=center><b><font size="2">(Unaudited)</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </font> <u><font size="2">Twenty-Six Week Periods Ended</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>

  </td>
  <td width=102 valign=top>
  <p align=center><b><font size="2">December
  24,</font></b></p>
  </td>
  <td width=50 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=center><b><font size="2">December 25,</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </font> <u><font size="2">&nbsp;</font></u></p>
  </td>
  <td width=102 valign=top>
  <p align=center><b><u><font size="2">2003</font></u></b></p>
  </td>
  <td width=50 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=center><b><u><font size="2">2002</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p><font size="2">Cash
  Flows from Operating Activities:</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Net income</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">$
  88,706</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">$
  82,229</font></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p><font size="2">Adjustments to reconcile net income to net
  cash</font></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; provided
  by operating activities:</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">85,775</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">75,858</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net gain on sale of assets</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">(420)</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">-</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred costs</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">4,936</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">6,182</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">2,349</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">555</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment of intangible asset</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">-</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">4,123</font></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in assets and liabilities:</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">(11,981)</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">&nbsp;(12,843)</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">87</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">&nbsp;(608)</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">4,249</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">1,738</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">(1,992)</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">1,485</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income taxes</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">33,431</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">57,429</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">(19,837)</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">(34,284)</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">40,941</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">28,328</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; 11,243</font></u></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 3,469</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating
  activities</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><u><font size="2">&nbsp; 237,487</font></u></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u><font size="2">&nbsp; 213,661</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p><font size="2">Cash
  Flows from Investing Activities:</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Payments
  for property and equipment</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">(153,423)</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">(155,867)</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Proceeds
  from sale of assets</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">7,704</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">-</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Investment in equity method investees </font> </p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">-</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">(1,750)</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Repayment
  of note receivable from affiliate</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">-</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">11,000</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Issuance of loan to affiliate </font> </p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">(2,200)</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">(1,400)</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Net
  repayments of advances to affiliates </font> </p>
  </td>
  <td width=102 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 410</font></u></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 730&nbsp;&nbsp;
  </font>
  </u></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing
  activities</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><u><font size="2">&nbsp;(147,509</font></u><font size="2">)</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u><font size="2">&nbsp;(147,287</font></u><font size="2">)
  </font> </p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p><font size="2">Cash
  Flows from Financing Activities:</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Net
  payments on credit facilities </font> </p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">-</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">(27,800)</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Purchases
  of treasury stock</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">(90,412)</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">(40,722)</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Proceeds
  from issuances of treasury stock</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">11,548</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">13,469</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Payments
  on long-term debt</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><u><font size="2">&nbsp; (1,411</font></u><font size="2">)</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u><font size="2">&nbsp; (1,289</font></u><font size="2">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing
  activities</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><u><font size="2">&nbsp; (80,275</font></u><font size="2">)</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u><font size="2">&nbsp; (56,342</font></u><font size="2">)
  </font> </p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Net
  change in cash and cash equivalents </font> </p>
  </td>
  <td width=102 valign=top>
  <p align=right><font size="2">9,703</font></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">10,032</font></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Cash
  and cash equivalents at beginning of period</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; 33,492</font></u></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u><font size="2">&nbsp;&nbsp; 10,091</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p><font size="2">Cash
  and cash equivalents at end of period</font></p>
  </td>
  <td width=102 valign=top>
  <p align=right><u><font size="2">$&nbsp; 43,195</font></u></p>
  </td>
  <td width=50 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u><font size="2">$&nbsp; 20,123</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p><font size="2">See
  accompanying notes to consolidated financial statements.</font></p>
  </td>
 </tr>
</table>



<p><b><hr><P Style="page-break-after: always"></P></b>


<p align=center><b>BRINKER INTERNATIONAL, INC.<br>
Notes to Consolidated Financial Statements<br>
(Unaudited)</b></p>





<p><b>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; BASIS OF PRESENTATION</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; The consolidated financial statements of Brinker
International, Inc. and its wholly-owned subsidiaries (collectively, the
&quot;Company&quot;) as of December 24, 2003 and June 25, 2003 and for the thirteen week
and twenty-six week periods ended December 24, 2003 and December 25, 2002, have
been prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission (&quot;SEC&quot;).&nbsp;
The Company owns, operates, or franchises various restaurant concepts
under the names of Chili's Grill &amp; Bar (&quot;Chili's&quot;), Romano's Macaroni Grill
(&quot;Macaroni Grill&quot;), Maggiano's Little Italy (&quot;Maggiano's&quot;), On The Border
Mexican Grill &amp; Cantina (&quot;On The Border&quot;), Corner Bakery Cafe (&quot;Corner
Bakery&quot;), and Big Bowl Asian Kitchen (&quot;Big Bowl&quot;).&nbsp; In addition, the Company owns an approximate 43% interest in the
legal entities owning and developing Rockfish Seafood Grill (&quot;Rockfish&quot;).&nbsp; During the second quarter of fiscal 2004,
the Company closed one Cozymel's Coastal Grill (&quot;Cozymel's&quot;) restaurant and
sold the remaining fifteen restaurants (see Note 3).</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The information furnished herein reflects all
adjustments (consisting only of normal recurring accruals and adjustments)
which are, in the opinion of management, necessary to fairly state the interim
operating results for the respective periods.&nbsp;
However, these operating results are not necessarily indicative of the
results expected for the full fiscal year.&nbsp;
Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with generally accepted accounting
principles in the United States 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, 2003 Form 10-K. Management believes that
the disclosures are sufficient for interim financial reporting purposes.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certain prior year amounts in the accompanying
consolidated financial statements have been reclassified to conform with fiscal
2004 classifications.&nbsp; These
reclassifications have no effect on the Company's net income or financial
position as previously reported.</p>





<p><b>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCK
OPTION PLANS</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company accounts for its stock based compensation
under the recognition and measurement principles of Accounting Principles Board
Opinion No. 25, <i>Accounting for Stock Issued to Employees</i>, and related
interpretations (&quot;APB 25&quot;), and has adopted the disclosure-only provisions of
Statement of Financial Accounting Standard (&quot;SFAS&quot;) No. 123.&nbsp; Under APB 25, no stock-based compensation
cost is reflected in net income for grants of stock options to employees
because the Company grants stock options with an exercise price equal to the
market value of the stock on the date of grant.&nbsp; Had the Company used the fair value based accounting method for
stock compensation expense prescribed by SFAS No. 123, the Company's net income
and earnings per share would have been reduced to the pro-forma amounts illustrated
as follows (in thousands, except per share amounts):</p><hr><P Style="page-break-after: always"></P>




<table border=0 cellspacing=0 cellpadding=0 width=673>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=228 colspan=2 valign=top>
  <p align=center><b><u><font size="2">Thirteen Week
  Periods Ended</font></u></b></p>
  </td>
  <td width=228 colspan=2 valign=top>
  <p align=center><b><u><font size="2">Twenty-Six Week
  Periods Ended</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=center><b><font size="2">&nbsp;December 24,</font></b></p>
  </td>
  <td width=114 valign=top>
  <p align=center><b><font size="2">December 25,</font></b></p>
  </td>
  <td width=111 valign=top>
  <p align=center><b><font size="2">&nbsp;December 24,</font></b></p>
  </td>
  <td width=117 valign=top>
  <p align=center><b><font size="2">December 25,</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=center><b><font size="2">&nbsp; </font> <u><font size="2">2003</font></u></b></p>
  </td>
  <td width=114 valign=top>
  <p align=center><b><font size="2">&nbsp; </font> <u><font size="2">2002</font></u></b></p>
  </td>
  <td width=111 valign=top>
  <p align=center><b><font size="2">&nbsp;</font><u><font size="2">2003</font></u></b></p>
  </td>
  <td width=117 valign=top>
  <p align=center><b><font size="2">&nbsp;</font><u><font size="2">2002</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p><font size="2">Net
  income - as reported</font></p>
  </td>
  <td width=114 valign=top>
  <p align=right><font size="2">$&nbsp; 44,111</font></p>
  </td>
  <td width=114 valign=top>
  <p align=right><font size="2">$&nbsp; 37,225</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">$&nbsp; 88,706</font></p>
  </td>
  <td width=117 valign=top>
  <p align=right><font size="2">$&nbsp; 82,229</font></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p><font size="2">Add:
  Reported stock-based <br>
  &nbsp; compensation expense,<br>
  &nbsp; net of taxes </font> </p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  <p align=right><font size="2">344</font></p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  <p align=right><font size="2">621</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  <p align=right><font size="2">931</font></p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  <p align=right><font size="2">1,195</font></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p><font size="2">&nbsp; </font> </p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p><font size="2">Deduct:
  Fair value based<br>
  &nbsp; compensation expense, <br>
  &nbsp; net of taxes </font>  </p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp; (4,921</font></u><font size="2">)</font></p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp; (4,714</font></u><font size="2">)</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp; (9,512</font></u><font size="2">)</font></p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp; (9,031</font></u><font size="2">)</font></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p><font size="2">Net
  income - pro-forma</font></p>
  </td>
  <td width=114 valign=top>
  <p align=right><u><font size="2">$&nbsp; 39,534</font></u></p>
  </td>
  <td width=114 valign=top>
  <p align=right><u><font size="2">$&nbsp; 33,132</font></u></p>
  </td>
  <td width=111 valign=top>
  <p align=right><u><font size="2">$&nbsp; 80,125</font></u></p>
  </td>
  <td width=117 valign=top>
  <p align=right><u><font size="2">$&nbsp; 74,393</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p><font size="2">Earnings
  per share:</font></p>
  </td>
  <td width=114 valign=top>
  <p align=left>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=left>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=left>&nbsp;</p>
  </td>
  <td width=117 valign=top>
  <p align=left>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p><font size="2">Basic
  - as reported</font></p>
  </td>
  <td width=114>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.46</font></u></p>
  </td>
  <td width=114>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.38</font></u></p>
  </td>
  <td width=111>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.92</font></u></p>
  </td>
  <td width=117>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.85</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p><font size="2">Basic
  - pro-forma</font></p>
  </td>
  <td width=114>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.41</font></u></p>
  </td>
  <td width=114>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.34</font></u></p>
  </td>
  <td width=111>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.83</font></u></p>
  </td>
  <td width=117>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.77</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=217>

  </td>
  <td width=114>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111>
  <p align=right>&nbsp;</p>
  </td>
  <td width=117>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p><font size="2">Diluted
  - as reported</font></p>
  </td>
  <td width=114>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.45</font></u></p>
  </td>
  <td width=114>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.38</font></u></p>
  </td>
  <td width=111>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.90</font></u></p>
  </td>
  <td width=117>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.83</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p><font size="2">Diluted
  - pro-forma</font></p>
  </td>
  <td width=114>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.41</font></u></p>
  </td>
  <td width=114>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.34</font></u></p>
  </td>
  <td width=111>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.81</font></u></p>
  </td>
  <td width=117>
  <p align=right><u><font size="2">$&nbsp;&nbsp;&nbsp; 0.75</font></u></p>
  </td>
 </tr>
</table>





<p><b>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; DISPOSITION
OF COZYMEL'S<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </b>During fiscal 2003, the Company entered into
negotiations to sell all sixteen of its Cozymel's restaurants.&nbsp; The decision to discontinue growth and sell
the brand required the Company to record asset impairment charges in fiscal
2003 totaling $20.3 million.&nbsp; After taking this charge, the
carrying values of the assets to be sold were approximately $23.8 million as of
June 25, 2003.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the second quarter of fiscal 2004, the
Company closed one Cozymel's restaurant and sold the remaining fifteen
restaurants.&nbsp; The Company has received,
or expects to receive, proceeds related to the closed and sold units of $22.4
million, including notes receivable totaling $20.2 million.&nbsp; During the third quarter of fiscal 2004,
$14.4 million of the notes is scheduled to be repaid in cash and the remaining
$5.8 million is to be converted to long-term financing.&nbsp; The terms of this financing are currently
being negotiated.&nbsp; In connection with
these negotiations, the Company will continue to assess the capital structure
and creditworthiness of the purchaser and will consider their impact on the
fair value of the $5.8 million note in future periods.&nbsp; As a result of the closure and sale, the
Company recorded losses totaling approximately $2.0 million in the second
quarter.&nbsp; The losses are included in
restaurant expenses in the consolidated statement of income.</p>

<p><b>&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SHAREHOLDERS'
EQUITY</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; Pursuant to the Company's current stock repurchase
plan, the Company repurchased approximately 2.9 million shares of its common
stock for $90.4 million during the first two quarters of fiscal 2004.&nbsp; As of December 24, 2003, approximately 21.1
million shares of its common stock had been repurchased for $482.5 million
under the approved $510.0 million stock repurchase plan. The Company's stock
repurchase plan is used by the Company primarily to offset the dilutive effect
of stock option exercises and for other corporate purposes. The repurchased
common stock is reflected as a reduction of shareholders' equity.&nbsp; </p>






<p>&nbsp;<hr><P Style="page-break-after: always"></P>






<p><b>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SUPPLEMENTAL CASH FLOW
INFORMATION</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash
paid for interest and income taxes is as follows (in thousands):</p>



<table border=0 cellspacing=0 cellpadding=0 width=600>
 <tr>
  <td width=360 valign=top>

  </td>
  <td width=120 valign=top>
  <p align=center><b>December 24, <br>
  <u>2003</u></b></p>
  </td>
  <td width=120 valign=top>
  <p align=center><b>December 25, <br>
  <u>2002</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>

  </td>
  <td width=120 valign=top>

  </td>
  <td width=120 valign=top>

  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Interest, net
  of amounts capitalized</p>
  </td>
  <td width=120 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;
  1,974 </p>
  </td>
  <td width=120 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;
  1,454 </p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Income tax
  payments (refunds), net </p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;
  6,537</p>
  </td>
  <td width=120 valign=top>
  <p align=right>(16,627)</p>
  </td>
 </tr>
</table>





<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash
investing and financing activities are as follows (in thousands):</p>



<table border=0 cellspacing=0 cellpadding=0 width=600>
 <tr>
  <td width=360 valign=top>

  </td>
  <td width=120 valign=top>
  <p align=center><b>December 24, <br>
  <u>2003</u></b></p>
  </td>
  <td width=120 valign=top>
  <p align=center><b>December 25, <br>
  <u>2002</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>

  </td>
  <td width=120 valign=top>

  </td>
  <td width=120 valign=top>

  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Issuance of
  notes for sale of Cozymel's</p>
  </td>
  <td width=120 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp;&nbsp; 20,194</p>
  </td>
  <td width=120 valign=top>
  <p align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; -&nbsp;&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Retirement
  of fully depreciated assets</p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;&nbsp; 5,534</p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;
  114,371&nbsp; </p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Net (decrease) increase in fair value
  of interest rate swaps </p>
  </td>
  <td width=120 valign=top>
  <p align=right>(9,856)</p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; 8,527&nbsp;&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Restricted
  common stock issued, net of&nbsp;&nbsp;
  forfeitures</p>
  </td>
  <td width=120 valign=top>
  <p align=right>2,274</p>
  </td>
  <td width=120 valign=top>
  <p align=right>4,524&nbsp;&nbsp;</p>
  </td>
 </tr>
</table>





<p><b>6.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>CONTINGENCIES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
April 2003, the Attorney General of California filed a complaint under
California's Proposition 65 seeking penalties and injunctive relief against
multiple restaurant groups, including the Company.&nbsp; Proposition 65 is a notice statute requiring a party to advise
the public and its employees if the premises contains products that are known
to cause cancer or reproductive toxicity.&nbsp;
Methyl mercury compounds, which are listed under Proposition 65 to cause
cancer and reproductive toxicity, can be found in certain select fish that have
been or are served by the Company's restaurants.&nbsp; The complaint alleges the Company did not post appropriate
notices in its restaurants related to these mercury compounds.&nbsp; The Company is currently in settlement
discussions with the Attorney General.&nbsp;
It is not possible at this time to reasonably estimate the possible loss
or range of loss.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
January 1996, the Company entered into a Tip Reporting Alternative Commitment
agreement (the &quot;Contract&quot;) with the Internal Revenue Service (the &quot;IRS&quot;).&nbsp;
The Contract required the Company, among other things, to implement tip
reporting educational programs for its hourly restaurant employees and to
establish tip reporting procedures.&nbsp; As
part of a routine employment tax examination during fiscal 2004, the IRS
alleged that the Company's procedures did not meet the requirements of the
Contract.&nbsp; The Company believes it has complied and is complying with the
Contract.&nbsp; The Company is currently in discussions with the IRS to resolve
this issue.&nbsp; It is not possible at this time to reasonably estimate the
possible loss or range of loss.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company is engaged in various other legal proceedings and has certain
unresolved claims pending. The ultimate liability, if any, for the aggregate
amounts claimed cannot be determined at this time. However, management of the
Company, based upon consultation with legal counsel, is of the opinion that
there are no other matters pending or threatened which are expected to have a
material adverse effect, individually or in the aggregate, on the Company's
consolidated financial condition or results of operations. </p>







<p>&nbsp;<hr><P Style="page-break-after: always"></P>







<p><b>Item
2.&nbsp; MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</b></p>

<p><b>&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
following table sets forth selected operating data as a percentage of total
revenues for the periods indicated. All information is derived from the
accompanying consolidated statements of income.  </p>





<table border=0 cellspacing=0 cellpadding=0 width=709>
 <tr>
  <td width=505 colspan=4 valign=top>
  <h3><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;13 Week Periods Ended</font></b></h3>
  </td>
  <td width=204 colspan=5 valign=top>
  <h3 align=left><b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;26
  Week Periods Ended</font></b></h3>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=center><b><font size="2">Dec. 24,</font></b></p>
  </td>
  <td width=18 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=center><b><font size="2">Dec. 25,</font></b></p>
  </td>
  <td width=24 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=center><b><font size="2">Dec. 24,</font></b></p>
  </td>
  <td width=18 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=center><b><font size="2">Dec. 25,</font></b></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=center><b><u><font size="2">2003</font></u></b></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=center><b><u><font size="2">2002</font></u></b></p>
  </td>
  <td width=24 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=center><b><u><font size="2">2003</font></u></b></p>
  </td>
  <td width=18 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=center><b><u><font size="2">2002</font></u></b></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">Revenues&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </font> </p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">100.0 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">100.0 %</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><u><font size="2">100.0 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">100.0 %</font></u></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">Operating
  Costs and Expenses:</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; Cost of sales</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">27.7 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">27.4 %</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><font size="2">27.6 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">27.3 %</font></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; Restaurant expenses</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">55.5 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">56.3 %</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><font size="2">55.7 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">55.5 %</font></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; Depreciation and amortization</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">&nbsp; 4.9 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">&nbsp; 4.9 %</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><font size="2">&nbsp; 4.9 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">&nbsp; 4.8 %</font></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">&nbsp;&nbsp;&nbsp; General and administrative</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 4.1 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 4.0 %</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><u><font size="2">&nbsp; 4.0 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 4.1 %</font></u></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">&nbsp;&nbsp; Total operating costs and expenses</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp;92.2 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp;92.6 %</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><u><font size="2">&nbsp;92.2 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp;91.7 %</font></u></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">Operating
  income</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">7.8 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">7.4 %</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><font size="2">7.8 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">8.3 %</font></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">Interest
  expense</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">&nbsp; 0.3 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">&nbsp; 0.3 %</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><font size="2">&nbsp; 0.4 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">&nbsp; 0.4 %</font></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">Other,
  net</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 0.1 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 0.1 %</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><u><font size="2">&nbsp; 0.0 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 0.0 %</font></u></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">Income before provision for income taxes</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">7.4 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">7.0 %</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><font size="2">7.4 %</font></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><font size="2">7.9 %</font></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">Provision
  for income taxes</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 2.4 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 2.3 %</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><u><font size="2">&nbsp; 2.4 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 2.6 %</font></u></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size="2">Net income</font></p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 5.0 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 4.7 %</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top>
  <p align=right><u><font size="2">&nbsp; 5.0 %</font></u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=right><u><font size="2">&nbsp; 5.3 %</font></u></p>
  </td>
  <td
  width=5><p>&nbsp;</td>
 </tr>
</table>





<hr><P Style="page-break-after: always"></P>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table details the
number of restaurant openings during the second quarter and year-to-date, total
restaurants open at the end of the second quarter, and projected openings in
fiscal 2004. </p>





<table cellspacing=0 cellpadding=0 width=663 height="582">
 <tr>
  <td width=176 valign=top height="19">

  </td>
  <td width=127 colspan=2 valign=top height="19">
  <p align=center><font size="2">Second Quarter</font></p>
  </td>
  <td width=145 colspan=3 valign=top height="19">
  <p align="center"><font size="2">Year-to-Date</font></td>
  <td width=136 colspan=2 valign=top height="19">
  <p align=center><font size="2">Total Open at End</font></p>
  </td>
  <td width=79 valign=top height="19">
  <p align=center><font size="2">Projected</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">

  </td>
  <td width=127 colspan=2 valign=top height="19">
  <p align=center><font size="2">Openings</font></p>
  </td>
  <td width=145 colspan=3 valign=top height="19">
  <p align="center"><font size="2">&nbsp;Openings</font></td>
  <td width=136 colspan=2 valign=top height="19">
  <p align="center"><font size="2">Of Second Quarter</font></td>
  <td width=79 valign=top height="19">
  <p align="center"><font size="2">Openings</font></td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">
  <p align=center>&nbsp;</p>
  </td>
  <td width=71 valign=top height="19">
  <p align=right><font size="2">Fiscal</font></p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right><font size="2">Fiscal</font></p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right><font size="2">Fiscal</font></p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right><font size="2">Fiscal</font></p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right><font size="2">Fiscal</font></p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right><font size="2">Fiscal</font></p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right><font size="2">Fiscal</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">
  <p align=center>&nbsp;</p>
  </td>
  <td width=71 valign=top height="19">
  <p align=right><u><font size="2">2004</font></u></p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right><u><font size="2">2003</font></u></p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right><u><font size="2">2004</font></u></p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right><u><font size="2">2003</font></u></p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right><u><font size="2">2004</font></u></p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right><u><font size="2">2003</font></u></p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right><u><font size="2">2004</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">
  <p><font size="2">Chili's: </font> </p>
  </td>
  <td width=71 valign=top height="19">

  </td>
  <td width=55 valign=top height="19">

  </td>
  <td width=72 valign=top height="19">

  </td>
  <td width=74 valign=top height="19">

  </td>
  <td width=70 colspan=2 valign=top height="19">

  </td>
  <td width=65 valign=top height="19">

  </td>
  <td width=79 valign=top height="19">

  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp; Company-owned</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><font size="2">20</font></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><font size="2">17</font></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><font size="2">38</font></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><font size="2">36</font></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><font size="2">726</font></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><font size="2">664</font></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><font size="2">70-75</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp; Franchised</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 8</font></u></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 7</font></u></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;13</font></u></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;10</font></u></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 218</font></u></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 200</font></u></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 18-21</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><font size="2">28</font></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><font size="2">24</font></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><font size="2">51</font></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><font size="2">46</font></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><font size="2">944</font></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><font size="2">864</font></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><font size="2">88-96</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">

  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">
  <p><font size="2">Macaroni Grill:</font></p>
  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp; Company-owned</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><font size="2">7</font></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><font size="2">9</font></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><font size="2">11</font></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><font size="2">12</font></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><font size="2">204</font></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><font size="2">188</font></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><font size="2">18-20</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp; Franchised</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; -</font></u></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp;-</font></u></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 1</font></u></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; -</font></u></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 9</font></u></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 6</font></u></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 2-3</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><font size="2">7</font></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><font size="2">9</font></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><font size="2">12</font></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><font size="2">12</font></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><font size="2">213</font></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><font size="2">194</font></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><font size="2">20-23</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">

  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">Maggiano's</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><font size="2">-</font></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><font size="2">3</font></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><font size="2">3</font></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><font size="2">3</font></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><font size="2">28</font></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><font size="2">23</font></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><font size="2">3-4</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">

  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">
  <p><font size="2">On The Border:</font></p>
  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp; Company-owned</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><font size="2">-</font></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><font size="2">3</font></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><font size="2">-</font></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><font size="2">4</font></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><font size="2">114</font></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><font size="2">115</font></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><font size="2">4-5</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp; Franchised</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; -</font></u></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; -</font></u></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; -</font></u></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 1</font></u></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp; 18</font></u></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp; 19</font></u></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><font size="2">-</font></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><font size="2">3</font></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><font size="2">-</font></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><font size="2">5</font></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><font size="2">132</font></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><font size="2">134</font></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><font size="2">4-5</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">

  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">
  <p><font size="2">Corner Bakery:</font></p>
  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp; Company-owned</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><font size="2">1</font></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><font size="2">3</font></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><font size="2">2</font></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><font size="2">5</font></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><font size="2">87</font></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><font size="2">78</font></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><font size="2">5-8</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp; Franchised</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; -</font></u></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 1</font></u></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; -</font></u></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 1</font></u></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 3</font></u></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 3</font></u></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><font size="2">1</font></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><font size="2">4</font></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><font size="2">2</font></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><font size="2">6</font></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><font size="2">90</font></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><font size="2">81</font></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><font size="2">5-8</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">

  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">Big Bowl</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><font size="2">1</font></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><font size="2">2</font></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><font size="2">2</font></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><font size="2">4</font></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><font size="2">20</font></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><font size="2">16</font></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><font size="2">2-3</font></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">

  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">Rockfish
  Partnership</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 1</font></u></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 1</font></u></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 3</font></u></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><u><font size="2">&nbsp; 4</font></u></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp; 23</font></u></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp; 16</font></u></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;&nbsp;&nbsp; 4-6</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">

  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">

  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="19">

  </td>
  <td width=71 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=55 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=72 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=74 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=70 colspan=2 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
  <td width=79 valign=top height="19">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top height="15">
  <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Grand Total</font></p>
  </td>
  <td width=71 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;38</font></u></p>
  </td>
  <td width=55 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;46</font></u></p>
  </td>
  <td width=72 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;73</font></u></p>
  </td>
  <td width=74 valign=top height="15">
  <p align=right><u><font size="2">&nbsp;80</font></u></p>
  </td>
  <td width=70 colspan=2 valign=top height="15">
  <p align=right><u><font size="2">1,450</font></u></p>
  </td>
  <td width=65 valign=top height="15">
  <p align=right><u><font size="2">1,328</font></u></p>
  </td>
  <td width=79 valign=top height="15">
  <p align=right><u><font size="2">126-145</font></u></p>
  </td>
 </tr>
 <tr height=0>
  <td width=176 height="19"></td>
  <td width=71 height="19"></td>
  <td width=55 height="19"></td>
  <td width=72 height="19"></td>
  <td width=74 height="19"></td>
  <td width=1 height="19"></td>
  <td width=72 height="19"></td>
  <td width=65 height="19"></td>
  <td width=79 height="19"></td>
 </tr>
</table>

<u><hr><P Style="page-break-after: always"></P>
</u>

<h6><font size="3">OVERVIEW
OF OPERATIONS</font><b>&nbsp;</b></h6>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenues for the second quarter
and year-to-date of fiscal 2004 increased by 11.6% and 12.1%,
respectively.&nbsp; These increases were
primarily driven by the addition of company-owned restaurants as capacity gains
increased for the second quarter and year-to-date by 9.3% and 10.0%,
respectively.&nbsp; Cost of sales increased
during the second quarter and year-to-date as commodity price pressures
continue, particularly for dairy, and as a result of unfavorable product mix
shifts.&nbsp; Restaurant expenses were
impacted during the quarter by a $2.4 million gain as a result of the sale of
four Chili's to a franchise partner and the sale of one real estate
property.&nbsp; This gain was partially
offset by a $2.0 million loss recorded as a result of the completion of the
sale of Cozymel's.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenues for the third quarter
of fiscal 2004 are expected to increase by 9% to 10% driven primarily by
capacity gains of 8% to 9%.&nbsp; Cost of
sales are expected to be approximately 0.1% to 0.2% higher than last year due
to the impact of higher beef and dairy costs.&nbsp;
Restaurant expenses are expected to be 0.2% lower than last year as a
result of increased sales leverage.&nbsp;
General and administrative expenses should be slightly higherdue
primarily to increased headcount and wage rates.<b>&nbsp;</b></p>



<h6><font size="3">REVENUES</font></h6>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenues for the second quarter
of fiscal 2004 increased to $886.5 million, 11.6% over the $794.5 million
generated for the same quarter of fiscal 2003. Revenues for the twenty-six week
period ended December 24, 2003 rose 12.1% to $1,757.4 million from the $1,568.4
million generated for the same period of fiscal 2003.&nbsp; The increases were primarily attributable to a net increase of 80
company-owned restaurants since December 25, 2002 and an increase in comparable
store sales for the second quarter and year-to-date of fiscal 2004 compared to
the same periods of fiscal 2003. The Company increased its capacity gains (as
measured by average-weighted sales weeks) for the second quarter and
year-to-date of fiscal 2004 by 9.3% and 10.0%, respectively, compared to the
respective prior year periods. Comparable store sales increased 2.3% and 2.1%
for the second quarter and year-to-date, respectively, from the same periods of
fiscal 2003.&nbsp; Menu prices in the
aggregate increased 1.4% in fiscal 2004 as compared to fiscal 2003.</p>



<p><b>COSTS AND EXPENSES (as a
Percent of Revenues) </b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cost of sales increased 0.3% for
the second quarter and year-to-date of fiscal 2004 as compared to the same
periods of fiscal 2003.&nbsp; The second
quarter increase was due primarily to a 0.9% increase in commodity prices for
produce, beverages, dairy and cheese and a 0.3% unfavorable product mix shift
for poultry, partially offset by a 0.5% decrease in commodity prices for
poultry and a 0.4% increase in menu prices.&nbsp;
The year-to-date increase was due primarily to a 0.6% increase in
commodity prices for produce, dairy and cheese and a 0.9% unfavorable product
mix shift for poultry, produce, dairy and cheese, partially offset by a 0.6%
decrease in commodity prices for poultry and a 0.6% increase in menu prices.</p>



<p>&nbsp;<hr><P Style="page-break-after: always"></P>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restaurant expenses decreased
0.8% for the second quarter of fiscal 2004 as compared to the same period of
fiscal 2003.&nbsp; The decrease was primarily
due to a gain recorded during the second quarter of fiscal 2004 totaling $2.4
million as a result of the sale of four Chili's to a franchise partner and the
sale of one real estate property and impairment charges recorded during the
second quarter of fiscal 2003 totaling $9.5 million. These decreases were
partially offset by a $2.0 million loss resulting from the sale of Cozymel's
during the second quarter of fiscal 2004, an increase in payroll taxes
resulting from increased tip reporting, increases in utility costs, and
increases in health, workers compensation and general liability insurance.&nbsp; Restaurant expenses increased 0.2% for
year-to-date fiscal 2004 as compared to the same period of fiscal 2003.&nbsp; The increase was primarily due to the $2.0
million Cozymel's loss, an increase in payroll taxes resulting from increased
tip reporting, increases in utility costs, and increases in health, workers
compensation and general liability insurance.&nbsp;
These increases were partially offset by the previously mentioned $2.4
million gain on the sale of assets and the impairment charges recorded during
the second quarter of fiscal 2003 totaling $9.5 million.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization
remained flat for the second quarter of fiscal 2004 as compared to the same
period of fiscal 2003 and increased 0.1% year-to-date as compared to the same
period of fiscal 2003.&nbsp; Increases in
depreciation expense due to new unit construction and ongoing remodel costs
were offset by increased sales leverage and a declining depreciable asset base
for older units.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative
expenses increased 0.1% for the second quarter of fiscal 2004 as compared to
the same period of fiscal 2003. The increase was primarily due to an increase
in incentive based compensation and increased payroll costs resulting from an
increase in headcount and wage rates.&nbsp;
General and administrative expenses decreased 0.1% year-to-date of
fiscal 2004 as compared to the same period of fiscal 2003 as a result of increased
sales leverage resulting from new unit openings and the Company's continued
focus on controlling corporate expenditures. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense remained flat
for the second quarter and year-to-date of fiscal 2004 as compared to the same
periods of fiscal 2003.&nbsp; Decreases in
interest expense on the senior notes and revolving lines-of-credit resulting
from lower average outstanding balances were offset by a decrease in
capitalized interest due to lower interest rates.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other, net remained flat for the
second quarter and year-to-date of fiscal 2004 as compared to the same periods
of fiscal 2003.&nbsp; Decreases in losses
related to the Company's share in equity method investees and net savings plan
obligations were offset by gains from life insurance proceeds recorded in the
first and second quarters of fiscal 2003 totaling $3.5 million.</p>



<h1><b><font size="3">INCOME TAXES</font></b></h1>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company's effective income
tax rate decreased to 32.3% from 33.3% for the second quarter of fiscal 2004
and to 32.3% from 33.5% year-to-date for fiscal 2004 as compared to the same
periods of fiscal 2003. The decreases are primarily due to the increase in the
FICA tax credit resulting from increased tip reporting. </p>




<p>&nbsp;<hr><P Style="page-break-after: always"></P>




<p><b>LIQUIDITY
AND CAPITAL RESOURCES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The working capital deficit
increased from $143.7 million at June 25, 2003 to $157.1 million at December
24, 2003.&nbsp; Net cash provided by
operating activities increased to $237.5 million for the first six months of
fiscal 2004 from $213.7 million during the same period in fiscal 2003 due to
the timing of operational receipts and payments.&nbsp; The Company believes that its various sources of capital,
including availability under existing credit facilities and cash flow from
operating activities, are adequate to finance operations as well as the
repayment of current debt obligations.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company's contractual obligations
and credit facilities as of December 24, 2003 are as follows:</p>



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=175 valign=top>

  </td>
  <td width=480 colspan=5 valign=top>
  <p align=center><b><font size="2">Payment
  Due by Period<br>
  (in
  thousands)</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=175 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=right><b><u><font size="2"><br>
  Total</font></u></b></p>
  </td>
  <td width=96 valign=top>
  <p align=right><b><font size="2">Less
  than<br>
&nbsp;</font><u><font size="2">1 Year </font> </u></b></p>
  </td>
  <td width=96 valign=top>
  <p align=right><b><font size="2">2-3<br>
  </font><u><font size="2">Years</font></u></b></p>
  </td>
  <td width=96 valign=top>
  <p align=right><b><font size="2">4-5<br>
  </font><u><font size="2">Years</font></u></b></p>
  </td>
  <td width=96 valign=top>
  <p align=right><b><font size="2">After
  5<br>
&nbsp;</font><u><font size="2">Years</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td width=175>
  <p><font size="2">Convertible debt (a)</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">$&nbsp; 265,460</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; -</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">$&nbsp; 265,460</font></p>
  </td>
 </tr>
 <tr>
  <td width=175>
  <p><font size="2">Senior notes</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">30,036</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">14,300</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">15,736</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">-</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">-</font></p>
  </td>
 </tr>
 <tr>
  <td width=175>
  <p><font size="2">Capital leases</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">62,767</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">3,540</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">6,735</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">7,068</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">45,424</font></p>
  </td>
 </tr>
 <tr>
  <td width=175 valign=top>
  <p><font size="2">Mortgage loan obligations</font></p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">40,110</font></p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">2,341</font></p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">4,788</font></p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">4,358</font></p>
  </td>
  <td width=96 valign=top>
  <p align=right><font size="2">28,623</font></p>
  </td>
 </tr>
 <tr>
  <td width=175>
  <p><font size="2">Operating leases </font> </p>
  </td>
  <td width=96>
  <p align=right><font size="2">881,574</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">101,482</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">193,461</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">171,134</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">415,497</font></p>
  </td>
 </tr>
</table>





<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=175 valign=top>

  </td>
  <td width=480 colspan=5 valign=top>
  <p align=center>&nbsp;</p>
  <p align=center><b><font size="2">Amount
  of Credit Facility Expiration by Period<br>
  (in
  thousands)</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=175 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=center><b><font size="2">Total
  </font>
  <u><font size="2">Commitment</font></u></b></td>
  <td width=96 valign=top>
  <p align=center><b><font size="2">Less
  than<br>
  </font> <u><font size="2">1 year (b)</font></u></b></p>
  </td>
  <td width=96 valign=top>
  <p align=center><b><font size="2">2-3
  <br>
  </font><u><font size="2">Years</font></u></b></p>
  </td>
  <td width=96 valign=top>
  <p align=center><b><font size="2">4-5<br>
  </font><u><font size="2">Years</font></u></b></p>
  </td>
  <td width=96 valign=top>
  <p align=center><b><font size="2">Over
  5<br>
&nbsp;</font><u><font size="2">Years</font></u></b></p>
  </td>
 </tr>
 <tr>
  <td width=175>
  <p><font size="2">Credit facilities</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">$&nbsp; 345,000</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">$&nbsp; 70,000</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">$&nbsp; 275,000</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></p>
  </td>
  <td width=96>
  <p align=right><font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</font></p>
  </td>
 </tr>
</table>



<blockquote>



<p><font size="1">(a)&nbsp;&nbsp; The
convertible debt was issued at a discount representing a yield to maturity of
2.75% per annum.&nbsp; The $265.5 million
balance is the accreted carrying value of the debt at December 24, 2003.&nbsp; The convertible debt will continue to
accrete at 2.75% per annum and if held to maturity in October 2021 the
obligation will total $431.7 million.</font></p>



<p><font size="1">(b)&nbsp;&nbsp; The
portion of the credit facilities that expires in less than one year is an
uncommitted obligation giving the lenders the option not to extend the Company
funding.&nbsp; However, the lenders have not
exercised this option in the past and the Company anticipates that these funds
will be available in the future. Should any or all of these obligations not be
extended, the Company has adequate capacity under the committed facility, which
does not expire until fiscal 2006.</font></p>



</blockquote>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital expenditures consist of
purchases of land for future restaurant sites, new restaurants under
construction, purchases of new and replacement restaurant furniture and
equipment, and ongoing remodeling programs. Capital expenditures were
approximately $153.4 million for the first six months of fiscal 2004 compared
to $155.9 million for the same period of fiscal 2003. The decrease is due
primarily to fewer stores under construction and fewer stores opened in the
current period as compared to the same period in fiscal 2003.
The Company
estimates that its capital expenditures during the third quarter of fiscal 2004
will approximate $90.0 million. These capital expenditures will be funded
entirely from operations and existing credit facilities.</p>



<p>&nbsp;<hr><P Style="page-break-after: always"></P>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; During the second quarter of fiscal 2004, the
Company closed one Cozymel's restaurant and sold the remaining fifteen
restaurants.&nbsp; The Company has received,
or expects to receive, proceeds related to the closed and sold units of $22.4
million, including notes receivable totaling $20.2 million.&nbsp; During the third quarter of fiscal 2004,
$14.4 million of the notes is scheduled to be repaid in cash and the remaining
$5.8 million is to be converted to long-term financing.&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the Company's
current stock repurchase plan, the Company repurchased approximately 2.9
million shares of its common stock for $90.4 million during the first and
second quarters of fiscal 2004.&nbsp; As of
December 24, 2003, approximately 21.1 million shares of its common stock had
been repurchased for $482.5 million under the approved $510.0 million stock
repurchase plan. The Company's stock repurchase plan is used by the Company
primarily to offset the dilutive effect of stock option exercises and for other
corporate purposes. The repurchased common stock is reflected as a reduction of
shareholders' equity.&nbsp; The Company
finances the repurchase program through a combination of cash provided by
operations and drawdowns on its available credit facilities.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company is not aware of any
other event or trend, which would potentially affect its liquidity. In the
event such a trend develops, the Company believes that there are sufficient
funds available under its credit facilities and from its internal cash
generating capabilities to adequately manage the expansion of business.</p>



<p><b>Item 3.&nbsp; QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There have been no material
changes in the quantitative and qualitative market risks of the Company since
the prior reporting period.</p>



<p><b>CRITICAL ACCOUNTING POLICIES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following discussion
addresses our most critical accounting policies, which are those that are most
important to the portrayal of our financial condition and results, and that
require significant judgment.</p>



<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and Equipment</b>&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property
and equipment are depreciated on a straight-line basis over the estimated
useful lives of the assets.&nbsp; The useful
lives of the assets are based upon the Company's expectations for the period of
time that the asset will be used to generate revenue.&nbsp; The Company periodically reviews the assets for changes in
circumstances, which may impact their useful lives.</p>



<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment
of Long-Lived Assets</b>&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company reviews property and
equipment for impairment when events or circumstances indicate that the
carrying amount of a restaurant's assets may not be recoverable.&nbsp; The Company tests for impairment using
historical cash flows and other relevant facts and circumstances as the primary
basis for its estimates of future cash flows.&nbsp;
This process requires the use of estimates and assumptions, which are
subject to a high degree of judgment.&nbsp;
In addition, at least annually the Company assesses the recoverability
of goodwill and other intangible assets related to its restaurant
concepts.&nbsp; These impairment tests
require the Company to estimate fair values of its restaurant concepts by
making assumptions regarding future cash flows, expected growth rates, terminal
values, and other factors.&nbsp; These
assumptions could be materially different than those used by a third party.&nbsp; In the event that these assumptions change in
the future, the Company may be required to record impairment charges for these
assets.</p>



<p>&nbsp;<hr><P Style="page-break-after: always"></P>



<p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Instruments</b>&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company enters into interest rate swaps to maintain the value of certain
fixed-rate debt and lease obligations.&nbsp;
The fair value of these swaps is estimated using widely accepted
valuation methods.&nbsp; The valuation of
derivatives involves considerable judgment, including estimates of future
interest rate curves.&nbsp; Changes in those
estimates may materially affect the amounts recognized in the balance sheet for
the Company's derivatives and interest costs in future periods.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>Self-Insurance</b>&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company is self-insured for
certain losses related to general liability and workers' compensation.&nbsp; The Company maintains stop loss coverage
with third party insurers to limit its total exposure.&nbsp; The self-insurance liability represents an
estimate of the ultimate cost of claims incurred as of the balance sheet
date.&nbsp; The estimated liability is not
discounted and is established based upon analysis of historical data and
actuarial estimates, and is reviewed by the Company on a quarterly basis to
ensure that the liability is appropriate. If actual trends, including the
severity or frequency of claims, differ from our estimates, our financial
results could be impacted. </p>

<p><b>&nbsp;Item
4.&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES  </b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Within the 90-day period prior
to the filing of this report, an evaluation was carried out under the
supervision and with the participation of the Company's management, including
its Chief Executive Officer and Chief Financial Officer, of the effectiveness
of the design and operation of its disclosure controls and procedures (as
defined in Rule 13a-14(c) under the Securities Exchange Act of 1934). Based
upon that evaluation, the Chief Executive Officer and Chief Financial Officer
concluded that the design and operation of these disclosure controls and
procedures were effective.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There were no significant
changes in the Company's internal controls or in other factors that could
significantly affect these controls subsequent to the date of their evaluation,
including any corrective actions with regard to significant deficiencies and
material weaknesses.</p>



<p><b>FORWARD-LOOKING STATEMENTS</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company wishes to caution readers that the following important factors, among
others, could cause the actual results of the Company to differ materially from
those indicated by forward-looking statements made in this report and from time
to time in news releases, reports, proxy statements, registration statements
and other written communications, as well as verbal forward-looking statements
made from time to time by representatives of the Company.&nbsp; Such forward-looking statements involve
risks and uncertainties that may cause the Company's or the restaurant
industry's actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by these forward-looking statements.&nbsp;
Factors that might cause actual events or results to differ materially
from those indicated by these forward-looking statements may include matters
such as future economic performance, restaurant openings, operating margins,
the availability of acceptable real estate locations for new restaurants, the
sufficiency of the Company's cash balances and cash generated from operating
and financing activities for the Company's future liquidity and capital
resource needs, and other matters, and are generally accompanied by words such
as &quot;believes,&quot; &quot;anticipates,&quot; &quot;estimates,&quot; &quot;predicts,&quot; &quot;expects&quot; and similar
expressions that convey the uncertainty of future events or outcomes.&nbsp; An expanded discussion of some of these risk
factors follows.</p>



<p>&nbsp;<hr><P Style="page-break-after: always"></P>



<p><i>Competition
may adversely affect the Company's operations and financial results.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
restaurant business is highly competitive with respect to price, service,
restaurant location and food quality, and is often affected by changes in
consumer tastes, economic conditions, population and traffic patterns.&nbsp; The Company competes within each market with
locally-owned restaurants as well as national and regional restaurant chains,
some of which operate more restaurants and have greater financial resources and
longer operating histories than the Company.&nbsp;
There is active competition for management personnel and for attractive
commercial real estate sites suitable for restaurants.&nbsp; In addition, factors such as inflation,
increased food, labor and benefits costs, and difficulty in attracting hourly
employees may adversely affect the restaurant industry in general and the Company's
restaurants in particular.</p>



<p><i>The Company's sales volumes generally decrease in winter
months.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company's sales volumes fluctuate seasonally, and are generally higher in the
summer months and lower in the winter months, which may cause seasonal
fluctuations in the Company's operating results.</p>



<p><i>Changes in governmental regulation may adversely affect the
Company's ability to open new restaurants and the Company's existing and future
operations.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each of
the Company's restaurants is subject to licensing and regulation by alcoholic
beverage control, health, sanitation, safety and fire agencies in the state,
county and/or municipality in which the restaurant is located.&nbsp; The Company generally has not encountered
any difficulties or failures in obtaining the required licenses or approvals
that could delay or prevent the opening of a new restaurant and although the
Company does not, at this time, anticipate any occurring in the future, there
can be no assurance that the Company will not experience material difficulties
or failures that could delay the opening of restaurants in the future.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company is subject to federal and state environmental regulations, and although
these have not had a material negative effect on the Company's operations,
there can be no assurance that there will not be a material negative effect in
the future.&nbsp; More stringent and varied
requirements of local and state governmental bodies with respect to zoning,
land use and environmental factors could delay or prevent development of new
restaurants in particular locations.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company is subject to the Fair Labor Standards Act, which governs such matters
as minimum wages, overtime and other working conditions, along with the
Americans With Disabilities Act, various family leave mandates and a variety of
other laws enacted, or rules and regulations promulgated, by federal, state and
local governmental authorities that govern these and other employment matters.
Although the Company expects increases in payroll expenses as a result of
federal, state and local mandated increases in the minimum wage, and although
such increases are not expected to be material, there can be no assurance that
there will not be material increases in the future.&nbsp; However, the Company's vendors may be affected by higher minimum
wage standards, which may result in increases in the price of goods and
services supplied to the Company.</p>



<p>&nbsp;<hr><P Style="page-break-after: always"></P>

<p><i>Inflation may increase the Company's operating expenses.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company has not experienced a significant overall impact from inflation.&nbsp; As operating expenses increase, the Company,
to the extent permitted by competition, recovers increased costs by increasing
menu prices, by reviewing, then implementing, alternative products or
processes, or by implementing other cost-reduction procedures.&nbsp; There can be no assurance, however, that the
Company will be able to continue to recover increases in operating expenses due
to inflation in this manner.</p>



<p><i>Increased energy costs may adversely affect the Company's
profitability.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company's success depends in part on its ability to absorb increases in utility
costs.&nbsp; Various regions of the United
States in which the Company operates multiple restaurants, particularly
California, have experienced significant and temporary increases in utility
prices.&nbsp; If these increases should
recur, they will have an adverse effect on the Company's profitability.</p>



<p><i>If the Company is unable to meet its growth plan, the
Company's profitability in the future may be adversely affected.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company's ability to meet its growth plan is dependent upon, among other
things, its ability to identify available, suitable and economically viable
locations for new restaurants, obtain all required governmental permits
(including zoning approvals and liquor licenses) on a timely basis, hire all
necessary contractors and subcontractors, and meet construction schedules.&nbsp; The costs related to restaurant and concept
development include purchases and leases of land, buildings and equipment and
facility and equipment maintenance, repair and replacement.&nbsp; The labor and materials costs involved vary
geographically and are subject to general price increases.&nbsp; As a result, future capital expenditure
costs of restaurant development may increase, reducing profitability.&nbsp; There can be no assurance that the Company
will be able to expand its capacity in accordance with its growth objectives or
that the new restaurants and concepts opened or acquired will be profitable.</p>



<p><i>Unfavorable publicity relating to one or more of the
Company's restaurants in a particular brand may taint public perception of the
brand.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Multi-unit
restaurant businesses can be adversely affected by publicity resulting from
poor food quality, illness or other health concerns or operating issues
stemming from one or a limited number of restaurants.&nbsp; In particular, since the Company depends heavily on the &quot;Chili's&quot;
brand for a majority of its revenues, unfavorable publicity relating to one or
more Chili's restaurants could have a material adverse effect on the Company's
business, results of operations, and financial condition.</p>



<p><i>Other risk factors may adversely affect the Company's
financial performance.</i></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other
risk factors that could cause the Company's actual results to differ materially
from those indicated in the forward-looking statements include, without
limitation, changes in economic conditions, consumer perceptions of food
safety, changes in consumer tastes, governmental monetary policies, changes in
demographic trends, availability of employees, terrorist acts, and weather and
other acts of God.</p>




<p>&nbsp;<hr><P Style="page-break-after: always"></P>




<h6><font size="3">PART
II.&nbsp; OTHER INFORMATION</font></h6>

<p><b>&nbsp;Item
1. &nbsp;&nbsp; LEGAL PROCEEDINGS</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information
regarding legal proceedings is incorporated by reference from Note 6 to the
Company's consolidated financial statements set forth in Part I of this report.</p>

<p>&nbsp;</p>

<h6><font size="3">Item
4.&nbsp; SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS</font></h6>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company's Proxy Statement
dated September 23, 2003 for the Annual Meeting of Shareholders held on
November 13, 2003, as filed with the Securities and Exchange Commission on
September 23, 2003, is incorporated herein by reference.</p>



<p>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The
Annual Meeting of Shareholders of the Company was held on November 13, 2003.</p>



<p>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each
of the management's nominees, as described in the Proxy Statement referenced
above, was elected a director to hold office until the next Annual Meeting of
Shareholders or until his or her successor is elected and qualified.</p>



<table border=0 cellspacing=0 cellpadding=0 width="492">
 <tr>
  <td width=219 valign=top>

  </td>
  <td width=111 valign=top>

  </td>
  <td width=35 valign=top>

  </td>
  <td width=127 valign=top>
  <p align="right"><font size="2">Votes
  Against</font></td>
 </tr>
 <tr>
  <td width=219 valign=top>

  </td>
  <td width=111 valign=top>
  <p align="right"><u><font size="2">Votes For</font></u></p>
  </td>
  <td width=35 valign=top>
  &nbsp;</td>
  <td width=127 valign=top>
  <p align="right"><font size="2"><u>or Withheld</u>&nbsp;&nbsp; </font></td>
 </tr>
 <tr>
  <td width=219 valign=top>

  </td>
  <td width=111 valign=top>

  </td>
  <td width=35 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p><font size="2">Ronald A.
  McDougall</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">81,394,335</font></p>
  </td>
  <td width=35 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">4,902,937</font></p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p><font size="2">Douglas
  H. Brooks</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">84,652,569</font></p>
  </td>
  <td width=35 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">1,644,703</font></p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p><font size="2">Dan W.
  Cook, III</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">83,335,986</font></p>
  </td>
  <td width=35 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">2,961,286</font></p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p><font size="2">Robert M.
  Gates</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">84,669,485</font></p>
  </td>
  <td width=35 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">1,627,787</font></p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p><font size="2">Marvin J.
  Girouard</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">57,602,039</font></p>
  </td>
  <td width=35 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">28,695,233</font></p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p><font size="2">Ronald
  Kirk</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">57,581,894</font></p>
  </td>
  <td width=35 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">28,715,378</font></p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p><font size="2">George R.
  Mrkonic</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">84,642,149</font></p>
  </td>
  <td width=35 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">1,655,123</font></p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p><font size="2">Erle Nye</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">84,497,537</font></p>
  </td>
  <td width=35 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">1,799,735</font></p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p><font size="2">James E.
  Oesterreicher</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">57,620,278</font></p>
  </td>
  <td width=35 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">28,676,994</font></p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p><font size="2">Cece
  Smith</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">57,879,292</font></p>
  </td>
  <td width=35 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">28,417,980</font></p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p><font size="2">Roger T.
  Staubach</font></p>
  </td>
  <td width=111 valign=top>
  <p align=right><font size="2">82,450,713</font></p>
  </td>
  <td width=35 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=right><font size="2">3,846,559</font></p>
  </td>
 </tr>
</table>



<p>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The
following matter was also voted upon at the meeting and approved by the
shareholders:</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
proposal
to ratify the appointment of KPMG LLP as Independent Auditors for Fiscal 2004</p>



<table border=0 cellspacing=0 cellpadding=0 style="text-align: center">
 <tr>
  <td width=219 valign=top>
  <p>Votes For</p>
  </td>
  <td width=165 valign=top>
  <p align=right>54,345,496</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>Votes
  Against</p>
  </td>
  <td width=165 valign=top>
  <p align=right>31,760,632</p>
  </td>
 </tr>
 <tr>
  <td width=219 valign=top>
  <p>Votes
  Abstained</p>
  </td>
  <td width=165 valign=top>
  <p align=right>191,143</p>
  </td>
 </tr>
</table>



<p>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following
matter was also voted upon at the meeting and rejected by the shareholders:</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; proposal regarding
genetically engineered ingredients in food products</p>



<table border=0 cellspacing=0 cellpadding=0 width="384">
 <tr>
  <td width=263 valign=top align="center">
  <p>Votes For</p>
  </td>
  <td width=121 valign=top>
  <p align=right>5,708,349</p>
  </td>
  <td width=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=263 valign=top align="center">
  <p>Votes
  Against</p>
  </td>
  <td width=121 valign=top>
  <p align=right>65,895,679</p>
  </td>
  <td width=4 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=263 valign=top align="center">
  <p>Votes
  Abstained</p>
  </td>
  <td width=121 valign=top>
  <p align=right>7,460,091</p>
  </td>
  <td width=4 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
</table>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <hr><P Style="page-break-after: always"></P>

<h6><font size="3">Item
6.&nbsp; EXHIBITS AND REPORTS ON FORM 8-K</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </h6>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp; Exhibits </p>



<blockquote>



<p>31(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certification
by Douglas H. Brooks, President and Chief Executive Officer of the Registrant,
pursuant to 17 CFR 240.13a - 14(a) or 17 CFR 240.15d - 14(a).</p>



<p>31(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certification
by Charles M. Sonsteby, Executive Vice President and Chief Financial Officer of
the Registrant, pursuant to 17 CFR 240.13a - 14(a) or 17 CFR 240.15d - 14(a).</p>



<p><font face="Times New Roman" size="3">32(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certification by Douglas H. Brooks, President and Chief Executive Officer of the Registrant, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</font></p>
  <p><font face="Times New Roman" size="3">32(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certification by Charles M. Sonsteby, Executive Vice President and Chief Financial Officer of the Registrant, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
  </font> </p>
</blockquote>

<p><font face="Times New Roman">(b)</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reports
on Form 8-K</p>



<blockquote>



<p>A
current report on Form 8-K, dated October 21, 2003, was filed with the
Securities and Exchange Commission on October 24, 2003.&nbsp; This Form 8-K furnished a copy of the
Company's press release announcing its first quarter fiscal 2004 results.</p>

</blockquote>
&nbsp;<hr><P Style="page-break-after: always"></P><p align=center><b>SIGNATURES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of
the Securities Exchange Act of 1934, the Company has duly caused this report to
be signed on its behalf by the undersigned thereunto duly authorized.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BRINKER
INTERNATIONAL, INC. </p>







<p>Date:&nbsp; February 9, 2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:<u>&nbsp;&nbsp;&nbsp; /s/ Douglas H. Brooks<br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Douglas H.
Brooks, <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; President and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive
Officer<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Principal
Executive Officer)</p>







<p>&nbsp;</p>







<p>Date:&nbsp; February 9, 2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By:<u>&nbsp;&nbsp;&nbsp; /s/ Charles M. Sonsteby<br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charles M.
Sonsteby, <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Executive Vice
President and <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial
Officer <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Principal
Financial Officer)</p>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>3
<FILENAME>ex31a1.htm
<DESCRIPTION>EXHIBIT 31A
<TEXT>
<html>

<head>

<title>EXHIBIT 31(a)</title>

</head>

<body>

<p align=center>EXHIBIT 31(a)</p>



<p align=center><b>&nbsp;CERTIFICATIONS</b></p>

<p>I, Douglas
H. Brooks, certify that: </p>



<p>1.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
I have reviewed this quarterly report on Form 10-Q of
Brinker International, Inc.;</p>

<p>2.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, this report does not contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this
report;</p>

<p>3.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, the financial statements, and
other financial information included in this quarterly report, fairly present
in all material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in this
report;</p>

<p>4.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The registrant's other certifying officer(s) and I are
responsible for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
and have:</p>

<blockquote>

<p>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;</p>

<p>b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</p>

<p>c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in the case
of an annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and</p>

</blockquote>

<p>5.
&nbsp;&nbsp;&nbsp; The
registrant's other certifying officer(s) and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):</p>

<blockquote>

<p>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and</p>

<p>b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal
control over financial reporting.</p>

</blockquote>

<p>Date: February
9, 2004</p>





<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>

  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>

  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p><u>/s/ Douglas H. Brooks&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>Douglas H. Brooks</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>President and Chief Executive
  Officer</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>(Principal Executive Officer)</p>
  </td>
 </tr>
</table>



</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>4
<FILENAME>ex31b1.htm
<DESCRIPTION>EXHIBIT 31B
<TEXT>
<html>

<head>

<title>EXHIBIT 31(b)</title>

</head>

<body>

<p align=center>EXHIBIT 31(b)</p>



<p align=center><b>CERTIFICATIONS</b></p>

<p align=center>&nbsp;</p>



<p>I, Charles
M. Sonsteby, certify that: </p>



<p>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
I have reviewed this quarterly report on Form 10-Q of Brinker
International, Inc.;</p>

<p>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;</p>

<p>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Based on my knowledge, the financial statements, and other
financial information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash flows
of the registrant as of, and for, the periods presented in this report;</p>

<p>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The registrant's other certifying officer(s) and I are
responsible for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant
and have:</p>

<blockquote>

<p>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Designed such disclosure controls and procedures, or caused
such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;</p>

<p>b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</p>

<p>c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Disclosed in this report any change in the registrant's
internal control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in the case
of an annual report) that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and</p>

</blockquote>

<p>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The registrant's other certifying officer(s) and I have disclosed,
based on our most recent evaluation of internal control over financial
reporting, to the registrant's auditors and the audit committee of the
registrant's board of directors (or persons performing the equivalent
functions):</p>

<blockquote>

<p>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and</p>

<p>b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any fraud, whether or not material, that involves management
or other employees who have a significant role in the registrant's internal
control over financial reporting.</p>



</blockquote>



<p>Date: February
9, 2004</p>







<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>

  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>

  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p><u>/s/ Charles M. Sonsteby&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>Charles M. Sonsteby</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>Executive Vice President and</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>Chief Financial Officer</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>(Principal Financial Officer)</p>
  </td>
 </tr>
</table>



</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>ex32a1.htm
<DESCRIPTION>EXHIBIT 32A
<TEXT>
<html>

<head>

<title>EXHIBIT 32(a)</title>

</head>

<body>

<p align=center>EXHIBIT 32(a)</p>





<p align=center><b>CERTIFICATION<br>
&nbsp;</b></p>



<p>Pursuant to 18 U.S.C. Section 1350, the undersigned
officer of Brinker International, Inc. (the &quot;Company&quot;), hereby
certifies that the Company's Quarterly Report on Form 10-Q for the quarter
ended December 24, 2003 (the &quot;Report&quot;) fully complies with the
requirements of Section 13(a) or 15(d), as applicable, of the Securities
Exchange Act of 1934 and that the information contained in the Report fairly
presents, in all material respects, the financial condition and results of operations
of the Company.</p>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p>Date:&nbsp; February 9, 2004&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:<u>&nbsp; /s/ Douglas H. Brooks&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Douglas
H. Brooks, <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; President
and Chief Executive Officer <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Principal
Executive Officer)</p>

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<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>6
<FILENAME>ex32b1.htm
<DESCRIPTION>EXHIBIT 32B
<TEXT>
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<title>EXHIBIT 32(b)</title>

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<p align=center>EXHIBIT 32(b)</p>





<p align=center>CERTIFICATION<br>
&nbsp;</p>



<p>Pursuant
to 18 U.S.C. Section 1350, the undersigned officer of Brinker International,
Inc. (the &quot;Company&quot;), hereby certifies that the Company's Quarterly
Report on Form 10-Q for the quarter ended December 24, 2003 (the &quot;Report&quot;)
fully complies with the requirements of Section 13(a) or 15(d), as applicable,
of the Securities Exchange Act of 1934 and that the information contained in
the Report fairly presents, in all material respects, the financial condition
and results of operations of the Company.</p>







<p>&nbsp;</p>







<p>&nbsp;</p>







<p>Date:&nbsp; February 9, 2004&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:<u>&nbsp;&nbsp; /s/ Charles M. Sonsteby&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charles
M. Sonsteby, <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Executive
Vice President and <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief
Financial Officer <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Principal
Financial Officer)</p>

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