<SUBMISSION>
<ACCESSION-NUMBER>0000703351-05-000016
<TYPE>10-Q/A
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20040929
<FILING-DATE>20050120
<DATE-OF-FILING-DATE-CHANGE>20050119
<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/A
<ACT>34
<FILE-NUMBER>001-10275
<FILM-NUMBER>05537257
</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/A
<SEQUENCE>1
<FILENAME>form10qa1q051.htm
<DESCRIPTION>FORM 10-Q/A
<TEXT>
<html>

<head>

<title>FORM 10-Q RESTATED</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/A</p>



<p align=center>[Amendment No.1]</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 September 29, 2004</p>

<p align=center>Commission
File Number 1&#8209;10275<br>
&nbsp;</p>





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





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



<table border="1" cellpadding="0" cellspacing="0" style="border-width:0; border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">DELAWARE</td>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">75-1914582</td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">(State or other jurisdiction of</td>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">(I.R.S. Employer</td>
  </tr>
  <tr>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">incorporation or organization)</td>
    <td width="50%" style="border-style: none; border-width: medium">
    <p align="center">Identification No.)</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.</p>

<p>Yes <u>&nbsp;&nbsp;X&nbsp; </u>&nbsp;&nbsp; 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).</p>

<p>Yes <u>&nbsp;&nbsp;X&nbsp; </u>&nbsp;&nbsp; No <i>_____</i></p>



<p>Indicate
the number of shares outstanding of each of the registrant's classes of common
stock, as of the latest practicable date.</p>



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=319 valign=top>
  <p>Class</p>
  </td>
  <td width=319 valign=top>
  <p>Outstanding
  at November 3, 2004</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Common
  Stock, $0.10 par value</p>
  </td>
  <td width=319 valign=top>
  <p>86,443,414
  shares</p>
  </td>
 </tr>
</table>





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

<p>&nbsp; The purpose of this amendment on Form&nbsp;10-Q/A to the
Quarterly Report on Form&nbsp;10-Q of Brinker International, Inc. for the
quarterly period ended September 29, 2004 is to restate our consolidated
financial statements for the thirteen weeks ended September 29, 2004 and
September 24, 2003 and as of June 30, 2004, and related disclosures, as described
in Note&nbsp;2 to the Consolidated Financial Statements. Additional information
about the decision to restate these financial statements can be found in our
Current Report on Form&nbsp;8-K, filed with the SEC on December 22, 2004.</p>



<p>&nbsp;&nbsp; No attempt has been
made in this Form&nbsp;10-Q/A to modify or update other disclosures presented
in the original report on Form&nbsp;10-Q, except as required to reflect the
effects of the restatement. The Form&nbsp;10-Q/A does not reflect events
occurring after the filing of the Form&nbsp;10-Q or modify or update those
disclosures, including the exhibits to the Form&nbsp;10-Q affected by
subsequent events. Information not affected by the restatement is unchanged and
reflects the disclosures made at the time of the original filing of the Form&nbsp;10-Q
on November 8, 2004. Accordingly, this Form&nbsp;10-Q/A should be read in
conjunction with our filings made with the Securities and Exchange Commission
subsequent to the filing of the original Form&nbsp;10-Q, including any
amendments to those filings. The following items have been amended as a result
of the restatement:</p>



<ul>
  <li>Part
I - Item 1 - Financial Statements</li>
  <li>Part
I - Item 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operations</li>
</ul>



<p><i>Description of Restatement</i></p>



<p>&nbsp; The Company
has corrected its computation of straight-line rent expense and the related
deferred rent liability.&nbsp; Historically,
when accounting for leases with renewal options, rent expense has been recorded
on a straight-line basis over the initial non-cancelable lease term. Buildings
and leasehold improvements on those properties are depreciated over a period
equal to the shorter of the term of the lease, including option periods
provided for in the lease, or the useful life of the assets. The Company has
determined that it should recognize rent expense on a straight-line basis over
sufficient renewal periods to equal or exceed the depreciable life of the assets, including
cancelable option periods where failure to exercise such options would result
in an economic penalty.</p>



<p>&nbsp; The Company also evaluated the accounting of an intangible asset
related to franchise rights acquired in fiscal 1998 and has determined that it
would have been more appropriate to expense the purchase price of the franchise
rights. </p>



<p>&nbsp; As a result of the above items, the cumulative effect of the
restatement through the first quarter of fiscal 2005 was an increase in the
deferred rent liability of approximately $22.0 million and a decrease in
intangible franchise rights of $4.4 million. In addition, the deferred income
tax liability at the end of the first quarter of fiscal 2005 decreased by
approximately $9.9 million, and retained earnings at the end of the first
quarter of fiscal 2005 decreased by approximately $16.5 million. Rent expense
for the first quarter of fiscal 2005 and 2004 increased by approximately $1.3
million and $1.2 million, respectively.&nbsp;
</p><hr><P Style="page-break-after: always"></P>&nbsp;<p align="center"> <b>BRINKER
INTERNATIONAL, INC.</b></p>

<p align="center"><b>INDEX</b></p>

<table border="1" cellpadding="0" cellspacing="0" style="border-width:0; border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">Part I - Financial Information</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="center"><u>Page</u></td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp; Item 1.&nbsp; Financial Statements
    (as restated)</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&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;
    September 29, 2004 (Unaudited) and June 30, 2004</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="right">4</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&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; (Unaudited)
    - Thirteen week periods ended<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    September 29, 2004 and September 24, 2003</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="right">5</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&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; (Unaudited) -
    Thirteen week periods ended<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; September 29,
    2004 and September 24, 2003</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="right">6</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes
    to Consolidated<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial
    Statements (Unaudited)</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="right">7</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp; Item 2.&nbsp; Management's
    Discussion and Analysis of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Condition and
    Results of Operations</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="right">15</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp; Item 3.&nbsp; Quantitative and
    Qualitative Disclosures<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; About Market Risk</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="right">20</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp; Item 4.&nbsp; Controls and
    Procedures</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="right">20</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">Part II - Other Information</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp; Item 1.&nbsp; Legal Proceedings</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="right">23</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp; Item 2.&nbsp; Unregistered Sales of
    Equity Securities and Use of Proceeds</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="right">23</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp; Item 6.&nbsp; Exhibits</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="right">24</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;</td>
    <td width="10%" style="border-style: none; border-width: medium">&nbsp;</td>
  </tr>
  <tr>
    <td width="90%" style="border-style: none; border-width: medium">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    Signatures</td>
    <td width="10%" style="border-style: none; border-width: medium">
    <p align="right">24</td>
  </tr>
</table>

<p><b>&nbsp;</b></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 border=1 cellspacing=0 cellpadding=0 width=680 style="border-width: 0">
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p align=center><b>BRINKER
  INTERNATIONAL, INC.</b></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p align=center><b>Consolidated
  Balance Sheets</b></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p align=center><b>(In thousands, except share and per share amounts)</b></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <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; </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center><b>September
  29,<br>
  <u>2004</u></b></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  June 30,<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <u>2004</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center><b>(as
  restated)<br>
  (Unaudited)</b></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align="center"><b>(as restated)</b></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>ASSETS</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Current
  Assets:</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Cash and cash equivalents</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>$&nbsp;&nbsp; 50,718 </p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>$&nbsp;&nbsp; 226,762 </p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Accounts receivable </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>45,884</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>37,934</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Inventories</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>42,556</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>38,113</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Prepaid expenses and other</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>73,092</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>74,764</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Deferred income taxes</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 19,592</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 23,347</u></p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Total current assets </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 231,842</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 400,920</u></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Property
  and Equipment, at cost:</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Land</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>286,635</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>283,777</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Buildings and leasehold improvements </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>1,386,668</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>1,354,671</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Furniture and equipment&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>686,403</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>666,415</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Construction-in-progress&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 75,498</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 72,818</u></p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; &nbsp;</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>2,435,204</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>2,377,681</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Less accumulated depreciation and
  amortization </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; (850,000</u>)</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; (810,835</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Net property and equipment </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;1,585,204</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;1,566,846</u></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Other
  Assets:</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Goodwill&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>136,021</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>158,068</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Other</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 69,077</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 81,552</u></p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Total other assets&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 205,098</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 239,620</u></p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Total assets </p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>$2,022,144</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>$2,207,386</u></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>LIABILITIES AND
  SHAREHOLDERS' EQUITY</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Current
  Liabilities:</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Current installments of long-term debt </p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>$&nbsp;&nbsp; 18,131</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>$&nbsp;&nbsp; 18,099</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Accounts payable</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>100,141</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>96,795</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Accrued liabilities</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>208,867</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>227,225</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Income taxes payable</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 37,043</u></p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp; Total current liabilities</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 327,139</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 379,162</u></p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>Long-term debt, less current
  installments&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; </p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>640,319</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>639,291</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>Deferred income taxes</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>73,150</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>72,453</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>Other liabilities</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>114,459</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>106,058</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Contingencies
  (Note 8) </p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>Shareholders'
  Equity:</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Common stock - 250,000,000 authorized
  shares; $0.10 </p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; par value; 117,499,541 shares issued and </p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; 89,832,853 shares outstanding at September
  29,</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; 2004, and 117,499,541 shares issued and</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; 90,647,745 shares outstanding at June 30,
  2004&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>11,750</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>11,750</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Additional paid-in capital</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>233,424</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>357,444</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Accumulated other comprehensive income</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 658</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>737</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Retained earnings</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;1,275,556</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;1,261,647</u></p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>1,521,388</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>1,631,578</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Less:</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Treasury stock, at cost (27,666,688 shares
  at September</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  &nbsp;&nbsp;&nbsp;&nbsp; 29, 2004 and 26,851,796 shares at June 30, 2004)</td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align="right">(652,409)</td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align="right">(619,806)</td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Unearned compensation</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; (1,902</u>)</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; (1,350</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Total shareholders' equity </p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 867,077</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;1,010,422</u></p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; Total
  liabilities and shareholders' equity</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>$2,022,144</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>$2,207,386</u></p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">

  <p>See accompanying notes to
  consolidated financial statements.</p>
  </td>
 </tr>
 <tr height=0>
  <td width=456 style="border-style: none; border-width: medium"></td>
  <td width=6 style="border-style: none; border-width: medium"></td>
  <td width=96 style="border-style: none; border-width: medium"></td>
  <td width=122 style="border-style: none; border-width: medium"></td>
 </tr>
</table>





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





<table border=0 cellspacing=0 cellpadding=0 width=660>
   <tr>
    <td width=661 colspan=5 valign=top>
    <p align="center"><b>BRINKER INTERNATIONAL, INC.</b></td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>
    <p align=center><b>Consolidated
    Statements of Income</b></p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>
    <p align=center><b>(In thousands, except per
    share amounts)</b></p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>
    <p align=center><b>(Unaudited)</b></p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>
    <p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></b></p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>

    </td>
    <td width=131 valign=top>
    <p align=center><b>September
    29,<br>
    <u>2004</u></b></p>
    </td>
    <td width=60 valign=top>

    </td>
    <td width=115 colspan=2 valign=top>
    <p align="center"><b>September 24,<br>
    <u>2003</u></b></p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>

    </td>
    <td width=131 valign=top>
    <p align=center><b>&nbsp;(as restated)</b></p>
    </td>
    <td width=60 valign=top>

    </td>
    <td width=115 colspan=2 valign=top>
    <p align=center><b>(as
    restated)</b></p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>

    </td>
    <td width=131 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>

    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>Revenues</p>
    </td>
    <td width=131 valign=top>
    <p align=right><u>$
    910,478</u></p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right><u>$
    870,898</u></p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>
    <p>Operating
    Costs and Expenses:</p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>&nbsp; Cost of sales </p>
    </td>
    <td width=131 valign=top>
    <p align=right>253,089</p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right>239,902</p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>&nbsp; Restaurant expenses </p>
    </td>
    <td width=131 valign=top>
    <p align=right>510,693</p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right>487,521</p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>&nbsp; Depreciation and amortization </p>
    </td>
    <td width=131 valign=top>
    <p align=right>45,939</p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right>&nbsp;&nbsp;&nbsp; 42,409</p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>&nbsp; General and administrative</p>
    </td>
    <td width=131 valign=top>
    <p align=right>&nbsp;&nbsp; 37,152</p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right>&nbsp;&nbsp; 33,296</p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>&nbsp; Restructure charges and other impairments</p>
    </td>
    <td width=131 valign=top>
    <p align=right><u>&nbsp;&nbsp; 48,256</u></p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>&nbsp;&nbsp; Total operating costs and expenses </p>
    </td>
    <td width=131 valign=top>
    <p align=right><u>&nbsp; 895,129</u></p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right><u>&nbsp; 803,128</u></p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>Operating
    income </p>
    </td>
    <td width=131 valign=top>
    <p align=right>15,349</p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right>67,770</p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>Interest
    expense</p>
    </td>
    <td width=131 valign=top>
    <p align=right>7,119</p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right>3,318</p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>Other,
    net</p>
    </td>
    <td width=131 valign=top>
    <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 442</u></p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; (257</u>)</p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>Income
    before income tax benefit (expense)</p>
    </td>
    <td width=131 valign=top>
    <p align=right>7,788</p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right>64,709</p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>

    </td>
    <td width=131 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right>&nbsp;</p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>Income
    tax benefit (expense) </p>
    </td>
    <td width=131 valign=top>
    <p align=right><u>&nbsp;&nbsp;&nbsp; 6,121</u></p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right><u>&nbsp; (20,836</u>)</p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>&nbsp; &nbsp;
    Net income</p>
    </td>
    <td width=131 valign=top>
    <p align=right><u>$&nbsp; 13,909</u></p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right><u>$&nbsp; 43,873</u></p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>Basic
    net income per share</p>
    </td>
    <td width=131 valign=top>
    <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.15</u></p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.45</u></p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>Diluted
    net income per share&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
    </td>
    <td width=131 valign=top>
    <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.15</u></p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.44</u></p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>
    <p>Basic weighted average </p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>&nbsp; shares outstanding</p>
    </td>
    <td width=131 valign=top>
    <p align=right><u>&nbsp;&nbsp; 89,761</u></p>
    </td>
    <td width=60 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=115 colspan=2 valign=top>
    <p align=right><u>&nbsp;&nbsp; 97,404</u></p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>
    <p>Diluted weighted average </p>
    </td>
   </tr>
   <tr>
    <td width=355 valign=top>
    <p>&nbsp; shares outstanding</p>
    </td>
    <td width=131 valign=top>
    <p align=right><u>&nbsp;&nbsp; 90,930</u></p>
    </td>
    <td width=75 colspan=2 valign=top>
    <p align=right>&nbsp;</p>
    </td>
    <td width=100 valign=top>
    <p align=right><u>&nbsp;&nbsp; 99,367</u></p>
    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>

    </td>
   </tr>
   <tr>
    <td width=661 colspan=5 valign=top>
    <p>See accompanying notes to
    consolidated financial statements.</p>
    </td>
   </tr>
   <tr height=0>
    <td width=355></td>
    <td width=131></td>
    <td width=60></td>
    <td width=15></td>
    <td width=100></td>
   </tr>
  </table>

<hr><P Style="page-break-after: always"></P>&nbsp;<table border=0 cellspacing=0 cellpadding=0 width=675>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p align=center><b>BRINKER INTERNATIONAL, INC.</b></p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p align=center><b>Consolidated Statements of Cash Flows</b></p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p align=center><b>(In thousands)</b></p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></b></p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>

  </td>
  <td width=128 valign=top>
  <p align=center><b>September
  29,</b></p>
  </td>
  <td width=36 valign=top>

  </td>
  <td width=99 valign=top>
  <p align=center><b>September
  24,</b></p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=128 valign=top>
  <p align=center><b><u>2004</u></b></p>
  </td>
  <td width=36 valign=top>

  </td>
  <td width=99 valign=top>
  <p align=center><b><u>2003</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>

  </td>
  <td width=128 valign=top>
  <p align=center><b>(as
  restated)</b></p>
  </td>
  <td width=36 valign=top>

  </td>
  <td width=99 valign=top>
  <p align=center><b>(as
  restated)</b></p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p>Cash Flows from Operating Activities:</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Net income</p>
  </td>
  <td width=128 valign=top>
  <p align=right>$
  13,909</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>$
  43,873</p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p>Adjustments to reconcile net income to net cash</p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p>&nbsp; provided by operating
  activities:</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp; Depreciation and amortization</p>
  </td>
  <td width=128 valign=top>
  <p align=right>45,939</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>42,409</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp; Restructure charges and other impairments</p>
  </td>
  <td width=128 valign=top>
  <p align=right>48,256</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>-</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp; Deferred income taxes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=128 valign=top>
  <p align=right>4,495</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>243</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp; Gain on sale of assets</p>
  </td>
  <td width=128 valign=top>
  <p align=right>(3,777)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>-</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp; Amortization of deferred costs&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=128 valign=top>
  <p align=right>2,068</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>2,706</p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p>&nbsp;&nbsp; Changes in assets and liabilities, excluding <br>
  &nbsp;&nbsp;&nbsp;&nbsp; effects of dispositions:</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables</p>
  </td>
  <td width=128 valign=top>
  <p align=right>(8,067)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>&nbsp;2,922</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td width=128 valign=top>
  <p align=right>(4,558)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>143</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other</p>
  </td>
  <td width=128 valign=top>
  <p align=right>2,471</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>2,739</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets</p>
  </td>
  <td width=128 valign=top>
  <p align=right>351</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>(2,317)</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income taxes</p>
  </td>
  <td width=128 valign=top>
  <p align=right>(37,043)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>19,836</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable</p>
  </td>
  <td width=128 valign=top>
  <p align=right>3,346</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>(8,693)</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities</p>
  </td>
  <td width=128 valign=top>
  <p align=right>(17,224)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>(11,374)</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities</p>
  </td>
  <td width=128 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 3,442</u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 4,822</u></p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating
  activities</p>
  </td>
  <td width=128 valign=top>
  <p align=right><u>&nbsp;&nbsp; 53,608</u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right><u>&nbsp;&nbsp; 97,309</u></p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p>Cash
  Flows from Investing Activities:</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Payments
  for property and equipment</p>
  </td>
  <td width=128 valign=top>
  <p align=right>(84,307)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>(67,966)</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Proceeds
  from sale of assets</p>
  </td>
  <td width=128 valign=top>
  <p align=right>13,482</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>-</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Net
  repayments of advances to affiliates </p>
  </td>
  <td width=128 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 116</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 552&nbsp;&nbsp;
  </p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Issuance of loan to affiliate</p>
  </td>
  <td width=128 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right><u>&nbsp;&nbsp; (1,300</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities</p>
  </td>
  <td width=128 valign=top>
  <p align=right><u>&nbsp; (70,709</u>)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right><u>&nbsp; (68,714</u>) </p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p>Cash
  Flows from Financing Activities:</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Purchases
  of shares under forward contracts</p>
  </td>
  <td width=128 valign=top>
  <p align=right>(120,600)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>-</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Purchases of treasury stock</p>
  </td>
  <td width=128 valign=top>
  <p align=right>&nbsp;(42,293)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>&nbsp; (51,904)</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Proceeds
  from issuances of treasury stock</p>
  </td>
  <td width=128 valign=top>
  <p align=right>4,632</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>4,657</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Payments
  of long-term debt </p>
  </td>
  <td width=128 valign=top>
  <p align=right>(682)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>&nbsp;(677)</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Net
  borrowings on credit facilities </p>
  </td>
  <td width=128 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 400</u></p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities</p>
  </td>
  <td width=128 valign=top>
  <p align=right><u>&nbsp;(158,943</u>)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right><u>&nbsp; (47,524</u>) </p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Net change in cash and cash equivalents</p>
  </td>
  <td width=128 valign=top>
  <p align=right>(176,044)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right>(18,929)</p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Cash and cash equivalents at beginning of period</p>
  </td>
  <td width=128 valign=top>
  <p align=right><u>&nbsp; 226,762</u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right><u>&nbsp;&nbsp; 33,492</u></p>
  </td>
 </tr>
 <tr>
  <td width=412 valign=top>
  <p>Cash and cash equivalents at end of period</p>
  </td>
  <td width=128 valign=top>
  <p align=right><u>$&nbsp; 50,718</u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=99 valign=top>
  <p align=right><u>$&nbsp; 14,563</u></p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=675 colspan=4 valign=top>
  <p>See
  accompanying notes to consolidated financial statements.</p>
  </td>
 </tr>
</table>



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



<p>&nbsp;</p>


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





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



<p>&nbsp;&nbsp;&nbsp;&nbsp; The consolidated financial statements of
Brinker International, Inc. and its wholly-owned subsidiaries (collectively,
the &quot;Company&quot;) as of September 29, 2004 and June 30, 2004 and for the thirteen
week periods ended September 29, 2004 and September 24, 2003, 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; </p>



<p>&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 accounting principles
generally accepted in the United States of America have been omitted pursuant
to SEC rules and regulations. The notes to the consolidated financial
statements (unaudited) should be read in conjunction with the notes to the
consolidated financial statements contained in the June 30, 2004 Form 10-K/A.
Management believes that the disclosures are sufficient for interim financial
reporting purposes.</p>



<p><b>2.&nbsp; RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS</b></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company has corrected its computation of straight-line rent expense and the
related deferred rent liability.&nbsp;
Historically, when accounting for leases with renewal options, rent
expense has been recorded on a straight-line basis over the initial non-
cancelable lease term. Buildings and leasehold improvements on those properties
are depreciated over a period equal to the shorter of the term of the lease,
including option periods provided for in the lease, or the useful life of the
assets. The Company has determined that it should recognize rent expense on a
straight-line basis over sufficient renewal periods to equal or exceed the depreciable
life of the assets, including cancelable option periods where failure to exercise
such options would result in an economic penalty. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company also evaluated the accounting of an intangible asset related to
franchise rights acquired in fiscal 1998 and has determined that it would have
been more appropriate to expense the purchase price of the franchise rights. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; As a result of the
above items, the cumulative effect of the restatement through the first quarter
of fiscal 2005 was an increase in the deferred rent liability of approximately
$22.0 million and a decrease in intangible franchise rights of $4.4 million. In
addition, the deferred income tax liability at the end of the first quarter of
fiscal 2005 decreased by approximately $9.9 million, and retained earnings at
the end of the first quarter of fiscal 2005 decreased by approximately $16.5
million. Rent expense for the first quarter of fiscal 2005 and 2004 increased
by approximately $1.3 million and $1.2 million, respectively. </p>

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

<p>&nbsp;&nbsp;&nbsp;&nbsp; The
restatement decreased diluted net earnings per share by approximately $0.01 for
both the first quarter of fiscal 2005 and 2004.&nbsp; The restatement does not have any impact on the Company's
previously reported cash flows, sales or comparable store sales or compliance
with any covenant under its credit facility or other debt instruments. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The impacts of
these restatements on the consolidated financial statements are summarized
below:</p>



<table border=0 cellspacing=0 cellpadding=0 width=668>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>CONSOLIDATED BALANCE SHEET</b></td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>SUMMARY OF RESTATEMENT IMPACTS</b></td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>AS OF SEPT 29, 2004</b></td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align=center><b>(In thousands)</b></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>

  </td>
  <td width=118 valign=top>

  </td>
  <td width=126 valign=top>

  </td>
  <td width=131 valign=top>

  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>ASSETS</p>
  </td>
  <td width=118 valign=top>
  <p align=center><b><u>AS
  REPORTED</u></b></p>
  </td>
  <td width=126 valign=top>
  <p align=center><b><u>ADJUSTMENTS</u></b></p>
  </td>
  <td width=131 valign=top>
  <p align=center><b> <u>AS RESTATED</u></b></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;
  Current Assets:</p>
  </td>
  <td width=118 valign=top>

  </td>
  <td width=126 valign=top>

  </td>
  <td width=131 valign=top>

  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Cash and cash equivalents</p>
  </td>
  <td width=118 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp; 50,718</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp;&nbsp; 50,718</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Accounts receivable</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 45,884</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45,884</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Inventories</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 42,556</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42,556</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Prepaid expenses and other</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 73,092</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 73,092</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Deferred income taxes</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 19,592</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=131 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19,592</u></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;
  Total current assets</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 231,842</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=131 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 231,842</u></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;
  Property and Equipment, at Cost:</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp; </p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp; </p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Land</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; 286,635</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 286,635</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Buildings and leasehold improvements</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp; 1,386,668</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp; 1,386,668</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Furniture and equipment</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; 686,403</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 686,403</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Construction-in-process</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 75,498</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=131 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 75,498</u></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>

  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp; 2,435,204</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;-</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp; 2,435,204</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Less accumulated depreciation and<br>
  &nbsp;&nbsp;&nbsp;&nbsp;
  amortization</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp; &nbsp;&nbsp; (850,000</u>)</p>
  </td>
  <td width=126 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=131 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; (850,000</u>)</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;
  Net property and equipment</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp; 1,585,204</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp; 1,585,204</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;
  Other Assets:</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Goodwill</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; 136,021</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp; &nbsp;&nbsp;&nbsp;136,021</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Other</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 73,482</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; (4,405</u>)</p>
  </td>
  <td width=131 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 69,077</u></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;
  Total other assets</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 209,503</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; (4,405</u>)</p>
  </td>
  <td width=131 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 205,098</u></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;
  Total assets</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>$
  2,026,549</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; (4,405</u>)</p>
  </td>
  <td width=131 valign=top>
  <p align=right><u>$&nbsp; 2,022,144</u></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>

  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>LIABILITIES AND SHAREHOLDERS' EQUITY</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;
  Current Liabilities:</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Current installments of long-term debt</p>
  </td>
  <td width=118 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp; 18,131</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp;&nbsp; 18,131</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Accounts payable</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; 100,141</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 100,141</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Accrued liabilities</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; 208,867</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 208,867</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Income taxes payable</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=131 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;
  Total current liabilities</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 327,139</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=131 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 327,139</u></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp; Long-term debt, less current installments </p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; 640,319</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 640,319</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;
  Deferred income taxes</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 83,081</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; (9,931)</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 73,150</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;
  Other liabilities</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 92,472</p>
  </td>
  <td width=126 valign=top>
  <p align=right>21,987</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 114,459</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>

  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;
  Shareholders' Equity:</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Common stock</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 11,750</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,750</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Additional paid-in capital</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; 233,424</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 233,424</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Accumulated other comprehensive income</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 658</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 658</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Retained earnings</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp; 1,292,017</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp; (16,461</u>)</p>
  </td>
  <td width=131 valign=top>
  <p align=right><u>&nbsp;&nbsp; 1,275,556</u></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>

  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp; 1,537,849</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp; (16,461)</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp; 1,521,388</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Less:</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Treasury stock, at cost</p>
  </td>
  <td width=118 valign=top>
  <p align=right>&nbsp;&nbsp; (652,409)</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=131 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; (652,409)</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;
  Unearned compensation</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; (1,902</u>)</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=131 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1,902</u>)</p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;
  Total shareholders' equity</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 883,538</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp; (16,461</u>)</p>
  </td>
  <td width=131 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 867,077</u></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>
  <p>&nbsp;
  Total liabilities and shareholders'<br>
  &nbsp;&nbsp;&nbsp;&nbsp;
  equity</p>
  </td>
  <td width=118 valign=top>
  <p align=right><u><br>
  &nbsp;$
  2,026,549</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp; (4,405</u>)</p>
  </td>
  <td width=131 valign=top>
  <p align=right><u><br>
  &nbsp;$&nbsp; 2,022,144</u></p>
  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>

  </td>
  <td width=118 valign=top>

  </td>
  <td width=126 valign=top>

  </td>
  <td width=131 valign=top>

  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=292 colspan=2 valign=top>

  </td>
  <td width=118 valign=top>

  </td>
  <td width=126 valign=top>

  </td>
  <td width=131 valign=top>

  </td>
  <td
  width=1 colspan=2><p></td>
 </tr>
 <tr>
  <td width=641 colspan=7 valign=top>
  <hr><P Style="page-break-after: always"></P>
  <p align="center"><b>CONSOLIDATED BALANCE SHEET</b></td>
 </tr>
 <tr>
  <td width=641 colspan=7 valign=top>
  <p align="center"><b>SUMMARY OF RESTATEMENT IMPACTS</b></td>
 </tr>
 <tr>
  <td width=641 colspan=7 valign=top>
  <p align="center"><b>AS OF JUNE 30, 2004</b></td>
 </tr>
 <tr>
  <td width=641 colspan=7 valign=top>
  <p align=center><b>(In thousands)</b></p>
  </td>
 </tr>
 <tr>
  <td width=641 colspan=7 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>ASSETS</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><b><u>AS
  REPORTED</u></b></p>
  </td>
  <td width=126 valign=top>
  <p align=right><b><u>ADJUSTMENTS</u></b></p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><b><u>AS
  RESTATED</u></b></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Current Assets:</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>

  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Cash and cash equivalents</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp; 226,762 </p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp; 226,762 </p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Accounts receivable</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37,934</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37,934</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Inventories</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38,113</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38,113</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Prepaid expenses and other</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 74,764</p>
  </td>
  <td width=126 valign=top align="right">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 74,764</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Deferred income taxes</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23,347</u></p>
  </td>
  <td width=126 valign=top align="right">
  <p><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 23,347</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Total current assets</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 400,920</u></p>
  </td>
  <td width=126 valign=top align="right">
  <p><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 400,920</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Property and Equipment, at Cost:</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp; </p>
  </td>
  <td width=126 valign=top align="right">

  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp; </p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Land</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 283,777</p>
  </td>
  <td width=126 valign=top align="right">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 283,777</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Buildings and leasehold improvements</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp; 1,354,671</p>
  </td>
  <td width=126 valign=top align="right">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp; 1,354,671</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Furniture and equipment</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 666,415</p>
  </td>
  <td width=126 valign=top align="right">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 666,415</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Construction-in-process</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72,818</u></p>
  </td>
  <td width=126 valign=top align="right">
  <p><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72,818</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp; 2,377,681</p>
  </td>
  <td width=126 valign=top align="right">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp; 2,377,681</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Less accumulated depreciation and<br>
  &nbsp;&nbsp;&nbsp;&nbsp; amortization</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp; (810,835</u>)</p>
  </td>
  <td width=126 valign=top align="right">
  <p><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u><br>
  &nbsp;</u>&nbsp;<u>&nbsp;&nbsp;
  (810,835</u>)</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Net property and equipment</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp; 1,566,846</p>
  </td>
  <td width=126 valign=top align="right">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp; 1,566,846</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Other Assets:</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top align="right">

  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Goodwill</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 158,068</p>
  </td>
  <td width=126 valign=top align="right">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 158,068</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Other</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;85,957</u></p>
  </td>
  <td width=126 valign=top align="right">
  <p><u>&nbsp;&nbsp;&nbsp;&nbsp; (4,405</u>)</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 81,552</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Total other assets</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 244,025</u></p>
  </td>
  <td width=126 valign=top align="right">
  <p><u>&nbsp;&nbsp;&nbsp;&nbsp; (4,405</u>)</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 239,620</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Total assets</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u>$&nbsp; 2,211,791</u></p>
  </td>
  <td width=126 valign=top align="right">
  <p><u>&nbsp;&nbsp;&nbsp;&nbsp; (4,405</u>)</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u>$&nbsp; 2,207,386</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=center>&nbsp;</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>LIABILITIES AND SHAREHOLDERS' EQUITY</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;
  Current Liabilities:</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Current installments of long-term<br>
  &nbsp;&nbsp;&nbsp;&nbsp;
  debt</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><br>
  $&nbsp;&nbsp;&nbsp;&nbsp; 18,099</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right><br>
  -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><br>
  $&nbsp;&nbsp;&nbsp;&nbsp; 18,099</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Accounts payable</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 96,795</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 96,795</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Accrued liabilities</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 227,225</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 227,225</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Income taxes payable</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37,043</u></p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37,043</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;
  Total current liabilities</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 379,162</u></p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 379,162</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;
  Long-term debt, less current<br>
  &nbsp;&nbsp;&nbsp;&nbsp;
  installments </p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><br>
  639,291</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><br>
  &nbsp;&nbsp;&nbsp;&nbsp; 639,291</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;
  Deferred income taxes</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 81,902</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; (9,449)</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 72,453</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;
  Other liabilities</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 85,363</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 20,695</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 106,058</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;
  Shareholders' Equity:</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Common stock</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,750</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11,750</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Additional paid-in capital</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 357,444</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 357,444</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Accumulated other comprehensive<br>
  &nbsp;&nbsp;&nbsp;&nbsp;
  income</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 737</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><br>
  &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;737</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Retained earnings</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp; 1,277,298</u></p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right><u>&nbsp;&nbsp;&nbsp; (15,651</u>)</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp; 1,261,647</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp; 1,647,229</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;&nbsp;&nbsp; (15,651)</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp; 1,631,578</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Less:</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Treasury stock, at cost</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; (619,806)</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; (619,806)</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;
  Unearned compensation</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right>&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (1,350</u>)</p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1,350</u>)</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;
  Total shareholders' equity</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp; 1,026,073</u></p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right><u>&nbsp;&nbsp;&nbsp; (15,651</u>)</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u>&nbsp;&nbsp; 1,010,422</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;
  Total liabilities and shareholders'<br>
  &nbsp;&nbsp;&nbsp;&nbsp;
  equity</p>
  </td>
  <td width=119 colspan=2 valign=top>
  <p align=right><u><br>
  &nbsp;$&nbsp; 2,211,791</u></p>
  </td>
  <td width=126 valign=top align="right">
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4,405</u>)</p>
  </td>
  <td width=128 colspan=2 valign=top>
  <p align=right><u><br>
  &nbsp;$&nbsp; 2,207,386</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr height=0>
  <td width=291></td>
  <td width=1></td>
  <td width=118></td>
  <td width=126 align="right"></td>
  <td width=131></td>
  <td width=1></td>
  <td width=4></td>
 </tr>
</table>

<hr><P Style="page-break-after: always"></P>&nbsp;<table border=0 cellspacing=0 cellpadding=0 width=640>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>CONSOLIDATED STATEMENT OF INCOME</b></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>SUMMARY OF RESTATEMENT IMPACTS</b></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align="center"><b>THIRTEEN WEEK PERIOD ENDED SEPT 29, 2004</b></td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align=center><b>(In thousands, except per share
  amounts)</b></p>
  </td>
 </tr>
 <tr>
  <td width=640 colspan=5 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=124 valign=top>
  <p align=right><b><u>AS
  REPORTED</u></b></p>
  </td>
  <td width=96 valign=top>
  <p align=right><b><u>ADJUSTMENTS</u></b></p>
  </td>
  <td width=126 valign=top>
  <p align=right><b><u>AS
  RESTATED</u></b></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Revenues</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 910,478</u></p>
  </td>
  <td width=96 valign=top>
  <p align="right">-</p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 910,478</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Operating
  Costs and Expenses:</p>
  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Cost of sales </p>
  </td>
  <td width=124 valign=top>
  <p align=right>253,089</p>
  </td>
  <td width=96 valign=top>
  <p align="right">-</p>
  </td>
  <td width=126 valign=top>
  <p align=right>253,089</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Restaurant expenses </p>
  </td>
  <td width=124 valign=top>
  <p align=right>509,401</p>
  </td>
  <td width=96 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,292</p>
  </td>
  <td width=126 valign=top>
  <p align=right>510,693</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Depreciation and amortization </p>
  </td>
  <td width=124 valign=top>
  <p align=right>45,939</p>
  </td>
  <td width=96 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp; </p>
  </td>
  <td width=126 valign=top>
  <p align=right>45,939</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; General and administrative</p>
  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 37,152</p>
  </td>
  <td width=96 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp; </p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 37,152</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; Restructure charges and other<br>
  &nbsp;&nbsp; impairments</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48,256</u></p>
  </td>
  <td width=96 valign=top>
  <p align="right"><br>
  &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp; </u> </p>
  </td>
  <td width=126 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48,256</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp;&nbsp; Total operating costs and expenses </p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 893,837</u></p>
  </td>
  <td width=96 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;1,292&nbsp; </u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 895,129</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Operating
  income </p>
  </td>
  <td width=124 valign=top>
  <p align=right>16,641</p>
  </td>
  <td width=96 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1,292)</p>
  </td>
  <td width=126 valign=top>
  <p align=right>15,349</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Interest
  expense</p>
  </td>
  <td width=124 valign=top>
  <p align=right>7,119</p>
  </td>
  <td width=96 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=126 valign=top>
  <p align=right>7,119</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Other,
  net</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 442</u></p>
  </td>
  <td width=96 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp; </u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 442</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Income
  before tax benefit</p>
  </td>
  <td width=124 valign=top>
  <p align=right>9,080</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; (1,292)</p>
  </td>
  <td width=126 valign=top>
  <p align=right>7,788</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Income
  tax benefit </p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,639</u></p>
  </td>
  <td width=96 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;482</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,121</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; &nbsp;Net
  income</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 14,719</u></p>
  </td>
  <td width=96 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(810</u>)</p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 13,909</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>

  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Basic
  net income per share</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.16</u></p>
  </td>
  <td width=96 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(0.01</u>)</p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.15</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Diluted net income per share</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.16</u></p>
  </td>
  <td width=96 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(0.01</u>)</p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.15</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Basic
  weighted average</p>
  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; shares outstanding</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 89,761</u></p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 89,761</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>Diluted
  weighted average </p>
  </td>
  <td width=124 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=291 valign=top>
  <p>&nbsp; shares outstanding</p>
  </td>
  <td width=124 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 90,930</u></p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 90,930</u></p>
  </td>
  <td
  width=3><p>&nbsp;</td>
 </tr>
</table>



<p>&nbsp;</p>



<table border=0 cellspacing=0 cellpadding=0 width=672>
 <tr>
  <td width=672 colspan=5 valign=top>
  <p align="center"><b>CONSOLIDATED STATEMENT OF INCOME</b></td>
 </tr>
 <tr>
  <td width=672 colspan=5 valign=top>
  <p align="center"><b>SUMMARY OF RESTATEMENT IMPACTS</b></td>
 </tr>
 <tr>
  <td width=672 colspan=5 valign=top>
  <p align="center"><b>THIRTEEN WEEK PERIOD ENDED SEPT 24, 2003</b></td>
 </tr>
 <tr>
  <td width=672 colspan=5 valign=top>
  <p align=center><b>(In thousands, except per share
  amounts)</b></p>
  </td>
 </tr>
 <tr>
  <td width=672 colspan=5 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
 </tr>
 <tr>
  <td width=286 valign=top>

  </td>
  <td width=129 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>

  </td>
  <td width=129 valign=top>
  <p align=right><b><u>AS
  REPORTED</u></b></p>
  </td>
  <td width=123 valign=top>
  <p align=right><b><u>ADJUSTMENTS</u></b></p>
  </td>
  <td width=122 valign=top>
  <p align=right><b><u>AS
  RESTATED</u></b></p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>Revenues</p>
  </td>
  <td width=129 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 870,898</u></p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 870,898</u></p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>Operating
  Costs and Expenses:</p>
  </td>
  <td width=129 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>&nbsp; Cost of sales </p>
  </td>
  <td width=129 valign=top>
  <p align=right>239,902</p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=122 valign=top>
  <p align=right>239,902</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>&nbsp; Restaurant expenses </p>
  </td>
  <td width=129 valign=top>
  <p align=right>486,358</p>
  </td>
  <td width=123 valign=top align="right">
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,163&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=122 valign=top>
  <p align=right>487,521</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>&nbsp; Depreciation and amortization </p>
  </td>
  <td width=129 valign=top>
  <p align=right>42,409</p>
  </td>
  <td width=123 valign=top align="right">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=122 valign=top>
  <p align=right>42,409</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>&nbsp; General and administrative</p>
  </td>
  <td width=129 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 33,296</p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 33,296</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>&nbsp; Restructure charges and other <br>
  &nbsp;&nbsp; impairments</p>
  </td>
  <td width=129 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</u></p>
  </td>
  <td width=123 valign=top>
  <p align="right"><br>
  &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=122 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>&nbsp;&nbsp; Total operating costs and expenses </p>
  </td>
  <td width=129 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 801,965</u></p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;1,163&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 803,128</u></p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>

  </td>
  <td width=129 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>Operating
  income </p>
  </td>
  <td width=129 valign=top>
  <p align=right>68,933</p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp; (1,163)</p>
  </td>
  <td width=122 valign=top>
  <p align=right>67,770</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=129 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>Interest
  expense</p>
  </td>
  <td width=129 valign=top>
  <p align=right>3,318</p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=122 valign=top>
  <p align=right>3,318</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>Other,
  net</p>
  </td>
  <td width=129 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (257)</u></p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (257)</u></p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>Income
  before provision for income taxes</p>
  </td>
  <td width=129 valign=top>
  <p align=right>65,872</p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp; (1,163)</p>
  </td>
  <td width=122 valign=top>
  <p align=right>64,709</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>Provision
  for income taxes</p>
  </td>
  <td width=129 valign=top>
  <p align=right><u>&nbsp;&nbsp; (21,277)</u></p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;441 </u></p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(20,836</u>)</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>&nbsp; &nbsp;Net
  income</p>
  </td>
  <td width=129 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 44,595</u></p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(722</u>)</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 43,873</u></p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>

  </td>
  <td width=129 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>Basic
  net income per share</p>
  </td>
  <td width=129 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.46</u></p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp; (0.01</u>)</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.45</u></p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>Diluted net income per share</p>
  </td>
  <td width=129 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.45</u></p>
  </td>
  <td width=123 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(0.01</u>)</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.44</u></p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>Basic
  weighted average</p>
  </td>
  <td width=129 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>&nbsp; shares outstanding</p>
  </td>
  <td width=129 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 97,404</u></p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 97,404</u></p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>Diluted
  weighted average </p>
  </td>
  <td width=129 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=286 valign=top>
  <p>&nbsp; shares outstanding</p>
  </td>
  <td width=129 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 99,367</u></p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 99,367</u></p>
  </td>
  <td
  width=12><p>&nbsp;</td>
 </tr>
</table>





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





<p>&nbsp;&nbsp;&nbsp;&nbsp; Certain amounts in Note 3 have been restated to
reflect the restatement adjustments described above.&nbsp; The restatement
adjustments did not affect cash flows provided by or used in operating,
investing or financing activities.</p>



<p><b>3.&nbsp;&nbsp;&nbsp;STOCK OPTION PLANS
</b></p>



<p>&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, &quot;Accounting for Stock Issued to Employees,&quot;
and related interpretations (&quot;APB 25&quot;), and has adopted the disclosure-only
provisions of Statement of Financial Accounting Standards (&quot;SFAS&quot;) No. 123,
&quot;Accounting for Stock-Based Compensation.&quot;&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>



<table border=0 cellspacing=0 cellpadding=0 width=595>
 <tr>
  <td width=343 valign=top>

  </td>
  <td width=252 colspan=2 valign=top>
  <p align=center><b><u>Thirteen Week Periods Ended</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>

  </td>
  <td width=126 valign=top>
  <p align=center><b>September 29,</b></p>
  </td>
  <td width=126 valign=top>
  <p align=center><b>September 24,</b></p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>

  </td>
  <td width=126 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
  <td width=126 valign=top>
  <p align=center><b><u>2003</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>

  </td>
  <td width=126 valign=top>
  <p align=center>(as
  restated)</p>
  </td>
  <td width=126 valign=top>
  <p align=center>(as
  restated)</p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>
  <p>Net
  income - as reported</p>
  </td>
  <td width=126 valign=top>
  <p align=right>$&nbsp; 13,909</p>
  </td>
  <td width=126 valign=top>
  <p align=right>$&nbsp; 43,873</p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>

  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>
  <p>Add:
  Reported stock-based <br>
  &nbsp; compensation expense,<br>
  &nbsp; net of taxes </p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  <p align=right>395</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  <p align=right>587</p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>
  <p>Deduct:
  Fair value based<br>
  &nbsp; compensation expense, <br>
  &nbsp; net of taxes </p>
  </td>
  <td width=126 valign=top>
  <p align=right><u><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; (4,724</u>)</p>
  </td>
  <td width=126 valign=top>
  <p align=right><u><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; (4,590</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>

  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>
  <p>Net
  income - pro-forma</p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>$&nbsp; 9,580</u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>$&nbsp; 39,870</u></p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>

  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=343 valign=top>
  <p>Earnings
  per share:</p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp; </u></p>
  </td>
  <td width=126 valign=top>
  <p align=right><u>&nbsp; </u></p>
  </td>
 </tr>
 <tr>
  <td width=343>
  <p>Basic -
  as reported</p>
  </td>
  <td width=126>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.15</u></p>
  </td>
  <td width=126>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.45</u></p>
  </td>
 </tr>
 <tr>
  <td width=343>
  <p>Basic -
  pro-forma</p>
  </td>
  <td width=126>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.11</u></p>
  </td>
  <td width=126>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.41</u></p>
  </td>
 </tr>
 <tr>
  <td width=343>

  </td>
  <td width=126>
  <p align=right>&nbsp;</p>
  </td>
  <td width=126>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=343>
  <p>Diluted
  - as reported</p>
  </td>
  <td width=126>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.15</u></p>
  </td>
  <td width=126>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.44</u></p>
  </td>
 </tr>
 <tr>
  <td width=343>
  <p>Diluted
  - pro-forma</p>
  </td>
  <td width=126>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.11</u></p>
  </td>
  <td width=126>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 0.40</u></p>
  </td>
 </tr>
</table>







<p><b>4.&nbsp; RESTRUCTURE CHARGES
AND OTHER IMPAIRMENTS</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; During the first quarter of fiscal 2005, the
Company recorded a $31.2 million impairment charge resulting from the decision
to sell nine Big Bowl restaurants and to close the remaining five
restaurants.&nbsp; The decision to dispose of
Big Bowl was the result of recent research and testing of the brand's
competitive positioning.&nbsp; The impairment
charge consists of goodwill totaling $21.6 million and buildings, furniture,
and equipment totaling $9.6 million.&nbsp;
The carrying values of the remaining long-lived assets totaled
approximately $6.0 million as of September 29, 2004 and were based on an offer
price obtained in connection with the sale of the brand.&nbsp; During the second quarter of fiscal 2005,
the Company expects to record an additional charge of approximately $3.0
million, primarily related to existing lease obligations associated with the
disposition of Big Bowl.</p>



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



<p>&nbsp;&nbsp;&nbsp;&nbsp; During the first quarter of fiscal 2005, the
Company recorded a $16.9 million charge to fully impair the investment and
notes receivable associated with Rockfish as a result of recent declines in
operating performance and lower forecasted earnings.&nbsp;&nbsp;&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; During the first quarter of fiscal 2005, the
Company recorded a $1.4 million charge for long-lived asset impairments
associated with the closure of one Corner Bakery commissary.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; In fiscal 2004, the Company recorded a $39.5
million impairment charge resulting from the decision to close thirty
restaurants.&nbsp; The charge consisted
primarily of buildings, furniture, and equipment totaling $31.2 million, lease
obligation charges totaling $6.2 million, and the write-off of inventory and
other supplies totaling $2.1 million.&nbsp;
The fair value of the long-lived assets was based on estimates from
third party real estate brokers who examined comparable property sales values
in the respective markets in which the restaurants were located and offer
prices received from third parties in connection with the sale of the
restaurants.&nbsp; During the first quarter
of fiscal 2005, the Company recorded a $1.2 million gain related to the thirty
closed restaurants consisting of increases in the estimated sales value of
previously impaired owned units and decreases in the estimated lease
obligation.&nbsp; The carrying values of the
remaining long-lived assets totaled approximately $12.3 million at September
29, 2004.&nbsp; In addition, during the first
quarter of fiscal 2005, the Company made payments totaling $1.6 million
primarily related to lease termination costs associated with the closed restaurants,
reducing the lease obligation in accrued liabilities to $3.2 million.</p>



<p><b>5.&nbsp;&nbsp;CONVERTIBLE DEBT</b></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; In October 2001, the Company issued $431.7
million of zero coupon convertible senior debentures (the &quot;Debentures&quot;),
maturing on October 10, 2021, and received proceeds totaling approximately
$250.0 million prior to debt issuance costs.&nbsp;
The Debentures require no interest payments and were issued at a
discount representing a yield to maturity of 2.75% per annum.&nbsp; The Debentures are redeemable at the
Company's option beginning on October 10, 2004.&nbsp; If redeemed by the Company, the holders of the Debentures may
elect to receive payment in cash or common stock.&nbsp; The holders may require the Company to redeem the Debentures on
October 10, 2005, 2011 or 2016, and in certain other circumstances.&nbsp; If the holders exercise their redemption
rights, the Company may choose to pay in cash, common stock, or a combination
of the two.&nbsp; In addition, each $1,000
Debenture is convertible into 18.08 shares (7.8 million shares in total) of the
Company's common stock if the stock's market price exceeds 120% of the accreted
conversion price for at least 20 trading days during the first 30 trading days
of each quarter, the Company exercises its option to redeem the Debentures, the
credit rating of the Debentures is reduced below both Baa3 and BBB-, or upon
the occurrence of certain specified corporate transactions.&nbsp; The market price of the Company's common
stock has not exceeded 120% of the accreted conversion price for any quarter,
including the second quarter of fiscal 2005, since the issuance of the
Debentures.&nbsp; The conversion trigger
price for the Company's third quarter of fiscal 2005 is $42.10.</p>

<p>6.&nbsp;
<b>SHAREHOLDERS' EQUITY</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; During the first quarter of fiscal 2005, the
Company acquired approximately 3.5 million shares of its common stock for
$120.6 million under forward purchase contracts.&nbsp; The shares repurchased under the contracts are intended to be
used to offset the dilutive impact of the convertible debt and are recorded as a
reduction of </p>



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



<p>additional paid-in capital in the accompanying consolidated balance sheet.&nbsp;
The contracts were settled in October 2004.&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the Company's stock repurchase
plan, the Company repurchased approximately 1.2 million shares of its common
stock for $42.3 million during the first quarter of fiscal 2005.&nbsp; As of September 29, 2004, approximately
$132.4 million was available under the Company's share repurchase
authorizations, net of the shares acquired under the forward purchase
contracts.&nbsp; The Company's stock
repurchase plan will be used to minimize the dilutive impact of the convertible
debt and stock option exercises.&nbsp; The
repurchased common stock is recorded in treasury stock in the accompanying
consolidated balance sheets.</p>



<p><b>7.&nbsp; SUPPLEMENTAL CASH FLOW INFORMATION</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest and income taxes for
the first quarter of fiscal 2005 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>September
  29, <br>
  <u>2004</u></b></p>
  </td>
  <td width=120 valign=top>
  <p align=center><b>September
  24, <br>
  <u>2003</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>Income taxes,
  net of refunds</p>
  </td>
  <td width=120 valign=top>
  <p align=right>$ 26,493</p>
  </td>
  <td width=120 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp;
  830</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Interest, net of
  amounts capitalized&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;
  816 </p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;
  861 </p>
  </td>
 </tr>
</table>





<p>&nbsp;&nbsp;&nbsp;&nbsp; Non-cash investing and financing activities
for the first quarter of fiscal 2005 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>September
  29, <br>
  <u>2004</u></b></p>
  </td>
  <td width=120 valign=top>
  <p align=center><b>September
  24, <br>
  <u>2003</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>Retirement of
  fully depreciated assets</p>
  </td>
  <td width=120 valign=top>
  <p align=right>$&nbsp;
  4,338&nbsp; </p>
  </td>
  <td width=120 valign=top>
  <p align=right>$&nbsp;&nbsp;
  101</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Net increase (decrease) in fair value of
  interest rate swaps </p>
  </td>
  <td width=120 valign=top>
  <p align=right>5,006</p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;&nbsp; (8,603)</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Restricted common stock issued, net of&nbsp; forfeitures</p>
  </td>
  <td width=120 valign=top>
  <p align=right>1,638&nbsp;
  </p>
  </td>
  <td width=120 valign=top>
  <p align=right>2,337&nbsp;
  </p>
  </td>
 </tr>
</table>





<p><b>8.&nbsp; CONTINGENCIES</b></p>



<p>&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, although
employees remain ultimately responsible for accurately reporting their tips.&nbsp;
The IRS has alleged that the Company did not meet the requirements of the
Contract and has retroactively and unilaterally revoked it.&nbsp; As a result of
the revocation, the IRS commenced an examination during fiscal 2004 of the
Company's 2000 through 2002 calendar years for payroll tax purposes, which
involved interviews of a number of current and former employees for the purpose
of assessing employer-only Federal Insurance Contributions Act (&quot;FICA&quot;) taxes on
estimated unreported cash tips.&nbsp; In connection with this examination, the
IRS has also alleged that some portion of these unreported tips should have been
treated as service charges subject to employment taxes.&nbsp; On September 29,
2004, the IRS issued a notice and demand under Section 3121(q) of the Internal
Revenue Code for the employer's share of FICA taxes totaling $31.4 million on
asserted unreported tips during the examination period.&nbsp; The proposed
assessment was based on the assumption that the cash tip reporting rate should
have been approximately two percentage points less than the charge tip reporting
rate.&nbsp; The Company believes that it has complied and continues to comply
with all of the terms of the Contract and with the law pertaining to the
employment tax treatment of service charges.&nbsp; The Company intends to </p>



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



<p>vigorously assert that the Contract remains in force and precludes the
proposed retroactive assessment of employer-only FICA taxes and to vigorously
contest the accuracy of the proposed assessment related to unreported tips.&nbsp;
The Company also intends to vigorously contest the accuracy of any assessment
that may be proposed related to service charges.&nbsp; It is not possible at
this time to reasonably estimate the possible loss or range of loss, if any,
with respect to either the tip or service charge issue.</p>



<p>&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>





<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>&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=661>
 <tr>
  <td width=661 colspan=6 valign=top>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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><b>13 Week Periods Ended</b></u></td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=121 colspan=2 valign=top>
  <p align=center><b>September 29,</b></p>
  </td>
  <td width=18 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=120 colspan=2 valign=top>
  <p align=center><b>September 24,</b></p>
  </td>
 </tr>
 <tr>
  <td width=402 valign=top>

  </td>
  <td width=121 colspan=2 valign=top>
  <p align=center><b><u>2004</u></b></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=120 colspan=2 valign=top>
  <p align=center><b><u>2003</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=402 valign=top>

  </td>
  <td width=121 colspan=2 valign=top>
  <p align=center>(as restated)</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=120 colspan=2 valign=top>
  <p align=center>(as restated)</p>
  </td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>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; </p>
  </td>
  <td width=91 valign=top>
  <p align=right><u>100.0 %</u></p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right><u>100.0 %</u></p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>Operating Costs and Expenses:</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>&nbsp; Cost of sales</p>
  </td>
  <td width=91 valign=top>
  <p align=right>27.8 %</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>27.5 %</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>&nbsp; Restaurant expenses</p>
  </td>
  <td width=91 valign=top>
  <p align=right>56.1 %</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>56.0 %</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>&nbsp; Depreciation and amortization</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp; 5.0 %</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>&nbsp; 4.9 %</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>&nbsp; General and administrative</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp; 4.1 %</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>&nbsp; 3.8 %</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>&nbsp; Restructure charges and other impairments</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u>&nbsp; 5.3 %</u></p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right><u>&nbsp; 0.0 %</u></p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>&nbsp;&nbsp; Total operating costs and expenses</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u>&nbsp;98.3 %</u></p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right><u>&nbsp;92.2 %</u></p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>

  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>Operating income</p>
  </td>
  <td width=91 valign=top>
  <p align=right>1.7 %</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>7.8 %</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>

  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>Interest expense</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp; 0.8 %</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>&nbsp; 0.4 %</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>Other, net</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u>&nbsp; 0.0 %</u></p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right><u>&nbsp; 0.0 %</u></p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>

  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>Income before income tax
  benefit (expense)</p>
  </td>
  <td width=91 valign=top>
  <p align=right>0.9 %</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>7.4 %</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>Income tax benefit (expense)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=91 valign=top>
  <p align=right><u>&nbsp; 0.6 %</u></p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right><u>&nbsp;(2.4 %</u>)</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>

  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=402 valign=top>
  <p>Net income</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u>&nbsp; 1.5 %</u></p>
  </td>
  <td width=48 colspan=2 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=90 valign=top>
  <p align=right><u>&nbsp; 5.0 %</u></p>
  </td>
  <td
  width=30><p>&nbsp;</td>
 </tr>
 <tr height=0>
  <td width=402></td>
  <td width=91></td>
  <td width=30></td>
  <td width=18></td>
  <td width=90></td>
  <td width=30></td>
 </tr>
</table>

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




<p>&nbsp;&nbsp;&nbsp;&nbsp; The following table details the number of
restaurant openings during the first quarter, total restaurants open at the end
of the first quarter, and total projected openings in fiscal 2005. </p>





<table border=1 cellspacing=0 cellpadding=0 width=576 style="border-width: 0">
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=143 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>&nbsp;</p>
  </td>
  <td width=159 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Total</p>
  </td>
  <td
  width=3 style="border-style: none; border-width: medium"><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=143 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>First Quarter</p>
  </td>
  <td width=159 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Total Open at End</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Projected</p>
  </td>
  <td
  width=3 style="border-style: none; border-width: medium"><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=143 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align="center"><u>Openings</u></td>
  <td width=159 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align="center"><u>Of First Quarter</u></td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align="center"><u>Openings</u></td>
  <td
  width=3 style="border-style: none; border-width: medium"><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p align=center>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p align=center>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2005</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2004</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2005</u></p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2004</u></p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2005</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Chili's: </p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Company-owned</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>14</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>18</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>757</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>711</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>77-80</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Franchised</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 7</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 5</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 242</u></p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 210</u></p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;
  25-30</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Total</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>21</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>23</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>999</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>921</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>102-110</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Macaroni Grill:</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Company-owned</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>5</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>4</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>211</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>198</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>15-18</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Franchised</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 1</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 9</u></p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 9</u></p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp;
  5-6</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Total</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>5</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>5</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>220</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>207</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>20-24</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Maggiano's</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>3</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>30</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>28</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>5</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>On The Border:</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Company-owned</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>112</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>114</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>8-10</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Franchised</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 18</u></p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 18</u></p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp;
  0-1</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Total</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>130</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>132</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>8-11</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Corner Bakery:</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Company-owned</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>83</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>86</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>8-10</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Franchised</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 3</u></p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 3</u></p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp;
  0-1</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Total</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>86</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>89</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>8-11</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Big Bowl</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>14</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>19</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Rockfish
  Partnership</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp; -</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp; 2</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;&nbsp; 25</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;&nbsp;
  22</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  -</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>Cozymel's</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 16</u></p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  -</u></p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Grand Total</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;30</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;35</u></p>
  </td>
  <td width=78 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>1,504</u></p>
  </td>
  <td width=85 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>1,434</u></p>
  </td>
  <td width=95 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>143-161</u></p>
  </td>
 </tr>
 <tr height=0>
  <td width=176 style="border-style: none; border-width: medium"></td>
  <td width=71 style="border-style: none; border-width: medium"></td>
  <td width=71 style="border-style: none; border-width: medium"></td>
  <td width=78 style="border-style: none; border-width: medium"></td>
  <td width=82 style="border-style: none; border-width: medium"></td>
  <td width=3 style="border-style: none; border-width: medium"></td>
  <td width=92 style="border-style: none; border-width: medium"></td>
  <td width=3 style="border-style: none; border-width: medium"></td>
 </tr>
</table>

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

<p><b>OVERVIEW </b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; At September 29, 2004, the Company owned,
operated, franchised, or was involved in the ownership of 1,504
restaurants.&nbsp; The Company's core
concepts accounted for 83.0% of the total units and included 999 Chili's, 220
Macaroni Grill, and 30 Maggiano's restaurants.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The
Company intends to continue the expansion of its restaurant concepts by opening
units in strategically desirable markets. The Company considers the restaurant
site selection process critical to its long-term success and devotes
significant effort to the investigation of new locations utilizing a variety of
sophisticated analytical techniques. The Company intends to concentrate on the
development of certain identified markets to achieve penetration levels deemed
desirable in order to improve competitive position, marketing potential and
profitability. Expansion efforts will be focused not only on major metropolitan
areas, but also on
smaller market areas and non-traditional locations (such as airports, kiosks
and food courts) that can adequately support any of the Company's restaurant
concepts. The specific rate at which the Company is able to open new
restaurants is determined by its success in locating satisfactory sites,
negotiating acceptable lease or purchase terms, securing appropriate local
governmental permits and approvals, and by its capacity to supervise
construction and recruit and train management personnel.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The
restaurant industry is a highly competitive business, which is sensitive to
changes in economic conditions, trends in lifestyles and fluctuating
costs.&nbsp; Operating margins for restaurants are susceptible to fluctuations
in prices of commodities, which include among other things, beef, chicken,
seafood, dairy, cheese, produce and other necessities to operate a restaurant
such as natural gas or other energy supplies.&nbsp; Additionally, the
restaurant industry is characterized by a high initial capital investment,
coupled with high labor costs.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Revenues
for the second quarter of fiscal 2005 are estimated to increase by 5% to 7%
compared to the same quarter in fiscal 2004, driven primarily by capacity gains
of 5% to 6%.&nbsp; Cost of sales is estimated
to be 0.5% to 0.6% higher than last year due to the impact of higher beef,
chicken and dairy costs.&nbsp; Restaurant
expenses are estimated to be 0.4% to 0.5% lower than last year as a result of
potential refranchising gains and lower advertising costs.&nbsp; General and administrative expenses are
estimated to be 0.1% lower due primarily to lower performance based
expenses.&nbsp; Additionally, during the
second quarter of fiscal 2005, the Company expects to record an additional
charge of approximately $3.0 million, primarily related to existing lease
obligations associated with the disposition of Big Bowl.&nbsp; The effective tax rate during the second
quarter is estimated to be 32.2%.</p>

<p><b>REVENUES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Revenues for the first quarter of fiscal 2005
increased to $910.5 million, 4.5% over the $870.9 million generated for the
same quarter of fiscal 2004. The increase was primarily attributable to a net
increase of 35 company-owned restaurants since September 24, 2003.&nbsp; The Company increased its capacity for the
first quarter of fiscal 2005 by approximately 3.5% compared to the respective
prior year quarter. Comparable store sales increased 0.3% for the first quarter
as compared to the same period of fiscal 2004.&nbsp;
Menu prices in the aggregate increased 2.2% in the first quarter of
fiscal 2005 as compared to the same period of fiscal 2004.</p>



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

<p><b>COSTS AND EXPENSES </b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Cost
of sales, as a percent of revenues, increased 0.3% for the first quarter of
fiscal 2005 as compared to the same period of fiscal 2004.&nbsp; The increase was due to a 1.0% increase in commodity prices for meat,
seafood, poultry, dairy and cheese, and a 0.2% unfavorable product mix shift
for meat and seafood, partially offset by a 0.7% increase in menu prices, and a
0.2% decrease in commodity prices for produce.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Restaurant
expenses, as a percent of revenues, increased 0.1% for the first quarter of
fiscal 2005 as compared to the same quarter of fiscal 2004.&nbsp; The increase was primarily due to increases
in labor costs, payroll taxes, and health, workers compensation and general
liability insurance.&nbsp; These increases
were partially offset by a $3.8 million gain recorded during the first quarter
of fiscal 2005 as a result of the sale of nine Chili's restaurants to a new
franchise partner, and decreases in manager bonuses and advertising costs.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Depreciation
and amortization increased $3.5 million for the first quarter of fiscal 2005 as
compared to the same period of fiscal 2004.&nbsp;
The increase in depreciation expense was due to new unit construction
and ongoing remodel costs, partially offset by a decrease in depreciation
related to store closures and a declining depreciable asset base for older
units.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses increased
$3.9 million for the first quarter of fiscal 2005 as compared to the same
period of fiscal 2004. The increase was primarily due to increased costs
related to consumer research and an increase in payroll costs resulting from an increase in headcount, partially
offset by a decrease in incentive based compensation. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Restructure
charges and other impairments recorded during the first quarter of fiscal 2005 include a $31.2 million
impairment charge resulting from the decision to sell nine Big Bowl restaurants
and to close the remaining five restaurants, a $16.9 million charge to fully
impair the investment and notes receivable associated with Rockfish, a $1.4
million charge associated with the closure of one Corner Bakery commissary, and
a $1.2 million gain associated with the thirty restaurants closed in fiscal
2004, consisting of increases in the estimated sales value of previously
impaired owned units and decreases in the estimated lease obligation. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Interest expense increased $3.8 million for
the first quarter of fiscal 2005 as compared to the same period of fiscal
2004.&nbsp; The increase was primarily due to
interest expense related to the 5.75% notes issued in May 2004 (the &quot;Notes&quot;),
partially offset by debt issuance costs related to the convertible debt being
fully amortized in the second quarter of fiscal 2004 and a lower average
outstanding balance on the senior notes.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Other,
net increased $700,000 for the first quarter of fiscal 2005 as compared to the
same period of fiscal 2004 due primarily to an increase in the Company's share
of losses in an equity method investee, partially offset by an increase in
interest income associated with the investment of proceeds received from the
issuance of the Notes.</p>



<p><b>INCOME TAXES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The effective income tax rate decreased to a benefit
of 78.6% for the current quarter as compared to an expense of 32.2% for the same
quarter last year.&nbsp; The decrease in the tax rate was primarily due to the
disposition of Big Bowl, which allowed the Company to take tax deductions for
goodwill impairment charges totaling $48.6 million ($21.6 million recorded
during the first quarter of fiscal 2005 and $27.0 million recorded in fiscal
2004).</p>

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







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



<p>&nbsp;&nbsp;&nbsp;&nbsp; Working capital decreased to a deficit of
$95.3 million at September 29, 2004 from a working capital surplus of $21.8
million at June 30, 2004, primarily due to payments made under the forward
purchase contracts and purchases of treasury stock during the first quarter of
fiscal 2005.&nbsp; Net cash provided by
operating activities decreased to $53.6 million for the first quarter of fiscal
2005 from $97.3 million during the same period in fiscal 2004 due to decreased
profitability and the timing of operational receipts and payments. The Company
believes that its various sources of capital, including availability under
existing credit facilities, ability to raise additional financing, 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; 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 $84.3 million for the first
quarter of fiscal 2005 compared to $68.0 million for the same period of fiscal
2004.&nbsp; The Company estimates that its
capital expenditures during the second quarter of fiscal 2005 will approximate
$102.0 million.&nbsp; These capital
expenditures will be funded entirely from operations and existing credit
facilities. </p>



<p>&nbsp;&nbsp; &nbsp; During the first quarter of fiscal 2005, the
Company sold nine Chili's restaurants to a new franchise partner and received
cash proceeds totaling $12.4 million.&nbsp; </p>



<p>&nbsp;&nbsp; &nbsp; In
connection with the closing of thirty restaurants in fiscal 2004, the Company expects to generate cash of approximately $13.0 million during the remainder of
fiscal 2005, primarily related
to the sale of real estate.</p>

<p>&nbsp;&nbsp; &nbsp; During the first quarter of fiscal 2005, the
Company acquired approximately 3.5 million shares of its common stock for
$120.6 million under forward purchase contracts.&nbsp; The shares repurchased under the contracts
are intended to be used to offset the dilutive impact of the convertible debt
and are recorded as a reduction of additional paid-in capital in the
accompanying consolidated balance sheet.&nbsp;
The contracts were settled in October 2004.&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the Company's stock repurchase
plan, the Company repurchased approximately 1.2 million shares of its common
stock for $42.3 million during the first quarter of fiscal 2005.&nbsp; As of September 29, 2004, approximately
$132.4 million was available under the Company's share repurchase
authorizations, net of the shares acquired under the forward purchase
contracts.&nbsp; The Company's stock
repurchase plan will be used to minimize the dilutive impact of the convertible
debt and stock option exercises.&nbsp; The
repurchased common stock is recorded in treasury stock in the accompanying
consolidated balance sheets.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company is not aware of any other event or
trend that 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 its
business.</p>



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

<p><b>RECENT ACCOUNTING PRONOUNCEMENTS</b></p>

<p><b>&nbsp;&nbsp; &nbsp; </b>In
September 2004, the Emerging Issues Task Force (&quot;EITF&quot;) reached a consensus on
EITF Issue No. 04-8, &quot;The Effect of Contingently Convertible Debt on Diluted
Earnings Per Share,&quot; which requires shares associated with contingently
convertible debt instruments with market price triggers to be included in the
computation of diluted earnings
per share (&quot;EPS&quot;) regardless of whether the market price trigger has been
met.&nbsp; EITF 04-8 also requires that prior
period diluted EPS amounts presented for comparative purposes be restated.&nbsp; EITF 04-8 is effective for reporting periods
ending after December 15, 2004.&nbsp; The
impact of applying EITF 04-8 to the Company's convertible debt will result in
reductions to previously reported diluted EPS as follows:&nbsp; </p>



<table border=0 cellspacing=0 cellpadding=0 width=635>
 <tr>
  <td width=246 valign=top>

  </td>
  <td width=218 valign=top colspan="4">
  <p align=center><b><u>Fiscal
  Years</u></b></p>
  </td>
  <td width=195 colspan=2 valign=top>
  <p align=center><b><u>Quarters
  Ended</u></b></p>
  </td>
  <td width=1 valign=top>
  <p align=center></p>
  </td>
 </tr>
 <tr>
  <td width=246 valign=top>

  </td>
  <td width=218 valign=top colspan="4">
  <p align=center><b>(as
  restated)</b></p>
  </td>
  <td width=195 colspan=2 valign=top>
  <p align=center><b>(as
  restated)</b></p>
  </td>
  <td width=1 valign=top>
  <p align=center></p>
  </td>
 </tr>
 <tr>
  <td width=246 valign=top>

  </td>
  <td width=72 valign=top>
  <p align=center><b><u><br>
  &nbsp;2004</u></b></p>
  </td>
  <td width=73 valign=top>
  <p align=center><br>
  <u><b>2003</b></u></p>
  </td>
  <td width=54 valign=top>
  <p align=center><b><u><br>
  &nbsp;2002</u></b></p>
  </td>
  <td width=138 colspan=2 valign=top>
  <p align=center><b>Sept.
  29,<u><br>
&nbsp;2004</u></b></p>
  </td>
  <td width=102 colspan=2 valign=top>
  <p align=center><b>Sept.
  24,<u><br>
&nbsp;2003</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=246 valign=top>
  <p>Diluted earnings
  per share -<br>
  &nbsp; as reported</p>
  </td>
  <td width=72 valign=top>
  <p align=center><u><br>
  $1.54</u></p>
  </td>
  <td width=73 valign=top>
  <p align=center><u><br>
  $1.68</u></p>
  </td>
  <td width=54 valign=top>
  <p align=center><u><br>
  $1.50</u></p>
  </td>
  <td width=138 colspan=2 valign=top>
  <p align=center><u><br>
  &nbsp;$0.15</u></p>
  </td>
  <td width=102 colspan=2 valign=top>
  <p align=center><u><br>
  &nbsp;$0.44</u></p>
  </td>
 </tr>
 <tr>
  <td width=246 valign=top>
  <p>Diluted earnings
  per share -<br>
  &nbsp; pro-forma</p>
  </td>
  <td width=72 valign=top>
  <p align=center><u><br>
  &nbsp;$1.47</u></p>
  </td>
  <td width=73 valign=top>
  <p align=center><u><br>
  &nbsp;$1.61</u></p>
  </td>
  <td width=54 valign=top>
  <p align=center><u><br>
  &nbsp;$1.46</u></p>
  </td>
  <td width=138 colspan=2 valign=top>
  <p align=center><u><br>
  &nbsp;$0.15 </u></p>
  </td>
  <td width=102 colspan=2 valign=top>
  <p align=center><u><br>
  &nbsp;$0.42</u></p>
  </td>
 </tr>
 <tr>
  <td width=246 valign=top>

  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=73 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=54 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=138 colspan=2 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=102 colspan=2 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 </table>





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



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



<p>&nbsp;&nbsp; &nbsp;&nbsp; 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-15(e) under the
Securities Exchange Act of 1934, as amended (the &quot;Exchange Act&quot;)], as
of the end of the period covered by this report.&nbsp; Based upon the
evaluation, the Chief Executive Officer and Chief Financial Officer concluded
that the design and operation of these disclosure controls and procedures were
effective in timely making known to them material information relating to the
Company required to be disclosed in the Company's reports filed or submitted
under the Exchange Act.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; There
were no changes in the Company's internal control over financial reporting or
in other factors that could significantly affect this control during the
quarter ended September 29, 2004, that has materially affected or is reasonably
likely to materially affect, the Company's internal control over financial
reporting.</p>

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



<p>&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, </p>



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



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



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The restaurant business is
highly competitive with respect to price, service, restaurant location,
nutritional and dietary trends 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; 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; 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 material 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; 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, the Company cannot ensure
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; 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. 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, the Company cannot assure that there will not be
material increases in the future.&nbsp; In
addition, the Company's vendors may be affected by higher minimum wage
standards, which may increase the price of goods and services supplied to the
Company.</p>



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



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



<p>&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; 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>Successful mergers, acquisitions, divestitures and
other strategic transactions are important to the future growth and
profitability of the Company.</i></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company intends to evaluate potential
mergers, acquisitions, joint venture investments, and divestitures as part of
its strategic planning initiative.&nbsp;
These transactions involve various inherent risks, including accurately
assessing the value, future growth potential, strengths, weaknesses, contingent
and other liabilities and potential profitability of acquisition candidates;
the Company's ability to achieve projected economic and operating synergies;
unanticipated changes in business and economic conditions affecting an acquired
business; and the ability of the Company to complete divestitures on acceptable
terms and at or near the prices estimated as attainable by the Company.</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; 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; 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 Chili's brand, and consequently on
the Company's business, financial condition, and results of operations.</p>



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



<p>&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 </p>





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



<p>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><b>PART II. OTHER INFORMATION</b></p>

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



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information regarding legal proceedings is incorporated by
reference from Note 8 to the Company's consolidated financial statements set
forth in Part I of this report. </p>



<p><b>Item 2. &nbsp;UNREGISTERED SALES OF EQUITY
SECURITIES AND USE OF PROCEEDS</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Shares repurchased during the first quarter of
fiscal 2005 are as follows (in thousands, except share and per share amounts):</p>



<table border=0 cellspacing=0 cellpadding=0 width=651>
 <tr>
  <td width=353 valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td width=181 valign=bottom>
  <p align=center><b>Total Number <br>
  of
  Shares <u><br>
  Purchased (a)</u></b></p>
  </td>
  <td width=136 valign=bottom>
  <p align=center><b>Average <br>
  Price
  <br>
  Paid per <u><br>
  Share</u></b></p>
  </td>
  <td width=164 valign=bottom>
  <p align=center><b>Maximum Dollar
  <br>
  Value that May <br>
  Yet be Purchased <u><br>
  Under the Program</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=353 valign=bottom>
  <p>July 1, 2004
  through <br>
  August 4, 2004</p>
  </td>
  <td width=181 nowrap valign=bottom>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,224,800</p>
  </td>
  <td width=136 nowrap valign=bottom>
  <p align=center>$34.49</p>
  </td>
  <td width=164 nowrap valign=bottom>
  <p align=center>&nbsp;$253,030(b)</p>
  </td>
 </tr>
 <tr>
  <td width=353 valign=bottom>
  <p>August 5, 2004
  through <br>
  September 1, 2004</p>
  </td>
  <td width=181 nowrap valign=bottom>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  -</p>
  </td>
  <td width=136 nowrap valign=bottom>
  <p align=center>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; -</p>
  </td>
  <td width=164 nowrap valign=bottom>
  <p align=center>&nbsp;$253,030(c) </p>
  </td>
 </tr>
 <tr>
  <td width=353 valign=bottom>
  <p>September 2, 2004
  through<br>
&nbsp;September 29, 2004</p>
  </td>
  <td width=181 nowrap valign=bottom>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  - </u></p>
  </td>
  <td width=136 nowrap valign=bottom>
  <p align=center><u>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=164 nowrap valign=bottom>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  $253,030</p>
  </td>
 </tr>
 <tr>
  <td width=353 valign=bottom>

  </td>
  <td width=181 nowrap valign=bottom>
  <p>&nbsp; <u>&nbsp;&nbsp;&nbsp;1,224,800 </u></p>
  </td>
  <td width=136 nowrap valign=bottom>
  <p align=center>$34.49</p>
  </td>
  <td width=164 nowrap valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
</table>



<blockquote>



<p><font size="2">(a)&nbsp;&nbsp;
All
of the shares purchased during the first quarter of fiscal 2005 were purchased
as part of the publicly announced program described in Part I of this report.</font></p>

<p><font size="2">(b)&nbsp; The
Company entered into forward purchase contracts to acquire 2,714,612 shares of
common stock during the five-week period ended August 4, 2004 at an average
share price of $35.49, plus fees.&nbsp; Payment
for these shares was made during the five-week period ended August 4, 2004,
thereby reducing the remaining amount available for future repurchases to
$156.5 million.&nbsp; These contracts
physically settled, and the shares were received, in October 2004.</font></p>

<p><font size="2">(c)&nbsp;&nbsp; The
Company entered into forward purchase contracts to acquire 800,000 shares of
common stock during the four-week period ended September 1, 2004 at an average
share price of $30.03, plus fees.&nbsp;
Payment for these shares was made during the four-week period ended
September 1, 2004, thereby reducing the remaining amount available for future
repurchases to $132.4 million.&nbsp; These
contracts physically settled, and the shares were received, in October 2004.</font></p>
</blockquote>
<hr><P Style="page-break-after: always"></P>




<p><b>Item 6.&nbsp; EXHIBITS </b></p>

<p>31(a) Certification
by Douglas H. Brooks, Chairman of the Board, 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) 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>32(a)&nbsp; Certification by Douglas H. Brooks, Chairman
of the Board, 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. </p>

<p>32(b)&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.</p>

<p>&nbsp;</p>



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



<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the requirements of the Securities Exchange Act of
1934, the Company has duly caused this Amendment No. 1 on Form 10-Q/A to be signed on its behalf by the
undersigned thereunto duly authorized.</p>



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>BRINKER
  INTERNATIONAL, INC.</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>Date: January 19,
  2005</p>
  </td>
  <td width=374 valign=top>
  <p>By:<u> /s/
  Douglas H.
  Brooks&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; Douglas H. Brooks</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; Chairman of the Board,</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; President and Chief Executive Officer</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; (Principal Executive Officer)</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>

  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>Date: January 19,
  2005</p>
  </td>
  <td width=374 valign=top>
  <p>By:<u> /s/
  Charles M. Sonsteby&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; Charles M. Sonsteby</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; Executive Vice President and</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; Chief Financial Officer</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>

  </td>
  <td width=374 valign=top>
  <p>&nbsp;&nbsp;&nbsp; (Principal Financial Officer)</p>
  </td>
 </tr>
</table>



</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>ex31a10qr1.htm
<DESCRIPTION>EXHIBIT 31(A)
<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;
I have reviewed this Amendment No. 1 to Quarterly
Report on Form 10-Q/A of Brinker International, Inc.;</p>

<p>2. &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;
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;
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>

<p>a.&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; 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; 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>

<p>5. &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>

<p>a.&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; 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>

<p>Date:
January 19, 2005</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; </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>Chairman of the Board,
  President and</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

  </td>
  <td width=319 valign=top>
  <p>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>3
<FILENAME>ex31b10qr1.htm
<DESCRIPTION>EXHIBIT 31(B)
<TEXT>
<html>

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

</head>
<body>

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




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



<p>1.&nbsp;&nbsp;&nbsp;
I
have reviewed this Amendment No. 1 to Quarterly Report on Form 10-Q/A of
Brinker International, Inc.;</p>

<p>2.&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;
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;
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>

<ol start=5>
 <ol start=1 type=a>
  <li>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;</li>
  <li>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</li>
  <li>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<br>
&nbsp;</li>
 </ol>
 <li>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):<br>
&nbsp;<ol start=1 type=a>
  <li>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</li>
  <li>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.</li>
 </ol>
</ol>



<p>Date: January
19, 2005</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; </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>4
<FILENAME>ex32a10qr1.htm
<DESCRIPTION>EXHIBIT 32(A)
<TEXT>
<html>

<head>

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

</head>

<body>

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





<p align=center>CERTIFICATION</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/A for the quarter ended September 29, 2004 (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>Date:&nbsp; January 19, 2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>/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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; Chairman of
the Board, 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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Principal
Executive Officer)</p>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>ex32b10qr1.htm
<DESCRIPTION>EXHIBIT 32(B)
<TEXT>
<html>

<head>

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

</head>

<body>

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





<p align=center>CERTIFICATION</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/A for the quarter ended September 29, 2004 (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>Date:&nbsp; January 19, 2005&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>/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;&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;&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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; (Principal Financial Officer)</p>

</body>

</html>

</TEXT>
</DOCUMENT>
</SUBMISSION>
