<SUBMISSION>
<ACCESSION-NUMBER>0000703351-05-000035
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20050330
<FILING-DATE>20050509
<DATE-OF-FILING-DATE-CHANGE>20050509
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BRINKER INTERNATIONAL INC
<CIK>0000703351
<ASSIGNED-SIC>5812
<IRS-NUMBER>751914582
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-10275
<FILM-NUMBER>05812602
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>6820 LBJ FREEWAY
<CITY>DALLAS
<STATE>TX
<ZIP>75240
<PHONE>9729809917
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>6820 LBJ FREEWAY
<CITY>DALLAS
<STATE>TX
<ZIP>75240
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>CHILIS INC
<DATE-CHANGED>19910528
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>form10q3q051.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<html>

<head>

<title>FORM 10-Q</title>

</head>

<body link=blue vlink=purple>

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



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



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



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



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



<p align="center">SECURITIES EXCHANGE ACT OF 1934</p>







<p align=center>For
the Quarterly Period Ended March 30, 2005</p>

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





<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;&nbsp;&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;&nbsp;&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 May 4, 2005</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>
  <p>Common
  Stock, $0.10 par value</p>
  </td>
  <td width=319 valign=top>
  <p>88,713,152
  shares</p>
  </td>
 </tr>
</table>





<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>

<p>&nbsp;</p>









<table border=1 cellspacing=0 cellpadding=0 style="border-width: 0">
 <tr>
  <td width=243 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=358 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">
  <p><u>Page</u></p>
  </td>
 </tr>
 <tr>
  <td width=601 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p>Part I -
  Financial Information</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=243 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=358 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=601 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp; Item 1. Financial Statements</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>Consolidated
  Balance Sheets -</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; March 30, 2005 (Unaudited) and June 30,
  2004</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">
  <p>3</p>
  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>Consolidated
  Statements of Income</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited) - Thirteen week and
  thirty-nine week<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; periods ended March 30, 2005 and March
  24, 2004</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  <p><br>
  4</p>
  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  &nbsp;</td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">
  Consolidated Statements of Cash Flows</td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  &nbsp;</td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  &nbsp;</td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">
  &nbsp;&nbsp;&nbsp;&nbsp; (Unaudited - Thirty-nine week periods ended<br>
&nbsp;&nbsp;&nbsp;&nbsp; March 30, 2005 and March 24, 2004</td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  <br>
  5</td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  &nbsp;</td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">
  &nbsp;</td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  &nbsp;</td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>Notes to Consolidated</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements (Unaudited)</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">
  <p>6</p>
  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=601 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Item 2. Management's Discussion and
  Analysis of Financial Condition<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and Results of Operations</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  <p><br>
  13</p>
  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=601 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Item 3. Quantitative and Qualitative
  Disclosures About Market Risk</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">
  <p>18</p>
  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=601 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Item 4. Controls and Procedures</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">
  <p>18</p>
  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=601 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p>Part II - Other
  Information</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=601 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Item 1. Legal Proceedings</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">
  <p>22</p>
  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=601 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Item 2. Unregistered Sales of Equity
  Securities and Use of Proceeds</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">
  <p>22</p>
  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=601 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp; Item 6. Exhibits</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">
  <p>22</p>
  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">

  </td>
 </tr>
 <tr>
  <td width=110 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=491 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p>Signatures</p>
  </td>
  <td width=56 valign=top style="border-style: none; border-width: medium">
  <p>23</p>
  </td>
 </tr>
 <tr height=0>
  <td width=110 style="border-style: none; border-width: medium"></td>
  <td width=132 style="border-style: none; border-width: medium"></td>
  <td width=358 style="border-style: none; border-width: medium"></td>
  <td width=56 style="border-style: none; border-width: medium"></td>
 </tr>
</table>



<hr><P STYLE="page-break-after: always"></P>&nbsp;<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>March
  30,<br>
  <u>2005<br>
  </u>(Unaudited)</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=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>$&nbsp;&nbsp; 48,577</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>$&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>37,613</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>47,686</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>77,833</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; 31,727</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; 243,436&nbsp;
  </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>278,490</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>1,538,603</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>1,413,980</p>
  </td>
 </tr>
 <tr>
  <td width=456 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Furniture and equipment</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>719,852</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</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 77,876</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>2,614,821</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>2,436,990</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; (936,998</u>)</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; (823,106</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;1,677,823</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;1,613,884</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</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>135,754</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; 66,603&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; 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</p>
  </td>
  <td width=102 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 202,357&nbsp;&nbsp;
  </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>$2,123,616</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>$2,254,424</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>$&nbsp;&nbsp; 15,983&nbsp;&nbsp;
  </p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>$&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>125,283</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>243,295</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; 28,403</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; 412,964</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</p>
  </td>
  <td width=96 valign=top style="border-style: none; border-width: medium">
  <p align=right>436,715</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>77,163</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>171,394</p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right>153,096</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; 88,722,193 shares outstanding at March 30,</p>
  </td>
 </tr>
 <tr>
  <td width=680 colspan=4 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp; 2005, 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</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>355,205</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>786</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;1,372,103 </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>1,739,844</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 (28,777,348 shares
  at March</p>
  </td>
 </tr>
 <tr>
  <td width=462 colspan=2 valign=top style="border-style: none; border-width: medium">
  &nbsp;&nbsp;&nbsp; 30,
  2005 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>(713,310)</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; (1,154</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;1,025,380&nbsp;&nbsp;
  </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>$2,123,616</u></p>
  </td>
  <td width=122 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>$2,254,424</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=733>
 <tr>
  <td width=732 colspan=6 valign=top>
  <p align=center><b>BRINKER
  INTERNATIONAL, INC.</b></p>
  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=732 colspan=6 valign=top>
  <p align=center><b>Consolidated
  Statements of Income</b></p>
  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=732 colspan=6 valign=top>
  <p align=center><b>(In thousands, except per share amounts)</b></p>
  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=732 colspan=6 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=732 colspan=6 valign=top>

  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=732 colspan=6 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; <u>Thirteen
  Week Periods Ended</u>&nbsp;&nbsp; <u>Thirty-Nine
  Week Periods Ended</u></b></p>
  </td>
  <td
  width=1><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=285 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=center><b>March 30,</b></p>
  </td>
  <td width=113 valign=top>
  <p align=center><b>March 24,</b></p>
  </td>
  <td width=110 valign=top>
  <p align=center><b>March 30,</b></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=center><b>March 24,</b></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=center><b>&nbsp; <u>2005</u></b></p>
  </td>
  <td width=113 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
  <td width=110 valign=top>
  <p align=center><b>&nbsp; <u>2005</u></b></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>Revenues</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$
  1,009,529&nbsp;&nbsp; </u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 931,922</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>$
  2,870,800 </u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>$
  2,689,310</u></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>Operating
  Costs and Expenses:</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; Cost of sales </p>
  </td>
  <td width=113 valign=top>
  <p align=right>285,600</p>
  </td>
  <td width=113 valign=top>
  <p align=right>255,759</p>
  </td>
  <td width=110 valign=top>
  <p align=right>808,803</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>740,878</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; Restaurant expenses </p>
  </td>
  <td width=113 valign=top>
  <p align=right>554,990</p>
  </td>
  <td width=113 valign=top>
  <p align=right>509,059</p>
  </td>
  <td width=110 valign=top>
  <p align=right>1,598,817</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>1,486,251</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; Depreciation and amortization </p>
  </td>
  <td width=113 valign=top>
  <p align=right>47,922</p>
  </td>
  <td width=113 valign=top>
  <p align=right>45,687</p>
  </td>
  <td width=110 valign=top>
  <p align=right>142,144</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;133,033</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; General and administrative</p>
  </td>
  <td width=113 valign=top>
  <p align=right>33,310</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;&nbsp; 39,417</p>
  </td>
  <td width=110 valign=top>
  <p align=right>113,149</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>109,339</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; Restructure charges and other impairments</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 350&nbsp;&nbsp; </u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 66,501</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 52,749&nbsp;&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 68,535</u></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp;&nbsp; Total operating costs and expenses </p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 922,172&nbsp;
  </u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 916,423&nbsp;
  </u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp; 2,715,662&nbsp;
  </u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>&nbsp; 2,538,036</u></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>Operating
  income </p>
  </td>
  <td width=113 valign=top>
  <p align=right>87,357</p>
  </td>
  <td width=113 valign=top>
  <p align=right>15,499</p>
  </td>
  <td width=110 valign=top>
  <p align=right>155,138</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>151,274</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>Interest
  expense</p>
  </td>
  <td width=113 valign=top>
  <p align=right>5,947</p>
  </td>
  <td width=113 valign=top>
  <p align=right>2,722</p>
  </td>
  <td width=110 valign=top>
  <p align=right>20,147</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>8,973</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>Other,
  net</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 77</u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,103</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,612</u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,973</u></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>Income
  before provision for income taxes </p>
  </td>
  <td width=113 valign=top>
  <p align=right>81,333</p>
  </td>
  <td width=113 valign=top>
  <p align=right>11,674</p>
  </td>
  <td width=110 valign=top>
  <p align=right>133,379</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>140,328</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>

  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>Provision
  for income taxes&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 26,189</u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp; &nbsp;&nbsp;&nbsp;11,668</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 22,923</u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;
  53,090</u></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; &nbsp; Net
  income</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 55,144</u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  6</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 110,456</u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>$&nbsp;&nbsp; &nbsp;&nbsp; 87,238 </u></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>Basic
  net income per share</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.63</u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 0.00</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.25</u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.90</u></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>Diluted net income per share</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.60</u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; 0.00</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.18</u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.86</u></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>Basic
  weighted average</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; shares outstanding</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 88,109</u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 95,973</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 88,458</u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 96,510</u></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>Diluted
  weighted average </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; shares outstanding</p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 91,769</u></p>
  </td>
  <td width=113 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 98,007</u></p>
  </td>
  <td width=110 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 95,621</u></p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 106,151</u></p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=285 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=113 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=112 colspan=3 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=675 colspan=5 valign=top>
  <p>&nbsp;See accompanying notes to consolidated financial statements.</p>
  </td>
  <td
  width=58 colspan=2><p>&nbsp;</td>
 </tr>
 <tr height=0>
  <td width=285></td>
  <td width=113></td>
  <td width=113></td>
  <td width=110></td>
  <td width=53></td>
  <td width=57></td>
  <td width=1></td>
 </tr>
</table>

<hr><P STYLE="page-break-after: always"></P>&nbsp;<table border=0 cellspacing=0 cellpadding=0 width=667>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p align=center><b>BRINKER INTERNATIONAL, INC.</b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p align=center><b>Consolidated Statements of Cash Flows</b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p align=center><b>(In thousands)</b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=667 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; <u>Thirty-Nine
  Week Periods Ended</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>

  </td>
  <td width=102 valign=top>
  <p align=center><b>March
  30,</b></p>
  </td>
  <td width=36 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=center><b>March
  24,</b></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=102 valign=top>
  <p align=center><b><u>2005</u></b></p>
  </td>
  <td width=36 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=center><b><u>2004</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>

  </td>
  <td width=102 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=36 valign=top>

  </td>
  <td width=96 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>Cash Flows from Operating Activities:</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Net income</p>
  </td>
  <td width=102 valign=top>
  <p align=right>$110,456
  </p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>$
  87,238</p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>Adjustments to reconcile net income to net cash</p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>&nbsp; provided by
  operating activities:</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp; Depreciation and amortization</p>
  </td>
  <td width=102 valign=top>
  <p align=right>142,144</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>133,033</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Restructure
  charges and other impairments</p>
  </td>
  <td width=102 valign=top>
  <p align=right>52,749</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>68,535 </p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp; Gain on sale of assets</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(6,314)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;(2,454)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp; Amortization of deferred costs</p>
  </td>
  <td width=102 valign=top>
  <p align=right>4,000</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>7,032</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Deferred income taxes</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(3,696)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>(21,487)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp; Gain on extinguishment of debt</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(1,750)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>-</p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>&nbsp;&nbsp; Changes in assets and liabilities:</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables</p>
  </td>
  <td width=102 valign=top>
  <p align=right>640</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;2,215</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(9,955)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;78</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(687)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>6,041</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(2,620)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;(3,802)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current income taxes</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(8,640)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>49,412</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable</p>
  </td>
  <td width=102 valign=top>
  <p align=right>28,488</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>(13,785)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued liabilities</p>
  </td>
  <td width=102 valign=top>
  <p align=right>11,180</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>24,852</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>&nbsp; 14,649&nbsp;&nbsp;
  </u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 21,580</u></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating
  activities</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>&nbsp;330,644&nbsp;
  </u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;358,488</u></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>Cash
  Flows from Investing Activities:</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Payments
  for property and equipment</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(245,642)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>(231,400)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Proceeds
  from sale of assets</p>
  </td>
  <td width=102 valign=top>
  <p align=right>38,928</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>7,704</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Issuance of loan to affiliate</p>
  </td>
  <td width=102 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp; (2,800)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Net repayments of advances to affiliates</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 644</u></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>(206,714</u>)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>(225,852</u>) </p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>
  <p>Cash
  Flows from Financing Activities:</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Payments on long-term debt</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(286,868)&nbsp; </p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;(2,100)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Purchases
  of treasury stock&nbsp; </p>
  </td>
  <td width=102 valign=top>
  <p align=right>(162,893)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>(105,248)</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Net
  borrowings on credit facilities</p>
  </td>
  <td width=102 valign=top>
  <p align=right>92,700</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>-</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Proceeds
  from issuances of treasury stock</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>&nbsp; 54,946</u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 35,951</u></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in financing activities</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>(302,115</u>)<u>&nbsp; </u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;(71,397</u>) </p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Net change in cash and cash equivalents</p>
  </td>
  <td width=102 valign=top>
  <p align=right>(178,185)</p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>61,239</p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Cash and cash equivalents at beginning of period</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>&nbsp;226,762&nbsp;&nbsp;
  </u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 33,492</u></p>
  </td>
 </tr>
 <tr>
  <td width=433 valign=top>
  <p>Cash and cash equivalents at end of period</p>
  </td>
  <td width=102 valign=top>
  <p align=right><u>$
  48,577&nbsp; </u></p>
  </td>
  <td width=36 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>$
  94,731</u></p>
  </td>
 </tr>
 <tr>
  <td width=667 colspan=4 valign=top>

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

<hr><P STYLE="page-break-after: always"></P>&nbsp;<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 March 30, 2005 and June 30, 2004 and for the thirteen week
and thirty-nine week periods ended March 30, 2005 and March 24, 2004, 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;), and Corner Bakery Cafe (&quot;Corner
Bakery&quot;).&nbsp; In addition, the Company owns
an approximate 43% interest in the legal entities owning and developing
Rockfish Seafood Grill (&quot;Rockfish&quot;).&nbsp;
During the third quarter of fiscal 2005, the Company sold the remaining
nine Big Bowl Asian Kitchen (&quot;Big Bowl&quot;) restaurants.</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>&nbsp;&nbsp;&nbsp;&nbsp; Reclassifications</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; As a result of the Company's review of its
lease accounting policies that began in December 2004, and consistent with the
views recently expressed by the SEC, the Company has adopted new accounting
policies associated with landlord contributions and rent holidays.&nbsp; The Company previously netted landlord
contributions against leasehold improvements, thereby reducing future
depreciation related to leased properties.&nbsp;
The landlord contributions will now be recorded as a deferred rent
liability and amortized as a reduction of rent expense over the lease
term.&nbsp; In addition, the Company previously
began calculating straight-line rent on the rent commencement date, which is
typically the date the restaurant is opened.&nbsp;
The straight-line rent calculation will now include the rent holiday
period, which is the period of time between the Company taking control of a
leased site (generally at the beginning of construction) and the rent
commencement date.&nbsp; The portion of
straight-line rent allocated to the construction period will be capitalized.&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; These accounting policy changes resulted in
an increase to net property and equipment and other liabilities of $47.0
million as of June 30, 2004.&nbsp; In
addition, depreciation and amortization increased and restaurant expenses
decreased by $845,000 for the third quarter of fiscal 2004 and $2.4 million for
year-to-date of fiscal 2004.&nbsp; These
changes have no impact on the Company's previously reported net income,
earnings per share, revenues, total operating costs and expenses, shareholders'
equity, or compliance with any covenants under its credit facility or other
debt instruments.</p>









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









<p><b>2.&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 align=left width=679>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=228 colspan=2 valign=top>
  <p align=center><b><u>Thirteen
  Week Periods Ended</u></b></p>
  </td>
  <td width=234 colspan=2 valign=top>
  <p align=center><b><u>Thirty-Nine
  Week Periods Ended</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp;March 30,</b></p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>March
  24,</b></p>
  </td>
  <td width=111 valign=top>
  <p align=center><b>&nbsp;March 30,</b></p>
  </td>
  <td width=123 valign=top>
  <p align=center><b>March
  24,</b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp; <u>2005</u></b></p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
  <td width=111 valign=top>
  <p align=center><b>&nbsp; <u>2005</u></b></p>
  </td>
  <td width=123 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp;(as
  restated)</b></p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=center><b>&nbsp; (as
  restated)</b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Net income - as reported</p>
  </td>
  <td width=114 valign=top>
  <p align=right>$&nbsp; 55,144&nbsp; </p>
  </td>
  <td width=114 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6</p>
  </td>
  <td width=111 valign=top>
  <p align=right>$ 110,456&nbsp; </p>
  </td>
  <td width=123 valign=top>
  <p align=right>$&nbsp; 87,238</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Add: Reported
  stock-based <br>
  &nbsp; compensation expense,<br>
  &nbsp; net of taxes</p>
  </td>
  <td width=114 valign=top>
  <p align=right><br>
  <br>
  124</p>
  </td>
  <td width=114 valign=top>
  <p align=right><br>
  <br>
  417</p>
  </td>
  <td width=111 valign=top>
  <p align=right><br>
  <br>
  932</p>
  </td>
  <td width=123 valign=top>
  <p align=right><br>
  <br>
  1,348</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Deduct: Fair value based<br>
  &nbsp; compensation expense, <br>
&nbsp; net of taxes</p>
  </td>
  <td width=114 valign=top>
  <p align=right><u><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; (4,620</u>)</p>
  </td>
  <td width=114 valign=top>
  <p align=right><u><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; (4,730</u>)</p>
  </td>
  <td width=111 valign=top>
  <p align=right><u><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; (14,450</u>)</p>
  </td>
  <td width=123 valign=top>
  <p align=right><u><br>
  <br>
  &nbsp;&nbsp;&nbsp; &nbsp; (14,242</u>)</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Net income - pro-forma</p>
  </td>
  <td width=114 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50,648&nbsp;
  </u></p>
  </td>
  <td width=114 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; (4,307</u>)</p>
  </td>
  <td width=111 valign=top>
  <p align=right><u>$&nbsp; 96,938&nbsp;
  </u></p>
  </td>
  <td width=123 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 74,344</u></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Earnings per share:</p>
  </td>
  <td width=114 valign=top>
  &nbsp;</td>
  <td width=114 valign=top>
  &nbsp;</td>
  <td width=111 valign=top>
  &nbsp;</td>
  <td width=123 valign=top>
  &nbsp;</td>
 </tr>
 <tr>
  <td width=217>
  <p>Basic - as reported</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.63</u></p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 0.00</u></p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 1.25</u></p>
  </td>
  <td width=123>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 0.90</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Basic - pro-forma</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.57</u></p>
  </td>
  <td width=114>
  <p align=right>&nbsp; <u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (0.04</u>)</p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 1.10</u></p>
  </td>
  <td width=123>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 0.77</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>

  </td>
  <td width=114>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Diluted - as reported</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.60</u></p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;0.00</u></p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 1.18</u></p>
  </td>
  <td width=123>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 0.86</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Diluted - pro-forma</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  0.56</u></p>
  </td>
  <td width=114>
  <p align=right>&nbsp; <u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.04</u>)</p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 1.05</u></p>
  </td>
  <td width=123>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 0.74</u></p>
  </td>
 </tr>
</table>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p>&nbsp;</p>





<p><b>3.&nbsp;  NET
INCOME PER SHARE</b></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; Basic
earnings per share is computed by dividing income available to common
shareholders by the weighted average number of common shares outstanding for
the reporting period.&nbsp; Diluted earnings
per share reflects the potential dilution that could occur if securities or
other contracts to issue common stock were exercised or converted into common
stock.&nbsp; For the calculation of diluted
net income per share, the basic weighted average number of shares is increased
by the dilutive effect of stock options determined using the treasury stock
method and convertible debt.&nbsp; The Company had
approximately 73,000 and 7,000 stock options outstanding at March 30, 2005 and
March 24, 2004, respectively, that were not included in the dilutive earnings
per share calculation because the effect would have been antidilutive.&nbsp; Additionally, the dilutive effect of the
convertible debt and the related adjustment for interest is excluded from the
diluted earnings per share calculation for the third quarter of fiscal 2004
because the effect would have been antidilutive.&nbsp; The components of basic and diluted earnings per share are as
follows:</p>











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

<p>&nbsp;</p>











<table border=0 cellspacing=0 cellpadding=0 width=679>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=228 colspan=2 valign=top>
  <p align=center><b><u>Thirteen Week Periods Ended</u></b></p>
  </td>
  <td width=234 colspan=2 valign=top>
  <p align=center><b><u>Thirty-Nine Week Periods Ended</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp;March 30,</b></p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>March 24,</b></p>
  </td>
  <td width=111 valign=top>
  <p align=center><b>&nbsp;March 30,</b></p>
  </td>
  <td width=123 valign=top>
  <p align=center><b>March 24,</b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp; <u>2005</u></b></p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
  <td width=111 valign=top>
  <p align=center><b>&nbsp; <u>2005</u></b></p>
  </td>
  <td width=123 valign=top>
  <p align=center><b>&nbsp; <u>2004</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right><b>(as restated)</b></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Net
  income (a)</p>
  </td>
  <td width=114 valign=top>
  <p align=right>$&nbsp; 55,144&nbsp;
  </p>
  </td>
  <td width=114 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6</p>
  </td>
  <td width=111 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp;
  110,456&nbsp; </p>
  </td>
  <td width=123 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp; &nbsp; 87,238</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Adjustment for interest
  on convertible debt, net of tax</p>
  </td>
  <td width=114 valign=top>
  <p align=right><br>
  <u>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;325</u></p>
  </td>
  <td width=114 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=111 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; 2,650</u></p>
  </td>
  <td width=123 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;3,811</u></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Net
  income, as adjusted (b)</p>
  </td>
  <td width=114 valign=top>
  <p align=right><u>$&nbsp; 55,469&nbsp;
  </u></p>
  </td>
  <td width=114 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 6</u></p>
  </td>
  <td width=111 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp; 113,106&nbsp; </u></p>
  </td>
  <td width=123 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; &nbsp; 91,049</u></p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>

  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=114 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=111 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=123 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=217 valign=top>
  <p>Basic weighted average
  shares outstanding (c)</p>
  </td>
  <td width=114 valign=top>
  <p align=right><br>
  88,109</p>
  </td>
  <td width=114 valign=top>
  <p align=right><br>
  95,973</p>
  </td>
  <td width=111 valign=top>
  <p align=right><br>
  88,458</p>
  </td>
  <td width=123 valign=top>
  <p align=right><br>
  96,510</p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Dilutive effect of stock
  options</p>
  </td>
  <td width=114>
  <p align=right>1,445&nbsp;&nbsp; </p>
  </td>
  <td width=114>
  <p align=right>2,034</p>
  </td>
  <td width=111>
  <p align=right>1,253</p>
  </td>
  <td width=123>
  <p align=right>1,841</p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Dilutive effect of
  convertible debt</p>
  </td>
  <td width=114>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 2,215</u></p>
  </td>
  <td width=114>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</u></p>
  </td>
  <td width=111>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 5,910</u></p>
  </td>
  <td width=123>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 7,800</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Diluted weighted average
  shares outstanding (d)</p>
  </td>
  <td width=114>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp; 91,769</u></p>
  </td>
  <td width=114>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp; 98,007</u></p>
  </td>
  <td width=111>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp; 95,621</u></p>
  </td>
  <td width=123>
  <p align=right><u><br>
  &nbsp;&nbsp; 106,151</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Basic earnings per share
  (a)/(c)</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.63</u></p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 0.00</u></p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.25</u></p>
  </td>
  <td width=123>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 0.90</u></p>
  </td>
 </tr>
 <tr>
  <td width=217>
  <p>Diluted earnings per
  share (b)/(d)</p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.60</u></p>
  </td>
  <td width=114>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 0.00</u></p>
  </td>
  <td width=111>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.18</u></p>
  </td>
  <td width=123>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 0.86</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 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; During
the second and third quarters of fiscal 2005, the Company recorded additional
charges associated with the disposition totaling $5.2 million (consisting of
existing lease obligations, severance costs, and the write-off of inventory and
supplies).&nbsp; The Company finalized the
sale of Big Bowl during the third quarter of fiscal 2005 and received proceeds
totaling $6.0 million.</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.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; During the first and second quarter of fiscal
2005, the Company recorded a $1.4 million and $1.0 million charge,
respectively, related to long-lived asset impairments associated with the
closure of one Corner Bakery commissary and an existing lease obligation
associated with a sub-lease.&nbsp;
Additionally, the Company recorded a $3.0 million gain year-to-date of
fiscal 2005 related to the thirty restaurants closed during fiscal 2004,
consisting of increases in the estimated sales value of previously impaired
owned units and decreases in the estimated lease obligations.</p>



<p><b>5.&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 required no interest payments and were issued at a
discount representing a yield to maturity of 2.75% per annum.&nbsp; The Debentures became redeemable at the
Company's option on October 10, 2004.</p>



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



<p>&nbsp;&nbsp;&nbsp;&nbsp; On December 22, 2004, the Company
exercised its right to redeem all of the Debentures.&nbsp; Holders had the option to convert the Debentures into shares of
the Company's common stock or cash until the close of business on January 20,
2005. Holders chose to convert a total of $10.8 million of the accreted
debenture value into 308,092 shares of common stock and the remaining accreted
debenture value of $262.7 million was redeemed for cash on January 24, 2005.</p>

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



<p>&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the Company's stock repurchase
plan, the Company repurchased approximately 4.7 million shares of its common
stock for $162.9 million during the first two quarters of fiscal 2005, of which
3.5 million shares were acquired under forward purchase contracts settled on
October 21, 2004.&nbsp; There were no shares
repurchased during the third quarter of fiscal 2005.&nbsp; As of March 30, 2005, approximately $132.4 million was available
under the Company's share repurchase authorizations.&nbsp; The Company's stock repurchase plan is primarily used to minimize
the dilutive impact of 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 three quarters of fiscal 2005 and 2004 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>March
  30,<br>
  <u>2005</u></b></p>
  </td>
  <td width=120 valign=top>
  <p align=center><b>March
  24,<br>
  <u>2004</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>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  35,262 </p>
  </td>
  <td width=120 valign=top>
  <p align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 25,530</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Interest, net of
  amounts capitalized</p>
  </td>
  <td width=120 valign=top>
  <p align=right>12,519</p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;
  2,805 </p>
  </td>
 </tr>
</table>





<p>&nbsp;&nbsp;&nbsp;&nbsp; Non-cash investing and financing activities
for the first three quarters of fiscal 2005 and 2004 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>March
  30,<br>
  <u>2005</u></b></p>
  </td>
  <td width=120 valign=top>
  <p align=center><b>March
  24,<br>
  <u>2004</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>$&nbsp;
  14,325&nbsp;&nbsp; </p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;$&nbsp;&nbsp; 7,785</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Conversion of debt into common stock</p>
  </td>
  <td width=120 valign=top>
  <p align=right>10,796</p>
  </td>
  <td width=120 valign=top>
  <p align=right>-</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Capitalized straight-line rent</p>
  </td>
  <td width=120 valign=top>
  <p align=right>4,010</p>
  </td>
  <td width=120 valign=top>
  <p align=right>2,418</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Restricted common stock issued, net of
  forfeitures</p>
  </td>
  <td width=120 valign=top>
  <p align=right>1,408&nbsp; </p>
  </td>
  <td width=120 valign=top>
  <p align=right>2,379&nbsp;
  </p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Net
  decrease in fair value of interest rate swaps </p>
  </td>
  <td width=120 valign=top>
  <p align=right>345</p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  4,906</p>
  </td>
 </tr>
 <tr>
  <td width=360 valign=top>
  <p>Issuance of
  notes for sale of Cozymel's</p>
  </td>
  <td width=120 valign=top>
  <p align=right>-</p>
  </td>
  <td width=120 valign=top>
  <p align=right>&nbsp; &nbsp;14,455</p>
  </td>
 </tr>
</table>



<hr><P STYLE="page-break-after: always"></P>&nbsp;<p><b>8.&nbsp; CONTINGENCIES</b></p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; In January 1996, the Company entered into a
Tip Reporting Alternative Commitment (&quot;TRAC&quot;) agreement with the Internal
Revenue Service (the &quot;IRS&quot;).&nbsp; The
agreement 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 alleged that the Company did not meet the requirements of the TRAC
agreement and retroactively and unilaterally revoked it.&nbsp; As a result of the revocation, the IRS
commenced an examination of the Company's 2000 through 2002 calendar years for
payroll tax purposes. In December 2004, the Company paid an assessment of $17.3
million for employer-only FICA taxes on unreported cash tips for the
examination period.&nbsp; The Company
recorded the $17.3 million payment in restaurant expenses in the second quarter
of fiscal 2005 and recorded a related income tax benefit of approximately $16.9
million, consisting primarily of federal income tax credits related to the
additional FICA taxes paid.&nbsp; The Company
continues to believe that it was in full compliance with the TRAC agreement and
that the IRS' retroactive revocation was unjustified, particularly in light of
compliance reviews conducted by the IRS prior to the revocation.&nbsp; Nevertheless, the Company agreed to the
resolution to avoid potentially costly and protracted litigation.</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>9.&nbsp; RESTATEMENT OF PREVIOUSLY ISSUED
FINANCIAL STATEMENTS</b></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; During
the second quarter of fiscal 2005, the Company corrected its computation of
straight-line rent expense and the related deferred rent liability to include
renewal options.&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 determined that it
should have recognized 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.&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; As a result of the
restatement, rent expense for the third quarter and year-to-date of fiscal 2004
increased by approximately $1.2 million and $3.6 million, respectively.&nbsp; Additionally, diluted net earnings per share decreased by
approximately $0.01 and $0.02 for the third quarter and year-to-date of fiscal
2004, respectively.&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 covenants under its credit
facility or other debt instruments. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; The impacts
of the restatement on the consolidated statements of income for the third
quarter and year-to-date of fiscal 2004 are summarized below:</p>



<table border=0 cellspacing=0 cellpadding=0 width=668>
 <tr>
  <td width=668 colspan=5 valign=top align="center">
  <b>CONSOLIDATED
  STATEMENT OF INCOME</b></td>
 </tr>
 <tr>
  <td width=668 colspan=5 valign=top align="center">
  <b>SUMMARY OF RESTATEMENT IMPACTS</b></td>
 </tr>
 <tr>
  <td width=668 colspan=5 valign=top align="center">
  <b>THIRTEEN WEEK PERIOD ENDED MARCH 24, 2004</b></td>
 </tr>
 <tr>
  <td width=668 colspan=5 valign=top>
  <p align=center><b>(In thousands, except per share
  amounts)</b></p>
  </td>
 </tr>
 <tr>
  <td width=668 colspan=5 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
 </tr>
 <tr>
  <td width=293 valign=top>

  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=116 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>

  </td>
  <td width=122 valign=top>
  <p align=center><b><u>AS
  REPORTED</u></b></p>
  </td>
  <td width=130 valign=top>
  <p align=center><b><u>ADJUSTMENTS</u></b></p>
  </td>
  <td width=116 valign=top>
  <p align=center><b><u>AS
  RESTATED</u></b></p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>Revenues</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 931,922</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</p>
  </td>
  <td width=116 valign=top>
  <p align=right><u>$&nbsp;&nbsp; 931,922</u></p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>Operating
  Costs and Expenses:</p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=116 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>&nbsp; Cost of sales </p>
  </td>
  <td width=122 valign=top>
  <p align=right>255,759</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=116 valign=top>
  <p align=right>255,759</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>&nbsp; Restaurant expenses (a)</p>
  </td>
  <td width=122 valign=top>
  <p align=right>507,879</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,180</p>
  </td>
  <td width=116 valign=top>
  <p align=right>509,059</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>&nbsp; Depreciation and amortization (a) </p>
  </td>
  <td width=122 valign=top>
  <p align=right>45,687</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=116 valign=top>
  <p align=right>45,687</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>&nbsp; General and administrative</p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 39,417</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=116 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 39,417</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>&nbsp; Restructure charges and other<br>
  &nbsp;&nbsp; Impairments</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66,501</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right"><br>
  &nbsp; &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </u> </p>
  </td>
  <td width=116 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 66,501</u></p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>&nbsp;&nbsp; Total operating costs and expenses </p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 915,243</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;1,180&nbsp; </u></p>
  </td>
  <td width=116 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 916,423</u></p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>

  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=116 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>Operating
  income </p>
  </td>
  <td width=122 valign=top>
  <p align=right>16,679</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp; (1,180)</p>
  </td>
  <td width=116 valign=top>
  <p align=right>15,499</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=116 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>Interest
  expense</p>
  </td>
  <td width=122 valign=top>
  <p align=right>2,722</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=116 valign=top>
  <p align=right>2,722</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>Other,
  net</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,103</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp; </u></p>
  </td>
  <td width=116 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,103</u></p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>Income before
  provision for income taxes </p>
  </td>
  <td width=122 valign=top>
  <p align=right>12,854</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp; (1,180)</p>
  </td>
  <td width=116 valign=top>
  <p align=right>11,674</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>Provision
  for income taxes </p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 12,116</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(448)</u></p>
  </td>
  <td width=116 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 11,668 </u></p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>&nbsp; &nbsp;Net
  income</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 738</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(732</u>)</p>
  </td>
  <td width=116 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6</u></p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>

  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=116 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>Basic
  net income per share</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.01</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(0.01</u>)</p>
  </td>
  <td width=116 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.00</u></p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>Diluted net income per share (b)</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.01</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(0.01</u>)</p>
  </td>
  <td width=116 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.00</u></p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>Basic
  weighted average</p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=116 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>&nbsp;&nbsp; shares outstanding</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>&nbsp;&nbsp; &nbsp;&nbsp;95,973</u></p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=116 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 95,973</u></p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>Diluted
  weighted average </p>
  </td>
  <td width=122 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=116 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=293 valign=top>
  <p>&nbsp;&nbsp; shares outstanding (b)</p>
  </td>
  <td width=122 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 98,007</u></p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=116 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 98,007</u></p>
  </td>
  <td
  width=7><p>&nbsp;</td>
 </tr>
</table>

<hr><P STYLE="page-break-after: always"></P>&nbsp;<table border=0 cellspacing=0 cellpadding=0 width=670>
 <tr>
  <td width=670 colspan=5 valign=top>
  <p align="center"><b>CONSOLIDATED
  STATEMENT OF INCOME</b></td>
 </tr>
 <tr>
  <td width=670 colspan=5 valign=top>
  <p align="center"><b>SUMMARY OF RESTATEMENT IMPACTS</b></td>
 </tr>
 <tr>
  <td width=670 colspan=5 valign=top>
  <p align="center"><b>THIRTY-NINE WEEK PERIOD ENDED MARCH 24, 2004</b></td>
 </tr>
 <tr>
  <td width=670 colspan=5 valign=top>
  <p align=center><b>(In thousands, except per share
  amounts)</b></p>
  </td>
 </tr>
 <tr>
  <td width=670 colspan=5 valign=top>
  <p align=center><b>(Unaudited)</b></p>
  </td>
 </tr>
 <tr>
  <td width=290 valign=top>

  </td>
  <td width=125 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=121 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>

  </td>
  <td width=125 valign=top>
  <p align=center><b><u>AS
  REPORTED</u></b></p>
  </td>
  <td width=130 valign=top>
  <p align=center><b><u>ADJUSTMENTS</u></b></p>
  </td>
  <td width=121 valign=top>
  <p align=center><b><u>AS
  RESTATED</u></b></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>Revenues</p>
  </td>
  <td width=125 valign=top>
  <p align=right><u>$
  2,689,310</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=121 valign=top>
  <p align=right><u>$
  2,689,310</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>Operating
  Costs and Expenses:</p>
  </td>
  <td width=125 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=121 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>&nbsp; Cost of sales </p>
  </td>
  <td width=125 valign=top>
  <p align=right>740,878</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=121 valign=top>
  <p align=right>740,878</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>&nbsp; Restaurant expenses (a)</p>
  </td>
  <td width=125 valign=top>
  <p align=right>1,482,696</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,555</p>
  </td>
  <td width=121 valign=top>
  <p align=right>1,486,251</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>&nbsp; Depreciation and amortization (a) </p>
  </td>
  <td width=125 valign=top>
  <p align=right>133,033</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=121 valign=top>
  <p align=right>133,033</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>&nbsp; General and administrative</p>
  </td>
  <td width=125 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp; 109,339</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=121 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp; 109,339</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>&nbsp; Restructure charges and other <br>
  &nbsp;&nbsp; Impairments</p>
  </td>
  <td width=125 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68,535</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right"><br>
  &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=121 valign=top>
  <p align=right><u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68,535</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>&nbsp;&nbsp; Total operating costs and expenses </p>
  </td>
  <td width=125 valign=top>
  <p align=right><u>&nbsp; 2,534,481</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;3,555</u></p>
  </td>
  <td width=121 valign=top>
  <p align=right><u>&nbsp; 2,538,036</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>

  </td>
  <td width=125 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=121 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>Operating
  income </p>
  </td>
  <td width=125 valign=top>
  <p align=right>154,829</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp; (3,555)</p>
  </td>
  <td width=121 valign=top>
  <p align=right>151,274</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>&nbsp; </p>
  </td>
  <td width=125 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=121 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>Interest
  expense</p>
  </td>
  <td width=125 valign=top>
  <p align=right>8,973</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp; </p>
  </td>
  <td width=121 valign=top>
  <p align=right>8,973</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>Other,
  net</p>
  </td>
  <td width=125 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,973</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp; </u></p>
  </td>
  <td width=121 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,973</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>Income
  before provision for income taxes</p>
  </td>
  <td width=125 valign=top>
  <p align=right>143,883</p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp;&nbsp;&nbsp;&nbsp; (3,555)</p>
  </td>
  <td width=121 valign=top>
  <p align=right>140,328</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>Provision
  for income taxes</p>
  </td>
  <td width=125 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 54,439</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;(1,349</u>)</p>
  </td>
  <td width=121 valign=top>
  <p align=right>&nbsp;&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53,090</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>&nbsp;&nbsp; &nbsp;Net
  income</p>
  </td>
  <td width=125 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 89,444</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;(2,206</u>)</p>
  </td>
  <td width=121 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; 87,238</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>

  </td>
  <td width=125 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=121 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>Basic
  net income per share</p>
  </td>
  <td width=125 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; 0.93</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(0.03</u>)</p>
  </td>
  <td width=121 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.90</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>Diluted net income per share (b)</p>
  </td>
  <td width=125 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; 0.88</u></p>
  </td>
  <td width=130 valign=top>
  <p align="right">&nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;(0.02</u>)</p>
  </td>
  <td width=121 valign=top>
  <p align=right><u>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.86</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>Basic
  weighted average</p>
  </td>
  <td width=125 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=121 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>&nbsp;&nbsp; shares outstanding</p>
  </td>
  <td width=125 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 96,510</u></p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=121 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp;&nbsp; 96,510</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>Diluted
  weighted average </p>
  </td>
  <td width=125 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=121 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
 <tr>
  <td width=290 valign=top>
  <p>&nbsp;&nbsp; shares outstanding (b)</p>
  </td>
  <td width=125 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 106,151</u></p>
  </td>
  <td width=130 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=121 valign=top>
  <p align=right><u>&nbsp;&nbsp;&nbsp; 106,151</u></p>
  </td>
  <td
  width=4><p>&nbsp;</td>
 </tr>
</table>





<blockquote>





<p><font size="2">(a)&nbsp;&nbsp;
Restaurant
expenses and depreciation and amortization for the third quarter and
year-to-date of fiscal 2004 have been adjusted for the reclassifications
described in Note 1. </font> </p>



<p><font size="2">(b)&nbsp;&nbsp;
Diluted
net income per share and diluted weighted average shares outstanding for
year-to-date fiscal 2004 include the impact of EITF 04-8, &quot;The Effect of
Contingently Convertible Debt on Diluted Earnings Per Share,&quot; which requires
the 7.8 million shares associated with the contingently convertible debt be
included in diluted weighted average shares outstanding.&nbsp; The impact of EITF 04-8 is not included in
the calculation of diluted net income per share and diluted weighted average
shares outstanding for the third quarter of fiscal 2004 because the effect
would have been antidilutive. </font> </p>
</blockquote>
<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;&nbsp;&nbsp;&nbsp; The following table sets forth selected
operating data as a percentage of total revenues
for the periods indicated. All information is derived from the accompanying
consolidated statements of income. </p>





<table border=0 cellspacing=0 cellpadding=0 width=726>
 <tr>
  <td width=522 colspan=4 valign=top>
  <p align="right"><b>13 Week Periods Ended</b></td>
  <td width=204 colspan=4 valign=top>
  <p align=right><b>39
  Week Periods Ended</b></td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=78 valign=top>
  <p align=center><b>Mar. 30,</b></p>
  </td>
  <td width=18 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b>Mar. 24,</b></p>
  </td>
  <td width=30 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=center><b>Mar.
  30,</b></p>
  </td>
  <td width=10 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b>Mar.
  24,</b></p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=center><b><u>2005</u></b></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b><u>2004</u></b></p>
  </td>
  <td width=30 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=center><b><u>2005</u></b></p>
  </td>
  <td width=10 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b><u>2004</u></b></p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center><b>(as restated)</b></p>
  </td>
 </tr>
 <tr>
  <td width=330 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; </p>
  </td>
  <td width=78 valign=top>
  <p align=right><u>100.0 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>100.0 %</u></p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right><u>100.0 %</u></p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>100.0 %</u></p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>Operating Costs and Expenses:</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>&nbsp; Cost of sales</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;28.3 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>27.4 %</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;28.2 %</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>27.5 %</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>&nbsp; Restaurant expenses</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;55.0 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;54.6 %</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;55.7 %</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>55.3 %</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>&nbsp; Depreciation and amortization</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp; 4.7 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;&nbsp; 4.9 %</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp; 5.0 %</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp; 5.0 %</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>&nbsp; General and administrative</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp; 3.3 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;&nbsp; 4.2 %</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;&nbsp; 3.9 %</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp; 4.1 %</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>Restructure
  charges and other&nbsp;&nbsp; impairments</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp;
  0.0 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 7.2 %</u></p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right><u>&nbsp; 1.8 %</u></p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 2.5 % </u></p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>&nbsp;&nbsp; Total operating costs and expenses</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp;91.3 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;98.3 %</u></p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;<u>&nbsp;94.6 %</u></p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp;94.4 %</u></p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>Operating income</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.7 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>1.7 %</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;5.4 %</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>5.6 %</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>Interest expense</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp; 0.6 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp; 0.3 %</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;&nbsp; 0.7 %</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp; 0.3 %</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>Other, net</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp;
  0.0 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 0.1 %</u></p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;<u>&nbsp;
  0.1 %</u></p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 0.1 %</u></p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>Income before provision
  for income taxes</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;8.1 %</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>1.3 %</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;4.6 %</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>5.2 %</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>Provision for income taxes</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp; <u>&nbsp;&nbsp;2.6 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 1.3 %</u></p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;<u>&nbsp; 0.8 %</u></p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 2.0 %</u></p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>

  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=330 valign=top>
  <p>Net income</p>
  </td>
  <td width=78 valign=top>
  <p align=right>&nbsp;<u>&nbsp;
  5.5 %</u></p>
  </td>
  <td width=18 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 0.0 %</u></p>
  </td>
  <td width=30 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p align=right>&nbsp;<u>&nbsp;
  3.8 %</u></p>
  </td>
  <td width=10 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=right><u>&nbsp; 3.2 %</u></p>
  </td>
 </tr>
</table>



<hr><P STYLE="page-break-after: always"></P>&nbsp;<p>&nbsp;&nbsp;&nbsp;&nbsp; The following table details the number of
restaurant openings during the third quarter and year-to-date, total restaurants open at the end of the
third quarter, and total projected openings in fiscal 2005. </p>



<table border=1 cellspacing=0 cellpadding=0 width=687 style="border-width: 0">
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=131 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Third Quarter</p>
  </td>
  <td width=154 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p align="center">Year-to-Date</td>
  <td width=137 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Total Open at End</p>
  </td>
  <td width=89 valign=top style="border-style: none; border-width: medium">
  <p align=center>Projected</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=131 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Openings</p>
  </td>
  <td width=154 colspan=3 valign=top style="border-style: none; border-width: medium">
  <p align="center">&nbsp;Openings</td>
  <td width=137 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align="center">Of Third Quarter</td>
  <td width=89 valign=top style="border-style: none; border-width: medium">
  <p align="center">Openings</td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p align=center>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=center>Fiscal</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2005</u></p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2004</u></p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2005</u></p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=center><u>2004</u></p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>20</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>18</p>
  </td>
  <td width=83 valign=top style="border-style: none; border-width: medium">
  <p align=right>57</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>56</p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>793</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>742</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;10</u></p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 3</u></p>
  </td>
  <td width=83 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;21 </u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;16</u></p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 258</u></p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 220</u></p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>30</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>21</p>
  </td>
  <td width=83 valign=top style="border-style: none; border-width: medium">
  <p align=right>78</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>72</p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>1,051</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>962</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>6</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>5</p>
  </td>
  <td width=83 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>16</p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>219</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>209</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=83 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 4</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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 13</u></p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 8</u></p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>6</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>5</p>
  </td>
  <td width=83 valign=top style="border-style: none; border-width: medium">
  <p align=right>18</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>17</p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>232</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>217</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=83 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>3</p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>33</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>28</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=83 valign=top style="border-style: none; border-width: medium">
  <p align=right>4</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>115</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>116</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 18</u></p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 18</u></p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=83 valign=top style="border-style: none; border-width: medium">
  <p align=right>4</p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right>2</p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>133</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>134</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=83 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>2</p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>84</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>86</p>
  </td>
  <td width=89 valign=top style="border-style: none; border-width: medium">
  <p align=right>6-9</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp; Franchised</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 3</u></p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;&nbsp; 3</u></p>
  </td>
  <td width=89 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -</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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=83 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>2</p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>87</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>89</p>
  </td>
  <td width=89 valign=top style="border-style: none; border-width: medium">
  <p align=right>6-9</p>
  </td>
 </tr>
 <tr>
  <td width=176 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>1</p>
  </td>
  <td width=83 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>3</p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>-</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>21</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; -</u></p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp; 1</u></p>
  </td>
  <td width=83 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; 4</u></p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp; 21</u></p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;&nbsp;
  24</u></p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=83 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 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 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=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;40 </u></p>
  </td>
  <td width=65 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>&nbsp;30</u></p>
  </td>
  <td width=83 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>107</u></p>
  </td>
  <td width=71 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>103</u></p>
  </td>
  <td width=78 colspan=2 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>1,557</u></p>
  </td>
  <td width=59 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>1,475</u></p>
  </td>
  <td width=89 valign=top style="border-style: none; border-width: medium">
  <p align=right><u>141-159</u></p>
  </td>
 </tr>
 <tr height=0>
  <td width=176 style="border-style: none; border-width: medium"></td>
  <td width=65 style="border-style: none; border-width: medium"></td>
  <td width=65 style="border-style: none; border-width: medium"></td>
  <td width=83 style="border-style: none; border-width: medium"></td>
  <td width=71 style="border-style: none; border-width: medium"></td>
  <td width=1 style="border-style: none; border-width: medium"></td>
  <td width=79 style="border-style: none; border-width: medium"></td>
  <td width=59 style="border-style: none; border-width: medium"></td>
  <td width=89 style="border-style: none; border-width: medium"></td>
 </tr>
</table>





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



<p>&nbsp;&nbsp;&nbsp;&nbsp; At March 30, 2005, the Company owned,
operated, franchised, or was involved in the ownership of 1,557
restaurants.&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; The
fourth quarter of fiscal 2004 was a 14-week quarter, and the impact of the
extra week will affect year-over-year comparisons accordingly.&nbsp; Revenues for the fourth quarter of fiscal
2005 are estimated to increase by 1% to 2% compared to the same quarter in
fiscal 2004 driven by comparable store sales growth of 2% to 3%.&nbsp; Cost of sales, as a percent of sales, is
estimated to be 0.5% to 0.6% higher than last year due primarily to increases
in commodity costs for beef and chicken.&nbsp;
Excluding potential gains resulting from the sale of assets, restaurant
expenses, as a percent of sales, is estimated to be 0.6% to 0.7% higher than
last year primarily due to the unfavorable comparison with the fourth quarter
of fiscal 2004 which included the extra week.&nbsp;
General and administrative expenses, as a percent of sales, will be 0.6%
to 0.7% lower due to lower performance based expenses compared to the same
quarter in fiscal 2004.&nbsp; The effective
tax rate during the fourth quarter is estimated to be 32.2%.</p>

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



<p>&nbsp;&nbsp;&nbsp;&nbsp; Revenues
for the third quarter of fiscal 2005 increased to $1,009.5 million, 8.3% over
the $931.9 million generated for the same quarter of fiscal 2004. Revenues for
the thirty-nine week period ended March 30, 2005 rose 6.7% to $2,870.8 million
from the $2,689.3 million generated for the same period of fiscal 2004.&nbsp; The increases were primarily attributable to
a net increase of 42 company-owned restaurants since March 24, 2004 and an
increase in comparable store sales for the third quarter and year-to-date of
fiscal 2005 compared to the same periods of fiscal 2004. The Company increased
its capacity for the third quarter and year-to-date of fiscal 2005 by 3.7% and
3.5%, respectively, compared to the respective prior year periods. Comparable
store sales increased 3.2% and 2.1% for the third quarter and year-to-date,
respectively, from the same periods of fiscal 2004.&nbsp; Menu prices in the aggregate increased 2.6% for year-to-date
fiscal 2005 as compared to 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 0.9% for the third 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 and poultry and a 0.8%
unfavorable product mix shift for meat and seafood, partially offset by a 0.9%
increase in menu prices.&nbsp; Cost of sales,
as a percent of revenues, increased 0.7% for year-to-date fiscal 2005 as
compared to the same period of fiscal 2004.&nbsp;
The increase was due to a 0.9% increase in commodity prices for meat and
poultry and a 0.7% unfavorable product mix shift for meat and seafood,
partially offset by a 0.9% increase in menu prices.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Restaurant expenses, as a percent of
revenues, increased 0.4% for both the third quarter and year-to-date fiscal
2005 as compared to the same periods of fiscal 2004.&nbsp; The increases were primarily due to increases in labor costs
related to new product rollouts and service initiatives, partially offset by a $2.0
million gain related to the sale of five Chili's restaurants to a new franchise
partner and a decrease in advertising costs.&nbsp;
The increases in year-to-date fiscal 2005 were also due to the $17.3
million FICA tax assessment paid in resolution of the IRS dispute during the
second quarter of fiscal 2005, partially offset by a $1.8 million gain recorded
during the second quarter of fiscal 2005 related to the early extinguishment of
certain mortgage loan obligations and 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.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization increased
$2.2 million and $9.1 million for the third quarter and year-to-date fiscal
2005, respectively, as compared to the same periods of fiscal 2004.&nbsp; The increases were due to new unit
construction and ongoing remodel costs, partially offset by a decrease in
depreciation related to the disposition of stores and a declining depreciable
asset base for older units.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses decreased
$6.1 million for the third quarter of fiscal 2005 as compared to the same
period of fiscal 2004. The decrease was primarily due to a decrease in
performance based compensation, partially offset by an increase in payroll
costs resulting from an increase in headcount and severance.&nbsp; General and administrative expenses
increased $3.8 million for year-to-date fiscal 2005 as compared to the same
period of fiscal 2004.&nbsp; The increase was
primarily due to increased costs related to consumer research and an increase
in payroll costs resulting from an increase in headcount and severance,
partially offset by a decrease in performance based compensation.&nbsp;&nbsp;&nbsp; </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Restructure charges and other
impairments recorded during the third quarter of fiscal 2005 totaled $350,000
and consisted of charges related to previously closed restaurants.&nbsp; Restructure charges and other impairments
recorded year-to-date fiscal 2005 also include charges totaling $36.0
million associated with the decision to dispose of Big Bowl, 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, a $1.0 million charge for an existing lease obligation
associated with a sub-lease, and a $3.0 million gain related to the thirty
restaurants closed in fiscal 2004.&nbsp; Restructure charges and other impairments
recorded during the third quarter of fiscal 2004 consist of a $33.8 million
charge for long-lived asset impairments related to the thirty restaurants
closed during fiscal 2004, a goodwill impairment charge of $27.0 million
related to Big Bowl, and a $5.7 million charge related to the settlement of all
outstanding Cozymel's notes receivable.&nbsp;
Restructure charges and other impairments recorded year-to-date fiscal
2004 also include a $2.0 million loss resulting from the sale of Cozymel's
during the second quarter of fiscal 2004.&nbsp;
</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Interest expense increased $3.2 million
and $11.2 million for the third quarter and year-to-date fiscal 2005,
respectively, as compared to the same periods of fiscal 2004.&nbsp; The increases were primarily due to interest
expense related to the 5.75% notes issued in May 2004 (the &quot;Notes&quot;), partially
offset by the redemption of the convertible senior debentures in January 2005. </p>



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



<p>&nbsp;&nbsp;&nbsp;&nbsp; Other, net decreased $1.0 million for the
third quarter of fiscal 2005 as compared to the same period of fiscal
2004.&nbsp; The decrease was primarily due to
a decrease in the Company's net savings plan obligations in addition to no
longer being required to record losses related to Rockfish as a result of fully
impairing the investment during the first quarter of fiscal 2005. Other, net
decreased $361,000 year-to-date fiscal 2005 as compared to the same period of
fiscal 2004 primarily due to an increase in interest income associated with the
investment of proceeds received from the issuances of the Notes.</p>

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



<p>&nbsp;&nbsp;&nbsp;&nbsp; The Company's effective income tax rate decreased to 32.2% from
100.0% for the third quarter of fiscal 2005 and to 17.2% from 37.8% for
year-to-date fiscal 2005 as compared to the same periods of fiscal 2004.&nbsp; The decrease during the third quarter was
primarily due to the Big Bowl goodwill impairment charge recorded during the
third quarter of fiscal 2004, which was not deductible for tax purposes until
the disposition of Big Bowl during the first quarter of fiscal 2005.&nbsp; The year-to-date decrease in the tax rate
was primarily attributable 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 the third quarter of fiscal 2004) and an income tax benefit
of approximately $16.9 million, consisting primarily of federal income tax
credits related to the additional FICA taxes paid as a result of the IRS
resolution.</p>



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



<p>&nbsp;&nbsp;&nbsp;&nbsp; Working capital decreased to a deficit of
$169.5 million at March 30, 2005 from a working capital surplus of $21.8 million
at June 30, 2004, primarily due to the cash redemption of the convertible
senior debentures during the third quarter of fiscal 2005 and purchases of
treasury stock during the first half of fiscal 2005.&nbsp; Net cash provided by operating activities decreased to $330.6
million for the first nine months of fiscal 2005 from $358.5 million during the
same period in fiscal 2004 due to 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;&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 $245.6 million for the first
nine months of fiscal 2005 compared to $231.4 million for the same period of
fiscal 2004.&nbsp; The Company estimates that
its capital expenditures during the fourth quarter of fiscal 2005 will
approximate $90.0 million.&nbsp; These
capital expenditures will be funded entirely from operations and existing
credit facilities. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; In April 2005, the Company paid the remaining
$14.2 million principal balance on the senior notes.&nbsp; Additionally, the Company paid $23.9 million as a result of the
early extinguishment of certain mortgage loan obligations during the second
quarter of fiscal 2005.&nbsp; The Company
funded these payments with cash on hand and available lines of credit.</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; In January 2005, the Company redeemed all of
its convertible senior debentures.&nbsp;
Debenture holders chose to convert a total of $10.8 million of the
accreted debenture value into 308,092 shares of common stock.&nbsp; The Company redeemed the balance of $262.7
million of the accreted debenture value for cash.&nbsp; The Company funded the redemption with cash on hand and available
lines of credit.</p>



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



<p>&nbsp;&nbsp;&nbsp;&nbsp; In December 2004, the Company resolved a
dispute with the IRS and paid an assessment of $17.3 million for employer-only
FICA taxes. In connection with this payment, the Company also recorded an
income tax benefit of approximately $16.9 million, consisting primarily of
federal income tax credits related to the additional FICA taxes paid. </p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; During fiscal 2005, the Company sold fourteen
Chili's restaurants to two new franchise partners and received cash proceeds
totaling $19.8 million.&nbsp; Additionally,
the Company sold the remaining
nine Big Bowl restaurants during the third quarter of fiscal 2005 and received
cash proceeds totaling $6.0 million.</p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; In connection with the closing of thirty
restaurants in fiscal 2004, the Company expects to generate cash of approximately
$15.0 million during fiscal 2005, primarily related to the sale of real
estate.&nbsp; </p>

<p>&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the Company's stock repurchase
plan, the Company repurchased approximately 4.7 million shares of its common
stock for $162.9 million during the first two quarters of fiscal 2005, of which
3.5 million shares were acquired under forward purchase contracts settled on
October 21, 2004.&nbsp; There were no shares
repurchased during the third quarter of fiscal 2005.&nbsp; As of March 30, 2005, approximately $132.4 million was available
under the Company's share repurchase authorizations. The Company's stock
repurchase plan is primarily used to minimize the dilutive impact of 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>



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

<p>&nbsp;&nbsp;&nbsp;&nbsp; In December&nbsp;2004, the Financial
Accounting Standards Board issued SFAS No.&nbsp;123 (Revised 2004),
&quot;Share-Based Payment,&quot; (&quot;SFAS 123R&quot;), which amends SFAS No.&nbsp;123 and SFAS
No. 95. SFAS 123R requires all companies to measure and record compensation
cost for all share-based payments, including employee stock options, at fair
value, and will be effective for annual periods beginning after June&nbsp;15,
2005. The Company is currently evaluating the effect that this accounting
change will have on its financial position and results of operations.</p>



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



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

<p><b>Item 4.&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>



<hr><P STYLE="page-break-after: always"></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 March 30, 2005, 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; The Company wishes to
caution readers that the following important factors, among others, could cause
the actual results of the Company to differ materially from those indicated by
forward-looking statements made in this report and from time to time in news
releases, reports, proxy statements, registration statements and other written
communications, as well as verbal forward-looking statements made from time to
time by representatives of the Company.&nbsp;
Such forward-looking statements involve risks and uncertainties that may
cause the Company's or the restaurant industry's actual results, performance or
achievements to be materially different from any future results, performance or
achievements expressed or implied by these forward-looking statements.&nbsp; Factors that might cause actual events or
results to differ materially from those indicated by these forward-looking
statements may include matters such as future economic performance, restaurant
openings, operating margins, the availability of acceptable real estate
locations for new restaurants, the sufficiency of the Company's cash balances
and cash generated from operating and financing activities for the Company's
future liquidity and capital resource needs, and other matters, and are
generally accompanied by words such as &quot;believes,&quot; &quot;anticipates,&quot; &quot;estimates,&quot;
&quot;predicts,&quot; &quot;expects&quot; and similar expressions that convey the uncertainty of
future events or outcomes.&nbsp; An expanded
discussion of some of these risk factors follows.</p>



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



<p>&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; 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; 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>



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



<p>&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>



<p>&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; 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; 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>



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

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

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

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



<p>&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; There were no shares
repurchased during the third quarter of fiscal 2005.&nbsp; As of March 30, 2005, approximately $132.4 million was available
under the Company's share repurchase authorizations. </p>



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

<blockquote>

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



<p>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>

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

<p>&nbsp;</p>

</blockquote>




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



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



<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: May 9, 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: May 9, 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>ex31a3q051.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>CERTIFICATIONS</p>

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

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



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

<p>2.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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>

<blockquote>

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

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

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

</blockquote>

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

<blockquote>

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

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

</blockquote>

<p>Date: May 9, 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>&nbsp;&nbsp;
  /s/ Douglas H. Brooks
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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, </p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

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

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





</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>3
<FILENAME>ex31b3q051.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;&nbsp;&nbsp;&nbsp;&nbsp;
I have reviewed this
quarterly report on Form 10-Q of Brinker International, Inc.;</p>

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

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

<p>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
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 style="text-align: left; text-indent: 0; margin-left: 10; margin-right: 0">
 <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;<br>
&nbsp;</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<br>
&nbsp;</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</li>
 </ol>
</ol>

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

<p>Date: May 9, 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>&nbsp;&nbsp; /s/ Charles M.
  Sonsteby&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</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>ex32a3q051.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 align=center>&nbsp;</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to 18 U.S.C. Section 1350, the undersigned
officer of Brinker International, Inc. (the &quot;Company&quot;), hereby
certifies that the Company's Quarterly Report on Form 10-Q for the quarter
ended March 30, 2005 (the &quot;Report&quot;) fully complies with the
requirements of Section 13(a) or 15(d), as applicable, of the Securities
Exchange Act of 1934 and that the information contained in the Report fairly
presents, in all material respects, the financial condition and results of operations
of the Company.</p>









<p>&nbsp;</p>









<p>&nbsp;</p>









<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=319 valign=top>
  <p>Date:
  May 9, 2005</p>
  </td>
  <td width=319 valign=top>
  <p>By:
  <u>&nbsp;&nbsp;&nbsp;/s/ Douglas H.
  Brooks&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

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

  </td>
  <td width=319 valign=top>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chairman of the Board,</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top>

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

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



</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>ex32b3q051.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 align=center>&nbsp;</p>



<p>&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to 18 U.S.C. Section 1350, the undersigned
officer of Brinker International, Inc. (the &quot;Company&quot;), hereby
certifies that the Company's Quarterly Report on Form 10-Q for the quarter
ended March 30, 2005 (the &quot;Report&quot;) fully complies with the
requirements of Section 13(a) or 15(d), as applicable, of the Securities
Exchange Act of 1934 and that the information contained in the Report fairly
presents, in all material respects, the financial condition and results of operations
of the Company.</p>









<p>&nbsp;</p>









<p>&nbsp;</p>









<table border=1 cellspacing=0 cellpadding=0 style="border-width: 0">
 <tr>
  <td width=319 valign=top style="border-style: none; border-width: medium">
  <p>Date:
  May 9, 2005</p>
  </td>
  <td width=319 valign=top style="border-style: none; border-width: medium">
  <p>By:
  <u>&nbsp;&nbsp;/s/ Charles M.
  Sonsteby&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=319 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Charles M. Sonsteby</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=319 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Executive Vice President and</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=319 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer</p>
  </td>
 </tr>
 <tr>
  <td width=319 valign=top style="border-style: none; border-width: medium">

  </td>
  <td width=319 valign=top style="border-style: none; border-width: medium">
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Principal Financial Officer)</p>
  </td>
 </tr>
</table>



</body>

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