Chili’s parent Brinker reports surprise profit, revenue that fell less than forecast

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Shares of Brinker International Inc. were indicated up nearly 1% in premarket trading Wednesday, after the parent of Chili’s and Maggiano’s restaurant chains reported a surprise fiscal first-quarter adjusted profit and revenue that fell less than forecast. The company reported net income for the quarter to Sept. 23 of $10.7 million, or 23 cents a share, down from $14.9 million, or 39 cents a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share declined to 28 cents from 41 cents, compared with the FactSet per-share loss consensus of 15 cents. Revenue fell 5.8% to $740.1 million, but was above the FactSet consensus of $731.8 million. Same-restaurant sales fell 10.9%, with Chili’s same-restaurant sales declining 7.2% and Maggiano’s sales dropping 38.6%, as results were negatively impacted by the COVID-19 pandemic. For the second quarter, the company expects same-restaurant sales to be in the negative mid-single digit percentage range, and adjusted EPS of 40 cents to 60 cents. The FactSet consensus for second-quarter EPS is 50 cents. “The team has responded to this unprecedented environment by unlocking organic growth through the introduction of It’s Just Wings, skillfully managing our P&L, and further reducing our debt levels, all resulting in a sustainable growth model that serves both our guests and our shareholders,” said Chief Executive Wyman Roberts. The stock has tumbled gained 2.9% this year through Tuesday, while the Dow Jones Industrial Average has slipped 3.8%.
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