Brinker Q2 net up 23% despite dip in sales
January 23, 2008
by Eric Schroeder
DALLAS — Brinker International, the parent company of Chili’s, Macaroni Grill, On The Border and Maggiano’s, posted net income of $54,480,000, equal to 53c per share on the common stock, for the second quarter ended Dec. 26. This compared with net income of $44,192,000, or 36c per share, in the same period a year ago.
Revenue fell 4% to $868,206,000, which compared with $899,571,000 during the same quarter of the previous year. The revenue decline was attributed to a 2.1% drop in comparable restaurant sales.
During the quarter, the company opened 45 restaurants — 18 company-owned and 27 franchised. The company also signed an agreement with ERJ Dining IV, L.L.C. to sell 76 company-owned Chili’s restaurants.
Other quarter highlights included signing an agreement with CMR, SAB de C.V. for the joint investment in a new company to develop 50 Chili’s Grill & Bar and Maggiano’s Little Italy restaurants in Mexico, six of which recently opened. Brinker also increased its quarterly dividend by 22% to 11c per share, and repurchased 4.1 million common shares.
For the six months ended Dec. 26, net income rose to $92,080,000, or 88c per share, from $91,831,000, or 74c per share. Sales fell narrowly to $1,763,292,000 from $1,768,854,000.