First-quarter earnings decline for Brinker International
October 20, 2009
by Keith Nunes
DALLAS – Brinker International, Inc., which operates the Chili’s, On the Border and Maggiano’s restaurant concepts, experienced an earnings decline during the first quarter of fiscal 2010, ended Sept. 23. Net income declined to $15,767,000, equal to 15c per share of common stock, from net income of $23,781,000, equal to 23c per share, for the same period during the previous year. Sales for the quarter also declined to $778,081,000 from $984,407,000 for the same period during fiscal 2009.
The restaurant company experienced a 6% decrease in comparable restaurant sales during the first quarter of fiscal 2010. Sales also were impacted negatively by a decline in capacity of 19% due to the sale of 198 restaurants since the first quarter of fiscal 2009, 189 of which were Macaroni Grills, and 49 restaurant closures, three of which were Macaroni Grills. During the second quarter of fiscal 2009, Brinker International sold a majority stake of the Macaroni Grill brand. The company still retains a minority interest in the concept.