Restaurant chain operator Brinker International Inc. (EAT), Tuesday reported a better-than-expected increase in third-quarter profit on lower expenses, even as revenues recorded a marginal growth. Sales at its key Chili's Grill & Bar restaurants declined, hurt mostly by lower traffic amid soft business conditions.
Dallas, Texas-based Brinker reported quarterly net income of $52 million or $0.71 per share, up from $45 million or $0.56 per share last year.
Excluding items, adjusted earnings for the quarter were $53 million or $0.72 per share, compared to $0.60 per share a year ago. On average, 20 analysts polled by Thomson Reuters expected earnings of $0.69 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter were $742.8 million, slightly up from $742 million a year ago.
Analysts on consensus estimated revenues of $741.61 million for the quarter.
Chili's company sales for the quarter edged down 0.7 percent from a year ago to $632.6 million, while Maggiano's company sales rose 0.2 percent to $92 million, led by menu pricing. Franchise and other revenues jumped 38 percent to $18 million.
On a same-store basis, sales at Chili's slid 1.1 percent, while Maggiano grew 0.4 percent.
Total operating costs and expenses for the quarter dropped to $663.43 million from $674.02 million a year ago.
Restaurant operating margin for the quarter improved about 70 basis points from last year to 17.9 percent.
At the end of the quarter, the company operated 1,588 restaurants. The company plans to open 32 to 37 hotels in fiscal year 2013.
Brinker stock is trading at $37.03, down 4.64%, on a volume of 3 million shares on the NYSE.
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