:. Food Industry News

Categories: Corporate Results

Brinker Quarterly Profit Falls on Weak Demand

Source: Reuters
21/10/2008

New York, Oct 21 - Brinker International Inc, which operates Chili's Grill & Bar, posted a lower quarterly profit on Tuesday, hit by weak consumer demand and higher costs.

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Net income for the fiscal first quarter ended Sept. 24 fell to $23.8 million, or 23 cents per share, from $37.6 million, or 34 cents per share in the year-ago quarter.

Earnings before special items and excluding Romano's Macaroni Grill, which it is selling, were 20 cents a share, matching analysts' expectations, according to Reuters Estimates.

The company, whose chains also include On The Border Mexican Grill & Cantina and Maggiano's Little Italy, said earlier in October that it expected lower earnings in the quarter, hurt by commodity costs and a greater-than-expected fall in comparable restaurant sales.

Revenue fell 6.7 percent to $984.4 million, hurt by the sale of 76 restaurants to franchisees and 49 restaurant closures. Sales at restaurants open at least 18 months fell 4 percent, the company said.

Brinker stood by its recently lowered forecast for 2009 earnings excluding items to show a decline of 15 percent to 25 percent compared with fiscal 2008.



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