DALLAS Brinker International Inc. posted a loss in its second quarter, compared with a year-ago profit, as it took a hit from falling sales and charges related to the sale of its Romano's Macaroni Grill brand.
For the quarter ended Dec. 24, the parent of Chili's and other casual-dining brands recorded a net loss of $21.8 million, or 21 cents per share, compared with a year-ago profit of $54.5 million, or 53 cents per share.
Brinker said it booked $85.1 million in gains and charges in the second quarter, including $44.2 million in asset impairment charges, a $43.3 million loss on the Macaroni Grill sale and $3.6 million in gains on sales of other assets. Excluding those charges, the company said it would have earned 27 cents per share, well above the average analyst estimate of 18 cents, according to Thomson Financial. The better-than-expected result was driven mainly by corporate cost control stemming from reduced general and administrative costs and lowered interest expense.
Brinker's stock rose 32.2 percent on Thursday to close at $10.97 per share.
The company's second-quarter revenue fell 7.8 percent to $949.4 million, which Brinker said reflected 47 restaurant closures and the sale of 198 restaurants, most of them Macaroni Grills. In mid-December, Brinker sold a 80.1-percent stake of its 189-unit Macaroni Grill brand to an affiliate of Golden Gate Capital of San Francisco for $88 million.
Brinker said same-store sales fell 5.4 percent across all brands in the second quarter, including decreases of 4.2 percent at Chili’s Grill & Bar, 3.7 percent at On The Border Mexican Grill & Cantina, 6.9 percent at Maggiano’s Little Italy, and 10.6 percent at Macaroni Grill.
At the end of second quarter, Brinker owned, operated, or franchised 1,704 restaurants, including 1,495 Chili's, 165 On The Borders and 44 Maggiano's Little Italy restaurants.
Contact Ron Ruggless at [email protected].
