DALLAS Brinker International Inc. reported double-digit declines in both revenue and profit for its fiscal 2010 first quarter, mainly because of one-time items and a reduced number of restaurants from the sale of the Romano’s Macaroni Grill chain.
For the quarter ended Sept. 23, Brinker earned $15.8 million, or 15 cents per share, compared with earnings of $23.8 million, or 23 cents per share, in the same quarter a year ago. Brinker noted that excluding the results of Macaroni Grill and other one-time charges, it earned 17 cents per share in the latest quarter, compared with 20 cents per share a year ago.
The company reported improved cost of sales, reduced restaurant expenses, general and administrative cost cuts, and lower interest expenses, which helped its bottom line in the face of slowed sales trends.
First quarter revenue fell 21 percent to $778.1 million, which reflected negative same-store sales as well as the sale of 198 restaurants — the majority of which were Macaroni Grills — and the closures of 49 restaurants. Brinker now operates or franchises 1,699 restaurants worldwide under the Chili’s Grill & Bar, On the Border Mexican Grill & Cantina and Maggiano’s Little Italy brands.
Same-store sales fell 6 percent at Chili’s, 5.1 percent at On the Border and 6.6 percent at Maggiano’s. The company said favorable price increases from menu changes at Chili’s and On the Border helped its cost of sales and reduce the impact of recent discounting promotions and unfavorable commodity costs from dairy, chicken and beef.
Brinker also said its increased cash flow, which rose to $66.4 million from $53.4 million a year ago, will allow it to pay down $50 million on its outstanding term loan on Oct. 21, which will reduce the balance to $340 million.
Contact Sarah E. Lockyer at [email protected].
