Chili's Owner Brinker Reports Upbeat Sales Outlook
June 08 2016 - 6:40PM
Dow Jones News
Brinker International Inc. projected sales growth at established
restaurants for its new fiscal year that beat expectations, lifting
the stock of the casual-dining company.
The Dallas company's shares, down 20% in the past 12 months,
rose 6.9% to $48.30 in recent after-hours trading Wednesday.
Brinker issued the outlook ahead of its investor day scheduled
for Thursday.
The company projected same-restaurant sales to grow between 0.5%
and 2% for the fiscal year ending in June 2017. Analysts expected
same-restaurant sales growth of 0.7%, according to FactSet.
"We are encouraged by the quarter-to-date progress of our
brands," Chief Executive Wyman Roberts said in prepared remarks.
"We look forward to discussing a number of initiatives designed to
build on this progress and continue momentum into fiscal 2017 and
beyond."
For the current quarter through June 2, Brinker said sales at
established company-owned stores fell 2%, including a 2% drop at
Chili's and a 1.5% decline at Maggiano's. Still that marks an
improvement of 1.6 percentage points from the previous quarter, the
company stated.
During April, Brinker had reported its profit dropped 12% for
the quarter ended in March, as sales at established stores were
dented by a decline in customer traffic and margins tightened.
Brinker on Tuesday also projected adjusted per-share earnings of
$3.40 to $3.50 for the coming fiscal year, while analysts polled by
Thomson Reuters expected per-share profit of $3.47.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
June 08, 2016 18:25 ET (22:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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