DALLAS Brinker International Inc., parent to Chili’s Grill & Bar and other casual-dining brands, said today its second-quarter profit jumped 23 percent mainly on a gain from the sale of restaurants to a franchisee.
For the quarter ended Dec. 26, net income rose to $54.5 million, or 52 cents per share, from $44.2 million, or 35 cents per share, in the same quarter in the prior year.
The company’s latest-quarter net income rose with a $29.2 million gain on the sale of 76 Chili’s units to ERJ Dining IV LLC.
Excluding income from discontinued operations, which includes the Romano’s Macaroni Grill chain currently up for sale, Brinker earned 44 cents per share compared with 32 cents a year ago. However, without such special items as gains and charges, earnings from continuing operations fell to 31 cents per share compared with 33 cents a year ago. Cost of sales and restaurant expenses both grew as a percentage of revenue as higher labor and commodity costs ate into profits, the company reported.
Total revenues fell 4 percent, to $868.2 million from $899.6 million in the same period a year ago. Brinker had previously reported a 2.1-percent decline in blended same-store sales, excluding Macaroni Grill. Same-store sales slipped 2.4 percent at Chili’s and 4.3 percent at On The Border Mexican Grill & Cantina. Same-store sales at Maggiano’s Little Italy rose 1.7 percent.
At the end of the second quarter, Brinker had 1,872 restaurants, including 1,419 Chili’s, 245 Macaroni Grills, 167 On the Borders and 41 Maggiano’s.