Shares of Brinker International (NYSE: EAT) opened 3% higher on Tuesday after the American hospitality company beat fourth quarter earnings estimates and provided a better-than-expected earnings forecast for the current fiscal year.
Brinker, the parent of Chili’s Grill & Bar and Maggiano’s Little Italy, posted an adjusted quarterly profit of USD 1.36 per share, topping the consensus estimate of USD 1.34. Revenue came in below forecasts, however. Brinker said total sales in the fourth quarter rose 2.1% to USD 834.1 Million compared to the year-quarter prior. Analysts, on average, expected sales of USD 835.23 Million.
Chili’s same-store-sales grew 1.5% for the quarter and 2.3% for full-year 2019. Maggiano’s same-store-sales shrank 0.2% during the fourth quarter but grew 0.6% on the year.
“The fourth quarter marked our 5th consecutive quarter of positive same store sales and our sixth consecutive quarter to out-perform the category in traffic”, said Wyman Roberts, Brinker CEO and President. “Our continued focus on improving the guest experience and providing everyday value is a long-term strategy that continues to deliver solid results.”
For fiscal 2020, Brinker anticipates EPS will be in the range of USD 4.15 to USD 4.35, up from USD 3.93 in 2019. The Company said revenues should increase approximately 9% to 10% as it plans to buy 116 Chili’s restaurants from ERJ Dining, a Brinker franchisee. Total comparable sales are also expected to grow 1.75% to 2.5%.
As of June, the Dallas-based company, owned, operated, or franchised 1,612 Chili’s Grill & Bar restaurants and 53 Maggiano’s Little Italy locations.