Brinker fourth-quarter earnings off slightly
by Meat&Poultry staff
DALLAS – Brinker International Inc., a casual dining restaurant company, announced fourth quarter fiscal 2010 earnings per diluted share from continuing operations of $0.44 compared to $0.45 in the fourth quarter of fiscal 2009, before special items. For the full-year fiscal 2010, earnings per diluted share from continuing operations was $1.18 compared to $1.28 in the prior year, before special items and excluding Macaroni Grill.
On June 30, the company completed the sale of On The Border Mexican Grill & Cantina to OTB Acquisition LLC, an affiliate of Golden Gate Capital, for approximately $180 million and recognized a gain of approximately $16.5 million.
Fourth-quarter revenues of $743.1 million compared to $742.1 million in the prior year (14-weeks vs. 13-weeks). The company experienced a 3.4% decrease in comparable restaurant sales in the fourth quarter of fiscal 2010.
Cost of sales, as a percent of revenues, increased to 27.7% in the fourth quarter of fiscal 2010 as compared to 27.4% in the prior year. During the quarter, cost of sales was negatively impacted by promotions and menu changes at Chili's, partially offset by favorable commodity prices primarily related to beef and chicken, and favorable menu price changes.
The company anticipates fiscal 2011 earnings per diluted share from continuing operations, before special items, to increase between 10% compared to fiscal 2010 (an increase of 20% to 30% excluding the 53rd week in fiscal 2010). Revenue is projected to decrease 2% to 4%.