Brinker posts double-digit sales growth, all thanks to Chili’s

Chili's burger
Chili’s sales soared 23 per cent to $1.32 billion in Q4. (Source: Chili’s Grill & Bar/Facebook)

Brinker International reported double-digit sales growth in the fourth quarter, mainly driven by its Chili’s business.

The company’s sales for the quarter ended June 25 rose 21 per cent to $1.44 billion, with Chili’s sales increasing 23 per cent to $1.32 billion and Maggiano’s sales falling 0.8 per cent to $122 million.

Comparable sales soared 21.3 per cent, with Chili’s up 23.7 per cent and Maggiano’s down 0.4 per cent.

Chili’s sales growth was driven primarily by continued increases in traffic, supported by menu innovation and advertising, management said. Maggiano’s decline was driven by lower traffic, partially offset by menu pricing.

On the bottom line, operating income nearly doubled to $142 million and net income jumped 87 per cent to $107 million.

For the full year, comparable sales increased 22.7 per cent, with Chili’s up 25.3 per cent and Maggiano’s up 1.5 per cent. Net income grew from $155 million to $383 million.

Brinker expects revenues of $5.60 billion to $5.70 billion for this fiscal year, compared to last year’s $5.38 billion.

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