Brinker posts strong Q2 as Chili’s extends streak

IR 720 400 Brinker International Results
(Source: Brinker International)

Brinker International has posted strong second-quarter results, as Chili’s extended a long-running sales growth streak.

“Chili’s has now delivered 19 consecutive quarters of same-store sales growth, showing that our improvements are paying off over the long term,” said CEO Kevin Hochman.

For the quarter ended December 24, Brinker’s comparable restaurant sales rose 7.5 per cent overall, with Chili’s leading the way at an 8.6 per cent increase.

Total company sales reached $1.44 billion, up $92.7 million from last year, operating income was up $12.4 million at $168.4 million, while total revenues climbed to $1.45 billion, an increase of $94 million compared to the prior year.

At Chili’s, company sales reached $1.304 billion, up $107.2 million compared with the same period last year, while its franchise revenues increased slightly from $11.9 million to $13.2 million. 

Franchisees also saw gains, generating $271.9 million in sales for the quarter, up from $232.3 million a year earlier.

Chili’s attributed the success to menu innovation, competitive pricing, and advertising initiatives.

Meanwhile, Maggiano’s experienced a slight decline in company sales, falling from $149.2 million last year to $134.7 million this year

Franchise revenues remained steady at $0.2 million, resulting in total revenues of $134.9 million, down $14.5 million compared with last year.

Maggiano attributed the drop in sales to fewer customer visits and higher expenses, driven by rising commodity costs, delivery fees, supplies, and insurance.

Looking ahead, Brinker raised its full-year fiscal guidance, expecting total revenues to be $5.76 billion-$5.83 billion compared to the prior range of $5.6 billion-$5.7 billion.

“We are raising our guidance to reflect a stronger sales and profit outlook for Chili’s through the end of the fiscal year,” the company said. “This upward revision includes the negative impact from closures and reduced operating hours caused by Winter Storm Fern.”

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