Brinker International has announced an increase in its annual earnings and revenue guidance following a strong performance in its fiscal second quarter. The company, which owns popular restaurant chains Chili's Grill & Bar and Maggiano's Little Italy, reported a profit of $42.1 million, or 94 cents a share, for the quarter ended December 27. This is compared to $27.9 million, or 62 cents a share, in the same period last year.
Adjusted earnings, which strip out one-time items, came in at 99 cents a share, exceeding analysts' expectations of 95 cents a share. However, revenue fell slightly short of projections, coming in at $1.06 billion instead of the anticipated $1.08 billion.
Despite this, comparable sales saw an overall increase of 5.2% for restaurants that have been in operation for at least 18 months. Chili's chain experienced a 5% increase, while Maggiano's restaurants saw a significant 6.7% jump. These gains were primarily driven by higher prices and an improved menu mix. However, there was a decline in traffic by 5.8%, largely attributed to the company's decision to reduce focus on its virtual brands.
Looking ahead, Brinker now expects adjusted earnings of $3.45 to $3.70 a share for fiscal year 2024. This marks an increase of 10 cents to the low end of its previous guidance and an additional 5 cents to the higher end. Revenue projections have also been adjusted to a range of $4.3 billion to $4.35 billion.
Overall, Brinker International is confident in its future outlook and optimistic about its continued growth in the coming years.
