Brinker International Reports Increase in Second Quarter Fiscal 2013
Brinker International, Inc. has announced results for the fiscal second quarter, which ended Dec. 26, 2012. Company sales and comparable restaurant sales saw small increases, despite reduced traffic in comparison to 2012’s fiscal second quarter.
Company sales increased 1.1 percent and Chili’s comparable restaurant sales increased 1 percent, while Maggiano’s comparable restaurant sales increased 0.6 percent. For the first six months of fiscal 2013, capital expenditures totaled $69.8 million and earnings per diluted share increased 6.4 percent.
“Brinker continued to take market share again this quarter, as we delivered our eighth consecutive quarter of positive sales growth, despite fewer holiday days in the quarter versus last year,” says Wyman Roberts, president and CEO. “This demonstrates that our strategies designed to strengthen our margins, reinvest in our restaurants, and focus on differentiated food and service initiatives are working.”
Traffic in Chili’s and Maggiano’s was down in Q2 2013 from Q2 2012. Chili’s had a 1.9 percent decrease, while Maggiano’s had 2.4 percent less traffic than 2012. Both chains were able to maintain an increase in sales by increased menu prices and favorable mix shift.
Franchise and other revenues increased 2 percent over the prior year to a total of $20.6 million for the quarter, driven primarily by an increase in royalty revenues. International franchise comparable restaurant sales increased 2.7 percent and domestic franchise comparable restaurant sales increased 2.2 percent.
Net income as of Dec. 26, 2012 was $65,041, in comparison to $59,295 as of Dec. 28, 2011.
Looking ahead, the majority of Brinker’s expansion in 2013 will take place internationally with a total of 30 to 35 projected international openings. In the U.S., Brinker plans to open two new Chili’s locations this fiscal year.