Brinker International Inc. posted higher fourth-quarter earnings on improved sales at its Chili’s Grill & Bar chain, while Wendy’s posted a second-quarter net loss after paying down debt.
Brinker said increased menu prices and improved guest traffic boosted revenue at Chili’s by 1.8 percent in the quarter. Revenue rose 1.7 percent at the company’s Maggiano’s Little Italy restaurants, helped by higher menu prices.
Overall, Brinker reported net income of $47.0 million, or 61 cents a share, up from $41.9 million, or 49 cents a share, a year earlier. Revenue increased 1.5 percent to $728.4 million.
Brinker said its cost of sales was negatively impacted by unfavorable pricing on pork, beef and oils, partially offset by favorable pricing on produce, poultry and dairy.
Wendy’s reported a loss of $5.5 million, or 1 cent a share, compared with a profit of $11.3 million, or 3 cents a share, a year earlier. Results in the latest quarter were hurt by the early extinguishment of debt. Consolidated revenue rose 3.8 percent to $645.9 million.
The company said it is beginning to build positive momentum with promotions for products such as its Spicy Guacamole Chicken Club sandwich and Berry Almond Chicken Salad.
Restaurant chains Tim Hortons Inc. and Red Robin Gourmet Burgers Inc. both reported higher profits in the latest quarter on stronger sales.
Source: Argentine Beef Packers S.A.
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