Brinker International Inc. (NYSE: EAT), the company that runs the Chili’s and Maggiano’s restaurant chains, reported its most recent quarterly results before the markets opened on Wednesday. Brinker also provided a business update on the first quarter so far.
The firm said that it had a net loss of $0.88 per share and $563.2 million in revenue for the fiscal fourth quarter. Analysts expected a net loss of $1.37 per share and revenue of $573.63 million. The same quarter of last year had $1.36 in earnings per share and $834.1 million in revenue.
As for the huge drop in sales year over year, the reason is fairly obvious. It primarily was due to the COVID-19 pandemic that affected restaurant sales due to guests dining out less, temporary dining room closures and capacity limitations, but it was offset by partially increased off-premise sales at both Chili’s and Maggiano’s.
Management was quick to note in this report that Chili’s and Maggiano’s continues to operate with reduced dining room capacities due to state and local mandates during the first quarter. At the end of the fourth quarter, there were 885 Chili’s and 52 Maggiano’s company-owned restaurants with dining rooms or patios open, representing 84% of total company-owned restaurants. However, capacity is limited.
Total comparable restaurant sales for Chili’s and Maggiano’s during the first quarter so far are −10.9% and −44.6%, respectively.
The company did not directly list its cash position, but it did say that it had total current assets of $224.4 million, up from with $177.0 at the end of the previous fiscal year.
Looking ahead to the first quarter, the company expects to see a net loss in the range of $0.40 to $0.25 and comparable restaurant sales in the low to mid-teens. Analysts are calling for a net loss of $0.60 per share and $708.11 million in revenue.
Brinker stock traded up nearly 8% at $32.51, in a 52-week range of $7.00 to $47.57. The consensus price target is $29.30.
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