Brinker International Turns To Profit In Q2
Brinker International has reported net income of $18.32m or $0.18 per share for the second quarter o
For the quarter, revenues were $781.9m, a decrease of 17.6% compared to $949.4m for the same quarter previous year.
The company experienced a 3.1% decrease in comparable restaurant sales in the second quarter of fiscal 2010. Revenues were also negatively impacted by a net decline in capacity of 17.7% due to the sale of 189 Macaroni Grill restaurants at the end of the second quarter of fiscal 2009.
The decline in capacity was also due to 47 restaurant closures and the sale of 21 restaurants to a franchisee since the second quarter of fiscal 2009. Royalty and franchise revenues were $17.30m for the quarter.
Restaurant expenses, as a percent of revenues, decreased to 56% from 58% in the prior year primarily due to reduced labour costs, utility expenses and the receipt of a $3.3m credit card class action lawsuit settlement.
In the second quarter of fiscal 2009, the company completed the sale of Macaroni Grill while retaining a minority ownership interest.