Brinker International (EAT) - Get Report shares rose Wednesday after the parent of Chili's and Maggiano's restaurant chains reported a smaller-than-expected adjusted loss for the latest quarter as the company battles the impact of the coronavirus pandemic.
Brinker stock recently traded at $31.00, up 2.79%. It has slumped 28% year to date through Tuesday, compared to a 3% gain for the S&P 500.
In the fiscal 2020 fourth quarter ended June 24, Brinker posted a net loss of $9.2 million, or $1.20 a share, swinging from a profit of $46.7 million, or $1.22 a share, in the year-earlier quarter.
The adjusted loss per share totaled 88 cents, much smaller than the $1.35 predicted by the FactSet analyst consensus.
Revenue plunged 32.5% in the latest quarter, to $563.2 million from $834.1 million a year ago. The latest figure trailed analysts’ estimate of $572.9 million. Same-store sales fell 36.7%--32.2% at Chili’s and 66.7% at Maggiano’s.
"Our continued strategic focus on value, off-premise, digital and scale is allowing us to successfully navigate through the pandemic," Brinker CEO Wyman Roberts said in a statement.
In the current quarter through July 29, Chili’s same-store sales fell 10.9% from a year earlier and Maggiano’s slipped 44.6%. As of July 29, there were 885 company-owned Chili's and 52 company-owned Maggiano's with dining rooms or patios open, representing 84.0% of the total.
For the entire quarter, Brinker anticipates an adjusted loss of 25 cents to 40 cents, compared with analysts’ projection of 60 cents. Brinker sees overall same-store sales falling at a percentage rate in the low to mid-teens.