) -- Shares of
jumped more than 5% on higher-than-normal volume Thursday morning despite the Chili's restaurants operator's weaker-than-expected earnings.
Brinker missed top- and bottom-line expectations for its fiscal fourth quarter but forecast 2011 earnings in line with analysts' consensus call. Brinker forecast that fiscal 2011 comps would be flat to a decrease of 2%, with the first half of the year being more challenging as it laps heavy promotions it offered customers in the first half of fiscal 2010. The company said full year revenue should decrease between 2% and 4%, from 2010 revenue of $2.86 billion, to a range between $2.75 billion and $2.8 billion. Analysts expect the company to book 2011 revenue of $2.81 billion.
The Dallas-based company, which also operates Maggiano's Little Italy restaurants, said comps decreased 3.4% year-over-year, including a 4.1% decrease at Chili's and a 1.3% increase at Maggiano's.
On June 30, Brinker completed the sale of On The Border Mexican Grill & Cantina restaurants to OTB Acquisition, an affiliate of Golden Gate Capital, for gross proceeds of $180 million. Results from On The Border were reported as discontinued operations.
Brinker posted net fiscal-fourth-quarter earnings of $63.6 million, or 62 cents per share, up from $42.2 million, or 41 cents per share, in the year-earlier period.
Adjusted earnings, which exclude On The Border results, were $45.2 million, or 44 cents per share, missing analysts' consensus call for earnings of $47.5 million, or 46 cents per share. Analysts typically exclude one-time items and discontinued operations when forecasting earnings estimates.
Brinker International Group's Stock Rating Report (EAT) Rating and Financial Analysis
Elswhere in the restaurant sector Thursday, coffee-and-donuts chain
, thanks to strong same-store sales growth in its Canadian stores.
Wendy's Arby's Group
( CHUX), which operates its namesake and Ninety Nine fast-casual restaurants, posted disappointing quarterly results as well.
Red Robin Gourmet Burgers
is on deck to report after the closing bell.
-- Reported by Miriam Marcus Reimer from New York.
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