* Second-qtr adj earnings/shr $0.59 vs est $0.58
* Revenue $704.4 mln vs est $699.2 mln
* Chili's same-store sales rise 0.7 pct
* Shares jump nearly 9 pct to life-high
(Adds analysts' comments, details, updates shares)
Jan 22 Brinker International Inc
reported better-than-expected quarterly results as
same-restaurant sales at its Chili's chain rose for the first
time in a year, driven by new menu items.
Brinker shares rose as much as 8.7 percent to a life-high of
Same-restaurant sales at Chili's outlets open for at least
18 months rose 0.7 percent in the second quarter ended Dec. 25
as customers were won over by a new Southwestern-style menu,
Pretzel Roll sandwiches and stuffed pastas.
Analysts polled by Consensus Metrix had expected Chili's
same-restaurant sales to fall 0.3 percent in the holiday
Increased restaurant capacity and a 10 percent rise in
advertising spending also helped to attract diners.
"Brinker's primary drivers (in the quarter) are a
double-digit increase in marketing, ongoing remodels and Mexican
launch," Goldman Sachs analyst Michael Kelter said.
Brinker's comparable sales were "encouraging" despite an
unusually cold December, Bernstein Research analyst Sara
Overall same-restaurant sales rose 0.8 percent, beating
Consensus Metrix's estimate of a 1 percent fall.
Chili's also recently expanded its Mexican menu items to
include enchiladas, fresh Mex bowls, tostadas and crispy tacos.
"We believe these new items will appeal to the core Chili's
consumer better than the pizza platform that launched about a
year ago," KeyBanc analyst Christopher O'Cull said.
Many U.S. full-service restaurant chains, including Chili's
and Darden Restaurant Inc's Olive Garden, have been
fighting to boost sales amid intense competition from chains
such as Chipotle Mexican Grill and Panera Bread Co
, which offer high-quality meals at lower prices.
The full-service restaurant category, also known as casual
dining, has been aggressively offering deals, but success has
Brinker's net income rose 7 percent to $39.7 million, or 58
cents per share, in the second quarter ended Dec. 25, from $37.2
million, or 50 cents per share, a year earlier.
Excluding items, Brinker earned 59 cents per share.
Total revenue rose 2 percent to $704.4 million in the second
quarter ended Dec. 25.
Analysts on average were expecting the company to earn 58
cents per share on revenue of $699.2 million, according to
Thomson Reuters I/B/E/S.
Dallas-based Brinker's shares were up 5.8 percent at $49.34
on the New York Stock Exchange in afternoon trading on
Wednesday. The stock gained more than 40 percent in the 12
months up to Tuesday's close.
(Reporting by Aditi Shrivastava, Devika Krishna Kumar and
Siddharth Cavale; Editing by Joyjeet Das)