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By Dhirendra Tripathi
Investing.com – Stock of Chili’s-owner Brinker (NYSE:EAT) soared more than 10% after the company beat earnings estimates for the second quarter even as revenue fell short.
Brinker earned 71 cents per share on an adjusted basis, 20 cents more than the analysts’ estimate, attributing the growth to “the power of the business model when volumes return”.
“We still have growth ahead of us, and the opportunity to leverage scale and move the business forward," Chief Executive Officer and President Wyman Roberts said in a statement.
Revenue in the second quarter grew 22% to nearly $926 million due to higher dining sales at both Chili’s and Maggiano’s as more guests looked to eat out.
The company said sales would have been higher but for Christmas Day that occurred in the second quarter compared to the third quarter of financial year 2021. The company said it shut its Chili's restaurants early on Christmas Eve this year and that also had a little adverse impact.
Higher costs on account of wages, training, overtime and manager bonuses, as well as more expensive commodities, led to a small increase in expenses as a percentage of sales.