Brinker International Inc. (EAT:US), owner of the Chili’s and Maggiano’s dining chains, fell the most in more than three years after forecasting profit that was less than analysts estimated amid slowing store sales.
The shares dropped 8.2 percent to $30.70 at 10:52 a.m. in New York, after falling 12 percent for the biggest intraday decline since August 2009. Dallas-based Brinker had gained 25 percent this year through yesterday.
Fiscal second-quarter profit, excluding certain items, will be as much as 50 cents a share, Chief Financial Officer Guy Constant said during a conference call today. Analysts estimated (EAT:US) 55 cents, the average of 18 projections compiled by Bloomberg.
Brinker has advertised a $20 dinner for two and new cocktails at Chili’s to attract customers as competition among casual-dining chains increases. Comparable-store sales in the second quarter are slowing and will be more erratic going forward, Wyman Roberts, president of Chili’s, said during the call.
There are about 1,585 Chili’s and Maggiano’s restaurants worldwide.
To contact the reporter on this story: Leslie Patton in Chicago at firstname.lastname@example.org
To contact the editor responsible for this story: Robin Ajello at email@example.com