Posted on 10/22/2008 7:51:57 AM PDT by BGHater
Bad news ranging from hurricanes to financial market implosions kept customers away from restaurants in recent weeks, helping push Brinker International Inc.'s profit down almost 37 percent in its 2009 first quarter, the company said Tuesday.
But if past practice holds, consumers should regain their nerve, and their appetites, in time for the holiday season, the Dallas company's chief financial officer said.
If that doesn't happen, the trend could dampen sales during a traditionally strong period for parties and family celebrations.
During past periods of collective shock, including 9/11 and the start of the Iraq war, "you see people immediately pull back from what their normal routines are," said Chuck Sonsteby, chief financial officer of the company that owns Chili's Grill & Bar and three other chains.
"And it's taken folks about 60 to 90 days to get back into the routine.
"We're hopeful we'll see the same kind of cycle play itself out" this time, he said, calming consumers for the holidays.
Also, he said falling prices for gas and home heating oil could make consumers feel better about their finances.
Brinker reported a 6.7 percent drop in revenue for its first fiscal quarter, which ended Sept. 24 – to $984.4 million, down from $1.05 billion a year before.
That was partly due to the sale of 76 restaurants to franchisees over the last year or so, which boosted royalties but lowered revenue from company-owned restaurants.
Brinker also closed 49 restaurants, including 27 Romano's Macaroni Grills before agreeing in August to sell a majority stake in that chain for $131.5 million.
Brinker said profit for the quarter fell to $23.8 million, or 23 cents a share – off from $37.6 million, or 34 cents a share, a year ago.
(Excerpt) Read more at dallasnews.com ...
Who’s gonna regain anything? If we elect this communist, I’m personally laying off 3 of my 8 employees. Every business owner I talk to is doing similar drastic downsizing depending on the outcome of this election.
If Hussein is elected, there is no way anyone’s regaining confidence in anything.
It will get worse when Obama raises the taxes. Companies don’t pay the taxes. They simply raise the cost of their goods and the people pay for it. Eventually, they will stop buying the products.
Prices of food and imho, larger unemployment coming.
That is also what I am hearing in this neck of the woods (I will be one of those employees being layed off, BTW), and I can personally attest that orders are already dropping off in anticipatory dread of an Obama win. For all the "hope" hype, there are enough people who have it figured out, and they are doing what they can before they have no control at all.
Mencken gave us a warning about the electorate getting it good and hard; with Obama and Co., we'll also get it while bent over a sawhorse, and it may not have an ending.
Mr. niteowl77
With the price of oil dropping, I’d expect things would get better fairly quickly. Especially if we could get some energy policies going, but yes, the short term is going to be rough regardless.
I wouldn’t lay people off for a bit of short term problems. But when there doesn’t appear to be an end to the problems, I need to prepare long term. That’s the problem.
We stopped going to Chili’s because their food was lousy.
I don’t know what you do. But you have been hit pretty hard this year. higher min wage, etc.
The taxes next year is really gonna put the beat down on US all.
The primary reason for the fall is that they took the Shanghai boneless chicken wings with cool wasabe mustard sauce off the menu.
This is a no-brainer, remove Shanghai wings, profits plunge.
I used to be in sales, and sold to Brinker many of the furniture in they’re rest.’s,. This has been a downward trend for them for a few years now, I blame bad management as well as the economy.
“Spread the Wealth” is more like “Spread Your Cheeks”
Slow business shows in the poor quality of their food when it doesn't move fast. I ordered take out 2 weeks ago. The chicken was dried out. The onion strips tasted of rancid oil. Nasty. I won't be back.
They won't regain business. People were spending the bloated equity in their houses like drunken winos. They can't do that anymore.
As the night went on the look on the faces went from defeat to hope to jubilation. For the first time in years they had a future to plan for.
There were still rough years ahead and not all of them made it. One man I talked to that night eventually committed suicide. If he had lasted another year, he'd have been a multimillionaire.
This election is a repeat of that night, with the future in doubt.
I have had a pretty common experience with most restaurants, and fast food. There seems to be a huge lack of QC regarding the food put out, and service. Food not properly prepared, and slow service seem to be the norm.
The only place here in OK that you get fast service and good QC (at mid level) are mexican restaurants.
Had a similar experience at one of Chili's competitors, I won't say the name - but it rhymes with Crapplebee's.
Anywhoo, just a horrendous experience. My wife and I spent our hard earned dollars on a fairly expensive takeout meal and it was pure crap. They missed putting in key items (ie no flour tortillas for the fajitas) and half the lettuce in my wife's salad was brown.
I mean, do these people check this stuff before they throw it in styrofoam containers?
My wife never does this, but she was so TO'd that she actually called the manager in the middle of our meal and complained. He is supposed to be sending us food comps for our trouble.
>>First off..
No need for two periods, “genius.”
>>I work for Chilis and Shanghi wings are not a major saler..
It’s “Chili’s,” “Shanghai” and “seller,” not saler, “genius.”
Plus, they are not the same, b/c they do not serve them with wasabi ranch anymore, “genius.”
You have been served!!!
Why do you think he/she works at Chili’s?
It’s amazing how n00bs find 4 month old threads to piss and moan about.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.