Chili’s shows sales improvement on flat traffic

Sales at Chili’s restaurants open for at least 12 months rose year-over-year by an average of 2.2 percent during the quarter that ended March 25, led by a 3-percent gain in domestic franchised stores.

Company-run stores posted a 1.9-percent rise in comparable sales. The chain’s parent, Brinker International, said company stores’ traffic was virtually flat, with guest counts ebbing two-tenths of a percent.

Same-store sales for Maggiano’s, Brinker’s other restaurant holding, were basically flat, at one-tenth of a percent. Traffic for the Italian chain dipped 1.3 percent, Brinker said.

The company reported strong contributions from its new retail venture. Revenues for licensing the Chili’s name for grocery-store products, added to fees from the games on tabletop kiosks and increased royalties from international franchises, delivered almost a 12 percent gain to the company’s Other Revenues category.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Why social media, and not price, is behind Starbucks' sales problems

The Bottom Line: The coffee shop chain lost momentum quickly in November. That was too fast to be explained by consumer reaction over the prices of its beverages.

Financing

Franchisors who want faster remodels should reach into their pocketbooks

The Bottom Line: Burger King is spending $550 million to get more of its restaurants remodeled, not counting its own upgraded restaurants. More brands should do this.

Leadership

Meet the restaurant fixer who now owns Etta

Tech entrepreneur Johann Moonesinghe suddenly finds himself leading a growing group of restaurants. His secret? He doesn't expect to make a profit.

Trending

More from our partners