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Chili's Losing Streak Continues
By Jonathan Maze, January 25, 2011
Brinker International this morning reported that comp-store sales fell 4.9 percent at Chili's in its most recent quarter--a fall that was actually more like 5.4 percent given a change in quarter timing. The decline did come along with higher profits thanks to lower food costs and improved efficiency--Brinker wants to double its 2010 earnings by 2015. Yet Chili's is losing market share. That was its 10th straight quarterly comp sales decline and it came as the casual dining sector as a whole had turned positive. The company has some plans to reverse its sales slide, including menu and service improvements and store remodels, all of which are difficult to argue with. But the company has an uphill battle to bring customers back into its restaurants. The simple fact is bar & grill concepts are facing immense competition right now, especially from a fast casual sector that seems to produce another burger chain every week.
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