Brinker, Wendy's up after profit reports
Brinker International Inc (EAT.N) reported quarterly profit that was slightly higher than Wall Street expectations, as more patrons visited its Chili's Grill & Bar chain, and its shares jumped nearly 7 percent.
Wendy's Co (WEN.N), the third-largest U.S. fast-food hamburger chain, posted profit from continuing operations that matched Wall Street's view on Thursday, and shares rose more than 2 percent.
Results from the eateries come during a week that has seen huge stock market gyrations, fueled by worries about a double-dip recession in the United States and debt woes and Europe. Some analysts said renewed economic uncertainty could prompt skittish diners to cut back on meals away from home.
"Eating out is often first on the chopping block when consumers look for ways to cut spending," said Kurt Salmon restaurant strategist Todd Hooper.
During the latest quarter, customer traffic at Brinker's company-owned restaurants rose 2.6 percent, with a 2.1 percent increase at Chili's and a 5.8 percent rise at the smaller Maggiano's chain.
Closely watched same-restaurant sales at Wendy's North America company-operated restaurants rose 2.3 percent in the second quarter.
On July 5, Wendy's closed the sale of most of its Arby's roast beef sandwich chain to Roark Capital Group, for $130 million in cash and the assumption of $190 million in debt.
Both companies have scheduled calls with analysts on Thursday.
Brinker shares were up 6.8 percent at $21.98 in early trading on the New York Stock Exchange, where Wendy's shares were up 2.4 percent to $4.66.
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