UPDATE 2-Spicy earnings, outlook lift shares in Chili's Grill owner to new high
* 4th-quarter adj earnings $0.77/share vs est $0.74
* 4th-quarter sales $730.1 mln vs est $736.4 mln
* CEO says will not resort to discounting like peers
* Shares rise as much as 8 pct
(Adds comments from CEO, analyst; updates shares)
Aug 2 (Reuters) - Chili's Grill & Bar parent Brinker International Inc reported a better-than-expected quarterly profit and forecast higher earnings for fiscal 2014, sending its shares up as much as 8 percent to an all-time high.
Brinker's fourth-quarter sales missed expectations as frugal diners continued to shun full-service restaurants but the company kept costs of sales and labor under control.
Brinker, like Applebee's and IHOP owner DineEquity Inc , has been struggling to pull in price-conscious customers in a sluggish economy.
"The restaurant industry isn't recovering as fast as we had hoped," Chief Executive Wyman Roberts said on a conference call with analysts.
"Brinker in particular was impacted by increased pressure and deep discounting by our closest competitors during the fourth quarter," Roberts added.
DineEquity reported a better-than-expected profit on Wednesday, helped by value-priced menus and more focused advertising.
Brinker said it would stay away from limited-time offers to attract customers and would instead focus on long-term profitability.
Brinker will be able to meet the high end of its full-year profit forecast if restaurant trends improve and if the company continues to introduce new menu items, said analyst Stephen Anderson of Miller Tabak & Co.
"Within the mid-scale bar and grill category, in which Chili's competes, I see them as the value leader," Anderson said.
Brinker said it expects adjusted profit of $2.70 to $2.85 per share for the year ending June 2014. Analysts were expecting $2.75 per share, according to Thomson Reuters I/B/E/S.
Comparable restaurant sales at the company's mainstay restaurant Chili's, fell 0.6 percent in the fourth quarter. Overall same-restaurant sales fell 0.5 percent.
The company's restaurant operating margins, however, rose to 18.1 percent from 17.5 percent a year earlier.
Brinker said cost of sales at Chili's fell as a percentage of sales in the fourth quarter due to new menu items such as flatbreads and pizzas.
New kitchen equipment helped reduce labor costs at the chain which accounts for a majority of Brinker's sales.
The Dallas-based company, which also owns the Maggiano's Little Italy chain, said net income fell to $46.4 million, or 64 cents per share, in the fourth quarter ended June 26, from $47 million, or 61 cents per share, a year earlier.
Excluding items, the company earned 77 cents per share, above analysts estimates of 74 cents.
Revenue, including franchise sales, rose marginally to $730 million but fell short of analyst estimate of $736.4 million.
Brinker's shares were trading at $43.61 in afternoon trading on the New York Stock Exchange.
(Editing by Don Sebastian)