Shares of Brinker International Inc., which operates the Chili's Grill & Bar chain, fell sharply Friday after the company slashed its 2009 profit guidance and said its first quarter profit will likely drop about 32 percent due to slow sales.
A Goldman Sachs analyst took a dim view of the nation's casual dining restaurant chains, telling investors in a research note that the industry will likely face pressure as diners ratchet down discretionary spending at least through next year.
A KeyBanc Capital Markets analyst said Wednesday third-quarter same-store sales and profits at casual dining companies were likely hurt by the Olympics, hurricanes, the political conventions and news about the liquidity crisis and bank failures.
After a second quarter of too many empty tables and falling profits, restaurant companies are planning to woo diners back with lower-priced dishes as the weather grows colder.