By Stephen Nakrosis
Shares of Brinker International Inc. are down in Tuesday’s trading session after the restaurateur said its margins and bottom line were affected by labor and raw material challenges .
Brinker said he is focusing more on hiring and retention efforts, and working with partners to further stabilize the supply chain environment.
Brinker said in the first quarter of fiscal 2022 that its restaurant operating margin, as a percentage of company sales, was down 10.4% from 11.6% in the first quarter of fiscal year 2021. “The main drivers of the decline in restaurant operating margin were 150 basis points. higher labor costs at restaurants and 60 basis points higher product costs. base, âBrinker said.
For the first quarter, sales increased to $ 859.6 million from $ 728.2 million a year earlier.
“The Covid surge from August exacerbated industry-wide labor and raw materials challenges and impacted our margins and results more than we expected,” said said Wyman Roberts, Managing Director and President.
As of 5:17 p.m. ET, Brinker’s shares were trading down 11% at $ 43.51. The volume at the time exceeded 65,000 shares.
Shares of the company ended the regular trading session for the day with a gain of 1.24%, closing at $ 48.95 per share.
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