What awaits It’s Just Wings next?
Dallas — Chili’s return to sales growth in the third quarter that concluded on March 24 was aided by higher off-premises sales, especially for It’s Just Wings. The quick-service restaurant company, which is still recovering from the COVID-19 eating restrictions, reported revenues of $749 million for the third quarter of last year, a 0.3% increase from $748.7 million.
Executives at Chili’s parent company, Brinker International, Inc., based in Dallas, are now thinking about many growth strategies. It’s Just Wings, a chicken wing brand sold exclusively online. Takeout and hooking in with athletic activities are two options.
Wyman T. Roberts, president and chief executive officer of Brinker, stated, “It’s Just Wings continues to perform well, and we’re on track to hit that $150 million target we set at the beginning of the year.” Nearly every one of our domestic franchise partners seized the chance, and a number of our partners elsewhere have also done so. Wings has expanded to 160 sites outside of the US and 9 countries in its first year of business, giving it a strong brand.
To offer chicken wings, It’s Just Wings takes advantage of the existing kitchens and chefs at Chili’s and Maggiano’s. Initially, It’s Just Wings ran its business through a special relationship with DoorDash. In March, Brinker International declared that it has merged with Google to enable customers to place orders for thewings on Google Maps and Search.
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“We think takeout has a lot of potential for us, and we’re trying to raise awareness outside the delivery channel now that we’ve invested in the infrastructure and technology to support it,” Mr. Roberts stated. “With the launch of It’s Just Wings this year, we’ve learned a lot that we’ll apply to our next virtual brand when it’s ready.”
Next autumn, when college football returns to a more typical schedule, there may be prospects for the brand, he added.
“This year has been incredibly amazing for learning about the virtual brands, like It’s Just Wings and others, and how to market them successfully as well as how they cater to various audiences and who the target market is,” Mr. Roberts remarked.
Third-quarter net income for Brinker International was $33.9 million, or 74¢ per share on common stock, up 10% from $30.8 million, or 83¢ per share, in the same period last year. Revenues for the third quarter came in at $828.4 million, down 3.7% from $860 million. An estimated $10.5 million in lost income was caused by the winter storm Uri that struck in February, according to Joseph G. Taylor, executive vice president and chief financial officer of Brinker.
Fourth-quarter revenues are anticipated by Brinker International to be in a range of$1 billion to $950 million.
As vaccination campaigns gain momentum and national limitations loosen, Mr. Roberts noted, “our guests’ pent-up demand for a dine-in experience is also being released.” “Finally, people are beginning to feel more comfortable going out and spending more money—some of the money they have been saving for the past year.”
Brinker International reported net income of $56.6 million, or $1.25 per share, on the common stock for the first three quarters of the fiscal year. This is a 33% decrease from $73.6 million, or $1.97 per share, at the same period last year. Over the course of three quarters, total revenues came to $2.33 billion, a 7% decrease from $2.52 billion.
Brinker anticipates increased labor expenditures in the future. According to Mr. Taylor, labor inflation usually ranges from 3% to 5%, with the near term level expected to be at the higher end of that range.
However, he added, “We’re very comfortable.” “We have everything we need to get through this short term.”