Brinker’s Finance Chief Steps Down – Analyst Blog

Dallas-based Brinker International Inc. (EAT), which operates Chili’s Grill & Bar and Maggiano’s Little Italy restaurants, announced today that its chief finance officer (CFO) Charles M. Sonsteby will resign from his position on October 1. Sonsterby is leaving the company to join an executive position at Michaels Stores Inc.

 

Sonsteby had started his journey at Brinker International in 1990, subsequently holding an array of managerial positions. In 2001, he held the position of chief financial officer. Under his leadership, Brinker solidified its financial footing and internal governance processes.

 

Management has chosen an internal candidate as a replacement for Sonsteby. Guy Constant, currently senior vice president of the finance department and chief financial officer at Chili’s Grill & Bar, will serve responsibilities of Brinker’s executive vice president as well as chief financial officer following Sonsteby’s departure. Constant has served leadership roles in finance, compensation and investor relations since he joined Brinker International in 2004.

 

Irving-based Michaels Stores Inc. is North America’s largest specialty retailer of arts, crafts, framing, floral and seasonal merchandise for hobbyists and do-it-yourself home decorators. At Michaels Stores, Sonsteby will succeed former CFO Elaine Crowley, who left in August to join Mattress Giant in the same post.

 

Brinker International reported its fourth quarter earnings in mid-August. The company’s adjusted earnings for both fourth quarter and fiscal 2010 missed the Zacks Consensus Estimate on the back of sagging comparable restaurant sales, hurt by a sluggish economic environment. During the fourth quarter, total revenue inched up 0.1% year over year to $743.1 million driven by a 3.0% rise in restaurant capacity from an additional operating week, but missed the Zacks Consensus Estimate of $772 million.

 

We believe Constant will provide strong mentorship to Brinker’s financial goal as he has been dealing with the company’s financials for the last six years.