Brinker International Inc. (EAT) showed continued weak sales at its three restaurant brands, and offered an dissapointing outlook highlighting challenges restaurants face in growing earnings after lapping rigorous cost cuts.

The casual-dining chain swung to a fiscal fourth-quarter profit as a year-earlier charge masked lower revenue amid declining same-store sales at the company's three restaurant chains.

The company also projected results below expectations. It sees continued same-store sales declines for its new year - 2% to 4% - and forecast earnings down 10% to 20% from the latest year's $1.44 a share. Brinker also predicted a first-quarter profit of 12 cents to 14 cents. Analysts polled by Thomson Reuters projected $1.59 and 29 cents, respectively.

After tightening expenses over the last year, restaurants will need to rely ever more on better sales to increase earnings, a daunting prospect in the face of rising unemployment and weak consumer confidence.

Shares were down 12% to $16.14 in recent premarket trading. The stock through Wednesday was up 74% in 2009.

Restaurant chains have been discounting heavily to lure customers, but analysts are skeptical the deals have paid off, and same-store sales continued their drop across the industry. On top of traffic woes, inflation is expected to return to normal levels in 2010, meaning restaurants would pay more for ingredients and energy, making it hard to continue an aggressive stream of coupons and other promotions.

For the quarter ended June 24, the operator of Chili's and other restaurant chains reported earnings of $42.1 million, or 41 cents a share, compared with a year-earlier loss of $1.5 million, or 2 cents a share. Excluding write-downs and other impacts, earnings rose to 52 cents from 42 cents.

Revenue slid 23% to $829.4 million amid restaurant closures and the sale of 198 others, most of which were Macaroni Grill locations, which Brinker sold a majority stake in.

Analysts projected per-share earnings of 48 cents on revenue of $853 million.

Same-store sales fell 9%, including a 9.4% drop at Chili's. The declines were far less at fellow restaurant operators Darden Restaurants Inc. (DRI) - owner of the Olive Garden, Red Lobster and LongHorn Steakhouse chains - and DineEquity Inc. (DIN), which owns the IHOP and Applebee's chains.

-By Paul Ziobro, Dow Jones Newswires; 212-416-2194; paul.ziobro@dowjones.com

(John Kell contributed to this report.)