Brinker's (EAT) Q2 Earnings Beat, Revenues Miss Estimates
Zacks Investment Research | Jan 29, 2020 08:59PM ET
Brinker International, Inc. (NYSE:EAT) reported mixed second-quarter fiscal 2020 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues lagged the same. The top line lagged the consensus mark for the third straight quarter. Following the quarterly results, shares of the company increased 1.8% yesterday.
Adjusted earnings of $1.01 per share surpassed the consensus estimate of 97 cents and also increased 13.5% from the year-ago quarter, mainly due to improved operating performance. Quarterly revenues totaled $847.5 million, which missed the consensus mark of $883 million but improved 11.3% on a year-over-year basis. Its traffic-building strategies and revenues generated from the acquisition of 116 Chili’s restaurants aided the top line.
Brand Performances
Brinker primarily engages in ownership, operation, development and franchising of various restaurant brands under Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s).
Chili's
Revenues at Chili’s totaled $728.4 million in the reported quarter, up 13.7% from the prior-year period. The upside was driven by an increase in off-premise sales, led by comparable restaurant sales and revenues generated from the acquisition of 116 Chili's restaurants.
The brand’s company-owned comps rose 2%, which marked Brinker’s seventh consecutive quarter of positive comps. In first-quarter fiscal 2020, company-owned comps rose 2.9% from the prior-year quarter.
Comps at Chili's franchised restaurants decreased 0.4% compared with 0.8% decline registered in the year-ago quarter. At international franchised Chili’s restaurants, the same fell 0.9% compared with the year-ago quarter’s decline of 6.5%. Meanwhile, at the U.S. franchised units, comps increased 0.2% compared with 3.4% growth in the year-ago quarter.
At Chili's, domestic comps (including company-owned and franchised) grew 1.7% compared with the first quarter’s increase of 3%.
Maggiano's
Maggiano's sales decreased 1.5% year over year to $119.1 million, primarily due to a decline in comparable restaurant sales and adverse weather conditions.
Comps dropped 1.4% year over year.
Brinker International, Inc. Price, Consensus and EPS Surprise
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.