We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Brinker (EAT) Stock Down After Q4 Earnings Lag Estimates
Read MoreHide Full Article
Brinker International, Inc. (EAT - Free Report) reported mixed fourth-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same.
However, the top and the bottom lines increased on a year-over-year basis. Following the mixed results, the stock declined 12% in the pre-market trading session on Aug 14.
Earnings & Revenue Discussion
In the quarter under review, Brinker reported adjusted earnings per share (EPS) of $1.61, missing the Zacks Consensus Estimate of $1.65. The company reported an adjusted EPS of $1.39 in the prior-year quarter.
In the fiscal fourth quarter, total revenues of $1,208.2 million outpaced the consensus mark of $1,158 million. The top line increased 12.3% on a year-over-year basis. EAT gained from the solid performance of Chili's.
Brinker International, Inc. Price, Consensus and EPS Surprise
In the fiscal fourth quarter, revenues in the Chili’s segment rose 13.7% year over year to $1,084.4 million. The upside was driven by increased menu pricing and higher traffic. Our model predicted segmental revenues at $1,019.6 million.
Chili's restaurant expenses (as a percentage of company sales) in the fiscal fourth quarter were 84.9% compared with 87.1% in the prior-year quarter. The downside was caused by sales leverage, marginally overshadowed by an increase in hourly labor, repairs and maintenance, advertising and manager salaries, as well as bonus expenses.
Chili's company-owned traffic rose 5.9% year over year in the quarter under discussion. The metric fell 7.7% in the prior-year quarter.
The segment’s company-owned comps rose 14.8% in the fiscal fourth quarter from the year-ago quarter’s levels.
At Chili’s, domestic comps (including company-owned and franchised) gain 4.4% year over year against a decline of 6.9% reported in the prior-year period.
Maggiano’s
Maggiano’s sales in the fiscal fourth quarter increased 2% year over year to $123.8 million. Favorable comparable restaurant sales, courtesy of increased menu pricing and favorable menu item mix, drove the upside. Comps in the segment rose 2.5% year over year. Our projection was 0.6%.
Traffic in the quarter under discussion fell 8.9% year over year. The metric was down 0.2% in the prior-year quarter. Maggiano's company restaurant expenses (as a percentage of company sales) in the fiscal fourth quarter were 84% compared with 82.7% a year ago. The downside was caused by menu pricing partially offset by increased repairs and maintenance expenses.
Operating Results
In the quarter under review, total operating costs and expenses came in at $1.13 billion compared with $1.01 billion reported in the year-ago quarter. Adjusted restaurant operating margin, as a percentage of company sales, was 15.2% compared with 13.4% reported in the prior-year quarter.
Adjusted EBITDA in the fiscal fourth quarter came in at $141.8 million compared with $114.5 million reported in the prior-year quarter.
Balance Sheet
As of Jun 26, 2024, cash and cash equivalents amounted to $64.6 million compared with $15.1 million as of Jun 28, 2023. As of Jun 26, 2024, long-term debt was $786.3 million compared with $912.2 million as of Jun 28, 2023.
Fiscal 2025 Outlook
In the fiscal 2025, management anticipates total revenues to be in the range of $4.55-$4.62 billion. Capital expenditures are expected in the $195-$215 million band. EAT projects fiscal 2025 EPS in the range of $3.8-$4, down from the prior estimate of $4.35-$4.75.
The Wendy’s Company (WEN - Free Report) reported dismal second-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, the top line rose while the bottom line declined. Solid same-restaurant sales and strength in the U.S. breakfast sales and digital sales momentum aided the company’s performance.
The company continues to focus on industry-leading quality, innovation and value. WEN aims to maintain a customer-first approach while driving its restaurant economic model throughout the year and beyond.
Shake Shack Inc. (SHAK - Free Report) posted decent second-quarter fiscal 2024 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The bottom and the top line increased on a year-over-year basis. In the quarter, the company benefited from product innovations, strategic menu pricing, technology implementations and promotions.
Looking ahead, SHAK is committed to achieving efficiency across regions and formats by utilizing drive-throughs and third-party delivery. The company plans to reduce build costs by 10% in 2024 and further lower costs in 2025, enabling the exploration of new real estate options while maintaining returns. It intends to achieve strong unit-level economics and boost ROI, fostering long-term value creation for its shareholders.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The bottom and the top line increased from the prior-year quarter’s figure.
In the quarter, CAKE stated benefits from strong demand and sales performance of new restaurant openings. Also, improvements in food efficiencies, labor productivity, overtime and wage management enhanced restaurant-level profitability. The company emphasizes strengthening its operational service to drive long-term growth.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Brinker (EAT) Stock Down After Q4 Earnings Lag Estimates
Brinker International, Inc. (EAT - Free Report) reported mixed fourth-quarter fiscal 2024 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same.
However, the top and the bottom lines increased on a year-over-year basis. Following the mixed results, the stock declined 12% in the pre-market trading session on Aug 14.
Earnings & Revenue Discussion
In the quarter under review, Brinker reported adjusted earnings per share (EPS) of $1.61, missing the Zacks Consensus Estimate of $1.65. The company reported an adjusted EPS of $1.39 in the prior-year quarter.
In the fiscal fourth quarter, total revenues of $1,208.2 million outpaced the consensus mark of $1,158 million. The top line increased 12.3% on a year-over-year basis. EAT gained from the solid performance of Chili's.
Brinker International, Inc. Price, Consensus and EPS Surprise
Brinker International, Inc. price-consensus-eps-surprise-chart | Brinker International, Inc. Quote
Chili's
In the fiscal fourth quarter, revenues in the Chili’s segment rose 13.7% year over year to $1,084.4 million. The upside was driven by increased menu pricing and higher traffic. Our model predicted segmental revenues at $1,019.6 million.
Chili's restaurant expenses (as a percentage of company sales) in the fiscal fourth quarter were 84.9% compared with 87.1% in the prior-year quarter. The downside was caused by sales leverage, marginally overshadowed by an increase in hourly labor, repairs and maintenance, advertising and manager salaries, as well as bonus expenses.
Chili's company-owned traffic rose 5.9% year over year in the quarter under discussion. The metric fell 7.7% in the prior-year quarter.
The segment’s company-owned comps rose 14.8% in the fiscal fourth quarter from the year-ago quarter’s levels.
At Chili’s, domestic comps (including company-owned and franchised) gain 4.4% year over year against a decline of 6.9% reported in the prior-year period.
Maggiano’s
Maggiano’s sales in the fiscal fourth quarter increased 2% year over year to $123.8 million. Favorable comparable restaurant sales, courtesy of increased menu pricing and favorable menu item mix, drove the upside. Comps in the segment rose 2.5% year over year. Our projection was 0.6%.
Traffic in the quarter under discussion fell 8.9% year over year. The metric was down 0.2% in the prior-year quarter.
Maggiano's company restaurant expenses (as a percentage of company sales) in the fiscal fourth quarter were 84% compared with 82.7% a year ago. The downside was caused by menu pricing partially offset by increased repairs and maintenance expenses.
Operating Results
In the quarter under review, total operating costs and expenses came in at $1.13 billion compared with $1.01 billion reported in the year-ago quarter. Adjusted restaurant operating margin, as a percentage of company sales, was 15.2% compared with 13.4% reported in the prior-year quarter.
Adjusted EBITDA in the fiscal fourth quarter came in at $141.8 million compared with $114.5 million reported in the prior-year quarter.
Balance Sheet
As of Jun 26, 2024, cash and cash equivalents amounted to $64.6 million compared with $15.1 million as of Jun 28, 2023. As of Jun 26, 2024, long-term debt was $786.3 million compared with $912.2 million as of Jun 28, 2023.
Fiscal 2025 Outlook
In the fiscal 2025, management anticipates total revenues to be in the range of $4.55-$4.62 billion. Capital expenditures are expected in the $195-$215 million band. EAT projects fiscal 2025 EPS in the range of $3.8-$4, down from the prior estimate of $4.35-$4.75.
Zacks Rank
Brinker carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Retail-Wholesale Releases
The Wendy’s Company (WEN - Free Report) reported dismal second-quarter fiscal 2024 results, with earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, the top line rose while the bottom line declined. Solid same-restaurant sales and strength in the U.S. breakfast sales and digital sales momentum aided the company’s performance.
The company continues to focus on industry-leading quality, innovation and value. WEN aims to maintain a customer-first approach while driving its restaurant economic model throughout the year and beyond.
Shake Shack Inc. (SHAK - Free Report) posted decent second-quarter fiscal 2024 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. The bottom and the top line increased on a year-over-year basis. In the quarter, the company benefited from product innovations, strategic menu pricing, technology implementations and promotions.
Looking ahead, SHAK is committed to achieving efficiency across regions and formats by utilizing drive-throughs and third-party delivery. The company plans to reduce build costs by 10% in 2024 and further lower costs in 2025, enabling the exploration of new real estate options while maintaining returns. It intends to achieve strong unit-level economics and boost ROI, fostering long-term value creation for its shareholders.
The Cheesecake Factory Incorporated (CAKE - Free Report) reported second-quarter fiscal 2024 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. The bottom and the top line increased from the prior-year quarter’s figure.
In the quarter, CAKE stated benefits from strong demand and sales performance of new restaurant openings. Also, improvements in food efficiencies, labor productivity, overtime and wage management enhanced restaurant-level profitability. The company emphasizes strengthening its operational service to drive long-term growth.