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Brinker International, Inc. (EAT - Free Report) reported first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased from the prior-year reported figure.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Following the results, the company’s shares rose 6.6% in the pre-market trading session. Positive investor sentiments were witnessed as EAT provided a better-than-expected outlook for fiscal 2025.
EAT’s Q1 Earnings and Revenues
In the quarter under review, Brinker reported adjusted earnings per share (EPS) of 95 cents, which beat the Zacks Consensus Estimate of 69 cents. The company reported an EPS of 28 cents in the prior-year quarter.
Brinker International, Inc. Price, Consensus and EPS Surprise
In the fiscal first quarter, total revenues of $1.13 billion outpaced the consensus mark of $1.09 billion. The top line increased 12.5% on a year-over-year basis. EAT gained from the solid performance of Chili's.
Chili's
In the fiscal first quarter, revenues in the Chili’s segment rose 13.5% year over year to $1.03 billion. The upside was backed by favorable comparable restaurant sales driven by menu pricing, higher traffic and a favorable menu item mix. Our model predicted segmental revenues at $968.9 million.
Chili's restaurant expenses (as a percentage of company sales) in the fiscal first quarter were 86.5% compared with 89.4% in the prior year quarter. The downside was caused by sales leverage, marginally overshadowed by an increase in hourly labor, repairs and maintenance expenses.
Chili's company-owned traffic rose 6.5% year over year in the quarter under discussion. The metric fell 5.8% in the prior-year quarter.
The segment’s company-owned comps rose 14.1% in the fiscal first quarter from the year-ago quarter’s levels.
At Chili’s, domestic comps (including company-owned and franchised) gained 13.9% year over year compared with a 6% rise reported in the prior-year period.
Maggiano’s
Maggiano’s sales in the fiscal first quarter increased 4% year over year to $108.6 million. Our model predicted segmental revenues at $107.1 million. Favorable comparable restaurant sales, courtesy of increased menu pricing and favorable menu item mix, drove the upside. Comps in the segment rose 4.2% year over year. Our projection was 2.1%.
Traffic in the quarter under discussion fell 8.7% year over year. The metric was down 5.7% in the prior-year quarter.
Maggiano's company restaurant expenses (as a percentage of company sales) in the fiscal first quarter were 86.7% compared with 91.2% a year ago. The downside was caused by sales leverage and lower hourly labor. However, this was partially offset by unfavorable commodity costs and other restaurant expenses.
Operating Results
In the quarter under review, total operating costs and expenses came in at $1.08 billion compared with $988.3 million reported in the year-ago quarter. Adjusted restaurant operating margin, as a percentage of company sales, was 13.5% compared with 10.4% reported in the prior-year quarter.
Adjusted EBITDA in the fiscal first quarter came in at $111.6 million compared with $72.4 million reported in the prior-year quarter.
Balance Sheet
As of Sept. 25, 2024, cash and cash equivalents amounted to $16.2 million compared with $14.4 million as of Sept. 27, 2023. As of Sept. 25, long-term debt was $806.9 million compared with $786.3 million as of June 26, 2024.
Fiscal 2025 Outlook
In fiscal 2025, management anticipates total revenues to be in the range of $4.70-$4.75 billion compared with the previous expectation 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 $5.2-$5.5, up from the prior estimate of $4.35-$4.75.
CAVA Group has a trailing four-quarter earnings surprise of 257.7%, on average. The stock has gained 336.8% in the past year. The Zacks Consensus Estimate for CAVA’s 2024 sales and EPS indicate 33.8% and 83.3% growth, respectively, from the year-earlier actuals.
Shake Shack has a trailing four-quarter earnings surprise of 39.6%, on average. SHAK’s shares have risen 102.7% in the past year. The Zacks Consensus Estimate for SHAK’s 2024 sales and EPS indicate 14.1% and 17.7% growth, respectively, from the year-earlier actuals.
Yum China has a trailing four-quarter earnings surprise of 26.6%, on average. YUMC’s shares have risen 4.8% so far this year. The Zacks Consensus Estimate for YUMC’s 2024 sales and EPS indicate 5.7% and 15.3% growth, respectively, from the prior-year figures.
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Brinker Q1 Earnings & Revenues Beat Estimates, Increase Y/Y
Brinker International, Inc. (EAT - Free Report) reported first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased from the prior-year reported figure.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Following the results, the company’s shares rose 6.6% in the pre-market trading session. Positive investor sentiments were witnessed as EAT provided a better-than-expected outlook for fiscal 2025.
EAT’s Q1 Earnings and Revenues
In the quarter under review, Brinker reported adjusted earnings per share (EPS) of 95 cents, which beat the Zacks Consensus Estimate of 69 cents. The company reported an EPS of 28 cents in the prior-year quarter.
Brinker International, Inc. Price, Consensus and EPS Surprise
Brinker International, Inc. price-consensus-eps-surprise-chart | Brinker International, Inc. Quote
In the fiscal first quarter, total revenues of $1.13 billion outpaced the consensus mark of $1.09 billion. The top line increased 12.5% on a year-over-year basis. EAT gained from the solid performance of Chili's.
Chili's
In the fiscal first quarter, revenues in the Chili’s segment rose 13.5% year over year to $1.03 billion. The upside was backed by favorable comparable restaurant sales driven by menu pricing, higher traffic and a favorable menu item mix. Our model predicted segmental revenues at $968.9 million.
Chili's restaurant expenses (as a percentage of company sales) in the fiscal first quarter were 86.5% compared with 89.4% in the prior year quarter. The downside was caused by sales leverage, marginally overshadowed by an increase in hourly labor, repairs and maintenance expenses.
Chili's company-owned traffic rose 6.5% year over year in the quarter under discussion. The metric fell 5.8% in the prior-year quarter.
The segment’s company-owned comps rose 14.1% in the fiscal first quarter from the year-ago quarter’s levels.
At Chili’s, domestic comps (including company-owned and franchised) gained 13.9% year over year compared with a 6% rise reported in the prior-year period.
Maggiano’s
Maggiano’s sales in the fiscal first quarter increased 4% year over year to $108.6 million. Our model predicted segmental revenues at $107.1 million. Favorable comparable restaurant sales, courtesy of increased menu pricing and favorable menu item mix, drove the upside. Comps in the segment rose 4.2% year over year. Our projection was 2.1%.
Traffic in the quarter under discussion fell 8.7% year over year. The metric was down 5.7% in the prior-year quarter.
Maggiano's company restaurant expenses (as a percentage of company sales) in the fiscal first quarter were 86.7% compared with 91.2% a year ago. The downside was caused by sales leverage and lower hourly labor. However, this was partially offset by unfavorable commodity costs and other restaurant expenses.
Operating Results
In the quarter under review, total operating costs and expenses came in at $1.08 billion compared with $988.3 million reported in the year-ago quarter. Adjusted restaurant operating margin, as a percentage of company sales, was 13.5% compared with 10.4% reported in the prior-year quarter.
Adjusted EBITDA in the fiscal first quarter came in at $111.6 million compared with $72.4 million reported in the prior-year quarter.
Balance Sheet
As of Sept. 25, 2024, cash and cash equivalents amounted to $16.2 million compared with $14.4 million as of Sept. 27, 2023. As of Sept. 25, long-term debt was $806.9 million compared with $786.3 million as of June 26, 2024.
Fiscal 2025 Outlook
In fiscal 2025, management anticipates total revenues to be in the range of $4.70-$4.75 billion compared with the previous expectation 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 $5.2-$5.5, up from the prior estimate of $4.35-$4.75.
EAT’s Zacks Rank & Other Key Picks
Brinker currently has a Zacks Rank #2 (Buy).
Some other stocks in the Zacks Retail-Wholesale sector include CAVA Group, Inc. (CAVA - Free Report) , Shake Shack Inc. (SHAK - Free Report) and Yum China Holdings, Inc. (YUMC - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CAVA Group has a trailing four-quarter earnings surprise of 257.7%, on average. The stock has gained 336.8% in the past year. The Zacks Consensus Estimate for CAVA’s 2024 sales and EPS indicate 33.8% and 83.3% growth, respectively, from the year-earlier actuals.
Shake Shack has a trailing four-quarter earnings surprise of 39.6%, on average. SHAK’s shares have risen 102.7% in the past year. The Zacks Consensus Estimate for SHAK’s 2024 sales and EPS indicate 14.1% and 17.7% growth, respectively, from the year-earlier actuals.
Yum China has a trailing four-quarter earnings surprise of 26.6%, on average. YUMC’s shares have risen 4.8% so far this year. The Zacks Consensus Estimate for YUMC’s 2024 sales and EPS indicate 5.7% and 15.3% growth, respectively, from the prior-year figures.