Casual restaurant chain Brinker International (NYSE:EAT) will report earnings before the market close tomorrow. Here’s what you need to know.
Brinker International met analysts’ revenue expectations last quarter, reporting revenue of $1.12 billion, up 3.4% year over year. It was a very strong quarter for the company, which impressively beat analysts’ gross profit estimates and provided optimistic earnings guidance for the full year.
Is Brinker International a buy or sell based on earnings? Read our full analysis for free here.
Analysts expect revenue for this quarter to rise 8.2% to $1.16 billion compared to the same period last year. The same quarter last year saw an increase of 5.3%. Adjusted earnings are expected to be $1.72 per share.
Analysts covering the company have generally confirmed their estimates over the past 30 days, indicating that they expect the company to stay on course and remain in profitability as well. Brinker International has missed Wall Street revenue estimates three times in the past two years.
If we look at Brinker International’s competitors in the table service space, some have already reported their second-quarter results, giving us an indication of what to expect. Texas Roadhouse reported a 14.5% year-over-year increase in revenue, meeting analyst expectations. First Watch reported a 19.5% increase in revenue, in line with consensus estimates. Texas Roadhouse traded 2% higher after reporting its results, while First Watch also rose 11.1%.
Read our full analysis of Texas Roadhouse’s results here and First Watch’s results here.
Investors in the restaurant segment are having a quiet day on earnings, with share prices remaining flat over the past month. Brinker International is up 7.5% over the same period and goes into earnings with an average analyst price target of $66.8 (compared to the current share price of $68.44).
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