Brinker (EAT) matches earnings and revenue estimates for the first quarter to November 4, 2021

Brinker International, Inc. (TO EAT Free Report) presented the results for the first quarter of fiscal 2022, in which both earnings and revenue were in line with Zacks’ consensus estimate. However, both measures improved year over year. The company benefited from the strong performance of Chili’s and Maggiano’s.

Income and income discussion

The company’s adjusted earnings per share were 34 cents, in line with Zacks’ consensus estimate. Brinker had announced an adjusted profit of 28 cents in the quarter of last year.

Quarterly revenue of $ 876.4 million is the consensus mark. Revenue improved 18.4% year-on-year.

Chili’s

Chile’s revenue in the fiscal first quarter jumped 14.7% year-over-year to $ 787.6 million, mainly due to increased sales in dining rooms and traffic in restaurants. the company’s franchised restaurants.

Chilean corporate restaurant spending (as a percentage of company sales) in the first fiscal quarter increased to 89.4% year-over-year from 87.5%. The increase is mainly due to higher labor costs at restaurants, which include wage rates, training and overtime. Higher repair and maintenance spending and increased utility spending also drove the spending. Traffic during the quarter under review increased 9.4% year-on-year.

In the first quarter of fiscal 2022, the compositions owned by the company increased by 17% year on year, compared to a decrease of 10.9% in the quarter of the previous year. The compositions owned by the segment company increased by 13.4% in the first fiscal quarter, compared to the same period in 2021.

Prices at Chili’s franchise restaurants rose 23.1% from an 11.5% drop in the previous year quarter. In Chili’s international franchised restaurants, the same increase was up 32% from the 21.9% decline recorded in the previous year quarter. Meanwhile, in franchised units in the United States, comps were up 17.8% from the 5.6% drop in the previous year quarter.

At Chili’s, national lineups (including company-owned and franchisees) climbed 13.8% year-over-year, compared to a 7% decline in the previous year quarter.

that of Maggiano

Maggiano’s sales jumped 65.7% year-over-year to $ 88.8 million, mainly due to increased sales in dining and banquet halls and l ‘increased delivery sales. The rise, however, was offset by lower take-out sales. Premiums increased 62.6% year over year. Traffic in the quarter increased 39.1% year-over-year.

Maggiano’s corporate catering expenses (as a percentage of company sales) in the first fiscal quarter were 91.4%, compared to 100.2% in the previous year quarter. The decrease is mainly attributable to the leverage effect of sales and lower expenses related to take-out supplies. Nonetheless, the inconvenience was offset by the increase in labor costs in restaurants, including training, rates of pay, overtime and bonuses for managers, as well as expenses for repair and maintenance. higher maintenance.

Operating results

Total operating expenses and expenses contracted to $ 850.8 million from $ 715.7 million in the prior year quarter. The restaurants operating margin – as a percentage of the company’s sales – was 10.4% compared to 11.6% in the previous year quarter.

Balance sheet

As of September 29, 2021, cash and cash equivalents amounted to $ 31.2 million compared to $ 58.8 million as of September 23, 2020.

Long-term debt stood at $ 999.7 million as at September 29, 2021, compared to $ 917.9 million as at June 30, 2021. The total shareholder deficit for the quarter under review was ($ 325.5 million ($ 303.3 million as of June 30, 2021), compared to ($ 303.3 million as of June 30, 2021). .

Fiscal year 2022

The company reaffirmed its guidance for fiscal 2022, which was released on August 18. It continues to anticipate net revenues of between nearly $ 3.75 billion and $ 3.85 billion. Earnings per share are expected to be between $ 3.50 and $ 3.80.

Zacks rank and choice of keys

Brinker wears a Zacks Rank # 5 (strong sell).

Some top-ranked stocks in the Zacks Retail – Restaurants industry space are McDonald’s Company (MCD Free report), Noodles & Company (NDLS Free report) and Dave & Buster’s Entertainment, Inc. (TO PLAY Free report). Denny’s has a Zacks Rank 1 (strong buy), while Noodles & Company and Dave & Buster’s have a Zacks Rank 2 (buy). You can see The full list of today’s Zacks # 1 Rank stocks here.

McDonald’s posted a three-to-five-year earnings per share growth rate of 11.9%.

Noodles & Company’s profits in 2021 are expected to increase by 182.8%.

Dave & Buster’s has a surprise profit over the last four quarters of 201.8%, on average.


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