Casual restaurant chain Brinker International (NYSE:EAT) will be announcing earnings results tomorrow before market hours. Here’s what to expect.
Brinker International beat analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $1.14 billion, up 12.5% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ same-store sales estimates.
Is Brinker International a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Brinker International’s revenue to grow 16.3% year on year to $1.25 billion, improving from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.86 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Brinker International has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Brinker International’s peers in the restaurants segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Kura Sushi delivered year-on-year revenue growth of 25.2%, beating analysts’ expectations by 4.4%, and Darden reported revenues up 6%, topping estimates by 0.7%. Kura Sushi traded down 11.8% following the results while Darden was up 17.3%.
Read our full analysis of Kura Sushi’s results here and Darden’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 10.2% on average over the last month. Brinker International is up 15.5% during the same time and is heading into earnings with an average analyst price target of $144.20 (compared to the current share price of $148.51).
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