Casual restaurant chain Brinker International (NYSE: EAT) will be reporting results this Wednesday before the bell. Here’s what you need to know.
Brinker International met analysts’ revenue expectations last quarter, reporting revenues of $1.54 billion, up 5.1% year on year. It was a satisfactory quarter for the company, with full-year EPS guidance exceeding analysts’ expectations but a miss of analysts’ EBITDA estimates.
Is Brinker International a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Brinker International’s revenue to grow 8.1% year on year, slowing from the 18.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Brinker International rarely misses Wall Street’s revenue estimates.
Looking at Brinker International’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Darden delivered year-on-year revenue growth of 5.1%, meeting analysts’ expectations, and Domino's reported revenues up 3.4%, topping estimates by 0.9%. Darden traded down 6.5% following the results while Domino's was also down 4.8%.
Read our full analysis of Darden’s results here and Domino’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 4.9% on average over the last month. Brinker International is down 7.1% during the same time and is heading into earnings with an average analyst price target of $256.73 (compared to the current share price of $188.01).
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