Casual restaurant chain Brinker International (NYSE:EAT) will be reporting earnings this Wednesday before the bell. Here’s what to expect.
Brinker International met analysts’ revenue expectations last quarter, reporting revenues of $1.47 billion, up 3.2% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EBITDA estimates but full-year revenue guidance meeting analysts’ expectations.
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 4.9% year on year, slowing from the 21% 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 sit-down dining segment, some have already reported their Q2 results, giving us a hint as to what we can expect. The Cheesecake Factory delivered year-on-year revenue growth of 7.7%, beating analysts’ expectations by 2.9%, and BJ's reported revenues up 6.4%, topping estimates by 3.2%. The Cheesecake Factory traded up 13.6% following the results while BJ's was down 9%.
Read our full analysis of The Cheesecake Factory’s results here and BJ’s results here.
Investors in the sit-down dining segment have had steady hands going into earnings, with share prices flat over the last month. Brinker International is up 20.2% during the same time and is heading into earnings with an average analyst price target of $202 (compared to the current share price of $227.53).
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