We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Brinker International, Inc. (EAT - Free Report) reported fourth-quarter fiscal 2018 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same. Adjusted earnings of $1.19 lagged the consensus mark of $1.20. However, the bottom line increased 9.2% from the year-ago quarter on higher revenues.
Quarterly revenues came in at $817.1 million, which outpaced the consensus estimate of $816 million. The top line also increased a meager 0.8% on a year-over-year basis.
Let’s take a closer look at the fourth quarter numbers:
Brand Performances
Brinker primarily engages in the ownership, operation, development and franchising of various restaurant brands under the names, Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s).
Chili's
Revenues at Chili’s summed $688.2 million in the quarter, up 0.8% from the prior-year quarter. The upside was driven by rise in comps and increase in capacity in the United States.
The brand’s company-owned comps rose 0.6% owing to a 0.8% increase in both traffic and mix shift, partially offset a 1% decline in pricing. However, comps compared favorably with the prior-quarter decline of 0.4% and year-ago drop of 2.2%.
Comps at Chili's franchised restaurants decreased 1.4% compared with a 1.7% decline in the year-ago quarter and a 2.1% drop in the last reported quarter. At international franchised Chili’s restaurants, comps declined 2.9% compared with the prior quarter’s decrease of 4.2% and year-ago quarter’s decline of 0.2%. Meanwhile, the same fell in the domestic franchised units by 0.5% compared with the year-ago quarter’s decline of 0.2% and the third quarter’s decline of 3.2%.
At Chili's, domestic comps (including company-owned and franchised) inched up 0.4% against the prior-quarter’s drop of 1.1% and the year-earlier quarter’s decline of 1.7%.
Maggiano's
Maggiano's company sales rose 0.3% year over year to $103.2 million primarily owing to an increase in comps.
Comps grew 0.3% in the quarter compared with a gain of 0.5% in the year-ago quarter, courtesy of a 1.7% increase in pricing and a 0.2% rise in mix, partially offset by a 1.6% decline in traffic. Markedly, comps had increased 0.5% in the third-quarter fiscal 2018.
Operating Results
Total operating costs and expenses increased roughly 2.2% to nearly $746.7 million compared with $730.4 million in the year-ago quarter. While cost of sales margin expanded 40 basis points (bps), restaurant labor margin increased 100 bps year over year.
Restaurant operating margin, as a percentage of company sales, was 15.9% compared with 17% in the prior-year quarter.
Brinker International, Inc. Price, Consensus and EPS Surprise
As of Jun 27, 2018, cash and cash equivalents were $10.9 million compared with nearly $9 million on Mar 29, 2017.
Long-term debt was $1.5 billion as of Jun 27, 2018 compared with $1.32 billion as of Jun 28, 2017. Total shareholders’ deficit in the quarter was $1.3 billion compared with $1.4 billion as of Jun 28, 2017. Capital expenditures as of Jun 27, 2018, were $101.3 million. Free cash flow summed $183.2 million.
Management approved a quarterly dividend of 38 cents per share of the company’s common stock in the fourth quarter, which is payable Sep 27 to shareholders of record as of Sep 7.
2019 Guidance
For the full fiscal year, Brinker expects revenues to increase in the range of nearly 1-2.25%. Comps are anticipated to increase within the 0.75-1.75% band. However, restaurant operating margin is expected to contract 160-180 bps year over year.
McDonald's (MCD - Free Report) reported impressive second-quarter 2018 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings of $1.99 per share surpassed the consensus mark of $1.92 by 3.6% and increased 15% from the year-ago quarter (12% in constant currencies).
Darden (DRI - Free Report) reported better-than-expected results in the fourth quarter of fiscal 2018. Adjusted earnings of $1.39 per share outpaced the consensus estimate of $1.35 by 3%. The bottom line also increased 17.8% year over year on the back of higher revenues.
Chipotle (CMG - Free Report) reported better-than-expected results for the second quarter of 2018. Adjusted earnings of $2.87 per share topped the Zacks Consensus Estimate of $2.78 by 3.2%. The bottom line also grew 23.7% from the year-ago quarter number backed by increased revenues and lower food costs.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Brinker's (EAT) Q4 Earnings Miss, Revenues Beat Estimates
Brinker International, Inc. (EAT - Free Report) reported fourth-quarter fiscal 2018 results, wherein earnings missed the Zacks Consensus Estimate but revenues surpassed the same. Adjusted earnings of $1.19 lagged the consensus mark of $1.20. However, the bottom line increased 9.2% from the year-ago quarter on higher revenues.
Quarterly revenues came in at $817.1 million, which outpaced the consensus estimate of $816 million. The top line also increased a meager 0.8% on a year-over-year basis.
Let’s take a closer look at the fourth quarter numbers:
Brand Performances
Brinker primarily engages in the ownership, operation, development and franchising of various restaurant brands under the names, Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s).
Chili's
Revenues at Chili’s summed $688.2 million in the quarter, up 0.8% from the prior-year quarter. The upside was driven by rise in comps and increase in capacity in the United States.
The brand’s company-owned comps rose 0.6% owing to a 0.8% increase in both traffic and mix shift, partially offset a 1% decline in pricing. However, comps compared favorably with the prior-quarter decline of 0.4% and year-ago drop of 2.2%.
Comps at Chili's franchised restaurants decreased 1.4% compared with a 1.7% decline in the year-ago quarter and a 2.1% drop in the last reported quarter. At international franchised Chili’s restaurants, comps declined 2.9% compared with the prior quarter’s decrease of 4.2% and year-ago quarter’s decline of 0.2%. Meanwhile, the same fell in the domestic franchised units by 0.5% compared with the year-ago quarter’s decline of 0.2% and the third quarter’s decline of 3.2%.
At Chili's, domestic comps (including company-owned and franchised) inched up 0.4% against the prior-quarter’s drop of 1.1% and the year-earlier quarter’s decline of 1.7%.
Maggiano's
Maggiano's company sales rose 0.3% year over year to $103.2 million primarily owing to an increase in comps.
Comps grew 0.3% in the quarter compared with a gain of 0.5% in the year-ago quarter, courtesy of a 1.7% increase in pricing and a 0.2% rise in mix, partially offset by a 1.6% decline in traffic. Markedly, comps had increased 0.5% in the third-quarter fiscal 2018.
Operating Results
Total operating costs and expenses increased roughly 2.2% to nearly $746.7 million compared with $730.4 million in the year-ago quarter. While cost of sales margin expanded 40 basis points (bps), restaurant labor margin increased 100 bps year over year.
Restaurant operating margin, as a percentage of company sales, was 15.9% compared with 17% in the prior-year quarter.
Brinker International, Inc. Price, Consensus and EPS Surprise
Brinker International, Inc. Price, Consensus and EPS Surprise | Brinker International, Inc. Quote
Balance Sheet
As of Jun 27, 2018, cash and cash equivalents were $10.9 million compared with nearly $9 million on Mar 29, 2017.
Long-term debt was $1.5 billion as of Jun 27, 2018 compared with $1.32 billion as of Jun 28, 2017. Total shareholders’ deficit in the quarter was $1.3 billion compared with $1.4 billion as of Jun 28, 2017. Capital expenditures as of Jun 27, 2018, were $101.3 million. Free cash flow summed $183.2 million.
Management approved a quarterly dividend of 38 cents per share of the company’s common stock in the fourth quarter, which is payable Sep 27 to shareholders of record as of Sep 7.
2019 Guidance
For the full fiscal year, Brinker expects revenues to increase in the range of nearly 1-2.25%. Comps are anticipated to increase within the 0.75-1.75% band. However, restaurant operating margin is expected to contract 160-180 bps year over year.
Zacks Rank & Peer Releases
Brinker carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDonald's (MCD - Free Report) reported impressive second-quarter 2018 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings of $1.99 per share surpassed the consensus mark of $1.92 by 3.6% and increased 15% from the year-ago quarter (12% in constant currencies).
Darden (DRI - Free Report) reported better-than-expected results in the fourth quarter of fiscal 2018. Adjusted earnings of $1.39 per share outpaced the consensus estimate of $1.35 by 3%. The bottom line also increased 17.8% year over year on the back of higher revenues.
Chipotle (CMG - Free Report) reported better-than-expected results for the second quarter of 2018. Adjusted earnings of $2.87 per share topped the Zacks Consensus Estimate of $2.78 by 3.2%. The bottom line also grew 23.7% from the year-ago quarter number backed by increased revenues and lower food costs.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>