Brinker International, Inc. (EAT - Free Report) is scheduled to report second-quarter fiscal 2023 results on Feb 1. In the last reported quarter, the company delivered an earnings surprise of 5%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the fiscal second-quarter earnings per share (EPS) is pegged at 50 cents, indicating a decline of 29.6% from 71 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $987.6 million, suggesting a 6.7% increase from the year-ago quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors at Play
Brinker International's second-quarter fiscal 2023 top line is likely to reflect benefits from solid Chili's performance, sales-building initiatives and expansion efforts. During the previous quarter, the company emphasized on streamlining operations to reduce the complexity in Chili's business. It also implemented a new pricing strategy to help expand restaurant margins and grow profits. During the fiscal first quarter, domestic comps at Chilli’s (including company-owned and franchised restaurants) rose 3.4% year over year. With an increased focus on sports-driven group viewing occasions and new menu offerings, the momentum is likely to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for company sales Chili's is pegged at $842 million, indicating a rise of 6.3% year over year.
Although the company is witnessing a gradual improvement in dining occupancy, it is still lower than in the pre-pandemic era. This and costs related to various sales-boosting initiatives, advertising expenses along with commodity inflation are expected to have affected margins in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for Brinker this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Brinker has an Earnings ESP of +2.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat on Earnings
Here are some other stocks worth considering from the Zacks Retail-Wholesale sector, as our model shows that these have the right combination of elements to beat on earnings this season:
Yum China Holdings, Inc. (YUMC - Free Report) has an Earnings ESP of +16.13% and a Zacks Rank #3.
Shares of Yum China have gained 35.6% in the past year. YUMC’s earnings surpassed the estimates twice in the trailing four quarters and missed twice, the average surprise being 263.4%.
Shake Shack Inc. (SHAK - Free Report) currently has an Earnings ESP of +11.91% and a Zacks Rank #3.
Shares of Shake Shack have declined 10.2% in the past year. SHAK’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 37.2%, on average.
Starbucks Corporation (SBUX - Free Report) currently has an Earnings ESP of +2.09% and a Zacks Rank #3.
Shares of Starbucks have gained 11.9% in the past year. SBUX’s earnings surpassed the estimates twice in the trailing four quarters and missed twice, the average surprise being 2.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Brinker International, Inc. (EAT - Free Report) is scheduled to report second-quarter fiscal 2023 results on Feb 1. In the last reported quarter, the company delivered an earnings surprise of 5%.
How Are Estimates Placed?
The Zacks Consensus Estimate for the fiscal second-quarter earnings per share (EPS) is pegged at 50 cents, indicating a decline of 29.6% from 71 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at $987.6 million, suggesting a 6.7% increase from the year-ago quarter’s figure.
Let's look at how things have shaped up in the quarter.
Factors at Play
Brinker International's second-quarter fiscal 2023 top line is likely to reflect benefits from solid Chili's performance, sales-building initiatives and expansion efforts. During the previous quarter, the company emphasized on streamlining operations to reduce the complexity in Chili's business. It also implemented a new pricing strategy to help expand restaurant margins and grow profits. During the fiscal first quarter, domestic comps at Chilli’s (including company-owned and franchised restaurants) rose 3.4% year over year. With an increased focus on sports-driven group viewing occasions and new menu offerings, the momentum is likely to have continued in the to-be-reported quarter. The Zacks Consensus Estimate for company sales Chili's is pegged at $842 million, indicating a rise of 6.3% year over year.
Although the company is witnessing a gradual improvement in dining occupancy, it is still lower than in the pre-pandemic era. This and costs related to various sales-boosting initiatives, advertising expenses along with commodity inflation are expected to have affected margins in the to-be-reported quarter.
What Our Model Says
Our proven model predicts an earnings beat for Brinker this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Brinker has an Earnings ESP of +2.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat on Earnings
Here are some other stocks worth considering from the Zacks Retail-Wholesale sector, as our model shows that these have the right combination of elements to beat on earnings this season:
Yum China Holdings, Inc. (YUMC - Free Report) has an Earnings ESP of +16.13% and a Zacks Rank #3.
Shares of Yum China have gained 35.6% in the past year. YUMC’s earnings surpassed the estimates twice in the trailing four quarters and missed twice, the average surprise being 263.4%.
Shake Shack Inc. (SHAK - Free Report) currently has an Earnings ESP of +11.91% and a Zacks Rank #3.
Shares of Shake Shack have declined 10.2% in the past year. SHAK’s earnings beat the consensus mark in each of the last four quarters. The company has a trailing four-quarter earnings surprise of 37.2%, on average.
Starbucks Corporation (SBUX - Free Report) currently has an Earnings ESP of +2.09% and a Zacks Rank #3.
Shares of Starbucks have gained 11.9% in the past year. SBUX’s earnings surpassed the estimates twice in the trailing four quarters and missed twice, the average surprise being 2.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
Get the latest research report on SBUX - FREE
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