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Brinker (EAT) Provides Q2 Business Update, Withdraws Guidance
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Brinker International, Inc. (EAT - Free Report) recently provided intra-quarter business updates for the second quarter of fiscal 2021. The company’s operations have been negatively impacted by the rise in COVID-19 cases. Following the news, the company’s shares declined 1.5% on Dec 16.
Nonetheless, Wyman Roberts, chief executive officer of Brinker International, stated, "As we work through this short-term change in the operational environment, we are confident in our continued ability to outperform the sector and the ability of our strategies to deliver long-term growth."
Comparable Restaurant Sales
Although the company saw a solid start to the fiscal second quarter, comps at Chili's Grill & Bar and Maggiano's Little Italy restaurants were negatively impacted by dining room closures and capacity limitations due to a rise in COVID-19 cases.
Notably, comps at Chili's for the week ended Oct 28, Nov 4, Nov 11, Nov 18, Nov 25, Dec 2 and Dec 9 declined 1%, 3.9%, 5.7%, 6.5%, 13.3%, 13.8% and 12.3% compared with the prior-year week, respectively. Despite the negative trend, it is worth mentioning that Chili's comparable restaurant sales have outpaced the casual dining industry during the fiscal second quarter.
Meanwhile, comps at Maggiano's for the week ended Oct 28, Nov 4, Nov 11, Nov 18, Nov 25, Dec 2 and Dec 9 decreased 34%, 44.1%, 42.4%, 44.5%, 39.4%, 53.8% and 63.9%, respectively. Moreover, comps at company-owned were down 4.9%, 8.9%, 10.3%, 11.4%, 16.4%, 21.1% and 21.7%, for the week ended Oct 28, Nov 4, Nov 11, Nov 18, Nov 25, Dec 2 and Dec 9, respectively.
As of Dec 9, 2020, the company announced that approximately 77% of Chili's and 69% of Maggiano's restaurants were operating with dining rooms open.
Other Updates
As of Dec 11, 2020, the company had cash of nearly $53 million and revolver availability of $593 million, resulting in available liquidity of $646 million.
Owing to the unprecedented nature of the crisis, the company has also withdrawn its second-quarter fiscal 2021 guidance.
So far this year, shares of the company have gained 31% compared with the industry’s 15.5% growth.
Other top-ranked stocks in the same space includes Ruth's Hospitality Group, Inc. , Jack in the Box Inc. (JACK - Free Report) and Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) , each carrying a Zacks Rank #2 (Buy).
Ruth's Hospitality has a three-five year earnings per share growth rate of 15%.
Earnings for Jack in the Box and Red Robin in 2021 are expected to rise 20.2% and 87%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Brinker (EAT) Provides Q2 Business Update, Withdraws Guidance
Brinker International, Inc. (EAT - Free Report) recently provided intra-quarter business updates for the second quarter of fiscal 2021. The company’s operations have been negatively impacted by the rise in COVID-19 cases. Following the news, the company’s shares declined 1.5% on Dec 16.
Nonetheless, Wyman Roberts, chief executive officer of Brinker International, stated, "As we work through this short-term change in the operational environment, we are confident in our continued ability to outperform the sector and the ability of our strategies to deliver long-term growth."
Comparable Restaurant Sales
Although the company saw a solid start to the fiscal second quarter, comps at Chili's Grill & Bar and Maggiano's Little Italy restaurants were negatively impacted by dining room closures and capacity limitations due to a rise in COVID-19 cases.
Notably, comps at Chili's for the week ended Oct 28, Nov 4, Nov 11, Nov 18, Nov 25, Dec 2 and Dec 9 declined 1%, 3.9%, 5.7%, 6.5%, 13.3%, 13.8% and 12.3% compared with the prior-year week, respectively. Despite the negative trend, it is worth mentioning that Chili's comparable restaurant sales have outpaced the casual dining industry during the fiscal second quarter.
Meanwhile, comps at Maggiano's for the week ended Oct 28, Nov 4, Nov 11, Nov 18, Nov 25, Dec 2 and Dec 9 decreased 34%, 44.1%, 42.4%, 44.5%, 39.4%, 53.8% and 63.9%, respectively. Moreover, comps at company-owned were down 4.9%, 8.9%, 10.3%, 11.4%, 16.4%, 21.1% and 21.7%, for the week ended Oct 28, Nov 4, Nov 11, Nov 18, Nov 25, Dec 2 and Dec 9, respectively.
As of Dec 9, 2020, the company announced that approximately 77% of Chili's and 69% of Maggiano's restaurants were operating with dining rooms open.
Other Updates
As of Dec 11, 2020, the company had cash of nearly $53 million and revolver availability of $593 million, resulting in available liquidity of $646 million.
Owing to the unprecedented nature of the crisis, the company has also withdrawn its second-quarter fiscal 2021 guidance.
So far this year, shares of the company have gained 31% compared with the industry’s 15.5% growth.
Zacks Rank & Other Stocks to Consider
Brinker sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Other top-ranked stocks in the same space includes Ruth's Hospitality Group, Inc. , Jack in the Box Inc. (JACK - Free Report) and Red Robin Gourmet Burgers, Inc. (RRGB - Free Report) , each carrying a Zacks Rank #2 (Buy).
Ruth's Hospitality has a three-five year earnings per share growth rate of 15%.
Earnings for Jack in the Box and Red Robin in 2021 are expected to rise 20.2% and 87%, respectively.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>