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Brinker (EAT) to Post Q3 Earnings: What's in the Offing?

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Brinker International, Inc. (EAT - Free Report) is likely to register an improvement in earnings when it reports third-quarter fiscal 2022 results. In the last reported quarter, the company delivered an earnings surprise of 42%. It has a trailing four-quarter earnings surprise of 10.5%, on average.

Q3 Estimates

The Zacks Consensus Estimate for fiscal third-quarter earnings is pegged at 99 cents per share, compared with the prior-year quarter earnings per share of 78 cents. The consensus mark for quarterly revenues is pegged at $976.1 million, suggesting growth of 17.8% from the year-ago quarter's figure.

Factors to Note

Brinker International's third-quarter fiscal 2022 results are likely to reflect benefits from sale-building efforts. Robust traffic and expansion efforts bode well. Robust Chili's and Maggiano's revenues might have driven the top line.

The company's goal of driving traffic and revenues through a range of sales-building initiatives such as streamlining the menu and its innovation, strengthening its value proposition, better food presentation, advertising campaigns, kitchen system optimization and introducing of better service platform may have contributed to the to-be-reported quarter's performance.

Its expansion efforts are likely to have driven the top line. During the first and the second quarter of fiscal 2022, the company opened four and seven restaurants, respectively. During fiscal 2022, Brinker International expects to open 17-20 restaurants. The company has been witnessing pent-up demand for dine-in experience on the back of a ramped-up vaccination drive and easing of capacity restrictions. To this end, additional team members are being hired to support higher volumes.

The Zacks Consensus Estimate for company sales Chili's and Maggiano's are pegged at $861 million and $92 million, up 15% and 41.5% year over year, respectively.

What the Zacks Model Unveils

Our proven model doesn't conclusively predict an earnings beat for Brinker International 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 International has an Earnings ESP of -0.11%. 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. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Retail-Wholesale sector that investors may consider as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported:

Chipotle Mexican Grill, Inc. (CMG - Free Report) has an Earnings ESP of +1.08% and a Zacks Rank #3.

Shares of Chipotle have gained 3.6% in the past year. CMG's earnings beat the consensus mark in each of the trailing four quarters, the average surprise being 11.2%.

Cracker Barrel Old Country Store, Inc. (CBRL - Free Report) has an Earnings ESP of +11.33% and a Zacks Rank #3.

Shares of Cracker Barrel have declined 24.6% in the past year. CBRL has a trailing four-quarter earnings surprise of 350.5%, on average.

Groupon, Inc. (GRPN - Free Report) has an Earnings ESP of +23.91% and a Zacks Rank #3.

Shares of Groupon have declined 57.2% in the past year. GRPN has a trailing four-quarter earnings surprise of 396.7%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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