Brinker International (EAT) Reports Q1: Everything You Need To Know Ahead Of Earnings

Adam Hejl /
2024/04/29 3:02 am EDT

Casual restaurant chain Brinker International (NYSE:EAT) will be reporting earnings tomorrow before market hours. Here's what to expect.

Brinker International met analysts' revenue expectations last quarter, reporting revenues of $1.07 billion, up 5.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' gross margin estimates .Its full-year earnings guidance exceeded Wall Street's estimates. However, its revenue unfortunately missed analysts' expectations and its full-year revenue guidance slightly missed Wall Street's estimates.

Is Brinker International a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Brinker International's revenue to grow 3.6% year on year to $1.12 billion, slowing from the 10.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.15 per share.

Brinker International Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing four upward and three downward revisions over the last thirty days. Brinker International has missed Wall Street's revenue estimates twice over the last two years.

Looking at Brinker International's peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Darden delivered year-on-year revenue growth of 6.8%, missing analyst expectations by 1.7%, and Kura Sushi reported revenues up 30.4%, topping Wall Street's consensus estimates by 1.1%. Darden traded down 4.9% following the results while Kura Sushi was up 2.7%.

Read our full analysis of Darden's results here and Kura Sushi's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the restaurants stocks have fared somewhat better, they have not been spared, with share price declining 4.9% over the last month. Brinker International is down 4.1% during the same time and is heading into earnings with an average analyst price target of $48.3 (compared to share price of $48.85).

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