Brinker International (EAT) Reports Earnings Tomorrow: What To Expect

Casual restaurant chain Brinker International (NYSE:EAT) will be reporting earnings this Wednesday before the bell. Here’s what to expect.

Brinker International beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $1.46 billion, up 21% year on year. It was a strong quarter for the company, with a solid beat of analysts’ same-store sales estimates and full-year EPS guidance beating analysts’ expectations.

Is Brinker International a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Brinker International’s revenue to grow 16.8% year on year to $1.33 billion, improving from the 12.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.77 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Brinker International has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.6% on average.

Looking at Brinker International’s peers in the restaurants segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Darden delivered year-on-year revenue growth of 10.4%, meeting analysts’ expectations, and Domino's reported revenues up 6.2%, topping estimates by 0.9%. Darden traded down 11.6% following the results while Domino's was up 2.2%.

Read our full analysis of Darden’s results here and Domino’s results here.

Investors in the restaurants segment have had steady hands going into earnings, with share prices flat over the last month. Brinker International is down 4.7% during the same time and is heading into earnings with an average analyst price target of $171.27 (compared to the current share price of $126.74).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.