EAT Earnings Prediction
The chart below shows how EAT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, EAT sees a -5.46% change in stock price 10 days leading up to the earnings, and a +5.48% change 10 days following the report. On the earnings day itself, the stock moves by +1.07%. This data can give you a slight idea of what to expect for the next quarter's release.
EAT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.07B
5.41%
6.08%
Gross Margin
10.14%
21.88%
40.83%
Operating Margin
6.12%
26.71%
103.32%
Net Margin
3.92%
43.07%
452.11%
EPS
0.94
51.61%
487.50%
No Data Available
EAT Earnings Analysis
Brinker International Inc Corporation (EAT.N) Earnings Conference Call
Positive
Same Restaurant Sales Surge: Chili's achieved a remarkable 31% increase in same restaurant sales compared to the previous year, significantly outperforming the industry average.
Revenue and Sales Growth: Total revenues for Brinker International reached $1.358 billion, with consolidated comparable sales growing by 27.4% in Q2.
EPS Growth Surge: Adjusted diluted EPS surged to $2.80, a substantial increase from $0.99 in the same quarter last year, reflecting strong profitability growth.
Operating Margin Improvement: Restaurant operating margin improved by 600 basis points year-over-year, reaching 19.1%, driven by effective cost management and sales leverage.
Triple Dipper Sales Success: Chili's Triple Dipper menu item accounted for 14% of total sales in Q2, demonstrating successful product innovation and marketing efforts that attracted new customers.
Negative
Sales Performance Comparison: Maggiano's reported comp sales of only 1.8%, significantly lagging behind Chili's, with a concerning negative traffic decline of 4.9%.
Wage Rate Inflation Impact: Despite overall revenue growth, the company faced a 3.5% wage rate inflation, which could pressure future margins and profitability.
Margin Expansion Concerns: Chili's experienced a 600 basis points margin expansion, but this was primarily driven by sales leverage rather than sustainable operational improvements, raising concerns about future margin stability.
Advertising Spend Stagnation: The company reported a flat advertising spend year-over-year, indicating potential limitations in marketing effectiveness and growth initiatives moving forward.
Turnaround Challenges Ahead: Maggiano's is still in the early stages of its turnaround, with expectations of a lengthy recovery process similar to Chili's, suggesting ongoing challenges in achieving positive traffic trends.
EAT FAQs
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EAT Earning Call Sentiment
Earnings call transcript: Brinker International Q2 2024 earnings beat expectations
EAT.N
-5.64%Positive
The earnings call presents a strong financial performance with a 27.4% revenue increase and a 600 basis points improvement in operating margins. The company's strategic initiatives, like the '3 for Me' platform and social media engagement, are driving traffic and sales. Despite some concerns over supply chain and regulatory issues, management's optimistic guidance and continued share repurchase program add to a positive outlook. Given the market cap, the stock is likely to see a positive movement (2% to 8%) over the next two weeks.
