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Dec 25, 2019
Brinker Intl. Q2 2020 Earnings Report
Reported positive top line growth and effective P&L management, resulting in double digit adjusted EPS growth.
Key Takeaways
Brinker International reported an increase in total revenues by 9.9% to $869.3 million and an increase in company sales by 11.3% to $847.5 million. The adjusted EPS increased by 13.5% to $1.01.
GAAP earnings per diluted share decreased 12.0% to $0.73.
Earnings per diluted share, excluding special items, increased 13.5% to $1.01.
Company sales increased 11.3% to $847.5 million.
Total revenues increased 9.9% to $869.3 million.
Brinker Intl.
Brinker Intl.
Brinker Intl. Revenue by Segment
Revenue by Segment
Chili's Revenue
CapyFin.comMaggiano's Revenue
CapyFin.com Forward Guidance
Brinker now increases our financial outlook with the following guidance changes based on year-to-date performance and estimates for the remainder of fiscal 2020:
Positive Outlook
- Earnings per diluted share, excluding special items, is estimated to be in the range of $4.25 to $4.45
- Revenues are expected to be up approximately 9.0% to 10.0% primarily due to the acquisition of the 116 Chili’s restaurants
- Comparable restaurant sales at company-owned restaurants are expected to be up 1.75% to 2.50%
- General and administrative expense is expected to remain flat
- Effective income tax rate, excluding the impact of special items, is expected to be approximately 10.5% to 11.5%
Challenges Ahead
- Restaurant operating margin is expected to be flat to fiscal 2019
- Capital expenditures are expected to be $140.0 million to $150.0 million
- We are unable to reliably forecast special items such as restaurant impairments, restaurant closures, reorganization charges and legal settlements without unreasonable effort.
- As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures.
- If special items are reported during fiscal 2020, reconciliations to the appropriate GAAP measures will be provided.
Revenue & Expenses
Visualization of income flow from segment revenue to net income