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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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