Brinker International (NYSE:EAT) edged higher on Wednesday after beating profit estimates with its FQ1 earnings report and hiking full-year guidance.
Comparable restaurant sales increased 5.2% during the quarter to miss the consensus estimate for a rise of 6.1%. The breakdown by chain was a 5.0% increase in comparable sales for Chili's and 6.7% for Maggiano's. The restaurant operator said results for the quarter were primarily driven by effective marketing and pricing strategies. Guest traffic improved sequentially in the second quarter despite the headwind created by our decision to de-emphasize virtual brands. Operating income margin increased to 5.8% during the quarter, and restaurant operating margin increased to 13.1% for the first quarter.
Adjusted EBITDA rose to $107.0M from $91M a year ago and EPS of $0.99 topped the consensus mark of $0.95 and was well ahead of the $0.76 EPS print from a year ago.
"Our second quarter marked another quarter of year over year growth with continued margin improvement, driven by our strategy to simplify operations, improve our food, service, and atmosphere, and deploy an effective marketing plan," stated CEO Kevin Hochman.
Looking ahead, Brinker International (EAT) expects FY24 revenue of $4.30B to $4.35B vs. $4.33B consensus and FY24 EPS of $3.45 to $3.70 vs. $3.56 consensus and the prior range of $3.35 to $3.65.
Shares of Brinker International (EAT) were up 0.91% in premarket trading to $41.06. The Seeking Alpha Quant Rating on Brinker International (EAT) is flashing Strong Buy and the quant score is the highest of the 44 stocks in the restaurant sector with a rating.