Brinker International (EAT) Reports Q3: Everything You Need To Know Ahead Of Earnings

Casual restaurant chain Brinker International (NYSE:EAT) will be reporting results tomorrow morning. Here’s what you need to know.

Brinker International beat analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $1.21 billion, up 12.3% year on year. It was a mixed quarter for the company, with underwhelming earnings guidance for the full year. On the other hand, full year revenue guidance came in ahead of consensus.

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

This quarter, analysts are expecting Brinker International’s revenue to grow 8.8% year on year to $1.10 billion, improving from the 6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.69 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 10 upward revisions over the last 30 days (we track 15 analysts). Brinker International has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Brinker International’s peers in the sit-down dining segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Texas Roadhouse delivered year-on-year revenue growth of 13.5%, meeting analysts’ expectations, and Darden reported flat revenue, falling short of estimates by 1.5%. Texas Roadhouse traded up 3.6% following the results while Darden was also up 7%.

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

There has been positive sentiment among investors in the sit-down dining segment, with share prices up 5.5% on average over the last month. Brinker International is up 27.7% during the same time and is heading into earnings with an average analyst price target of $86 (compared to the current share price of $97.73).

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.