Measuring Bravo Brio Restaurant Group Inc’s (NASDAQ:BBRG) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess BBRG’s recent performance announced on 31 December 2017 and weigh these figures against its long-term trend and industry movements. View our latest analysis for Bravo Brio Restaurant Group
Were BBRG’s earnings stronger than its past performances and the industry?
I look at data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This allows me to examine many different companies in a uniform manner using the latest information. For Bravo Brio Restaurant Group, its latest trailing-twelve-month earnings is -US$9.77M, which, in comparison to the previous year’s level, has become less negative. Since these values are relatively short-term, I have determined an annualized five-year value for BBRG’s net income, which stands at US$5.10M.
We can further evaluate Bravo Brio Restaurant Group’s loss by looking at what the industry has been experiencing over the past few years. Each year, for the past half a decade Bravo Brio Restaurant Group’s revenue growth has been fairly soft, with an annual growth rate of 1.74%, on average. The company’s inability to breakeven has been aided by the relatively flat top-line in the past. Eyeballing growth from a sector-level, the US hospitality industry has been growing its average earnings by double-digit 14.65% over the past twelve months, and 11.63% over the past five. This means even though Bravo Brio Restaurant Group is presently loss-making, it may have gained from industry tailwinds, moving earnings towards to right direction.
What does this mean?
Though Bravo Brio Restaurant Group’s past data is helpful, it is only one aspect of my investment thesis. Companies that incur net loss is always difficult to envisage what will occur going forward, and when. The most valuable step is to assess company-specific issues Bravo Brio Restaurant Group may be facing and whether management guidance has dependably been met in the past. I recommend you continue to research Bravo Brio Restaurant Group to get a better picture of the stock by looking at:
- 1. Financial Health: Is BBRG’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- 2. Valuation: What is BBRG worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BBRG is currently mispriced by the market.
- 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2017. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.