Stock Monitor: Dunkin' Brands Group Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 13, 2018 / Active-Investors.com has just released a free earnings report on Brinker International, Inc. (NYSE: EAT) ("Brinker"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=EAT. Brinker reported its second quarter fiscal 2018 operating and financial results on January 30, 2018. The operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy exceeded earnings expectations and updated earnings guidance for fiscal 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Brinker International most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the fiscal second quarter ended December 27, 2017, Brinker's total revenues were $766.40 million, decreasing 0.6% compared to Q2 FY17 revenues of $771.04 million. In the reported quarter, total Company's sales were $742.69 million, decreasing 0.8% compared sales of $748.71 million in the year ago same period. Brinker's revenue fell short of analysts' estimates of $771.4 million.
During Q2 FY18, Brinker's Restaurant operating margin, as a percent of the Company's sales, was 14.9% compared to 15.1% for Q2 FY17, representing a decrease of approximately 20 basis points.
On a GAAP basis, Brinker's net income was $25.37 million, or $0.54 per diluted share, compared to earnings of $34.64 million, or $0.69 per diluted share, in Q2 FY17. During the reported quarter, the Tax Cuts and Jobs Act of 2017 (Tax Act) negatively impacted the Company's GAAP net income by $3.9 million, or $0.08 per diluted share, consisting of $8.7 million, or $0.18 per diluted share, for the revaluation of the Company's net deferred tax assets, partially offset by the impact from the decrease in the statutory tax rate of $4.8 million, or $0.10 per diluted share, in Q2 FY17.
Brinker's earnings, excluding special items, were $0.87 per diluted share for Q2 FY18, representing a 22.5% increase from earnings of $0.71 per diluted share in Q2 FY17. The Company's earnings beat Wall Street's estimates of $0.71 per share.
Brinker International's Segment Results
During Q2 FY18, Brinker reported that its CHILI's Company-owned comparable restaurant sales decreased 1.5% on a y-o-y basis. CHILI's US franchise comparable restaurant sales fell 1.7% compared to the year ago corresponding period, while its international franchise comparable restaurant sales increased marginally by 0.1% on a y-o-y basis in the reported quarter.
For Q2 FY18, CHILI's reported Company sales of $623.6 million, down 1.3% compared to $632.1 million in Q2 FY17, due to a decline in comparable restaurant sales. The segment's Restaurant labor, as a percent of the Company's sales, increased compared to the prior year due to higher wage rates. Cost of sales, as a percent of the Company's sales, increased slightly on a y-o-y basis due to unfavorable product mix on beef, ribs, and chicken and unfavorable commodity pricing on produce. CHILI's Restaurant expenses, as a percent of the Company's sales, decreased due to lower advertising and repairs and maintenance expenses.
During Q2 FY18, the MAGGIANO segment's comparable restaurant sales grew 1.8% on a y-o-y basis. MAGGIANO's reported quarter Company sales increased 2.1% to $119.1 million from $116.6 million in the prior year same quarter primarily due to an increase in comparable restaurant sales. MAGGIANO's restaurant expenses, as a percent of the Company's sales, decreased primarily due to sales leverage and lower property taxes, preopening, and workers' compensation insurance expenses.
During Q2 FY18, FRANCHISE AND OTHER segment's revenues increased 6.3% to $23.7 million on a y-o-y basis compared to $22.3 million in Q2 FY17 primarily due to higher gift card-related revenues. Brinker's franchisees generated approximately $324 million in sales for the reported quarter.
For the first six months of fiscal 2018, Brinker's cash flows provided by operating activities were $119.7 million and capital expenditures totaled $48.6 million. The Company's free cash flow was $71.1 million for the reported period.
Brinker updated its fiscal 2018 outlook and now estimates earnings, excluding special items and the revaluation of the Company's deferred tax accounts, to be in the range of $3.42 to $3.52 per diluted share.
Stock Performance Snapshot
February 12, 2018 - At Monday's closing bell, Brinker International's stock slightly fell 0.03%, ending the trading session at $33.46.
Volume traded for the day: 1.45 million shares.
Stock performance in the previous three-month period – up 0.33%
After yesterday's close, Brinker International's market cap was at $1.55 billion.
Price to Earnings (P/E) ratio was at 12.76.
The stock has a dividend yield of 4.54%.
The stock is part of the Services sector, categorized under the Restaurants industry. This sector was up 1.3% at the end of the session.
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