Brinker International (EAT) stock is down nearly 13% Wednesday afternoon. The selloff comes after the parent company of Chili's and Maggiano's Little Italy came up short of earnings expectations for its fiscal fourth quarter and issued a weak earnings outlook for its new fiscal year.
In the thirteen weeks ended June 26, Brinker's revenue increased 12.3% year-over-year to $1.2 billion, driven by same-restaurant sales rising 13.5%. Comparable sales at Chili's were up an impressive 14.8%. The company also said its earnings per share (EPS) rose 15.8% from the year-ago period to $1.61 and that operating expenses were up 11.7% to $1.14 billion.
"We achieved another quarter of solid progress against our strategy to deliver profitable, sustainable growth," said Brinker CEO Kevin Hochman in a statement. "We significantly outperformed the industry in both sales and traffic during the quarter, while maintaining record high guest metrics."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $1.16 billion and earnings of $1.72 per share, according to Yahoo Finance.
Sentiment worsened toward Brinker after the company provided its outlook for fiscal 2025. Brinker anticipates EPS to arrive between $4.35 to $4.75. The midpoint of this range, $4.55, is well short of the consensus analyst estimate of $4.78.
On a positive note, Brinker anticipates revenue in the range of $4.55 billion to $4.62 billion in fiscal 2025, which is ahead of the $4.53 billion in revenue analysts are anticipating.
Is Brinker stock a buy, sell or hold?
Heading into today's trading, Brinker was up an impressive 63% for the year to date. Yet, Wall Street is on the sidelines when it comes to the consumer discretionary stock.
According to S&P Global Market Intelligence, the average analyst target price for EAT stock is $66.78, representing implied upside of more than 8% to current levels. Meanwhile, the consensus recommendation is Hold.
Related Content
-
The Economy on a Knife's EdgeThe Letter GDP is growing, but employers have all but stopped hiring as they watch how the trade war plays out.
-
Why the Ultra-Rich Still Lose Sleep Over MoneyA look inside the lesser-known financial anxieties of ultra-high-net-worth individuals — and what those fears reveal about markets, policy, and wealth strategy.
-
The Best Gold Mutual Funds to Buy Right Now — And When to Choose An ETF InsteadGold mutual funds offer investors exposure to the yellow precious metal, which has been red-hot this year. But a caveat is required.
-
Financial Fact vs Fiction: The Truth About Social Security Entitlement (and Reverse Mortgages' Bad Rap)Despite the 'entitlement' moniker, Social Security and Medicare are both benefits that workers earn. And reverse mortgages can be a strategic tool for certain people. Plus, we're setting the record straight on three other myths.
-
The End of 2%? An Investment Adviser's Case for Why the Fed Should Raise Its Inflation TargetYes, inflation can be tough on those living on fixed incomes, but protecting us from it too strictly could do our overall economy more harm than good.
-
Trade Uncertainty Sparks Whipsaw Session: Stock Market TodayVolatility is making a cameo here in mid-October, a generally positive month marked by its historic stock market events.
-
Medicare Open Enrollment: Why You Need to Pay Extra Attention to Part D, From a Financial AdviserThe lowest premium for prescription drug coverage might not actually save you the most money. Make sure you take copays into consideration and do the math.
-
How the One Big Beautiful Bill Will Change Charitable GivingTaxpayers who don't itemize will be able to take a bigger deduction for donations, which could boost giving. However, high-income donors could see their tax benefits reduced.
-
Stocks Swing in Volatile Session: Stock Market TodayThe main indexes fell sharply in early trading on rising China tensions, but rebounded thanks to encouraging bank earnings.
-
A 'Fast, Fair and Friendly' Fail: Farmers Irks Customers With Its Handling of a Data BreachFarmers Insurance is facing negative attention and lawsuits because of a three-month delay in notifying 1.1 million policyholders about a data breach. Here's what you can do if you're affected.
