On Oct. 24, Brinker International (NYSE:EAT) released first-quarter earnings for the period ending Sept. 27, 2006.

  • Revenues and EPS exceeded analyst estimates by 0.2% and 23.9%, respectively.
  • Restaurant capacity growth of 7.3% partially offset by a 2.1% decrease in comparable store sales led to a 6.6% growth in revenues to $1.04 billion.
  • Improved net income and a 5.8% reduction in diluted share count led to an EPS increase of 32.6% to $0.57.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

Q1 2007

Q1 2006

Change

Sales

$1,037

$1,040

$976

6.6%

Net Profit

--

$48

$38

23.9%

EPS

$0.46

$0.57

$0.43

32.6%

Diluted Shares

--

84

89

(5.8%)



Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

72.55%

71.80%

0.75

Operating Margin

7.25%

6.45%

0.80

Net Margin

4.58%

3.94%

0.64

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Current Assets

$234.6

$313.5

(25.2%)



Liabilities

Q1 2007

Q1 2006

Change

Current Liabilities

$492.7

$482.4

2.1%

Long-Term Debt

$505

$507

(0.4%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Excuse me, waiter. I ordered a cash flow statement with my earnings release. There goes your tip.

Find out why Fools always follow the money.

Related Companies:

  • Yum Brands (NYSE:YUM)
  • Wendy's International (NYSE:WEN)
  • Darden Restaurants (NYSE:DRI)

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