Watch Brinker International's (NYSE: EAT) earnings report to see if it can beat analyst expectations for the third consecutive quarter. The company will unveil its latest earnings Thursday. Brinker International owns, develops, operates, and franchises the Chili's Grill & Bar, On The Border Mexican Grill & Cantina, and Maggiano's Little Italy restaurant brands.
What analysts say:
- Buy, sell, or hold?: Analysts think investors should stand pat on Brinker International with 11 of 20 analysts rating it hold. Analysts don't like Brinker International as much as competitor Buffalo Wild Wings overall. Eight out of 16 analysts rate Buffalo Wild Wings a buy compared with six of 20 for Brinker International. Analysts still rate the stock a hold, but they are a bit more wary about it compared with three months ago.
- Revenue Forecasts: On average, analysts predict $710.6 million in revenue this quarter. That would represent a decline of 4.4% from the year-ago quarter.
- Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.47 per share. Estimates range from $0.45 to $0.49.
What our community says:
The majority of CAPS All-Stars see Brinker International as a good bet, with 74.4% granting it an "outperform" rating. The majority of the Fools are in agreement with the All-Stars as 65.5% give it an "outperform" rating. Fools are gung-ho about Brinker International and haven't been shy with their opinions lately, logging 170 posts in the past 30 days. Brinker International's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.
Management:
Brinker International's profit has risen year over year by an average of 48% over the past five quarters.
Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.
|
Quarter |
Q3 |
Q2 |
Q1 |
Q4 |
|
Gross Margin |
72.8% |
73.3% |
40.2% |
72.3% |
|
Operating Margin |
8.5% |
7.5% |
4.9% |
8.5% |
|
Net Margin |
5.6% |
5.6% |
3.3% |
8.6% |
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