The 10-second takeaway
For the quarter ended March 28 (Q3), Brinker International beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Margins expanded across the board.
Brinker International reported revenue of $742.0 million. The 12 analysts polled by S&P Capital IQ foresaw a top line of $730.0 million on the same basis. GAAP reported sales were 3.5% higher than the prior-year quarter's $717.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.60. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.56 per share on the same basis. GAAP EPS of $0.56 for Q3 were 24% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 18.7%, 40 basis points better than the prior-year quarter. Operating margin was 9.2%, 40 basis points better than the prior-year quarter. Net margin was 6.1%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $725.7 million. On the bottom line, the average EPS estimate is $0.56.
Next year's average estimate for revenue is $2.81 billion. The average EPS estimate is $1.89.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brinker International is hold, with an average price target of $27.40.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.