Brinker International to Report Fiscal First Quarter Earnings

Brinker International, the Dallas-based operator of Chili's Grill & Bar, is scheduled to report its earnings for the fiscal first quarter before the bell on Wednesday. Here are the key details you need to know:

Profit and Earnings

According to FactSet, Brinker International is expected to post a profit of $3 million, or 8 cents a share, compared to a loss of $30.2 million, or 69 cents a share, in the same quarter last year. Adjusted earnings, which exclude one-time items, are projected to be 6 cents a share.

Sales

FactSet forecasts that Brinker International's revenue will rise to $1.01 billion from $955.5 million in the year-ago quarter.

What to Watch

Same-Store Sales

Analysts are anticipating a 5.8% increase in same-store sales, which accounts for store openings and closings. This would be an acceleration from the 5.3% growth in the same quarter last year.

Prices

Investors will be keeping a close eye on Brinker International's pricing power, especially with the recent decrease in grocery inflation and overall tightening of consumer spending. Price increases were a major driver of its sales growth over fiscal 2023.

Traffic

Last quarter, both Chili's and Maggiano's, Brinker's upscale Italian restaurant brand, experienced a decline in traffic. However, according to Stifel analysts, this was largely due to Brinker removing unprofitable discounts and a virtual brand. The analysts noted that some of these challenges should be offset this fiscal year through increased advertising efforts.