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.
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
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.
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.
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.
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