Why Chili's & Maggiano's Restaurant Chain Owner Brinker Shares Are Gaining Today
Portfolio Pulse from Nabaparna Bhattacharya
Brinker International, Inc. (NYSE:EAT) shares rose after the company reported Q2 revenues of $1.074 billion, slightly below consensus, but an adjusted EPS of $0.99, beating estimates. The growth was attributed to effective marketing, pricing strategies, and improved guest traffic. Comparable restaurant sales increased 5.2%, with Chili’s at 5.0% and Maggiano’s at 6.7%. Operating income margin was up to 5.8%, and adjusted restaurant operating margin to 13.1%. Brinker also raised its FY24 adjusted EPS outlook to $3.45 – $3.70 and revised revenue guidance to $4.30 billion-$4.35 billion. EAT shares jumped 8.88% to $44.31.
January 31, 2024 | 5:15 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Brinker International reported a strong Q2 with an EPS beat and raised FY24 guidance, leading to an 8.88% increase in its stock price.
Brinker's stock price is likely to continue its upward trajectory in the short term due to the positive earnings report and raised guidance for FY24, which surpasses analyst expectations. The reported increase in comparable restaurant sales and improved operating margins are indicative of strong operational performance, which typically instills investor confidence and can lead to further stock price appreciation.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100