NYSE$EAT

Brinker Intl. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Reported positive top line growth and effective P&L management, resulting in double digit adjusted EPS growth.

Brinker International reported an increase in total revenues by 9.9% to $869.3 million and an increase in company sales by 11.3% to $847.5 million. The adjusted EPS increased by 13.5% to $1.01.

  • GAAP earnings per diluted share decreased 12.0% to $0.73.
  • Earnings per diluted share, excluding special items, increased 13.5% to $1.01.
  • Company sales increased 11.3% to $847.5 million.
  • Total revenues increased 9.9% to $869.3 million.

Headline financials

Total Revenue

$869M

Previous: $791M+9.9%
EPS (adj)

$1.01

Previous: $0.89+13.5%
Restaurant operating margin

$12.70

Previous: $12.40+2.4%
Effective income tax rate

3.8%

Previous: 8.6%-55.8%
Chili’s comp sales

2.0%

Previous: 2.9%-31.0%
Maggiano’s comp sales

-1.4%

Previous: 1.8%-177.8%
Chili’s Intl franchise comp sales

-0.9%

Previous: -6.5%+86.2%
Capital Expenditures

-$51.4M

Previous: -$78.7M+34.7%
Free Cash Flow

-$23.5M

Previous: -$46.7M+49.7%
Net Income

$27.9M

Previous: $32M-12.8%
Operating Income

$43.5M

Previous: $49.6M-12.3%
Gross Profit

$646M

Previous: $590M+9.6%
Cash & Equivalents

$12M

Previous: $16.2M-25.9%
Total Assets

$2.5B

Previous: $1.29B+93.4%
Stock-Based Comp

$2.6M

Previous: $3.6M-27.8%

Revenue & EPS history

Brinker Intl. · Revenue · Quarterly

$869M

Q2 2020+9.9%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Brinker Intl. · $848M total across 2 segments · Q2 2020

  • Chili's
    $728M+13.7%
  • Maggiano's
    $119M-1.5%

Forward guidance

Brinker now increases our financial outlook with the following guidance changes based on year-to-date performance and estimates for the remainder of fiscal 2020:

Tailwinds

  • Earnings per diluted share, excluding special items, is estimated to be in the range of $4.25 to $4.45
  • Revenues are expected to be up approximately 9.0% to 10.0% primarily due to the acquisition of the 116 Chili’s restaurants
  • Comparable restaurant sales at company-owned restaurants are expected to be up 1.75% to 2.50%
  • General and administrative expense is expected to remain flat
  • Effective income tax rate, excluding the impact of special items, is expected to be approximately 10.5% to 11.5%

Headwinds

  • Restaurant operating margin is expected to be flat to fiscal 2019
  • Capital expenditures are expected to be $140.0 million to $150.0 million
  • We are unable to reliably forecast special items such as restaurant impairments, restaurant closures, reorganization charges and legal settlements without unreasonable effort.
  • As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures.
  • If special items are reported during fiscal 2020, reconciliations to the appropriate GAAP measures will be provided.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.1%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+4.3%

Avg return

30 days after

37%

25 / 67 earnings

Positive

+21.6%

Q3 2020

Best reaction

-14.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.9%+8.5%+9.5%
Q2 2026-0.5%+3.1%-5.8%
Q1 2026-7.3%-15.5%+23.8%
Q3 2025-14.8%-17.2%+4.9%
Q2 2025+16.3%+22.3%+6.6%
Q1 2025+5.9%+11.3%+36.3%
Q4 2024-4.7%-3.3%-0.0%
Q3 2024+10.7%+10.7%+40.6%
Q2 2024+13.1%+8.5%+13.6%
Q1 2024-0.2%+3.2%+10.7%
Q4 2023-8.6%-7.5%-13.6%
Q3 2023-3.2%-8.2%-0.9%
Q2 2023+2.6%+2.3%-2.0%
Q1 2023-9.3%-10.9%-1.0%
Q4 2022-5.7%-14.3%-15.9%
Q3 2022-12.3%-20.6%-24.2%
Q2 2022+7.2%+12.2%+6.0%
Q1 2022+2.3%+4.7%-15.7%
Q4 2021-0.5%+2.9%-1.6%
Q3 2021+8.5%-0.7%-6.4%
Q2 2021-4.3%-2.5%+9.6%
Q1 2021+3.0%+2.6%+21.3%
Q4 2020+21.6%+23.3%+44.5%
Q3 2020+21.6%+4.4%+37.7%
Q2 2020-0.2%-6.5%-21.6%
Q1 2020-1.4%+2.2%-0.7%
Q4 2019-6.9%-3.5%+5.9%
Q3 2019-4.2%-0.5%-11.7%
Q2 2019-11.3%-12.8%-3.5%
Q1 2019-0.6%+4.0%+22.6%
Q4 2018-1.6%+0.3%+6.4%
Q3 2018+6.5%+1.5%+0.3%
Q2 2018-3.2%-3.8%-8.0%
Q1 2018+4.1%+8.7%+17.3%
Q4 2017+3.1%+3.1%-10.9%
Q3 2017-0.5%-2.8%-11.7%
Q2 2017-7.1%-4.7%-9.8%
Q1 2017-8.4%-7.8%+5.9%
Q4 2016+15.2%+16.0%+8.3%
Q3 2016-6.1%
Q2 2016+1.0%
Q1 2016-7.3%
Q4 2015-5.2%
Q3 2015-3.5%
Q2 2015-2.7%
Q1 2015-5.9%
Q4 2014+2.5%
Q3 2014-4.2%
Q2 2014+7.6%
Q1 2014-0.2%
Q4 2013+8.9%
Q3 2013-3.0%
Q2 2013-2.2%
Q1 2013-10.0%
Q4 2012+2.8%
Q3 2012-1.0%
Q2 2012+0.7%
Q1 2012-3.8%
Q2 2010+1.9%
Q4 2009+1.9%
Q4 2011+1.9%
Q3 2011-0.4%
Q3 2010-0.4%
Q2 2011-1.2%
Q4 2010-1.7%
Q1 2011-1.7%
Q1 2010-1.7%

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