Brinker International (EAT) Misses Q4 EPS by 2c, Offers FY16 Guidance
Brinker International (NYSE: EAT) reported Q4 EPS of $0.94, $0.02 worse than the analyst estimate of $0.96. Revenue for the quarter came in at $764.1 million versus the consensus estimate of $785.69 million.
Table 1: Q4 and FY comparable restaurant sales | ||||||||||||
Company-owned, reported brands and franchise; percentage | ||||||||||||
Q4 15 | Q4 14 | FY 15 | FY 14 | |||||||||
Brinker International | (0.7) | 2.3 | 1.7 | 0.6 | ||||||||
Chili's Company-Owned | ||||||||||||
Comparable Restaurant Sales | (0.8) | 2.5 | 1.9 | 0.6 | ||||||||
Pricing Impact | 1.5 | 1.2 | 1.4 | 1.2 | ||||||||
Mix-Shift | (1.8) | 1.9 | 0.3 | 1.2 | ||||||||
Traffic | (0.5) | (0.6) | 0.2 | (1.8) | ||||||||
Maggiano's | ||||||||||||
Comparable Restaurant Sales | (0.1) | 0.9 | 0.8 | 0.6 | ||||||||
Pricing Impact | 2.8 | 2.2 | 2.3 | 1.5 | ||||||||
Mix-Shift | (1.0) | (2.5) | (1.4) | (0.7) | ||||||||
Traffic | (1.9) | 1.2 | (0.1) | (0.2) | ||||||||
Chili's Franchise1 | 1.9 | 1.2 | 2.2 | 0.2 | ||||||||
U.S. Comparable Restaurant Sales | 2.1 | 1.4 | 2.9 | (0.3) | ||||||||
International Comparable Restaurant Sales | 1.2 | 0.8 | 0.4 | 1.6 | ||||||||
Chili's Domestic2 | 0.1 | 2.1 | 2.2 | 0.3 | ||||||||
System-wide3 | 0.2 | 1.9 | 1.9 | 0.5 | ||||||||
Brinker International sees FY2016 EPS of $3.55-$3.65, versus the consensus of $3.62.
- Revenues are expected to increase approximately 12 to 14 percent including the 53rd week
- Comparable restaurant sales are expected to increase one and a half to two percent
- Company-owned new restaurant development is expected to add year-over-year capacity growth of about one percent before the addition of the recently acquired Chili's restaurants
- Restaurant operating margin is expected to be flat to down 25 basis points year-over-year. Excluding the impact of the recently acquired Chili's restaurants, restaurant operating margin is expected to increase 25 to 50 basis points year-over-year
- Depreciation expense is expected to increase $12 to $15 million, assuming capital expenditures of $110 to $120 million
- General and administrative expense is expected to be $10 to $12 million higher on a dollar basis due to information technology expenses related to sales driving initiatives, the impact of the 53rd week as well as planning incentive compensation at target
- Interest expense is expected to increase $4 million to $6 million due to a higher debt balance in fiscal 2016
- Excluding the impact of special items, the effective income tax rate is projected to be approximately 31 to 32 percent
- Free cash flow is expected to be $250 to $260 million
- Diluted weighted average shares outstanding is expected to be 60 to 62 million
For earnings history and earnings-related data on Brinker International (EAT) click here.