Earnings Preview: Brinker International

Jan.24.11 | About: Brinker International, (EAT)

Brinker International (NYSE:EAT) is expected to report Q2 earnings before the market open on Tuesday, January 25 with a conference call scheduled for 10 am ET.


Analysts are looking for a profit of 32c on revenue of $670.57M. The consensus range is 27c-35c for EPS, and revenue of $644.9M-$686M, according to First Call. In October, Brinker reported Q1 EPS of 21c on revenue of $654.9M, and said Q1 same company-owned restaurant sales declined 4.2%. CEO Doug Brooks said the company would aggressively pursue several key strategies to build sales and improve margins. In November, USA Today reported that business is up at restaurants from fast food to dining, with consumers "returning to their old habits." During the quarter, Brinker authorized an additional $325M share repurchase program and was initiated with a Buy rating and $26 target at Buckingham. In August, Brinker guided FY11 EPS $1.30-$1.42 vs. consensus $1.39 on revenue down 2%-4% vs. consensus $2.75B. The company also forecast FY comparable restaurant sales flat to down 2% with expectations that 1H would be more challenging.