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Chili's parent Brinker International shares slump premarket after earnings fall short of estimate and company offers soft guidance

Brinker International Inc. shares slid 8% in premarket trade Wednesday, after the operator of Brinker, Chili's and Maggiano's restaurants, missed consensus estimates for profit and sales in its fiscal fourth quarter and offered soft guidance. The company posted net income of $40.2 million, or 90 cents a share, for the quarter to Jun 29, down from $75.0 million, or $1.58 a share, in the year-earlier period. Adjusted per-share earnings came to $1.15, just below the $1.16 FactSet consensus. Revenue edged down to $987.4 million from $990.9 million a year ago, also missing the $1.014 billion FactSet consensus. "We're making quick interventions to better offset the tough inflationary headwinds and build sales momentum in the near term, as we work to meaningfully improve our four-wall economics and better position our business for long term sustainable and profitable growth," Chief Executive Kevin Hochman said in a statement. Brinker is now expecting fiscal 2023 revenue of $3.9 billion to $4.0 billion and adjusted EPS of $2.45 to $2.85. The FactSet consensus is for revenue of $4.0 billion and EPS of $3.65. Shares are down 17% in the year to date, while the S&P 500 has fallen 13%.

-Ciara Linnane

 

(END) Dow Jones Newswires

08-24-22 0704ET

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