Casual restaurant chain Brinker International (NYSE:EAT) will be reporting results tomorrow before market open. Here’s what to look for.
Brinker International beat analysts’ revenue expectations by 9.6% last quarter, reporting revenues of $1.36 billion, up 26.5% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Brinker International a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Brinker International’s revenue to grow 23.9% year on year to $1.39 billion, improving from the 3.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.57 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Brinker International has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Brinker International’s peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Darden delivered year-on-year revenue growth of 6.2%, missing analysts’ expectations by 1.7%, and Kura Sushi reported revenues up 13.3%, in line with consensus estimates. Darden traded up 6.2% following the results while Kura Sushi was also up 31.8%.
Read our full analysis of Darden’s results here and Kura Sushi’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the restaurants stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.1% on average over the last month. Brinker International is up 7.3% during the same time and is heading into earnings with an average analyst price target of $172.65 (compared to the current share price of $160).
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