Brinker International (EAT) reported its earnings before the market opened on January 28. Shares started trading at $61.40.
While dividends are one way of returning cash to shareholders, share repurchasing is another. Both boost shareholder value.
Brinker International missed analysts’ forecast. This could explain why the stock experienced a sell-off after the earnings report was released.
Brinker International saw its cost of sales benefit 0.5% from a menu price increase, 0.3% from improvement in mix, and from waste-control measures.
Almost 96% of Brinker International’s revenues come from company-owned restaurant locations. Overall, the company owns 53% of its total unit count.
Unit growth is another way for restaurant chains to stimulate revenue growth. Chili’s alone added three company-owned units in the US in the third quarter.
“Ziosk” is a table-top device that customers can use to order food, redeem coupons, entertain themselves, and pay their checks after their meal.
With its five pillars of strategic innovations, one of Brinker International’s objectives is to change the way customers perceive their food.
During 2Q15, Brinker International’s same-store sales grew 3.7%, which, according to the company, included a 1.1% bonus due to the extra day in the quarter.
In this series, we’ll take a look at the earnings and strategic changes or tactics that Brinker International management raised during its earnings call.
Due to the increasingly competitive environment, Coach has seen revenues slump in recent years.
In Europe, despite positive same-store sales growth and double-digit sales growth, Coach’s sales declined in US dollar terms.
Coach reported double-digit growth in revenues for Europe in 2Q15, due in part to growth in same-store sales and a wider distribution footprint.
Coach’s revenues in China grew 13% in 2Q15 on a constant currency basis.
Despite the company’s best efforts at cost control, restoring revenue growth will be key to regaining best-in-class profitability.
In line with its transformation plan, Coach adopted several changes to its pricing strategies in the quarter.
Right sizing and repositioning its retail real estate have been key elements of Coach’s transformational plan.
Coach reported revenues of $1.2 billion in 2Q15, compared to $1.4 billion in the corresponding period last year.
Food inflation can squeeze a restaurant’s operating margins, but a restaurant can adjust the menu pricing and pass the cost on to customers.
According to the National Restaurant Association, restaurant operators are becoming more optimistic about business conditions.