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Brinker’s Revenue Rose, Margin Fell in 3Q15


Oct. 21 2015, Published 5:19 p.m. ET

Brinker’s price movement

Brinker International (EAT) has a market capitalization of $2.9 billion. Brinker’s YTD (year-to-date) price movement has fallen quarter-over-quarter in 2015. After its 1Q16 earnings report, Brinker fell by 7.6% to close at $47.67 per share as of October 20, 2015. Its price movements on a weekly, monthly, and YTD basis are -8.1%, -9.5%, and -17.5%, respectively.

Technically, Brinker has broken all major support and is trading below all of its moving averages. Currently, it’s trading at -8.4% below its 20-day moving average, -10.5% below its 50-day moving average, and -16.0% below its 200-day moving average.

The PowerShares DWA Consumer Cyclicals Momentum ETF (PEZ) invests 2.7% of its holdings in Brinker. The ETF tracks an index of US consumer cyclical companies selected and weighted by price momentum. The ETF’s YTD price movement is 6.3% as of October 19, 2015.

Brinker International’s competitors and their market capitalizations are:

  • Darden Restaurants (DRI) — $8.2 billion
  • Buffalo Wild Wings (BWLD) — $3.6 billion
  • Bloomin’ Brands (BLMN) — $2.4 billion
  • DineEquity (DIN) — $1.7 billion
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Performance of Brinker in 1Q16

The company reported net revenue of $762.6 million in 1Q16, a rise of 7.2% when compared to a net revenue of $711.0 million in 1Q15. The company opened four company-owned restaurants and seven franchise restaurants in 1Q16.

The company’s net income and EPS rose to $33.2 million and $0.54 per share in 1Q16, rises of 1.4% and 10.2%, respectively, compared to a net income and EPS of $32.7 million and $0.49 per share in 1Q15. Its net profit margin fell to 4.4% in 1Q16 as compared to a net profit margin of 4.6% in 1Q15.

On June 25, 2015, Brinker acquired Pepper Dining Holding, a franchisee of 103 Chili’s Grill & Bar restaurants. The purchase price was $106.5 million.

On August 20, 2015, the company announced a quarterly dividend of $0.32 per share on its common stock.

About Brinker

Brinker International is a casual dining restaurant company. The company operates 1,580 restaurants under Chili’s Grill & Bar and 49 restaurants under Maggiano’s Little Italy.


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