Brinker International Inc
Latest Brinker International Inc News and Updates
Darden analysis: Assessing the success of a Darden brand spinoff
Darden Restaurants Inc. (DRI) has jumped since the Wall Street Journal mentioned that Barington Capital Group took a 2.8% stake, calling on Darden to split in two.
Do Restaurant Operators Expect to Increase Capex in 2H15?
The expected capital expenditure index increased by 1% to 101.7 in April from 100.7 in March.
Texas Roadhouse’s 1Q16 EPS Was below Analyst’s Expectations?
In 1Q16, Texas Roadhouse posted EPS of $0.5. This was lower than analysts’ estimate of $0.54. The adjusted EPS was above analysts’ estimate at $0.55.
Syria strike would raise gas prices and reduce restaurants’ sales
Why higher gasoline prices can reduce people’s leftover spending at restaurants, which will negatively affect restaurant sales.
Darden analysis: Key benefits of a restaurant owning properties
Owning properties reduces real estate costs A restaurant business that owns its own building is a bit different from a restaurant business that rents its buildings or lands. From a business standpoint, you can think of a restaurant that owns its buildings as the sum of two businesses: restaurant and real estate. Because the real […]
Bloomin’ Brands loses to its peers in year-to-date returns
As of September 20, 2014, year-to-date (or YTD) returns for Bloomin’ Brands (BLMN) was -30.7%.
Bloomin’ Brands’ year-to-date return as of 3Q14
As of November 2014, Bloomin’ Brands’ (BLMN) year-to-date (or YTD) return was -7.6%. BLMN operates casual dining restaurants. It competes with companies like EAT and TXRH.
An In-Depth Overview of Panera Bread
Panera Bread is a limited-service fast-casual restaurant company. In July 2017, JAB acquired Panera in a $7.5 billion deal and took it private.
2Q15 Earnings Preview: Starbucks Up 18% since Last Quarter
On April 20, investment firm Sanford Bernstein reiterated its “outperform” rating for Starbucks (SBUX) with a price target of $56.
Restaurant Operators’ Capital Expenditure Outlook Increased
As of December 2014, the six-month outlook for capital expenditure plans was 102.4. It has been above 100 levels for the past 12 months.
Casual Dining Restaurants: Their 6-Month Stock Performance
It was a tough 4Q15 for casual dining restaurants, as the minimum wage for workers went up. In this series, we’ll look at what caused these stocks to underperform in 4Q15 and most of 1Q16.
Declining Fuel Prices Will Continue To Help Restaurant Stocks
There is no way to know how long we could be seeing these lower fuel prices, but restaurants should certainly benefit from the decline.
An Investor’s Guide to Chipotle and Its Customers
Chipotle Mexican Grill (CMG) operates more than 1,700 fast-casual restaurants. Here’s everything you need to know about the business.
Key restaurant industry formats: The casual dining business
Contrary to fast food restaurants, casual dining restaurants have a relaxed and casual ambiance with a lot of seating. They offer full table service and may also have a wine menu or full bar service.
Restaurant Industry Outlook On Capital Expenditures
Restaurants make capital expenditures for various reasons. They do it to open new stores, purchase new equipment, and remodel existing stores.
Must-know: Darden’s promo strategies for its 2 big restaurants
Darden Restaurants (DRI) will run its Never Ending Pasta Bowl for $9.99 campaign as part of its Brand Renaissance program during the fall to boost sales at Olive Garden. Olive Garden launched the unlimited pasta campaign in September, selling 1,000 passes for $100. The pass enables a pass holder to enjoy unlimited pasta, breadsticks, and soda for 49 days, according to Fox News.
What are casual-dining restaurants?
Casual-dining restaurants Casual-dining restaurants have a relaxed, casual ambiance with a lot of seating. They offer full table service and may also have a wine menu or full bar service. The menu is higher-priced than fast-food restaurants. Olive Garden, under the umbrella of Darden Restaurants (DRI), for example, has a price range of $10 to $20 for […]
71% Of Restaurant Operators Reported Positive Same-Store Sales
The NRA’s Current Situation Index for same-store sales stood at 105.2 in December 2014—compared to 103.5 in November.
Restaurants innovate menus to stay relevant
Restaurants often innovate their menus to remain relevant to their customers. This also helps restaurants keep up with shifting trends in the industry.
How Might 1Q16 Results Affect Chipotle’s PE Multiple?
In this article, we’ll use the PE (price-to-earnings) ratio due to its high visibility in Chipotle’s (CMG) earnings.
Brinker International Launches Self-Serve ‘Ziosk’
“Ziosk” is a table-top device that customers can use to order food, redeem coupons, entertain themselves, and pay their checks after their meal.
Why the Restaurant Performance Index is important
The Current Situations Index is based on indicators’ past trends—same-store sales, traffic, capital expenditure, and labor. It has been at levels above 100 since March 2014.
Current Same-Store Sales Rise For Restaurants
According to the NRA (National Restaurant Association), 72% of operators reported a gain in same-store sales over this period, and 11% reported a decline.
Lower Fuel Costs Boost Restaurant Industry
The connection may not seem direct but many restaurants are affected by higher fuel costs because they have to pay to transport ingredients.
Lower Fuel Costs Help Restaurants – Good For Supply And Demand
Fuel costs declined significantly over the past eight months. They declined from $3.67 per gallon in June 2014 to $2.20 per gallon as of February 2015.
Technology Drives Guest Satisfaction, Restaurant Stocks
A Cornell study found that a 1% increase in customer satisfaction can boost restaurant sales by $1.3 million. Technology plays a big role in this trend.
Darden analysis: Why spinoffs outperform the market by 10%
Why is Barington Capital Group proposing a spinoff? Barington Capital Group is encouraging Darden Restaurant Inc. (DRI) to split its brand because the firm believes that the restaurant conglomerate simply has too many layers and brands to manage that it’s likely hindering Darden’s competitive responsiveness rather than facilitating it. A spin-off, the investment firm says, […]
Darden analysis: Business overview shows limited differentiation
Restaurant industry breakdown The first thing investors should do before making an investment is understand the company’s industry, business, and strategy. We can broadly break the restaurant industry down into the limited-service and full-service sectors. Full-service restaurants are establishments where customers receive their meals at their table, receive table waiting services, and generally pay at […]
Why did Darden CEO Clarence Otis step down?
Darden announced at the end of July that chairman and CEO Clarence Otis will step down by the end of the year or when a replacement is found. Starboard CEO Jeffrey Smith said in a statement that Otis’ retirement was long overdue and that “It’s surprising to us that it took this long.”
Why Starboard Value launches proxy fight at Darden
Starboard said it believed that the market price of Darden significantly understated the value of the company’s businesses and real estate assets. It added that its operating margins were well below its peers.
The Restaurant Industry: An Overview
More Americans are eating out, and they’re eating out more often. The restaurant industry’s share of the food dollar is 51%, up from 25% in 1955.
Darden’s Q3 2019 EPS Beat Analysts’ Estimates
In the third quarter of fiscal 2019, Darden Restaurants (DRI) posted adjusted EPS of $1.80, outperforming analysts’ EPS expectation of $1.75.
Darden Stock Rises Nearly 7% on Impressive Q3 2019 Results
Darden Restaurants (DRI) posted its results for the third quarter of fiscal 2019 on March 21.
Darden Stock Rose after Its Q3 Earnings
At 9:45 AM EST on March 21, Darden was trading at $114.56, which represents a rise of 5.5% from the previous day’s closing price.
How Is Darden Restaurants Expanding Its Business?
At the end of the second quarter of fiscal 2019, Darden Restaurants (DRI) operated 1,762 restaurants.
Darden Stock Rises after Management Raises Its EPS Guidance
Darden Restaurants (DRI) posted its earnings for the second quarter of fiscal 2019 on December 18.
Trinity Industries to Unlock Value in Arcosa, Board Okays Separation
Trinity Industries (TRN) is a major rail transportation solution provider in the United States. On September 25, the company announced that its board has approved the separation of its infrastructure-related businesses.
Why Did SunTrust Robinson Humphrey Upgrade Darden?
On June 7, SunTrust Robinson Humphrey upgraded Darden Restaurants (DRI) from “hold” to “buy” and raised its price target from $104 to $110.
Here’s What Drove Darden Restaurants’ Earnings in Fiscal 1Q18
In fiscal 1Q18, Darden Restaurants (DRI) posted EPS (earnings per share) of $0.95. However, removing one-time expenses, its adjusted EPS was $0.99.
Darden’s Valuation Multiple Compared to Its Peers
Investors expect the devastation caused by Hurricane Harvey and Hurricane Irma in Texas and Florida to lower Darden’s sales in fiscal 1Q18.
How Darden’s Valuation Multiple Compares with Peers
On June 21, 2017, Darden was trading at a PE multiple of 20x, as compared to 17.8x before the announcement of its fiscal 3Q17 earnings.
How Chipotle’s Valuation Multiple Compares with Peers’
Valuation multiple Investors should look at valuation multiples when deciding whether to buy or sell a stock. Valuation multiples are driven by perceived growth, risk and uncertainties, and investors’ willingness to pay for a stock. Analysts use various multiples to evaluate a stock. In this article, we’ll use the PE (price-to-earnings) ratio due to its […]
What Analysts Recommend for DRI ahead of Its Fiscal 1Q17 Earnings
As of September 27, 2016, Darden Restaurants was trading at $61.5. This price may already have priced in the estimates we’ve discussed in this series.
Darden’s Dividend Policy: What’s Expected in Fiscal 1Q17?
Analysts expect Darden to pay dividends of $0.55 in fiscal 1Q17 at a payout ratio of 67.1%. For fiscal 2017, Darden is expected to pay dividends of $2.2.
What Do Analysts Expect of Darden’s Earnings in Fiscal 1Q17?
Darden has beaten analysts’ earnings per share estimates in the last four quarters. Usually, when earnings beat analysts’ estimates, a share’s price rises.
Why Analysts Expect DRI to Post Positive Same-Store Sales Growth
Analysts are expecting Darden Restaurants (DRI) to post systemwide same-store sales growth of 1.6% in fiscal 1Q17 compared to 3.4% in fiscal 1Q16.
How Chipotle’s Valuation Multiples Compare to Its Peers
For the next four quarters, analysts expect Chipotle to post EPS of $7.9—YoY growth of 11.9%. The current share price might have factored in the EPS growth.
Texas Roadhouse Stock Slid 12% on Slowing Same-Store Sales Growth
Texas Roadhouse (TXRH) reported its 2Q16 results on August 1 after the Market closed. TXRH posted revenue of $508.8 million and adjusted earnings per share of $0.47.
What Analysts Are Expecting from Chipotle’s 2Q16 Earnings
In last four quarters, Chipotle has beaten analysts’ estimates three times. Usually, when the company beats analysts’ estimates, the share price rises.
Why Did Darden Restaurants’ Earnings Margin Rise in Fiscal 4Q16?
In fiscal 4Q16, Darden Restaurants (DRI) reported an EBIT (earnings before interest and tax) margin of 10.3% compared with 10.1% in fiscal 4Q15.
What Drove Darden’s Same-Store Sales Growth in Fiscal 4Q16?
On a comparable calendar basis, in fiscal 4Q16, Darden Restaurants (DRI) reported overall same-store sales growth of 2.6% against analysts’ estimate of 2.8%.
Will Chipotle’s EBIT Margins Expand in 2Q16?
Despite owning all of its restaurants, Chipotle Mexican Grill (CMG) enjoyed higher margins than its peers until 3Q15 due to its superior business model.
Chipotle: Will Rebuilding Efforts Help Same-Store Sales in Q2?
Chipotle Mexican Grill (CMG) undertook many marketing and promotional campaigns along with its enhanced food safety measures.
What Do Analysts Expect from Chipotle’s Revenue in 2Q16?
Revenue sources By the end of 1Q16, Chipotle Mexican Grill (CMG) owned and operated all of its 2,066 restaurants. In 2Q16, analysts are expecting the company to register revenue of $1.05 billion, a decline of 12.1% from $1.2 billion in 1Q15. Factors affecting Chipotle’s revenue Although Chipotle’s management had undertaken several measures to counter the […]
Darden Restaurants Updates Guidance after Fiscal 4Q16 Earnings
After fiscal 4Q16 results, Darden Restaurants’ (DRI) management has revised its same-store sales growth guidance for fiscal 2017 to the range of 1%–2% as compared to earlier estimates of 1%–3%.
Analysts Expect No Rise in Darden’s Fiscal 4Q16 Dividends
Darden Restaurants (DRI) paid dividends of $0.55 per share in first two quarters of its fiscal 2016, and in fiscal 3Q16 it paid a dividend of $0.53.
What Do Analysts Expect of Darden’s Earnings in Fiscal 4Q16?
Having discussed Darden’s estimated revenue, sources of revenue, and estimated EBIT margins, let’s now discuss analysts’ and management’s guidance.
Casual Dining Restaurant with the Highest 1Q16 Earnings Margin
In 1Q16, only one of the five casual dining restaurant companies in our series posted a rise in EBIT margins compared to 1Q15.
Texas Roadhouse: Same-Store Growth Beats Other Casual Restaurants
Casual dining restaurants didn’t have a good 1Q16. The five companies in our series posted a median same-store sales growth of -1.5% compared to 4.2% in 1Q15.
What Do Analysts Recommend for Texas Roadhouse?
The rise in EPS estimates for the next four quarters has prompted analysts to increase their price target for TXRH for the next 12 months to $45.1 from their earlier estimate of $44.8.
Comparing The Cheesecake Factory’s Performance with Its Peers’
If you had invested $100 in The Cheesecake Factory on May 27, 2011, it would have become $157.8 by May 29, 2016.
What Is The Cheesecake Factory’s Marketing Strategy?
The Cheesecake Factory (CAKE) is competing in a highly competitive restaurant business, where innovation is absolutely necessary to keep up.
How Is The Cheesecake Factory Expanding Its Business?
By the end of 2015, CAKE was operating 188 The Cheesecake Factory restaurants, 12 Grand Lux Cafes, and one RockSugar Pan Asian Kitchen restaurant.
CAKE’s Average Check Has Increased Year-over-Year
In 1992, when CAKE was listed, its average check size was at $13.6. By the end of 2015, the company’s average check size had increased to $20.8.
What’s Been the Main Driver of CAKE’s Same-Store Sales Growth?
In the last five years, The Cheesecake Factory’s (CAKE) same-store sales growth was in the range of 1%–3%, largely driven by rises in its menu prices.
What’s Driving The Cheesecake Factory’s Revenue Growth?
The Cheesecake Factory earns its revenue from its company-owned restaurant sales, franchisee fees and royalties, and its bakery operations.
How Did The Cheesecake Factory Expand after Going Public?
In February 1992, The Cheesecake Factory (CAKE) went public by offering 2.3 million shares at $20 per share. It closed its opening day at $27.3 per share.
A Must-Know Guide to The Cheesecake Factory
The Cheesecake Factory (CAKE) is a casual restaurant chain that was founded in 1978. The California-based company owns and operates 201 restaurants.
How Did The Cheesecake Factory Come to Exist?
The origin of The Cheesecake Factory dates back to the 1940s, when Evelyn Overton found a recipe in a local newspaper that inspired her original cheesecake.
Analysts Lowered Their Estimates after Chipotle’s 1Q16 Results
Chipotle’s same-store sales growth in 1Q16 was -29.7%. This compelled analysts to lower their estimates for the next four quarters.
How Is Panera Bread Expanding Its Business?
From the beginning of 2Q15 to the end of 1Q16, Panera Bread (PNRA) increased its unit count by 96, of which 25 units were added in 1Q16.
What’s Really Driving Buffalo Wild Wings’ Revenues?
From 2011 to 2015, Buffalo Wild Wings’ (BWLD) revenues increased from $784 million to $1.8 billion—a rise of over 131%.
Sales Deleverage Caused Chipotle’s 1Q16 EBIT Margins to Fall
Chipotle Mexican Grill (CMG) posted EBIT of -$46.6 million. It represented EBIT margins of -5.6%—compared to 18.5% in 1Q15.
Inside Buffalo Wild Wings’ Marketing Strategies
Buffalo Wild Wings is competing in the highly competitive restaurant business, wherein innovation is a must to keep up with the changing needs of customers.
Will Panera Bread’s PE Ratio Continue to Rise?
Since the beginning of 2016, Panera Bread’s PE ratio has been trading at 29.4x–32.9x. As of April 17, 2016, it was trading at 30.9x.
Will the E. Coli Outbreak Affect Chipotle’s 1Q16 Revenue?
Since the outbreak of E. coli in October 2015, Chipotle’s same-store sales growth has been declining. Customers were skeptical about the quality of food being served.
What You Should Know about Buffalo Wild Wings
Buffalo Wild Wings is a casual dining restaurant and sports bar headquartered in Minneapolis. Founded in 1982, the company is also known as BW3.
How Will Jack in the Box’s Qdoba Perform in 1Q16?
The Qdoba Mexican Eats management has set 1Q16 guidance for company-operated restaurants at 0% to 2% while the analysts expect it to be around 1.3%.
Which Factors Affect the Valuation Multiple of Brinker International?
Since 4Q15, the PE multiple of Brinker International has been declining.
Pepper Dining Acquisition Improved Brinker International’s Revenue
The 2Q16 revenues of Brinker International (EAT) were at $789 million, an increase of over 6.2% from 2Q15’s revenue.
Why Unemployment Rate Matters to Restaurants
While the latest unemployment rate indicates that the US economy is healthy, it’s important to remember that the labor force participation fell over time.
What Will Happen to Restaurant Stocks when the Fed Hikes Rates?
When the Fed increases the target rate, it makes lending and borrowing between banks more expensive. This increase in rates is passed on to consumers.
Restaurant Operators Increase Capital Expenditure in May
The past three-month capital expenditure trend remained elevated with the current capital expenditure index rising to 102 in May 2015.
How Consumer Confidence Affects Restaurant Sales
Rising consumer confidence among Millennials is a positive sign for restaurants including Brinker International (EAT), Noodles & Co (NDLS), and Potbelly (PBPB).
Brinker International’s Stock Performance Triples over Five Years
Brinker International’s (EAT) stock performance has grown almost three times to $60 levels from $19 five years ago, returning ~200% on investment.
Is Brinker International Undervalued Compared to Its Peers?
Brinker International’s (EAT) PE was 18.5x, which is below the peer average of 21.6x. Thus, Brinker is undervalued compared to most of its peers.
What are Brinker’s Sources of Capital to Grow Restaurants?
To add company-operated restaurants, Brinker International (EAT) needs sources of capital. As of 2014, Brinker had $57.7 million in cash and equivalents.
Brinker International’s Key Costs of Operations
Brinker incurs key costs of operations to run its company-owned restaurants, including cost of sales, labor and related costs, and rent and other costs.
Why Brinker International Is Embracing Technology
Brinker International (EAT) is embracing technology with its Ziosk tablet at Chili’s for customer ordering.
Why Unit Growth is Critical for Brinker International
Brinker International’s 2014 unit growth included opening ten Chill’s in the United States. Two were opened by franchise.
Average Checks at Chili’s and Maggiano’s – Why Do They Matter?
The average check at Chili’s in 2014 was $14.31, lower than its main peers. Maggiano’s average check was $26.72, the highest among its peers.
Unemployment Rate and Participation Rate Affect Restaurant Stocks
In February, the unemployment rate went down to 5.5%. It declined from 5.7% in January. There’s always going to be some unemployment in the economy.
How Do Brinker’s Same-Store Sales Compare to Its Peers?
Not many of Brinker’s peers had robust same-store sales growth in 2014, especially compared to the 17% growth of fast casual concepts such as Chipotle.
Why Darden Restaurants Sold Red Lobster
Activist investor Starboard Value opposed Red Lobster’s sale, stating that Darden management could do more to turn the undervalued brand around.
Why Chili’s Matters the Most to Brinker International
Chili’s is the most important restaurant under the Brinker (EAT) umbrella. Chili’s contributed 86%, or $2,443 million, to the company’s sales in 2014.
Profile: Bloomin’ Brand’s Fleming’s Prime Steakhouse & Wine Bar
Fleming’s Prime Steakhouse & Wine Bar is a full-service “upscale” casual dining restaurant, according to the company.
Bloomin’ Brands’ Second-Biggest Brand: Carrabba’s Italian Grill
Like Outback Steakhouse, Carrabba’s Italian Grill is also a full-service casual restaurant, but it primarily serves Italian cuisine.
Why Outback Steakhouse is Bloomin’ Brands’ Most Important Concept
Outback Steakhouse is a full-service casual restaurant primarily serving steaks. The ambiance is set up to match “Australian décor.”
Investin’ in Bloomin’ Brands: A Key Business Overview
In this series, you’ll learn about Bloomin’ Brands’ financial performance, revenue, competition, latest earnings, and stock performance over the years.
Olive Garden: Darden’s Most Important Brand
In 2014, Olive Garden contributed about 58% to Darden’s revenues as of fiscal 2014. Olive Garden gained importance after Darden sold Red Lobster in 2014.