Chili's Grill & Bar Parent Brinker's Q1 Comps Improve, Thanks To Higher Menu Pricing & Favorable Item Mix

Brinker International Inc EAT reported Q1 FY24 revenues of $1.012 billion, marginally beating the consensus of $1.010 billion. 

Comparable sales increased by 5.8% Y/Y on higher menu pricing and favorable item mix, with an increase in comparable restaurant sales of 6.1% for Chili's and 2.6% for Maggiano's.

Operating margin stood at 2.4% vs. loss margin of (2.1)%. Adjusted EBITDA jumped to $72.4 million from $27.1 million a year ago.

Restaurant operating margin for the quarter was 10.4% versus 6.0% last year.

Adjusted EPS of $0.28 beats the $0.06 estimate.

EAT exited the quarter with cash and cash equivalents worth $14.4 million.

FY24 Outlook: EAT reaffirmed the outlook for sales at $4.27 billion-$4.35 billion vs. the $4.31 billion estimate. 

The company raised adjusted EPS to $3.35-$3.65 from $3.15-$3.55 versus the $3.32 estimate.

Capital expenditures is still expected to be in the range of $175 million - $195 million.

Price Action: EAT shares are trading higher by 0.71% at $34.16 on the last check Wednesday.