Brinker Shares Plummet On Q3 Earnings Miss, FY22 EPS Outlook Cut

Brinker International Inc EAT reported third-quarter FY22 sales growth of 18% year-on-year, to $980.4 million, missing the consensus of $982.25 million. Company sales rose 18% to $960.6 million.
Comparable restaurant sales rose 13.5% for Brinker, 10.3% for Chili's and 50.5% for Maggiano's.
Operating margin compressed 130 basis points to 5%, and operating income for the quarter fell 5.4% to $49.4 million.
Restaurant operating margin for the quarter was 12.2% versus 13.9% last year.
The company held $12.9 million in cash and equivalents as of March 30, 2022.
Net cash provided by operating activities for the nine months totaled $211.6 million with a free cash flow of $102.6 million.
Adjusted EBITDA of $97.7 million rose 4% Y/Y.
Adjusted EPS of $0.92 missed the analyst consensus of $1.03.
Outlook: Brinker expects FY22 revenue to stay in its previous guidance of $3.75 billion - $3.85 billion.
It sees FY22 Adjusted EPS of $3.05 - $3.30 (prior view $3.50 - $3.80), against the consensus of $3.47.
Price Action: EAT traded lower by 17% at $32.75 on the last check Wednesday.

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