Brinker Q3 Earnings Exceed Estimates On Favorable Mix And Menu Pricing

Brinker International Inc EAT reported Q3 FY23 sales of $1.08 billion, up from $980 million a year ago, which exceeded the consensus of $1.07 billion.
Comparable restaurant sales rose 10.8% for Brinker, 9.6% for Chili's, and 21.6% for Maggiano's, led by improved menu pricing and a favorable item mix.
Operating margin expanded to 5.9% from 5.0% a year ago, and operating income for the quarter rose to $64.2 million from $49.4 million a year ago.
Restaurant operating margin for the quarter was 13.4% versus 13.1% last year.
Adjusted EBITDA of $113.0 million was higher than $97.7 million a year ago.
The company held $13.8 million in cash and cash equivalents as of March 29, 2023.
Net cash provided by operating activities totaled $200.8 million at the end of the third quarter.
Adjusted EPS of $1.23 exceeded the analyst consensus of $1.19.
"We are pleased to report quarterly operating performance for Brinker International that represents a nice step forward for our strategy, enabling us to make needed investments into the business, translating into an improved guest experience," said Kevin Hochman, CEO and President.
Price Action: EAT shares are trading lower by 3.87% at $38.71 on the last check Wednesday.