Brinker International preannounced quarterly results that missed expectations ahead of its investor day event. The Chili’s parent preannounced fiscal first-quarter results that show labor, supply chain and commodity challenges are taking a toll.
Brinker International Inc. stock sank 10% during premarket hours on Wednesday before pulling back to a 5.7% decline during trading hours after the Chili’s parent preannounced fiscal first-quarter results that show labor, supply chain and commodity challenges are taking a toll.
Revenue totaled $876.4 million, up from $740.1 million last year and just below the FactSet consensus for $876.8 million. KeyBanc Capital Markets says Brinker shares are “undervalued” compared with other casual dining chains, and the Chili’s chain probably gained share during the quarter. Analysts rate Brinker stock overweight with a $58 price target.
“It was not long ago when high-teens restaurant margins seemed like a realistic possibility in the next few years. But we believe it will be more important for Brinker to reset near-term expectations to a more achievable level—where investors can feel comfortable owning a high-quality casual dining stock at a discounted valuation relative to its historical self.”Stifel rates Brinker stock hold with a $55 price target.
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