Brinker International (EAT) Misses Q4 EPS by 2c, Offers FY16 Guidance

Brinker International (NYSE: EAT) reported Q4 EPS of $0.94, $0.02 worse than the analyst estimate of $0.96. Revenue for the quarter came in at $764.1 million versus the consensus estimate of $785.69 million.

Brinker International sees FY2016 EPS of $3.55-$3.65, versus the consensus of $3.62.

• Revenues are expected to increase approximately 12 to 14 percent including the 53rd week
• Comparable restaurant sales are expected to increase one and a half to two percent
• Company-owned new restaurant development is expected to add year-over-year capacity growth of about one percent before the addition of the recently acquired Chili's restaurants
• Restaurant operating margin is expected to be flat to down 25 basis points year-over-year. Excluding the impact of the recently acquired Chili's restaurants, restaurant operating margin is expected to increase 25 to 50 basis points year-over-year
• Depreciation expense is expected to increase $12 to $15 million, assuming capital expenditures of $110 to $120 million
• General and administrative expense is expected to be $10 to $12 million higher on a dollar basis due to information technology expenses related to sales driving initiatives, the impact of the 53rd week as well as planning incentive compensation at target
• Interest expense is expected to increase $4 million to $6 million due to a higher debt balance in fiscal 2016
• Excluding the impact of special items, the effective income tax rate is projected to be approximately 31 to 32 percent
• Free cash flow is expected to be $250 to $260 million
• Diluted weighted average shares outstanding is expected to be 60 to 62 million

For earnings history and earnings-related data on Brinker International (EAT) click here.

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