Q3 2024 Brinker International Inc Earnings Call Transcript
Key Points
- Brinker International Inc (EAT) reported strong quarterly results with consolidated comp sales of positive 3.3% and an adjusted diluted EPS of $1.24.
- Chili's outperformed the industry in sales by more than 7% and traffic by nearly 4% for the entire quarter, demonstrating effective strategic initiatives and operational improvements.
- Restaurant operating margin improved by 80 basis points year-over-year to 14.2%, driven by top line growth and better food and beverage cost management.
- Significant progress in reducing manager and hourly turnover rates, contributing to more efficient operations and improved service levels.
- Continued innovation in menu offerings, such as the launch of the new 'big smasher' burger, and marketing strategies, including a fresh advertising campaign highlighting Chili's value compared to fast food.
- Despite overall positive results, Chili's experienced some negative mix in traffic, partially offset by price increases.
- The company continues to face challenges from weather conditions, which had an estimated negative impact of 1.1% on sales.
- Brinker International Inc (EAT) is still in the process of deemphasizing virtual brands, which negatively impacted Chili's traffic by approximately 2.5% for the quarter.
- Labor costs remain a concern, with wage rate inflation noted at approximately 3.7%, although it has moderated compared to previous periods.
- The company anticipates a need for ongoing investments in restaurant expenses, including advertising and maintenance, which increased by 120 basis points versus the prior year.
Good day, and welcome to the Brinker International's Q3 F '24 Earnings Call. (Operator Instructions) It is now my pleasure to turn the floor over to your host, Mika Ware, Vice President of Finance and Investor Relations. Ma'am, the floor is yours.
Thank you, Holly, and good morning, everyone, and thank you for joining us. Here with me today are Kevin Hochman, our Chief Executive Officer and President; and Joe Taylor, our Chief Financial Officer.
Results for our third quarter were released earlier this morning and are available on our website at brinker.com. As usual, Kevin and Joe will first make prepared comments related to our strategic initiatives and operating performance. Then we will open the call for your questions.
Before beginning our comments, I would like to remind everyone of our safe harbor regarding forward-looking statements. During our call, management may discuss certain items which are not based entirely on historical facts. Any such items
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
