DIN - Brinker International and peers gain after strong sales help leverage down elevated costs
Brinker International (NYSE:EAT) soared after sailing past consensus estimates with its FQ2 earnings report. Comparable restaurant sales were 12.1% higher for the Chili's business during the quarter and shot up 78.1% at Maggiano's against the soft pandemic comparable. Adjusted EBITDA came in at $87.8M for EAT vs. $64.7M a year ago. Restaurant operating margin as a percentage of sales increased to 11.0% vs. 10.8% consensus and 10.7% a year ago. Higher restaurant labor costs, elevated commodity costs and increased utilities expenses were partially offset by sales leverage, favorable menu pricing and lower delivery fees. Within the restaurant sector, other movers following the strong EAT report include Bloomin' Brands (NASDAQ:BLMN) +3.1%, Cheesecake Factory (NASDAQ:CAKE) +2.0%, Dine Brands Global (NYSE:DIN) +1.5% and Texas Roadhouse (NASDAQ:TXRH) +1.5%. See how Brinker International's metrics compare to restaurant peers.
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Brinker International and peers gain after strong sales help leverage down elevated costs