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Sit-Down Dining Stocks Q4 Earnings: Brinker International (NYSE:EAT) Firing on All Cylinders

EAT Cover Image

Looking back on sit-down dining stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Brinker International (NYSE: EAT) and its peers.

Sit-down restaurants offer a complete dining experience with table service. These establishments span various cuisines and are renowned for their warm hospitality and welcoming ambiance, making them perfect for family gatherings, special occasions, or simply unwinding. Their extensive menus range from appetizers to indulgent desserts and wines and cocktails. This space is extremely fragmented and competition includes everything from publicly-traded companies owning multiple chains to single-location mom-and-pop restaurants.

The 13 sit-down dining stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was 2.4% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13% since the latest earnings results.

Best Q4: Brinker International (NYSE: EAT)

Founded by Norman Brinker in Dallas, Brinker International (NYSE: EAT) is a casual restaurant chain that operates the Chili’s, Maggiano’s Little Italy, and It’s Just Wings banners.

Brinker International reported revenues of $1.36 billion, up 26.5% year on year. This print exceeded analysts’ expectations by 9.6%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

"Improving fundamentals continues to drive a better guest experience and sustained business results," said President and CEO Kevin Hochman.

Brinker International Total Revenue

Brinker International achieved the biggest analyst estimates beat and highest full-year guidance raise of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 6.1% since reporting and currently trades at $145.20.

Is now the time to buy Brinker International? Access our full analysis of the earnings results here, it’s free.

BJ's (NASDAQ: BJRI)

Founded in 1978 in California, BJ’s Restaurants (NASDAQ: BJRI) is a chain of restaurants whose menu features classic American dishes, often with a twist.

BJ's reported revenues of $344.3 million, up 6.4% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ same-store sales estimates.

BJ's Total Revenue

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 2.5% since reporting. It currently trades at $34.82.

Is now the time to buy BJ's? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Bloomin' Brands (NASDAQ: BLMN)

Owner of the iconic Australian-themed Outback Steakhouse, Bloomin’ Brands (NASDAQ: BLMN) is a leading American restaurant company that owns and operates a portfolio of popular restaurant brands.

Bloomin' Brands reported revenues of $972 million, down 18.6% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted full-year EPS guidance missing analysts’ expectations.

Bloomin' Brands delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 38.2% since the results and currently trades at $7.35.

Read our full analysis of Bloomin' Brands’s results here.

First Watch (NASDAQ: FWRG)

Based on a nautical reference to the first work shift aboard a ship, First Watch (NASDAQ: FWRG) is a chain of breakfast and brunch restaurants whose menu is heavily-focused on eggs and griddle items such as pancakes.

First Watch reported revenues of $263.3 million, up 7.6% year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is down 7.5% since reporting and currently trades at $16.74.

Read our full, actionable report on First Watch here, it’s free.

Texas Roadhouse (NASDAQ: TXRH)

With locations often featuring Western-inspired decor, Texas Roadhouse (NASDAQ: TXRH) is an American restaurant chain specializing in Southern-style cuisine and steaks.

Texas Roadhouse reported revenues of $1.44 billion, up 23.5% year on year. This print beat analysts’ expectations by 2%. It was a very strong quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $170.38.

Read our full, actionable report on Texas Roadhouse here, it’s free.


Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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