-=Brinker (EAT) reported earnings on Tue 30 January 2018 (BMO)

Brinker beats by $0.15, reports revs in-line; guides FY18 EPS above consensus 

• Reports Q2 (Dec) earnings of $0.87 per share, excluding non-recurring items, $0.15 better than the Capital IQ Consensus of $0.72; revenues fell 0.6% year/year to $766.4 mln vs the $773.84 mln Capital IQ Consensus.
  • Chili's company-owned comparable restaurant sales decreased 1.5 percent in the second quarter of fiscal 2018 compared to the second quarter of fiscal 2017. Chili's U.S. franchise comparable restaurant sales decreased 1.7 percent in the second quarter of fiscal 2018 compared to the second quarter of fiscal 2017.  Chili's international franchise comparable restaurant sales increased 0.1 percent in the second quarter of fiscal 2018 compared to the second quarter of fiscal 2017.
  • Maggiano's comparable restaurant sales increased 1.8 percent in the second quarter of fiscal 2018 compared to the second quarter of fiscal 2017.
  • Restaurant operating margin, as a percent of company sales, was 14.9 percent for the second quarter of fiscal 2018 compared to 15.1 percent for the second quarter of fiscal 2017 representing a decrease of approximately 20 basis points.
• Co issues upside guidance for FY18, sees EPS of $3.42-3.52, excluding non-recurring items, vs. $3.34 Capital IQ Consensus Estimate.
  • The Company's effective tax rate excluding the impact of special items and the revaluation of the deferred tax accounts is now expected to be approximately 20 to 22 percent.