Brinker International Inc. (NASDAQ: EAT) stock surged by 1.24% at last close contrary to which the EAT stock price fell by 12.16% in the after-hours trading session. The company has announced its business updates which might be the cause behind this decline in stock price. Brinker International is a globally recognized company for casual dining restaurants home of Chili’s Grill & Bar, Maggiano’s Little Italy, and two virtual brands: It’s Just Wings and Maggiano’s Italian Classics.
EAT stock’ Business Update
Brinker International has reported particular business outcomes for the first quarter of fiscal 2022. The company also informed its shareholders regarding the business update for the second quarter of fiscal 2022. However, Brinker’s International Investor Day is set to take place on October 20, 2021.
- The company’s sales took a hike and have been calculated as $859.6 million for Q1 fiscal 2022, relative to $728.2 million for the first quarter fiscal 2021.
- The company has generated an operating income of $25.6 million for the first-quarter fiscal of 2022 however it was $24.4 million for the previous year’s same quarter.
- Operating income as a percentage of total revenues has declined from 3.3% to 2.9% in the first quarter of fiscal 2022.
- Restaurant’s operating margin as a percentage of company sales for the first quarter of fiscal 2022, has plunged to 10.4% from 11.6% in the first quarter of fiscal 2021.
- The company’s net income per diluted share on the basis of GAAP has been calculated as $0.28 for the first quarter of fiscal 2022, whereas the values were $0.23 in Q1 of fiscal 2021.
- And lastly, net income per diluted share without including special items was $0.34 which is a rise from $0.28 in the first quarter of fiscal 2021.
Wyman Roberts, CEO, and President commented,
Brinker’s first quarter saw strong revenues and continues to outperform the industry in terms of engagement. However, the COVID spike that began in August compounded the industry’s labor and commodity problems. The pandemic also had a greater impact even more than what was anticipated, on the margins and bottom line. They’re reacting to the COVID headwinds by focusing more on hiring and retention initiatives, as well as working with key partners to improve supply chain stability. They’ve also made urgent incremental price steps, raising their full-year objective to 3 percent to 3.5 percent, to balance inflationary expenses and maintain margins as they move ahead.