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Brinker’s Q3 Profit Beats View as Revenue Surges 35%; Shares Rise (EAT)
Full service restaurant operator Brinker International, Inc. ( EAT ) on Monday posted better-than-expected fiscal third quarter earnings, sending its shares higher in premarket trading Monday.
The Dallas-bed company reported third quarter net income of $44.93 million, or 56 cents per share, compared with $40.25 million, or 45 cents per share, in the year-ago period. Excluding special items, adjusted profit was 60 cents per share.
Revenue rose 35% from last year to $742.05 million.
On average, Wall Street analysts expected a smaller profit of 56 cents per share, on lower revenue of $729.78 million.
CEO Doug Brooks commented, "We also continue to improve the middle of the P&L, further strengthening our business model. These factors combined with returning value to shareholders through share repurchases make us confident we'll deliver on our promise to double EPS by 2015 to $2.75 to $2.80."
Brinker International shares rose $1.60, or +5.7%, in premarket trading Monday.
The Bottom Line
Shares of Brinker International ( EAT ) have a 2.29% dividend yield, based on Friday's closing stock price of $27.90. The stock has technical support in the $25-$26 price area. If the shares can firm up, we see overhead resistance around the $29-$30 price levels.
Brinker International, Inc. ( EAT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.