Shares of Brinker International Inc. (EAT) are rising over 15% in pre-market today, after the company reported strong Q3 results.
The company’s Q3 net income was $30.8 million or $0.81 per share compared to $49.8 million or $1.31 per share last year.
The decline in GAAP earnings reflect reduced traffic and incremental expenses for employee assistance payments made in connection with the COVID-19 pandemic, partially offset by the impact of reduced performance-based compensation expenses
Adjusted earnings rose to $48.5 million or $1.28 per share from $47.9 million or $1.26 per share in the third quarter of fiscal 2019, primarily due to reduced performance-based compensation expenses and income taxes partially offset by the traffic decline resulting from the COVID-19 pandemic.
Total revenues increased to $860.0 million from $839.3 million generated a year ago.
Analysts polled by Thomson Reuters expected earnings of $0.65 per share on revenue of $861.63 million for the quarter. Analysts’ estimate typically exclude certain special items.
Wyman Roberts, CEO, said, “Since COVID-19, we have focused on the safety and health of our team members and guests while shifting to a to-go and delivery only model. We have supported our team members with a relief fund of more than $15 million, and worked hard to keep as many employees as possible. Our absolute and relative sales growth is a testament to the strength of the strategies we have been working on the past few years and will ensure our continued strength post COVID-19.”
The stock has been trading in the range of $7.00 – $47.57 for the past one year, and closed Tuesday’s trade at $19.14, up $1.99 or 11.60%. EAT is currently trading at $22.20, up $3.06 or 15.99% in the pre-market trading session.
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