Brinker Stock Plunges On Q1 Earnings Miss, Margin Pressure - Brinker International (NYSE:EAT)

Brinker International Inc EAT reported first-quarter FY22 sales growth of 18% year-on-year, to $859.6 million. Total revenues of $876.4 million managed to beat the consensus of $875.28 million.
The operating margin contracted 40 basis points to 2.9%, and operating income for the quarter rose 4.9% to $25.6 million.
The restaurant operating margin of 10.4% declined 120 basis points Y/Y driven by higher labor costs.
Non-GAAP EPS improved to $0.34 from $0.28 last year but missed the consensus of $0.71.
"Brinker's first quarter delivered positive sales and continued to significantly outpace the industry in traffic. But the COVID surge starting in August exacerbated the industry-wide labor and commodity challenges and impacted our margins and bottom line more than we anticipated," said CEO Wyman Roberts.
Price action: EAT shares traded lower by 12.2% at $43 in premarket on the last check Wednesday.