Bravo Brio Restaurant Group Earnings: Here’s Why Investors are Ambivalent Now

Bravo Brio Restaurant Group, In (NASDAQ:BBRG) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Bravo Brio Restaurant Group, In Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 12% to $0.22 in the quarter versus EPS of $0.25 in the year-earlier quarter.

Revenue: Rose 2.71% to $105.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Bravo Brio Restaurant Group, In reported adjusted EPS income of $0.22 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $109.12 million.

Quoting Management: Saed Mohseni, Chief Executive Officer and President, said, “Our financial results for the second quarter did not meet our expectations for revenues or diluted EPS. Comparable sales proved to be lower than we had anticipated due to a number of factors, including a decline in guest counts, limited use of our outdoor terraces, and a menu-mix driven decrease in BRIO’s average check related to our Lighter Side of Tuscany menu. The success of our ‘light’ menu, which has substantially exceeded our expectations, has positioned us well for the long-term as it responds to our guests’ increasing desire for healthier dining options. Based on our performance year-to-date, we have revisited some of our key assumptions for full year guidance and have adjusted our projections accordingly.”

Key Stats (on next page)…

Revenue increased 2.46% from $103.06 million in the previous quarter. EPS increased 29.41% from $0.17 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.17 and has not changed. For the current year, the average estimate is a profit of $0.91, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)