Yahoo Finance Live anchors discuss fourth-quarter earnings for Brinker International.

Video Transcript

[AUDIO LOGO]

BRAD SMITH: [LAUGHS] Let's also check in on shares of Brinker International, ticker symbol EAT. It's in focus after reporting fourth quarter earnings missing estimates on the bottom line, as the company saw a big drop in sales from its Chili's locations as revenue fell nearly $10 million year-over-year. There, you're taking a look at shares as of right now. They are down by about 6% here.

And particularly the operating income, that was $44.7 million. You compare that to $100.6 million in the fourth quarter of fiscal 2021. This is their fiscal fourth quarter, we should note. And there you're taking a look at some of the individual breakouts for Chili's and Maggiano's.

JULIE HYMAN: Maggiano's did better.

BRIAN SOZZI: Yeah, I can't find the earnings release on my computer. I got a lot of tabs open. But I did read it, of course. And there was a lot of pressure on that core person that goes to Maggiano's and Chili's, that price-sensitive consumer, as a result of gas prices remaining high.

But look, Dine Equity-- Dine Brands had a better quarter than this company here. And I think that should be noted. They, of course, own IHOP. But again, new CEO Kevin Hochman, he reinvented the KFC brand. He's about 60 days into his-- developing his strategy, his plan for the company. So I'd be inclined to give him some time here.

JULIE HYMAN: Yeah, one other thing that stood out to me, by the way, is that Chili's did poorly domestically, missed estimates. But the international Chili's comps actually look pretty good. And to be honest, I don't have in front of me--

BRIAN SOZZI: Their international is great.

JULIE HYMAN: --how many it has international versus domestically.

BRIAN SOZZI: Fast food for international was good. Domino's, Papa John's, McDonald's, all of them. Just even a couple other names, too. It just really, really-- Wendy's. Wendy's was strong, too, overseas.

BRAD SMITH: I mean, it just begs the question, what is the international appetite for US kind of-- some of the US-birthed fast food options, or fast-casual options, or even kind of quick-service restaurant with-- and the Brinker companies of the world, too.

BRIAN SOZZI: I'd grab a Wendy's hamburger in the UK. They're starting to push them to the UK. I see where you're going.

JULIE HYMAN: I would not grab--

BRIAN SOZZI: 'Cos I see where you're going.

JULIE HYMAN: --a Wendy's hamburger--

BRIAN SOZZI: You're not--

JULIE HYMAN: --anywhere.

BRIAN SOZZI: There we go.

JULIE HYMAN: I had a recent--

BRIAN SOZZI: That experience left a bad taste.

JULIE HYMAN: --bad, bad experience--

BRAD SMITH: A little snafu.

JULIE HYMAN: --at Wendy's. I apologize to you, though, at Wendy's, but can't get over it.