What changed
GAAP EPS of $1.36 came in below the $1.49 consensus, a miss of $0.13 (-8.7%). Revenue printed at $1,573M, up 9.5% YoY, with comparable restaurant sales up 4.3% and store weeks up 5.1%. Restaurant margin expanded 30 bps to 14.6% on higher sales, partially offset by commodity inflation of 2.0% and wage/other labor inflation of 4.1%. Management flagged that traffic softened late in the quarter.
Why it matters
GAAP EPS of $1.36 came in below the $1.49 consensus, a miss of $0.13 (-8.7%). Revenue printed at $1,573M, up 9.5% YoY, with comparable restaurant sales up 4.3% and store weeks up 5.1%. Restaurant marg