Brinker International (NYSE:EAT) Posts Earnings Results

Key Points

• Brinker’s revenue beat expectations, rising 5.1% year over year to $1.54 billion, while adjusted EPS of $3.07 narrowly missed the $3.10 consensus but increased 23% from the prior year.
• Chili’s remained the key growth driver: same-store sales rose 5.6% in Q4, supported by traffic gains and strong demand for the Big Crispy chicken sandwich. Management expects continued mid-single-digit comparable-sales growth in fiscal 2027.
• Fiscal 2027 guidance exceeded analyst expectations, with adjusted EPS projected at $12.60–$13.40 and revenue at $6.15–$6.27 billion. Maggiano’s remains a weak spot, with comparable sales down 2.5% and its turnaround progressing more slowly than planned.

Brinker International (NYSE:EAT - Get Free Report) released its earnings results on Wednesday. The restaurant operator reported $3.07 earnings per share for the quarter, missing the consensus estimate of $3.10 by ($0.03), FiscalAI reports. Brinker International had a net margin of 8.07% and a return on equity of 123.22%. The firm had revenue of $1.54 billion during the quarter, compared to analysts' expectations of $1.53 billion. During the same quarter last year, the business earned $2.30 EPS. The business's revenue was up 5.1% compared to the same quarter last year. Brinker International updated its FY 2027 guidance to 12.600-13.400 EPS.

Here are the key takeaways from Brinker International's conference call:

• Chili’s same-store sales rose 5.6% in Q4, marking the brand’s 21st consecutive quarter of growth and continued outperformance of casual dining, supported by 1.5% traffic growth. Brinker reported adjusted EPS of $3.07, up 23% year over year.
• The Big Crispy chicken sandwich launch exceeded expectations, with sales reaching 55 sandwiches per restaurant per day by the end of Q4 versus 20 before launch. Management said demand continued to accelerate in July and August, alongside gains from value offerings, margaritas, desserts, and improved restaurant throughput.
• Brinker issued fiscal 2027 guidance for revenue of $6.15 billion to $6.27 billion and adjusted EPS of $12.60 to $13.40, including a 53rd operating week expected to add about $0.70 to EPS. Management expects mid-single-digit Chili’s comparable-sales growth, positive traffic, 20 to 40 basis points of restaurant-margin expansion on a 52-week basis, and three net new company-owned restaurants.
• Brinker plans to complete 60 to 80 Chili’s reimages in fiscal 2027 and expects to begin a roughly 10% annual fleet cadence in fiscal 2028, while accelerating new-unit growth from fiscal 2028 onward. The company will also acquire 12 lower-performing Chili’s franchise restaurants in Alabama and Mississippi, an acquisition expected to have a roughly neutral EPS impact.
• Maggiano’s comparable sales declined 2.5% in Q4, with traffic down 5.3%, and management acknowledged that its turnaround is progressing more slowly than planned. Fiscal 2027 guidance assumes flat Maggiano’s revenue and profit, while higher commodity, wage, insurance, advertising, and other operating costs are expected to limit near-term margin expansion.

Brinker International Trading Up 8.7%

Shares of EAT stock traded up $19.32 on Wednesday, hitting $240.70. 1,114,314 shares of the stock traded hands, compared to its average volume of 1,163,251. The firm's 50-day moving average price is $180.87 and its two-hundred day moving average price is $159.07. The company has a debt-to-equity ratio of 1.05, a quick ratio of 0.35 and a current ratio of 0.40. The stock has a market capitalization of $10.32 billion, a PE ratio of 23.60, a PEG ratio of 1.35 and a beta of 1.23. Brinker International has a twelve month low of $100.30 and a twelve month high of $241.15.

Key Headlines Impacting Brinker International

Here are the key news stories impacting Brinker International this week:

• Positive Sentiment: Brinker reported fiscal fourth-quarter revenue of $1.54 billion, above the $1.53 billion consensus estimate, while revenue grew 5.1% year over year. Chili’s continued to drive performance, marking five consecutive years of same-store sales growth and a cumulative 71% increase over that period. Brinker fiscal 2026 results and fiscal 2027 guidance
• Positive Sentiment: Fiscal 2027 earnings-per-share guidance of $12.60 to $13.40 topped the $12.47 analyst consensus, while revenue guidance of $6.2 billion to $6.3 billion exceeded the $6.1 billion consensus. The outlook suggests management expects continued sales strength and operating leverage. Bank of America maintains Buy rating
• Positive Sentiment: Brinker announced expanded share buybacks, providing an additional potential support for per-share earnings and signaling management confidence in future cash generation. Bank of America reiterated its Buy rating, and UBS raised its price target to $260 while maintaining a Buy rating. UBS raises Brinker price target
• Neutral Sentiment: Fourth-quarter EPS was $3.07, up from $2.30 a year earlier. Results were described as matching the Zacks consensus, although other estimates placed expectations at $3.10, indicating only a marginal earnings miss. Brinker matches Q4 earnings estimates
• Negative Sentiment: Brinker’s elevated valuation remains a risk. A recent analysis argued that the stock’s strong rally has increased the need for new growth opportunities beyond its current Chili’s momentum, potentially limiting upside if sales trends moderate. Brinker valuation analysis

Hedge Funds Weigh In On Brinker International

Institutional investors have recently bought and sold shares of the company. NewEdge Advisors LLC grew its stake in shares of Brinker International by 1,118.9% in the 1st quarter. NewEdge Advisors LLC now owns 1,158 shares of the restaurant operator's stock valued at $173,000 after buying an additional 1,063 shares during the period. EverSource Wealth Advisors LLC grew its position in Brinker International by 271.1% in the second quarter. EverSource Wealth Advisors LLC now owns 846 shares of the restaurant operator's stock worth $153,000 after acquiring an additional 618 shares during the period. First Trust Advisors LP grew its position in Brinker International by 1.9% in the second quarter. First Trust Advisors LP now owns 52,249 shares of the restaurant operator's stock worth $9,422,000 after acquiring an additional 978 shares during the period. Baird Financial Group Inc. acquired a new stake in Brinker International during the second quarter worth $3,222,000. Finally, Brown Advisory Inc. raised its position in Brinker International by 33.0% in the second quarter. Brown Advisory Inc. now owns 1,789 shares of the restaurant operator's stock valued at $323,000 after purchasing an additional 444 shares during the period.

Wall Street Analyst Weigh In

EAT has been the topic of a number of research reports. Citigroup raised their price objective on Brinker International from $189.00 to $227.00 and gave the company a "buy" rating in a report on Tuesday, July 28th. TD Cowen increased their target price on shares of Brinker International from $170.00 to $210.00 and gave the company a "buy" rating in a research report on Monday, July 20th. Wells Fargo & Company raised their price target on shares of Brinker International from $200.00 to $220.00 and gave the stock an "overweight" rating in a research note on Thursday, July 16th. Stephens started coverage on shares of Brinker International in a research report on Friday, July 17th. They set an "overweight" rating and a $220.00 price target on the stock. Finally, UBS Group increased their price objective on shares of Brinker International from $190.00 to $260.00 and gave the company a "buy" rating in a report on Monday. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $196.75.

Brinker International Company Profile

Brinker International, Inc NYSE: EAT is a leading global operator of casual dining restaurants. The company's portfolio is anchored by its flagship Chili's® Grill & Bar concept and Maggiano's® Little Italy full‐service restaurants, offering a range of American‐style menu items, handcrafted cocktails and family‐friendly dining experiences. Through dine‐in, takeout, delivery and catering services, Brinker seeks to meet consumer preferences across multiple channels.

The Chili's brand features signature items such as baby back ribs, burgers and fajitas alongside a rotating selection of limited‐time offerings and seasonal beverages.

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