Brinker International (NYSE:EAT) Issues Quarterly Earnings Results, Beats Estimates By $0.05 EPS

Key Points

• Brinker reported an adjusted EPS beat of $2.90 (vs. consensus ~ $2.85) on Q3 revenue of $1.47B, and updated FY2026 adjusted EPS guidance to $10.60–$10.85 while signaling strong free cash flow and aggressive buybacks.
• Chili’s remained the growth engine with its 20th consecutive quarter of same-store sales growth (comp +4%), driving ~560 basis points of industry outperformance and a new chicken-sandwich platform that sold ~161% more sandwiches versus pre-launch in initial weeks.
• Margins were pressured (restaurant operating margin fell to 18.4%) due to higher food & beverage costs—management expects mid-single-digit commodity inflation with beef a key headwind—and Maggiano’s continues to lag as a small but underperforming business segment.

Brinker International (NYSE:EAT - Get Free Report) posted its quarterly earnings results on Wednesday. The restaurant operator reported $2.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.85 by $0.05, Zacks reports. The firm had revenue of $1.47 billion during the quarter, compared to analyst estimates of $1.48 billion. Brinker International had a net margin of 7.98% and a return on equity of 134.92%. The company's quarterly revenue was up 3.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.66 earnings per share. Brinker International updated its FY 2026 guidance to 10.60-10.850 EPS.

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

• Chili's reported its 20th consecutive quarter of same-store sales growth (+4% in Q3) and said April momentum accelerated industry outperformance to ~560 basis points, with the new chicken-sandwich platform selling ~161% more sandwiches versus pre-launch in initial weeks.
• Brinker posted Q3 revenue of $1.47B, adjusted diluted EPS of $2.90, adjusted EBITDA of $223.7M, and reiterated FY26 guidance: revenues $5.78–5.82B and adjusted EPS $10.60–10.85.
• Margins were pressured (restaurant operating margin 18.4% vs 18.9% prior year) due to higher food & beverage costs and R&M; management expects mid-single-digit commodity inflation (beef a key headwind) into the next fiscal year.
• Management outlined growth and productivity plans — North of Six learnings to increase throughput/cycle-time, a phased re-image program (4 done, 8–10 this year, 60–80 in FY27, 10% run-rate by 2028) and a ramp to higher new-unit growth targeting a run-rate by FY2029.
• Maggiano's showed sequential improvement but remains down (Q3 comp -4.6%, traffic -10.4%); the chain is small (~8% of company sales) and management says the turnaround will take time while it focuses on service, value and operations.

Brinker International Price Performance

Shares of Brinker International stock opened at $148.03 on Thursday. The stock has a market capitalization of $6.45 billion, a price-to-earnings ratio of 14.97, a P/E/G ratio of 0.93 and a beta of 1.34. The firm's 50-day moving average price is $145.14 and its two-hundred day moving average price is $143.75. The company has a current ratio of 0.36, a quick ratio of 0.31 and a debt-to-equity ratio of 1.19. Brinker International has a 1-year low of $100.30 and a 1-year high of $187.12.

Insider Buying and Selling

In other news, Director Ramona Hood sold 400 shares of the business's stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $161.32, for a total value of $64,528.00. Following the transaction, the director directly owned 9,066 shares of the company's stock, valued at $1,462,527.12. The trade was a 4.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CMO George S. Felix sold 10,431 shares of the stock in a transaction that occurred on Tuesday, February 3rd. The stock was sold at an average price of $161.00, for a total value of $1,679,391.00. Following the sale, the chief marketing officer owned 8,064 shares in the company, valued at approximately $1,298,304. This trade represents a 56.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 23,278 shares of company stock valued at $3,784,312 in the last ninety days. 1.43% of the stock is owned by corporate insiders.

Institutional Trading of Brinker International

Hedge funds and other institutional investors have recently made changes to their positions in the business. UBS Group AG raised its holdings in shares of Brinker International by 155.2% in the third quarter. UBS Group AG now owns 1,464,389 shares of the restaurant operator's stock valued at $185,509,000 after buying an additional 890,593 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its position in Brinker International by 27.7% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 1,393,604 shares of the restaurant operator's stock valued at $176,542,000 after acquiring an additional 301,912 shares in the last quarter. Two Sigma Investments LP increased its position in Brinker International by 58.6% in the 3rd quarter. Two Sigma Investments LP now owns 932,954 shares of the restaurant operator's stock valued at $118,187,000 after acquiring an additional 344,539 shares in the last quarter. Samlyn Capital LLC raised its stake in shares of Brinker International by 104.9% in the third quarter. Samlyn Capital LLC now owns 878,584 shares of the restaurant operator's stock worth $111,299,000 after acquiring an additional 449,871 shares during the last quarter. Finally, Morgan Stanley lifted its position in shares of Brinker International by 2.1% during the fourth quarter. Morgan Stanley now owns 653,927 shares of the restaurant operator's stock worth $93,852,000 after purchasing an additional 13,312 shares in the last quarter.

Key Stories Impacting Brinker International

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

• Positive Sentiment: EPS beat and profitability: Brinker reported $2.90 EPS vs. consensus ~$2.86, up from $2.66 a year ago — a clear earnings beat driving the rally. Brinker International (EAT) Q3 Earnings Surpass Estimates
• Positive Sentiment: Raised FY26 guidance and capital return plan: Management set FY26 EPS guidance of $10.60–$10.85, expects free cash flow >$475M, and signaled aggressive buybacks — supporting valuation and shareholder returns. BRINKER INTERNATIONAL REPORTS THIRD QUARTER OF FISCAL 2026 RESULTS AND UPDATES FISCAL 2026 GUIDANCE
• Positive Sentiment: Chili’s continues to outperform: Chili’s posted its 20th consecutive quarter of same-store sales growth (comp +4%), driving most of the company’s top-line momentum and offsetting Maggiano’s turnaround. Brinker: Oil Prices A Lower Risk As Chili's Boom Continues In Q3
• Neutral Sentiment: Analyst price-target adjustment: TD Cowen lowered its price target from $188 to $170 but kept a "buy" rating — still positive sentiment from the firm, though the lower target may moderate near-term upside. Benzinga
• Negative Sentiment: Revenue slightly missed consensus: Q3 revenue was $1.47B vs. ~ $1.48B expected — a modest top-line miss that could temper optimism about margin leverage and growth sustainability. Compared to Estimates, Brinker International (EAT) Q3 Earnings: A Look at Key Metrics

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on EAT shares. UBS Group upped their price objective on Brinker International from $175.00 to $190.00 and gave the company a "buy" rating in a research note on Thursday, January 29th. Mizuho raised their target price on Brinker International from $155.00 to $175.00 and gave the stock an "outperform" rating in a research report on Friday, January 9th. Citigroup cut their target price on Brinker International from $190.00 to $186.00 and set a "buy" rating for the company in a research report on Monday, April 13th. Wolfe Research started coverage on Brinker International in a research note on Monday, March 9th. They issued an "outperform" rating and a $184.00 price target on the stock. Finally, Wells Fargo & Company upped their price target on Brinker International from $175.00 to $200.00 and gave the company an "overweight" rating in a research report on Thursday, January 22nd. Fifteen equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $184.74.

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.