Brinker International (NYSE:EAT) Announces Earnings Results

Brinker International (NYSE:EAT) issued its quarterly earnings data on Wednesday. The restaurant operator reported $3.07 EPS for the quarter, missing analysts’ consensus estimates of $3.09 by ($0.02), FiscalAI reports. Brinker International had a return on equity of 123.22% and a net margin of 8.07%.The firm had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.53 billion. During the same period in the previous year, the business earned $2.30 EPS. Brinker International’s revenue for the quarter 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 0.8%

EAT opened at $247.92 on Thursday. The firm has a market capitalization of $10.63 billion, a price-to-earnings ratio of 24.60, a price-to-earnings-growth ratio of 1.31 and a beta of 1.24. The company’s 50 day simple moving average is $182.95 and its two-hundred day simple moving average is $159.65. Brinker International has a 1-year low of $100.30 and a 1-year high of $253.71. The company has a debt-to-equity ratio of 1.05, a current ratio of 0.40 and a quick ratio of 0.35.

Hedge Funds Weigh In On Brinker International

A number of institutional investors have recently added to or reduced their stakes in EAT. UBS Group AG raised its holdings in shares of Brinker International by 155.2% during the 3rd quarter. UBS Group AG now owns 1,464,389 shares of the restaurant operator’s stock worth $185,509,000 after acquiring an additional 890,593 shares during the period. Arrowstreet Capital Limited Partnership raised its position in Brinker International by 27.7% in the third quarter. Arrowstreet Capital Limited Partnership now owns 1,393,604 shares of the restaurant operator’s stock valued at $176,542,000 after purchasing an additional 301,912 shares during the period. Two Sigma Investments LP lifted its stake in shares of 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 purchasing an additional 344,539 shares during the last quarter. Samlyn Capital LLC grew its holdings in shares of Brinker International by 104.9% during the 3rd quarter. Samlyn Capital LLC now owns 878,584 shares of the restaurant operator’s stock worth $111,299,000 after purchasing an additional 449,871 shares during the period. Finally, Morgan Stanley increased 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 valued at $93,852,000 after acquiring an additional 13,312 shares during the last quarter.

More Brinker International News

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

• Positive Sentiment: Above-consensus fiscal 2027 outlook: Brinker forecast adjusted EPS of $12.60–$13.40 and revenue of $6.2–$6.3 billion, exceeding consensus estimates of $12.47 EPS and $6.1 billion in revenue. Brinker fiscal 2026 results and fiscal 2027 guidance
• Positive Sentiment: Continued Chili’s sales momentum: Chili’s delivered its fifth consecutive year of same-store sales growth, with cumulative gains of 71% over that period. New chicken-sandwich offerings and increased focus on takeout and digital ordering are supporting traffic and sales. MarketWatch Chili’s chicken-sandwich sales
• Positive Sentiment: Analyst targets rose sharply: Stephens raised its target to $300 and maintained an overweight rating; KeyCorp lifted its target to $275 and kept an overweight rating; Mizuho raised its target to $275 with an outperform rating; and TD Cowen increased its target to $270 with a buy rating. DA Davidson also raised its target to $260, though it retained a neutral rating. Analyst forecasts following Brinker earnings
• Positive Sentiment: Profitability and shareholder returns: Management reported expanding earnings, announced an expanded share-buyback program, and highlighted growing momentum across the business.
• Neutral Sentiment: Solid but mixed quarterly results: Fiscal fourth-quarter revenue rose 5.1% year over year to $1.54 billion, slightly above estimates, while EPS of $3.07 was narrowly below the $3.09 consensus. EPS still increased from the prior-year quarter.
• Negative Sentiment: Valuation and cautious ratings remain risks: BMO Capital Markets raised its target to $230 but maintained a market-perform rating, leaving its target below the referenced share price. The stock is also trading near its 52-week high, which may limit near-term upside if growth expectations soften.

Analysts Set New Price Targets

A number of research firms have recently commented on EAT. Mizuho raised their target price on Brinker International from $175.00 to $275.00 and gave the company an “outperform” rating in a research report on Thursday. DA Davidson upped their target price on Brinker International from $160.00 to $260.00 and gave the stock a “neutral” rating in a research note on Thursday. BMO Capital Markets lifted their price target on shares of Brinker International from $175.00 to $230.00 and gave the company a “market perform” rating in a research note on Thursday. Morgan Stanley increased their price objective on shares of Brinker International from $205.00 to $207.00 and gave the company an “overweight” rating in a report on Thursday, April 30th. Finally, Stephens boosted their target price on shares of Brinker International from $220.00 to $300.00 and gave the stock an “overweight” rating in a research note on Thursday. Sixteen research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, Brinker International presently has a consensus rating of “Moderate Buy” and an average target price of $223.55.

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.