Brinker International (NYSE:EAT) Announces Quarterly Earnings Results

Brinker International (NYSE:EAT) released its quarterly earnings results on Wednesday. The restaurant operator reported $2.77 EPS for the quarter, beating analysts’ consensus estimates of $2.45 by $0.32, Zacks reports. Brinker International had a net margin of 8.44% and a return on equity of 125.65%. The firm had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.46 billion. During the same period in the previous year, the business earned $2.17 EPS. The business’s revenue for the quarter was up 9.4% on a year-over-year basis.

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

• Chili’s same-store sales rose 10.1% in Q1, driven by 6.4% traffic growth, extending the brand’s industry outperformance to 12 consecutive quarters. Management expects mid-single-digit comparable-sales growth in Q2 and the remainder of fiscal 2027 despite tougher comparisons.
• Brinker expanded restaurant-level margins by 150 basis points to 17.7% and adjusted EPS increased 44% to $2.77. The company raised its fiscal 2027 outlook to $6.23 billion–$6.33 billion in revenue and $13.30–$13.90 in adjusted EPS.
• The Big Crispy chicken sandwich and Chili’s value positioning continued to attract customers, while operational initiatives targeting staffing, throughput, and hospitality are intended to support further traffic growth. Brinker also repurchased $125 million of stock during the quarter.
• Management said consumers remain under pressure from gas prices and interest rates, resulting in some mix and check management, particularly in alcohol and desserts. Traffic gains are currently more than offsetting that pressure, but commodity and freight inflation are expected to add roughly $7 million in costs.
• Maggiano’s comparable sales declined 3.4%, although banquet sales increased 11% following a restructuring of banquet operations. Brinker plans further technology and service improvements, but the recovery remains in progress.

Brinker International Trading Down 4.1%

NYSE EAT traded down $8.96 during trading on Friday, hitting $210.94. 558,141 shares of the company’s stock traded hands, compared to its average volume of 1,205,048. The stock has a fifty day moving average of $209.85 and a two-hundred day moving average of $174.36. The company has a debt-to-equity ratio of 1.13, a current ratio of 0.34 and a quick ratio of 0.40. Brinker International has a 12-month low of $100.30 and a 12-month high of $254.99. The firm has a market cap of $8.81 billion, a P/E ratio of 18.56, a PEG ratio of 1.20 and a beta of 1.25.

Trending Headlines about Brinker International

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

• Positive Sentiment: Brinker issued fiscal 2027 adjusted EPS guidance of $13.30-$13.90, above the $13.26 analyst consensus. Revenue guidance of $6.2 billion-$6.3 billion also indicates continued growth. Brinker International Fiscal Q1 Results and Outlook
• Positive Sentiment: Fiscal first-quarter results were strong: revenue increased 9.4% year over year to approximately $1.48 billion, while earnings per share of $2.77 exceeded the $2.45 consensus estimate. The company also raised its outlook, supporting the investment case. Brinker Advances on Strong Q1 Results
• Positive Sentiment: Several analysts raised their price targets following the results. Wells Fargo increased its target to $285, Baird to $280, Citigroup to $277, Morgan Stanley to $262, KeyCorp to $258, and TD Cowen to $270. Stephens reaffirmed an overweight rating with a $300 target. Analyst Ratings
• Positive Sentiment: Chili’s traffic momentum and the company’s growth profile remain key bullish themes, with Zacks highlighting Brinker as a potentially strong growth stock. Why Brinker Is a Strong Growth Stock
• Negative Sentiment: Fiscal 2027 revenue guidance has a $6.25 billion midpoint, modestly below the $6.3 billion consensus estimate. That cautious top-line outlook, along with valuation and profit-taking after the recent rally, may be weighing on the shares despite the favorable EPS guidance.

Analyst Ratings Changes

Several analysts have weighed in on the company. Citigroup raised their price target on Brinker International from $270.00 to $277.00 and gave the company a “buy” rating in a report on Thursday. Raymond James Financial raised Brinker International from an “outperform” rating to a “strong-buy” rating and cut their price objective for the stock from $270.00 to $260.00 in a report on Friday, October 16th. Bank of America upped their price objective on shares of Brinker International from $224.00 to $310.00 and gave the stock a “buy” rating in a research report on Friday, August 14th. Weiss Ratings raised shares of Brinker International from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, September 11th. Finally, KeyCorp lifted their target price on shares of Brinker International from $250.00 to $258.00 and gave the company an “overweight” rating in a research report on Thursday. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $249.80.

Insider Transactions at Brinker International

In other Brinker International news, EVP Aaron White sold 16,220 shares of Brinker International stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $236.22, for a total value of $3,831,488.40. Following the transaction, the executive vice president directly owned 42,756 shares of the company’s stock, valued at $10,099,822.32. The trade was a 27.50% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Joseph DePinto sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $230.39, for a total transaction of $5,759,750.00. Following the completion of the transaction, the director owned 77,812 shares in the company, valued at $17,927,106.68. This represents a 24.32% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 173,694 shares of company stock valued at $41,568,690. 1.18% of the stock is currently owned by corporate insiders.

About Brinker International

Brinker International, Inc is a casual-dining restaurant company that owns, operates and franchises restaurants in the United States and select international markets. The company is headquartered in Dallas, Texas, and serves customers through company-operated and franchised locations.

Brinker’s principal brands are Chili’s Grill & Bar and Maggiano’s Little Italy. Chili’s offers a broad menu of burgers, steaks, ribs, fajitas, Tex-Mex dishes, salads and beverages in a full-service, casual setting.