Brinker International (NYSE:EAT) Posts Quarterly Earnings Results, Beats Expectations By $0.34 EPS

Brinker International (NYSE:EAT) released its quarterly earnings data on Wednesday. The restaurant operator reported $2.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.53 by $0.34, Zacks reports. Brinker International had a net margin of 7.94% and a return on equity of 164.66%. The business had revenue of $1.45 billion during the quarter, compared to analysts’ expectations of $1.41 billion. During the same period in the prior year, the company earned $2.80 EPS. The firm’s quarterly revenue was up 6.9% compared to the same quarter last year. Brinker International updated its FY 2026 guidance to 1.045-10.850 EPS.

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

• Chili’s momentum: Q2 same-store sales at +8.6% (outpacing casual dining by 680 bps), marking the 19th consecutive quarter of growth with multi-year cumulative comps showing sustained turnaround.
• Menu & marketing tailwinds: Reintroduced items (Skillet Queso, nachos, upgraded bacon burger) produced large sales lifts and the super‑premium chicken sandwich—tested in ~200 restaurants—will launch chain‑wide in April with substantial TV advertising to drive traffic.
• Financial strength & capital return: Q2 revenue of $1.45B (+7%), adjusted diluted EPS $2.87, adjusted EBITDA +3.6%, management repurchased $100M of stock and raised FY26 guidance (revenue and EPS ranges updated).
• Asset investment & growth roadmap: Reimage program underway (first 4 done), plan to complete another 8–10 this year, ramp to 60–80 reimages in FY27 and target ~10% of system (~100+) in FY28 with low-single-digit new‑unit growth expected; FY26 CapEx guidance is $250M–$260M.
• Near-term drags: Maggiano’s remains underperforming (Q2 comps -2.4%, ~8% of company sales and 3% of profit contribution) and Winter Storm Fern caused an estimated $20M revenue hit and a $0.15 reduction to adjusted EPS.

Brinker International Trading Up 0.4%

NYSE EAT traded up $0.60 during trading hours on Thursday, hitting $157.24. 102,307 shares of the company’s stock were exchanged, compared to its average volume of 1,141,594. The firm has a market cap of $6.99 billion, a price-to-earnings ratio of 16.20, a PEG ratio of 1.16 and a beta of 1.34. The stock has a 50-day simple moving average of $150.66 and a 200 day simple moving average of $144.13. The company has a current ratio of 0.35, a quick ratio of 0.29 and a debt-to-equity ratio of 1.53. Brinker International has a 1-year low of $100.30 and a 1-year high of $192.21.

Brinker International News Summary

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

• Positive Sentiment: Q2 beat: Brinker reported EPS of $2.87 vs. consensus $2.53 and revenue of $1.45B vs. ~$1.41B, driven by higher comps and margin leverage — a core reason investors are buying the stock. PR Newswire: Q2 results
• Positive Sentiment: Guidance raise: Management raised FY‑2026 outlook (above consensus), signaling confidence that strong trends can be sustained — a key catalyst for the rally. WSJ: Brinker boosts outlook
• Positive Sentiment: Chili’s outperformance: Chili’s delivered industry‑leading comps (+9% in the quarter and very strong two‑year growth), which management says is the primary growth engine — this is the operational story investors are rewarding. Seeking Alpha: Earnings presentation
• Positive Sentiment: Technical support: A recent “golden cross” (50‑day SMA crossing above 200‑day SMA) has improved technical sentiment and may attract momentum traders. Zacks: Technical outlook
• Neutral Sentiment: Earnings call and materials are available — read the transcript and slide deck for management detail on unit economics, marketing cadence, and capital allocation. These clarifications matter for longer‑term modeling but are not new surprises. Seeking Alpha: Call transcript
• Neutral Sentiment: Analyst and media takes: Coverage from Barron’s, TipRanks and others highlights the beat and Chili’s strength; these pieces help frame sentiment but add limited new data. TipRanks: Earnings take
• Negative Sentiment: Liquidity / leverage: The company’s current ratio (~0.35) and quick ratio (~0.29) and a debt/equity of ~1.5 suggest limited near‑term liquidity cushion — a potential concern if sales slow.
• Negative Sentiment: Sector headwinds: Coverage notes the broader casual‑dining sector remains tepid; if consumer traffic softens, Chili’s gains may be harder to sustain and could reverse upside. Barron’s: Sector context

Analyst Ratings Changes

A number of equities analysts have issued reports on the company. TD Cowen started coverage on Brinker International in a report on Tuesday, January 20th. They issued a “buy” rating and a $192.00 target price for the company. Citigroup boosted their price target on Brinker International from $176.00 to $187.00 and gave the stock a “buy” rating in a report on Friday, January 9th. Mizuho raised their price objective on shares of Brinker International from $155.00 to $175.00 and gave the company an “outperform” rating in a report on Friday, January 9th. Bank of America raised shares of Brinker International from a “neutral” rating to a “buy” rating and boosted their target price for the stock from $190.00 to $192.00 in a report on Monday, October 6th. Finally, Wells Fargo & Company raised their price target on shares of Brinker International from $175.00 to $200.00 and gave the company an “overweight” rating in a research note on Thursday, January 22nd. Thirteen investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $184.72.

Institutional Trading of Brinker International

Several hedge funds have recently modified their holdings of EAT. Allworth Financial LP lifted its position in shares of Brinker International by 58.5% during the 3rd quarter. Allworth Financial LP now owns 225 shares of the restaurant operator’s stock valued at $28,000 after acquiring an additional 83 shares during the period. CIBC Private Wealth Group LLC increased its stake in Brinker International by 342.5% in the third quarter. CIBC Private Wealth Group LLC now owns 1,394 shares of the restaurant operator’s stock valued at $177,000 after purchasing an additional 1,079 shares in the last quarter. CIBC Bancorp USA Inc. acquired a new position in shares of Brinker International during the third quarter valued at about $598,000. Danske Bank A S bought a new position in shares of Brinker International during the 3rd quarter worth about $2,446,000. Finally, Caitong International Asset Management Co. Ltd bought a new position in shares of Brinker International during the 3rd quarter worth about $25,000.

About Brinker International

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.