Brinker International (NYSE:EAT) Releases Earnings Results, Beats Expectations By $0.32 EPS

Brinker International (NYSE:EAT) issued its earnings results on Wednesday. The restaurant operator reported $2.77 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.45 by $0.32, Zacks reports. The business had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.46 billion. Brinker International had a net margin of 8.39% and a return on equity of 122.35%. The company’s revenue for the quarter was up 9.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.17 EPS.

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 Stock Performance

NYSE:EAT traded up $28.57 during midday trading on Wednesday, reaching $225.29. 2,009,718 shares of the company traded hands, compared to its average volume of 1,197,199. Brinker International has a twelve month low of $100.30 and a twelve month high of $254.99. The firm has a market capitalization of $9.41 billion, a price-to-earnings ratio of 20.66, a price-to-earnings-growth ratio of 0.95 and a beta of 1.25. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.45 and a quick ratio of 0.40. The company has a fifty day moving average price of $210.42 and a 200 day moving average price of $173.76.

Key Brinker International News

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

• Positive Sentiment: Quarterly results exceeded estimates. Brinker reported adjusted earnings of $2.77 per share, above analysts’ $2.45–$2.49 expectations, while revenue of $1.48 billion topped the $1.46 billion consensus. Revenue increased 9.4% year over year. Brinker International Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Chili’s delivered another strong comparable-sales performance. Same-store sales rose 10%, marking the brand’s 22nd consecutive quarter of growth. The result was achieved against difficult comparisons, including a 21% increase in the prior-year period, highlighting sustained customer traffic and brand momentum. Brinker International Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Fiscal 2027 guidance was raised. Brinker now expects adjusted earnings per share of $13.30 to $13.90, slightly above the $13.28 FactSet consensus. The higher forecast signals management’s confidence that Chili’s sales strength and operating performance can continue. Brinker Fiscal 2027 EPS Outlook
• Neutral Sentiment: The results reinforce that Chili’s is the primary growth engine for Brinker, while investors will watch whether the company can maintain double-digit comparable sales as it faces increasingly challenging year-ago comparisons. Brinker Rallies After Chili’s Results

Insider Transactions at Brinker International

In related news, SVP James M. Butler sold 10,000 shares of the stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $240.37, for a total value of $2,403,700.00. Following the sale, the senior vice president owned 9,064 shares of the company’s stock, valued at $2,178,713.68. This trade represents a 52.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director James C. Katzman sold 650 shares of Brinker International stock in a transaction dated Wednesday, September 9th. The shares were sold at an average price of $220.09, for a total transaction of $143,058.50. Following the completion of the sale, the director owned 25,094 shares in the company, valued at approximately $5,522,938.46. This represents a 2.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 173,694 shares of company stock valued at $41,568,690 over the last three months. 1.18% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on EAT. Bank of America boosted their price target on Brinker International from $224.00 to $310.00 and gave the company a “buy” rating in a report on Friday, August 14th. TD Cowen reduced their price objective on Brinker International from $270.00 to $250.00 and set a “buy” rating on the stock in a research note on Friday, October 16th. UBS Group raised their price objective on Brinker International from $190.00 to $260.00 and gave the stock a “buy” rating in a research note on Monday, August 10th. Citigroup decreased their price objective on shares of Brinker International from $282.00 to $270.00 and set a “buy” rating for the company in a report on Monday, October 19th. Finally, BMO Capital Markets boosted their target price 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, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, Brinker International currently has an average rating of “Moderate Buy” and an average price target of $249.45.

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.