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

Brinker International (NYSE:EAT) posted its quarterly earnings data on Wednesday. The restaurant operator reported $2.87 EPS for the quarter, topping analysts’ consensus estimates of $2.53 by $0.34, Zacks reports. The business had revenue of $1.45 billion for the quarter, compared to analyst estimates of $1.41 billion. Brinker International had a return on equity of 134.92% and a net margin of 7.98%.The firm’s revenue for the quarter was up 6.9% on a year-over-year basis. During the same period in the previous year, the company posted $2.80 earnings per share. 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 Price Performance

Shares of NYSE EAT traded down $6.55 during mid-day trading on Friday, hitting $154.09. 209,457 shares of the stock were exchanged, compared to its average volume of 1,179,041. The company has a market cap of $6.85 billion, a P/E ratio of 15.59, a PEG ratio of 1.13 and a beta of 1.34. Brinker International has a twelve month low of $100.30 and a twelve month high of $192.21. The stock’s fifty day simple moving average is $151.34 and its two-hundred day simple moving average is $144.24. The company has a debt-to-equity ratio of 1.19, a quick ratio of 0.29 and a current ratio of 0.36.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. BMO Capital Markets upped their target price on shares of Brinker International from $140.00 to $170.00 and gave the company a “market perform” rating in a research note on Tuesday, January 6th. Citigroup boosted their price objective on shares of Brinker International from $187.00 to $190.00 and gave the stock a “buy” rating in a report on Thursday. Raymond James Financial upgraded shares of Brinker International from a “market perform” rating to an “outperform” rating and set a $195.00 target price for the company in a research note on Wednesday, January 21st. Jefferies Financial Group boosted their price target on Brinker International from $155.00 to $175.00 and gave the company a “hold” rating in a research note on Thursday. Finally, Morgan Stanley raised their price objective on Brinker International from $200.00 to $205.00 and gave the stock an “overweight” rating in a research report on Thursday. Twelve analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $188.56.

Key Brinker International News

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

• Positive Sentiment: Q2 results beat expectations: Brinker reported $2.87 EPS vs. $2.53 expected and revenue of $1.45B, with management highlighting a Chili’s turnaround that drove comparable sales and margins — this triggered an initial gap-up in the stock. Brinker International (NYSE:EAT) Shares Gap Up Following Strong Earnings
• Positive Sentiment: Analysts materially raised targets and ratings after the print — notable raises include Morgan Stanley ($205, overweight), Goldman Sachs ($200, buy), UBS/Citigroup/JPMorgan and others — reinforcing upside expectations. Analyst Price Target Notes
• Positive Sentiment: Management commentary and call materials emphasize Chili’s as the primary driver of the quarter’s improvement (menu/mix, traffic, and operational leverage), supporting the thesis for sustained margin recovery. How a Chili’s turnaround is leading Brinker to a big earnings beat
• Neutral Sentiment: Coverage of the quarter and transcripts provide detail on comps, unit trends and the company’s FY outlook — useful for modeling but not a single catalyst by itself. Earnings Presentation
• Neutral Sentiment: Industry/peer context: Zacks and others compare Brinker’s performance to retail/wholesale peers and sector trends — confirms relative strength but also shows competitive/consumer risks to monitor. Is Brinker Outpacing Peers?
• Negative Sentiment: Short-term pullback/volatility after the post-earnings rally — the stock initially gapped up and some investors appear to be locking gains; trading volume is below average on the day of the pullback.
• Negative Sentiment: Balance-sheet and liquidity ratios may concern some investors (reported current ratio and quick ratio are low relative to peers, and debt-to-equity is material), which can cap multiple expansion despite operational improvement.

Institutional Trading of Brinker International

Hedge funds have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd bought a new position in Brinker International in the 3rd quarter valued at $25,000. Allworth Financial LP raised its holdings in Brinker International by 58.5% during the 3rd quarter. Allworth Financial LP now owns 225 shares of the restaurant operator’s stock worth $28,000 after purchasing an additional 83 shares during the last quarter. Quarry LP raised its holdings in Brinker International by 52.2% during the 3rd quarter. Quarry LP now owns 615 shares of the restaurant operator’s stock worth $78,000 after purchasing an additional 211 shares during the last quarter. Rakuten Securities Inc. lifted its position in Brinker International by 481.6% during the 2nd quarter. Rakuten Securities Inc. now owns 599 shares of the restaurant operator’s stock valued at $108,000 after purchasing an additional 496 shares during the period. Finally, EverSource Wealth Advisors LLC boosted its stake in shares of Brinker International by 271.1% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 846 shares of the restaurant operator’s stock valued at $153,000 after purchasing an additional 618 shares during the last quarter.

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.