Brinker International (NYSE:EAT) Announces Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Brinker International (NYSE:EAT) issued its earnings results on Wednesday. The restaurant operator reported $3.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.09 by ($0.02), FiscalAI reports. The business had revenue of $1.54 billion for the quarter, compared to analysts’ expectations of $1.53 billion. Brinker International had a return on equity of 127.82% and a net margin of 8.39%.The company’s revenue for the quarter was up 5.1% on a year-over-year basis. During the same period last year, the business earned $2.30 EPS. 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 Down 0.3%

EAT opened at $237.91 on Friday. Brinker International has a 52 week low of $100.30 and a 52 week high of $253.71. The company has a quick ratio of 0.35, a current ratio of 0.40 and a debt-to-equity ratio of 1.05. The business has a fifty day simple moving average of $185.01 and a 200-day simple moving average of $160.19. The firm has a market cap of $10.20 billion, a P/E ratio of 21.87, a P/E/G ratio of 1.41 and a beta of 1.24.

Analyst Ratings Changes

A number of brokerages recently weighed in on EAT. Bank of America raised their price target on shares of Brinker International from $224.00 to $310.00 and gave the company a “buy” rating in a research note on Friday. Weiss Ratings raised Brinker International from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday. DA Davidson lifted their price target 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 raised their price objective on Brinker International from $175.00 to $230.00 and gave the company a “market perform” rating in a report on Thursday. Finally, Barclays upped their target price on shares of Brinker International from $170.00 to $175.00 and gave the stock an “equal weight” rating in a report on Thursday, April 30th. Sixteen investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Brinker International presently has an average rating of “Moderate Buy” and an average price target of $234.35.

Key Brinker International News

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

• Positive Sentiment: Analyst optimism increased: Bank of America raised its price target to $310 and maintained a Buy rating. Citigroup, Wells Fargo, KeyCorp, Stephens, Mizuho and TD Cowen also lifted their targets, generally citing stronger expected sales, earnings and operating momentum. These Analysts Boost Their Forecasts On Brinker Following Q4 Earnings
• Positive Sentiment: Chili’s continues to drive growth: Fourth-quarter revenue reached $1.54 billion, above the $1.53 billion consensus, while Chili’s benefited from stronger traffic, same-store sales and demand for new chicken-sandwich offerings. Expanding margins and digital takeout initiatives are also supporting the bullish narrative. Brinker Q4 Earnings Meet Estimates, Revenues Beat on Chili’s Growth
• Positive Sentiment: Fiscal 2027 outlook was stronger than expected: Management forecast adjusted EPS of $12.60 to $13.40, with analysts averaging approximately $12.84. The outlook for continued revenue and earnings growth helped offset the modest quarterly EPS miss of $3.07 versus the $3.09 consensus.
• Neutral Sentiment: Jim Cramer highlighted Brinker’s 21-quarter winning streak and brand strength on Mad Money, providing additional visibility for EAT. However, commentary also pointed to underlying results that are more complicated than the headline Chili’s figures suggest. Jim Cramer Says Brinker Is Winning on Value
• Negative Sentiment: Northcoast Research downgraded Brinker from Buy to Neutral. The move may temper the positive impact from other target increases, particularly after EAT’s sharp rally and elevated valuation near 22 times earnings.

Hedge Funds Weigh In On Brinker International

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. NewEdge Advisors LLC raised its position in Brinker International by 1,118.9% in the 1st quarter. NewEdge Advisors LLC now owns 1,158 shares of the restaurant operator’s stock valued at $173,000 after purchasing an additional 1,063 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Brinker International by 271.1% during the second quarter. EverSource Wealth Advisors LLC now owns 846 shares of the restaurant operator’s stock worth $153,000 after buying an additional 618 shares during the period. First Trust Advisors LP increased its stake in shares of Brinker International by 1.9% during the second quarter. First Trust Advisors LP now owns 52,249 shares of the restaurant operator’s stock worth $9,422,000 after buying an additional 978 shares during the period. Baird Financial Group Inc. acquired a new stake in Brinker International in the second quarter valued at approximately $3,222,000. Finally, Brown Advisory Inc. raised its holdings in Brinker International by 33.0% in the second quarter. Brown Advisory Inc. now owns 1,789 shares of the restaurant operator’s stock valued at $323,000 after acquiring an additional 444 shares in the last quarter.

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.