Brinker International Upgraded Amid Strong Sales Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 29 2025
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Should l Buy EAT?
Source: SeekingAlpha
Brinker International Inc. saw its stock rise by 5.65% as it reached a 20-day high, reflecting positive investor sentiment.
KeyBanc analysts have upgraded Brinker International's rating from Sector Weight to Overweight, driven by projected 6% growth in same-store sales at Chili's for Q4 2026, surpassing expectations. Additionally, the EPS estimate for fiscal 2026 has been raised from $10.65 to $10.72, indicating improved profitability. The upcoming launch of a new chicken sandwich platform is also expected to enhance sales further.
This upgrade and positive sales outlook suggest that Brinker is well-positioned for continued growth, making it an attractive investment opportunity as the company capitalizes on its strong brand and market strategies.
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Analyst Views on EAT
Wall Street analysts forecast EAT stock price to rise
18 Analyst Rating
13 Buy
5 Hold
0 Sell
Moderate Buy
Current: 144.940
Low
155.00
Averages
188.00
High
210.00
Current: 144.940
Low
155.00
Averages
188.00
High
210.00
About EAT
Brinker International, Inc. is a casual dining restaurant company. The Company owns, operates or franchises the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) restaurant brands. It includes approximately 1,600 restaurants across 31 countries and two United States territories, serving flavors, handcrafted drinks, and hospitality. Its segments include Chili’s and Maggiano’s. The Chili’s segment is principally located in the United States and operates within the full-service casual dining segment of the industry. The Maggiano’s segment offers carry-out and delivery options with delivery service which makes restaurants more accessible to guests. It also offers banquet rooms to host large special events, particularly during the holiday season. Its 3 for Me platform, offers non-alcoholic drink, appetizer and entrees for guests. Its To-Go menu is available through Chili’s mobile application, chilis.com, and delivery partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Brinker International Surprises with Better-Than-Expected Earnings Amid Inflation
- Earnings Surprise: Brinker International reported Q3 2026 adjusted EPS of $2.90, exceeding the $2.86 estimate, with revenue reaching $1.47 billion, demonstrating strong performance despite cost pressures.
- Sustained Sales Growth: Chili's achieved its 20th consecutive quarter of comparable sales growth at 4.0%, despite a high base of 31.6%, indicating brand resilience and stable consumer preferences.
- Profitability Improvement: Operating income rose 6.18% year-over-year to $166.6 million, with net income at $127.9 million, reflecting the company's ability to maintain profitability in a high-cost environment, boosting investor confidence.
- Optimistic Outlook: Brinker raised its FY2026 EPS guidance to $10.60-$10.85 and narrowed revenue guidance to $5.78 billion-$5.82 billion, showcasing management's confidence in future performance.
See More
BRINKER INTERNATIONAL INC: TD COWEN LOWERS TARGET PRICE FROM $188 TO $170
- Target Price Adjustment: TD Cowen has cut the target price for Brinker International from $188 to $170.
- Market Impact: This adjustment reflects changes in market conditions and expectations for the company's performance.
See More
Brinker International Q3 FY2026 Earnings Call Insights
- Sustained Growth: Chili's reported a 4% increase in same-store sales for Q3, marking the 20th consecutive quarter of growth and outperforming the casual dining industry by 420 basis points, indicating strong brand performance and competitiveness in the market.
- Positive Product Response: The newly launched chicken sandwich platform has seen sales 161% higher than pre-launch expectations, demonstrating high consumer acceptance and likely to further drive sales growth and market share expansion.
- Strong Financial Performance: Brinker reported total revenues of $1.47 billion with adjusted diluted EPS of $2.90, although restaurant operating margins slightly decreased to 18.4%, the overall financial health remains robust, reflecting the company's efforts in cost control.
- Optimistic Outlook: The company updated its fiscal 2026 revenue guidance to a range of $5.78 billion to $5.82 billion, with adjusted diluted EPS expected between $10.60 and $10.85, showcasing management's confidence in future performance despite macroeconomic pressures.
See More
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- Brinker International Strong Performance: Brinker International's stock jumped about 13% as its third-quarter adjusted earnings reached $2.90 per share, exceeding the market expectation of $2.86, and the company raised its full-year earnings forecast, showcasing business resilience.
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- Bond Yield Impact: Rising oil prices have led to increasing bond yields, causing Home Depot's stock to decline over 7% year-to-date, indicating that high yields may pressure the housing market recovery and overall economic revival.
- Microsoft Earnings Expectations: Investors are anticipating earnings from Microsoft, one of the 'Magnificent Seven', with Jim Cramer expressing concern that the company may overlook Wall Street's worries about its Copilot product; if it fails to address these concerns, the stock could drop further, having already fallen about 12% year-to-date.
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Brinker International Reports Strong Q3 Earnings with Sales Growth
- Significant Sales Growth: Brinker International reported a 3.3% increase in comparable restaurant sales for Q3, with Chili's achieving a 4.0% growth, demonstrating strong market performance, especially after last year's tough 31% comparison, marking the 20th consecutive quarter of same-store sales growth.
- Chili's Strong Performance: Chili's comparable restaurant sales rose 5.9% in February and March, despite only a 0.6% increase in January due to Winter Storm Fern and a holiday shift, indicating sustained brand appeal and reinforcing customer loyalty through positive traffic.
- Stable Profitability: Although restaurant operating margin slipped 50 basis points to 18.4%, adjusted EBITDA reached $223.7 million, surpassing last year's $220.6 million, reflecting ongoing efforts in cost control and operational efficiency.
- Optimistic Future Outlook: Brinker anticipates FY26 revenue between $5.78 billion and $5.82 billion, with EPS projected at $10.45 to $10.85, slightly below the consensus of $10.69, yet still indicating confidence in future growth prospects.
See More
Brinker International Surprises with Better-Than-Expected Earnings Amid Inflation
- Earnings Surprise: Brinker International reported Q3 2026 adjusted EPS of $2.90, exceeding the $2.86 estimate, with revenue reaching $1.47 billion, demonstrating strong performance despite cost pressures.
- Sustained Sales Growth: Chili's achieved its 20th consecutive quarter of comparable sales growth at 4.0%, despite a high base of 31.6%, indicating brand resilience and stable consumer preferences.
- Profitability Improvement: Operating income rose 6.18% year-over-year to $166.6 million, with net income at $127.9 million, reflecting the company's ability to maintain profitability in a high-cost environment, boosting investor confidence.
- Optimistic Outlook: Brinker raised its FY2026 EPS guidance to $10.60-$10.85 and narrowed revenue guidance to $5.78 billion-$5.82 billion, showcasing management's confidence in future performance.
See More
BRINKER INTERNATIONAL INC: TD COWEN LOWERS TARGET PRICE FROM $188 TO $170
- Target Price Adjustment: TD Cowen has cut the target price for Brinker International from $188 to $170.
- Market Impact: This adjustment reflects changes in market conditions and expectations for the company's performance.
See More
Brinker International Q3 FY2026 Earnings Call Insights
- Sustained Growth: Chili's reported a 4% increase in same-store sales for Q3, marking the 20th consecutive quarter of growth and outperforming the casual dining industry by 420 basis points, indicating strong brand performance and competitiveness in the market.
- Positive Product Response: The newly launched chicken sandwich platform has seen sales 161% higher than pre-launch expectations, demonstrating high consumer acceptance and likely to further drive sales growth and market share expansion.
- Strong Financial Performance: Brinker reported total revenues of $1.47 billion with adjusted diluted EPS of $2.90, although restaurant operating margins slightly decreased to 18.4%, the overall financial health remains robust, reflecting the company's efforts in cost control.
- Optimistic Outlook: The company updated its fiscal 2026 revenue guidance to a range of $5.78 billion to $5.82 billion, with adjusted diluted EPS expected between $10.60 and $10.85, showcasing management's confidence in future performance despite macroeconomic pressures.
See More
Stock Price Movements of Various Companies
- Regeneron Stock Decline: Regeneron shares fell nearly 6% despite reaffirming its full-year adjusted gross margin forecast of 83% to 84%, while the board authorized a $3 billion share repurchase program, indicating confidence in future growth.
- GE HealthCare Downgrade: GE HealthCare's stock tumbled 12% after it lowered its full-year adjusted earnings forecast to a range of $4.80 to $5 per share, down from $4.95 to $5.15, reflecting significant earnings pressure on the company.
- Brinker International Strong Performance: Brinker International's stock jumped about 13% as its third-quarter adjusted earnings reached $2.90 per share, exceeding the market expectation of $2.86, and the company raised its full-year earnings forecast, showcasing business resilience.
- NXP Semiconductors Surge: NXP Semiconductors saw a nearly 25% stock increase after reporting first-quarter adjusted earnings of $3.05 per share, surpassing analyst expectations of $2.95, with revenue of $3.18 billion also exceeding forecasts, indicating strong market performance.
See More
Market Dynamics Ahead of Fed's Rate Decision
- Fed Policy Meeting: Ahead of the Federal Reserve's interest rate decision on Wednesday afternoon, the S&P 500 showed little change, with no rate change expected; if confirmed, Kevin Warsh will take over as Fed chair in May, leaving the market uncertain about future policy directions.
- Bond Yield Impact: Rising oil prices have led to increasing bond yields, causing Home Depot's stock to decline over 7% year-to-date, indicating that high yields may pressure the housing market recovery and overall economic revival.
- Microsoft Earnings Expectations: Investors are anticipating earnings from Microsoft, one of the 'Magnificent Seven', with Jim Cramer expressing concern that the company may overlook Wall Street's worries about its Copilot product; if it fails to address these concerns, the stock could drop further, having already fallen about 12% year-to-date.
- Corning Stock Performance: Corning shares fell another 3% on Wednesday, following a nearly 9% drop the previous day, and Jim sees this as an opportunity to start a position in Corning, which, despite a 70% rise in 2026, faced high market expectations leading to its recent decline.
See More
Brinker International Reports Strong Q3 Earnings with Sales Growth
- Significant Sales Growth: Brinker International reported a 3.3% increase in comparable restaurant sales for Q3, with Chili's achieving a 4.0% growth, demonstrating strong market performance, especially after last year's tough 31% comparison, marking the 20th consecutive quarter of same-store sales growth.
- Chili's Strong Performance: Chili's comparable restaurant sales rose 5.9% in February and March, despite only a 0.6% increase in January due to Winter Storm Fern and a holiday shift, indicating sustained brand appeal and reinforcing customer loyalty through positive traffic.
- Stable Profitability: Although restaurant operating margin slipped 50 basis points to 18.4%, adjusted EBITDA reached $223.7 million, surpassing last year's $220.6 million, reflecting ongoing efforts in cost control and operational efficiency.
- Optimistic Future Outlook: Brinker anticipates FY26 revenue between $5.78 billion and $5.82 billion, with EPS projected at $10.45 to $10.85, slightly below the consensus of $10.69, yet still indicating confidence in future growth prospects.
See More
