Brinker International Surpasses Expectations with Strong Quarter
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Sales Growth Highlight: Brinker International (EAT) achieved $1.45 billion in sales for Q2, a 7.4% year-over-year increase that exceeded expectations by $40 million, primarily driven by an 8.6% surge in comparable sales at Chili's, showcasing its strong market appeal.
- Profitability Improvement: Adjusted earnings per share reached $2.87, up 2.5% year-over-year and beating market expectations by $0.24, reflecting effective strategies in cost control and sales growth.
- Optimistic Outlook: Brinker raised its revenue guidance for fiscal 2026 to a range of $5.76 billion to $5.83 billion, up from the previous $5.60 billion to $5.70 billion, indicating strong confidence in future growth.
- Investment Adjustment Strategy: The company plans to reduce capital expenditures by $20 million to $30 million to optimize resource allocation in response to market challenges while maintaining profitability.
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Analyst Views on EAT
Wall Street analysts forecast EAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EAT is 172.86 USD with a low forecast of 145.00 USD and a high forecast of 210.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
11 Buy
5 Hold
0 Sell
Moderate Buy
Current: 156.640
Low
145.00
Averages
172.86
High
210.00
Current: 156.640
Low
145.00
Averages
172.86
High
210.00
About EAT
Brinker International, Inc. is a casual dining restaurant company. The Company owns, develops, operates and franchises the Chili’s Grill & Bar (Chili’s) and Maggiano’s Little Italy (Maggiano’s) restaurant brands. The Company operates through two segments: Chili’s and Maggiano’s. The Chili’s segment includes its Company-owned Chili’s restaurants, which are principally located in the United States, within the full-service casual dining segment of the industry. The Chili’s segment also includes its Canadian Company-owned restaurants and royalties from its franchised locations in the United States, 27 other countries and two United States territories. The Maggiano’s segment includes its Company-owned Maggiano's restaurants in the United States as well as royalties from its domestic franchise business. It owns, operates or franchises more than 1,600 restaurants in the United States and 27 other countries and two United States territories.
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 Shares Climb Following Strong Chili's Earnings and Upgraded Forecast
Company Overview: Brinker International, the parent company of Chili’s Grill & Bar and Maggiano’s Little Italy, has reported quarterly results that exceeded expectations.
Stock Performance: Following the positive earnings report, Brinker’s stock rose nearly 6% in premarket trading, continuing an upward trend since November.
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Brinker (EAT) Set to Release FQ2 Earnings on January 28
- Earnings Announcement: Brinker (EAT) is scheduled to announce its FQ2 earnings on January 28 before market open, with consensus EPS estimate at $2.63 and revenue at $1.41 billion, indicating strong investor interest in the company's performance.
- Historical Performance: Over the past two years, Brinker has beaten EPS estimates 100% of the time and revenue estimates 75% of the time, demonstrating the company's stability in profitability and market confidence.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen 8 upward revisions and 9 downward revisions, while revenue estimates have experienced 10 upward and 4 downward revisions, indicating mixed market sentiment regarding Brinker’s future performance.
- Market Reaction Potential: Given Brinker's historical performance and current expectation revisions, investors are likely to closely monitor the upcoming earnings report to assess the company's ongoing growth potential in the competitive restaurant industry.
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