Brinker International (NYSE:EAT) Issues Earnings Results, Misses Expectations By $0.03 EPS

Brinker International (NYSE:EAT) released its earnings results on Wednesday. The restaurant operator reported $3.07 earnings per share for the quarter, missing the consensus estimate of $3.10 by ($0.03), FiscalAI reports. The company had revenue of $1.54 billion during the quarter, compared to analyst estimates of $1.53 billion. Brinker International had a net margin of 8.07% and a return on equity of 123.22%. The company’s quarterly revenue was up 5.1% compared to the same quarter last year. During the same period in the previous year, the company posted $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 Stock Up 12.5%

Shares of NYSE:EAT traded up $27.61 during mid-day trading on Wednesday, reaching $248.99. 1,376,640 shares of the stock were exchanged, compared to its average volume of 1,165,190. The stock’s 50 day simple moving average is $180.87 and its 200-day simple moving average is $159.07. Brinker International has a one year low of $100.30 and a one year high of $249.91. The company has a market cap of $10.68 billion, a P/E ratio of 24.41, a P/E/G ratio of 1.35 and a beta of 1.23. The company has a quick ratio of 0.35, a current ratio of 0.40 and a debt-to-equity ratio of 1.05.

Hedge Funds Weigh In On Brinker International

Several hedge funds have recently made changes to their positions in EAT. NewEdge Advisors LLC boosted its holdings in Brinker International by 1,118.9% during the first quarter. NewEdge Advisors LLC now owns 1,158 shares of the restaurant operator’s stock worth $173,000 after purchasing an additional 1,063 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in shares of Brinker International by 271.1% during the 2nd 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 last quarter. First Trust Advisors LP grew its holdings in shares of Brinker International by 1.9% in the 2nd quarter. First Trust Advisors LP now owns 52,249 shares of the restaurant operator’s stock valued at $9,422,000 after acquiring an additional 978 shares in the last quarter. Baird Financial Group Inc. acquired a new stake in shares of Brinker International in the second quarter valued at about $3,222,000. Finally, Brown Advisory Inc. increased its position in shares of 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 during the last quarter.

Key Brinker International News

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

• Positive Sentiment: Brinker reported fiscal fourth-quarter revenue of $1.54 billion, above the $1.53 billion consensus estimate, while revenue grew 5.1% year over year. Chili’s continued to drive performance, marking five consecutive years of same-store sales growth and a cumulative 71% increase over that period. Brinker fiscal 2026 results and fiscal 2027 guidance
• Positive Sentiment: Fiscal 2027 earnings-per-share guidance of $12.60 to $13.40 topped the $12.47 analyst consensus, while revenue guidance of $6.2 billion to $6.3 billion exceeded the $6.1 billion consensus. The outlook suggests management expects continued sales strength and operating leverage. Bank of America maintains Buy rating
• Positive Sentiment: Brinker announced expanded share buybacks, providing an additional potential support for per-share earnings and signaling management confidence in future cash generation. Bank of America reiterated its Buy rating, and UBS raised its price target to $260 while maintaining a Buy rating. UBS raises Brinker price target
• Neutral Sentiment: Fourth-quarter EPS was $3.07, up from $2.30 a year earlier. Results were described as matching the Zacks consensus, although other estimates placed expectations at $3.10, indicating only a marginal earnings miss. Brinker matches Q4 earnings estimates
• Negative Sentiment: Brinker’s elevated valuation remains a risk. A recent analysis argued that the stock’s strong rally has increased the need for new growth opportunities beyond its current Chili’s momentum, potentially limiting upside if sales trends moderate. Brinker valuation analysis

Analyst Ratings Changes

EAT has been the topic of several recent analyst reports. Stephens initiated coverage on shares of Brinker International in a research note on Friday, July 17th. They set an “overweight” rating and a $220.00 price objective on the stock. TD Cowen lifted their price target on shares of Brinker International from $170.00 to $210.00 and gave the stock a “buy” rating in a research report on Monday, July 20th. UBS Group boosted their price target on shares of Brinker International from $190.00 to $260.00 and gave the company a “buy” rating in a report on Monday. Barclays raised their price objective on Brinker International from $170.00 to $175.00 and gave the stock an “equal weight” rating in a research note on Thursday, April 30th. Finally, Citigroup boosted their target price on Brinker International from $189.00 to $227.00 and gave the company a “buy” rating in a research note on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $196.75.

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.