Brinker beats Q2 revenue and profit estimates, raises forecast

Overview

• Casual dining firm's fiscal Q2 revenue beat analyst expectations

• Adjusted EPS for fiscal Q2 beat analyst expectations

• Company repurchased $100 mln of common stock during the quarter

Outlook

• Brinker raises fiscal 2026 revenue guidance to $5.76 bln - $5.83 bln

• Company revises fiscal 2026 net income per share guidance to $10.45 - $10.85

• Brinker lowers fiscal 2026 capital expenditures to $250 mln - $260 mln

Result Drivers

• CHILI'S PERFORMANCE - Chili's saw a 9% growth in comparable sales, driven by menu enhancements, competitive pricing, and improved guest experiences

• MAGGIANO'S STRATEGY - Maggiano's focused on 'Back to Maggiano's' strategy to improve performance through food, service, and atmosphere enhancements

• MARGIN IMPROVEMENT - Company improved margins at Chili's supported by higher sales and ongoing investments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the restaurants & bars peer group is "buy"

• Wall Street's median 12-month price target for Brinker International Inc is $180.00, about 14.4% above its January 27 closing price of $157.29

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nPn1k7d9la

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