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Brinker shares soar as restaurant chain delivers Q2 beat, solid guidance

Investing.comJan 29, 2025 12:30 PM
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Investing.com -- Brinker International (NYSE:EAT) saw its shares jump more than 7% in premarket trading Wednesday after the restaurant chain reported better-than-expected results for the fiscal Q2 of 2025 and updated its full-year guidance.

Brinker reported Q2 earnings per share (EPS) of $2.80, topping analyst expectations of $1.56. Revenue for the quarter totaled $1.36 billion, also above the consensus estimate of $1.19 billion.

System-wide comparable sales grew 24.2% compared to 4.4% in the prior year, well ahead of the expected 14.2% increase.

The company reported a non-GAAP restaurant operating margin of 19.1%, up from 11.6% a year ago, and surpassing the 15.9% estimated by analysts.

"Improving fundamentals continues to drive a better guest experience and sustained business results," said Kevin Hochman, President and CEO of Brinker International.

"Chili's sales comps accelerated to +31%, driven both by new guests trying Chili's and return guests coming more frequently despite a more competitive promotional environment. These results would indicate we are building a much stronger business for the long term."

For fiscal 2025, the company expects EPS in the range of $7.50 to $8.00, significantly higher than the consensus forecast of $6.44.

Full-year revenue is projected between $5.15 billion and $5.25 billion, higher than the anticipated $4.902 billion.

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