Brinker slides despite Q3 results beat, forecast raise

Shares of Chilli's owner Brinker International EAT.N slide almost 13.9% to $138.43 despite Q3 results beat, forecast raise

Jim Sanderson, analyst at Northcoast Research, says the big issue for the co is sustainability and whether Chilli's can sustain this level of outperformance with consumer sentiment declining due to tariffs, fears of recession

"My expectation would be investors, once they take a closer look at the fundamentals, will probably want to take a more bullish outlook," Sanderson said on a call.

EAT raises FY 2025 adj. EPS forecast to between $8.50 and $8.75 from previous forecast of $7.50 to $8

EAT raises FY revenue forecast to between $5.33 bln and $5.35 bln from earlier estimate of $5.15 bln to $5.25 bln

Co reports Q3 adj. EPS of $2.66 and rev of $1.43 bln, beating Wall Street estimates of $2.56 and $1.39 bln, respectively - data compiled by LSEG

Comparable restaurant sales grow 28.2% from a year earlier; Chilli's sales increase 31.6%, Maggiano's Little Italy increase 0.4%

Chili's sales grow due to menu item mix and menu pricing; Maggiano's driven by menu pricing

5 of 21 analysts rate stock "buy" or higher, 16 "hold"; Median PT is $170

Including current session, EAT up 4.7% YTD