Key Takeaways OWLT delivers an average four-quarter positive earnings surprise of 87.8% after passing the efficiency screen.TCBI posts a 15.1% average four-quarter earnings surprise while serving major Texas metro clients.WDC develops NAND flash and HDD storage solutions and shows an 11.2% average four-quarter earnings surprise.The efficiency ratio is an indication of a company’s financial health. It analyzes how efficiently a company uses its assets and liabilities internally.However, at times, it becomes ...

Key Takeaways ARMK benefits from steady restaurant sales and provides food services across healthcare, education and venues.EAT sees improved earnings estimates as Chili's and Maggiano's drive demand in casual dining.BJRI targets high-end casual dining with broad menus for everyday meals, occasions and late-night traffic.High prices have been posing a challenge for consumers, who have been spending cautiously. However, the retail sector has shown immense resilience amid price challenges and inflationary pre ...

Brinker International, Inc. (NYSE:EAT) is one of the stocks Jim Cramer shed light on recently. Cramer highlighted the company’s “impressive” quarter, as he said: A couple of days ago, we got this really impressive quarter from Brinker International. That’s the parent company of Chili’s and Maggiano’s. This was a 25-cent earnings beat off a $2.62 basis. Higher than expected revenue, which is what I really like to see from a restaurant. Chili’s saw same store sales grow at 8.6%. That’s incredible. Wall Stre ...

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Some of the most successful restaurant brands have positioned themselves favorably by making managers (or operators) ownership partners. Think of chains like Texas Roadhouse, Chick-fil-A, Raising Cane’s, or even smaller ones like Waldo’s Chicken and Beer; though those examples differ in the details, the objective is the same — giving operators or general managers more skin in the game so they are compelled to run better r ...

Restaurant Operations - As of December 24, 2025, the company owned, operated, or franchised a total of 1,627 restaurants, including 1,160 company-owned and 467 franchised locations[63]. - The company plans to open 32 to 38 new restaurants in fiscal 2026, with 6 openings projected for the full year as of December 24, 2025[69]. - The company has strategically pursued international expansion, with 10 new franchise restaurant openings and one new development agreement during the twenty-six-week period ended December 24, 2025[68]. Financial Performance - Total revenues for the thirteen-week period ended December 24, 2025, increased to $1,452.2 million, up from $1,358.2 million for the same period in 2024, reflecting a change of 6.9%[71]. - Total revenues for the Chili's segment increased by 9.0% to $1,317.3 million, driven by favorable comparable restaurant sales and higher traffic[86]. - Chili's total revenues increased by 14.6% to $2,567.0 million for the twenty-six week period ended December 24, 2025, compared to $2,239.2 million for the same period in 2024[90]. - Maggiano's total revenues decreased by 9.7% to $134.9 million for the thirteen week period ended December 24, 2025, compared to $149.4 million for the same period in 2024, primarily due to restaurant closures[95]. Comparable Sales and Traffic - Comparable restaurant sales for company-owned locations increased by 7.5% in the thirteen-week period ended December 24, 2025, driven by a price impact of 4.6% and a traffic impact of 1.4%[73]. - Franchise revenues increased due to higher royalties, with Chili's franchisee sales reaching $271.9 million in the thirteen-week period ended December 24, 2025, compared to $232.3 million in the same period in 2024[73]. Cost Management - Food and beverage costs increased to $370.5 million, representing 25.7% of company sales, with a 0.2% unfavorable variance due to higher commodity costs and unfavorable menu item mix[76]. - Restaurant labor costs rose to $446.4 million, accounting for 31.0% of company sales, with a favorable variance of 0.3% attributed to sales leverage[76]. - Food and beverage costs for the twenty-six week period ended December 24, 2025, were $715.1 million, with a 0.4% unfavorable variance due to commodity costs[81]. - Chili's food and beverage costs were unfavorable by 0.1%, primarily due to a 0.9% unfavorable menu item mix and 0.2% unfavorable commodity costs, partially offset by 1.2% favorable menu pricing[89]. - Maggiano's food and beverage costs were unfavorable by 2.6%, driven by a 3.0% unfavorable menu item mix and 0.7% unfavorable commodity costs, partially offset by 1.1% favorable menu pricing[99]. - Maggiano's food and beverage costs were unfavorable by 2.3%, driven by a 2.8% unfavorable menu item mix and 0.6% higher commodity costs, partially offset by 1.1% favorable menu pricing[104]. Expenses - General and administrative expenses increased by $6.6 million to $59.7 million, primarily due to higher payroll expenses and stock-based compensation[78]. - Chili's general and administrative expenses increased by $3.3 million to $27.3 million for the twenty-six week period ended December 24, 2025, compared to $24.0 million for the same period in 2024[94]. - Depreciation and amortization rose to $54.6 million, reflecting an increase of $6.9 million from the previous year[78]. - Chili's depreciation and amortization increased by $11.9 million to $94.2 million for the twenty-six week period ended December 24, 2025, compared to $82.3 million for the same period in 2024[92]. Cash Flow and Financing - Net cash provided by operating activities increased by $58.7 million to $339.7 million for the twenty-six week period ended December 24, 2025, compared to $281.0 million for the same period in 2024[100]. - Net cash used in investing activities increased by $15.8 million to $121.6 million for the twenty-six week period ended December 24, 2025, primarily due to increased spending on new restaurant construction[101]. - Net cash used in financing activities decreased slightly to $(222.0) million for the twenty-six week period ended December 24, 2025, compared to $(225.0) million in the prior year, primarily due to a decrease in net repayments of long-term debt[102]. - As of December 24, 2025, net borrowings of $20.0 million were drawn on the revolving credit facility, with $949.9 million of credit available[103]. - The company repurchased 1.8 million shares for $235.0 million during the twenty-six week period ended December 24, 2025, with approximately $315.0 million remaining under the current share repurchase program[108]. Tax and Interest - Effective income tax rate for the thirteen-week period ended December 24, 2025, was 18.7%, up from 16.4% in the prior year[83]. - Interest expenses decreased by $4.0 million to $10.7 million, primarily due to a lower average revolver balance[80]. - The company's interest rate on the revolving credit facility was 4.98% as of December 24, 2025, consisting of SOFR of 3.73% plus an applicable margin of 1.25%[105]. - A hypothetical 100 basis point increase in the current interest rate on the outstanding balance of the revolving credit facility would result in an additional $0.2 million of annual interest expense[114]. Risk Factors - Commodity price risks remain a concern, with potential fluctuations in food and other commodity prices impacting financial results due to supply and demand factors[115]. - Other (gains) and charges for the twenty-six week period ended December 24, 2025, were $1.4 million, a decrease of $19.6 million from the previous year[82]. - Other (gains) and charges for Chili's resulted in a net unfavorable variance of $10.8 million, with losses from natural disasters and litigation impacting the results[91]. Operational Improvements - The company has focused on enhancing the digital experience, including a seamless To-Go menu available through various platforms, which has improved customer convenience[65]. - The company has simplified its menu to focus on core items, which has helped improve consistency and quality in food preparation[65]. - The company has invested in technology to enhance operational efficiency, including the use of handheld tablets for order placement and tabletop devices for guest interaction[66].

Core Insights - Brinker International, Inc. reported strong financial performance with an EPS of $2.87, surpassing estimates of $2.53, and revenue of approximately $1.45 billion, exceeding the estimated $1.41 billion [1][6] Financial Performance - The company achieved a revenue increase from $1.36 billion in the same period last year to $1.45 billion, marking a 6.6% year-over-year growth [4] - Brinker has consistently outperformed earnings expectations, with a +13.39% surprise for the current quarter and a +9.66% surprise in the previous quarter, indicating strong operational execution [3] Brand Performance - The Chili's brand has shown remarkable resilience, achieving a growth of 9% and a two-year comparable sales growth of 43%, contributing significantly to the overall stock increase [2][6] Challenges - Brinker faces challenges with a high debt-to-equity ratio of approximately 5.29, indicating reliance on debt financing [5] - The current ratio of 0.35 suggests potential liquidity challenges in covering short-term liabilities [5] - Despite these challenges, the company maintains a strong earnings yield of about 6.21%, providing a solid foundation for future growth [5][6]

Starbucks, Chili's Parent Gobble Up Gains On Earnings, Score Breakouts | Investor's Business DailyANALYSIS: [AI Bubble Or Boom? Wall Street Weighs In]Investors.com will undergo scheduled maintenance from 10:00 PM ET to 2:00 AM ET and some features may be unavailable. We apologize for any inconvenience.---Chili's parent Brinker International surged early Wednesday, with shares closing in on a buy point following second-quarter results. Starbucks stock jumped on its fiscal Q1 report. Brinker International (EA ...

Brinker International, Inc. (NYSE:EAT) shares are trading higher in the premarket session on Wednesday.Menu updates, competitive pricing and continued advertising helped bring in new customers, while better restaurant operations supported repeat visits in the company’s second quarter results.Quarterly SalesThe company reported second-quarter adjusted earnings per share of $2.87, beating the analyst consensus estimate of $2.62. Quarterly sales of $1.452 billion outpaced the Street view of $1.411 billion.Comp ...

For the quarter ended December 2025, Brinker International (EAT) reported revenue of $1.45 billion, up 6.9% over the same period last year. EPS came in at $2.87, compared to $2.80 in the year-ago quarter.The reported revenue represents a surprise of +3.44% over the Zacks Consensus Estimate of $1.4 billion. With the consensus EPS estimate being $2.53, the EPS surprise was +13.39%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to deter ...

Financial Data and Key Metrics Changes - Brinker reported total revenues of $1.45 billion for Q2 FY 2026, an increase of 7% over the prior year, with consolidated comp sales of +7.5% [19] - Adjusted diluted EPS for the quarter was $2.87, up from $2.80 last year [19] - Restaurant operating margin was 18.8%, compared to 19.1% in the prior year, a decrease of 30 basis points year over year [20] - Adjusted EBITDA for the quarter was approximately $223.5 million, a 3.6% increase from the prior year [23] Business Line Data and Key Metrics Changes - Chili's same-store sales were at +8.6%, outpacing the casual dining industry by 680 basis points, with a 2-year cumulative comp of 43% [5] - Maggiano's reported comp sales for the quarter of -2.4%, but showed sequential improvement during the quarter [20][15] - Chili's top-line sales growth was driven by a price increase of 4.4%, positive traffic of 2.7%, and a positive mix of 1.5% [19] Market Data and Key Metrics Changes - Chili's was the number one traffic brand in casual dining for the entire 2025 year [13] - The company captured value leadership in casual dining and the broader restaurant industry over the past three years [12] - The per person check average at Chili's is more than $3 less than direct casual dining competitors and more than $4 less than casual dining as a whole [13] Company Strategy and Development Direction - The company is focused on improving food, service, and atmosphere, with plans to continue menu renovations and introduce new offerings [7][9] - A reimage program for Chili's has started, with plans to complete 60-80 reimages in fiscal 2027 [24][92] - The company aims to maintain a disciplined capital allocation strategy while investing in restaurants and returning excess cash to shareholders [24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the fifth consecutive year of same-store sales growth and second consecutive year of traffic gains [18] - The company anticipates mid-single-digit comps for the back half of the year, despite potential pressure from weather-related impacts [39] - Management noted that the macroeconomic environment is mixed, but emphasized the importance of focusing on controllable factors like food service and atmosphere [67] Other Important Information - The company repurchased an additional $100 million of common stock under its share repurchase program [25] - Capital expenditures for the quarter were approximately $63.7 million, driven by capital maintenance spend [23] - The company expects to face mid-single-digit inflation for the back half of the year due to rising beef prices, despite favorable commodity prices from tariff removals [27][100] Q&A Session Summary Question: What contributed to the strong traffic and sales growth in the quarter? - Management highlighted stable pricing and positive mix driven by successful menu items like the Margarita of the Month and Triple Dippers [30][32] Question: What are the expectations for top-line performance in the back half of the year? - Management expects solid mid-single-digit comps for Chili's, with potential traffic pressure due to weather impacts [39][44] Question: Can you elaborate on the reimaging prototypes being tested? - Management noted that all four reimage units received positive feedback, with insights on cost-effective improvements being gathered [53][56] Question: How is the company addressing store-level employee incentives? - Management is focusing on training managers to understand P&L and ownership before changing incentive structures, with changes expected in 1-2 years [82][85] Question: What is the outlook for new unit growth? - Management confirmed plans for 60-80 remodels in 2027 and expressed optimism about new unit growth in 2028, with a focus on capital allocation [92][95]