Brinker topped earnings and revenue expectations and raised full-year guidance as Chili's continues to outperform a sluggish restaurant sector. ...

Brinker International (EAT) came out with quarterly earnings of $2.87 per share, beating the Zacks Consensus Estimate of $2.53 per share. This compares to earnings of $2.8 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +13.39%. A quarter ago, it was expected that this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy would post earnings of $1.76 per share when it actually produced earnings of $1.93 ...

Company News - ASML's ADRs rose 5% after reporting orders significantly exceeding investor expectations, driven by increased demand for AI computing workloads [3][5][17] - Seagate's stock increased by 8% following a strong second-quarter earnings report that surpassed expectations, along with a positive outlook [3] - Texas Instruments gained 7% after providing a favorable outlook, indicating improved demand in industrial and data center markets [3] - AT&T's shares rose 3% after reporting fourth-quarter profit and revenue that exceeded analysts' estimates, attributed to strong broadband subscriber growth [3] - C3.ai's stock surged 15% amid reports of merger talks with Automation Anywhere [3] - F5 Inc. jumped 8% after raising its revenue forecast for the fiscal year [3] - New Oriental Education's ADRs rose 6% after beating second-quarter estimates and increasing its annual net revenue forecast [3] - Corning's shares fell 3% after reporting fourth-quarter results and providing a disappointing outlook [3] - Elevance Health dropped 6% after giving an adjusted profit forecast for 2026 that fell short of Wall Street expectations [3] - Qorvo's stock fell 10% after issuing a weaker-than-expected outlook [3] Industry Trends - The tech sector is experiencing a rally, driven by strong earnings from semiconductor and memory companies, which is boosting the AI trade [1][4][6] - The Magnificent Seven stocks are mostly higher, with Nvidia, Alphabet, and Amazon showing gains, while Meta and Apple experienced slight declines [3] - The semiconductor, memory, and storage sectors are seeing significant gains due to positive earnings reports, particularly from ASML, Seagate, and Texas Instruments [3][4] - Asian equities are also benefiting from the tech rally, with notable gains in TSMC and SK Hynix [5][13] - The demand for AI memory is driving earnings growth for companies like SK Hynix, indicating a strong market for AI-related technologies [5][14]

Financial Performance - Total revenues for Q2 FY2026 were $1.452 billion, up from $1.358 billion in Q2 FY2025, reflecting a variance of $94 million[3]. - Net income for Q2 FY2026 increased to $128.5 million, compared to $118.5 million in Q2 FY2025, marking a growth of $10 million[3]. - Net income for the twenty-six week period ended December 24, 2025, was $228.0 million, compared to $157.0 million for the same period in 2024, reflecting a year-over-year increase of 45.2%[26]. - Basic net income per share for the thirteen-week period ended December 24, 2025, was $2.92, up from $2.67 in the prior year, marking an increase of 9.3%[21]. - Net income for Q2 26 was $128.5 million, up from $118.5 million in Q2 25, indicating an increase of 8%[38]. - The company reported a year-to-date net income of $228.0 million for Q2 26, compared to $157.0 million in Q2 25, an increase of 45%[38]. Sales Growth - Chili's achieved a 2-year comparable sales growth of +43% and a 7.5% increase in company comparable restaurant sales for Q2 FY2026, with Chili's specifically growing by 8.6%[2][4]. - Comparable restaurant sales for company-owned restaurants increased by 7.5% for Q2 2026 compared to Q2 2025, with Chili's domestic showing an increase of 8.6%[30]. - Chili's franchisees generated sales of approximately $271.9 million in Q2 FY2026, compared to $232.3 million in Q2 FY2025[15]. - Franchise revenues for Q2 26 were $13.2 million, up from $11.9 million in Q2 25, reflecting a growth of 11%[34]. Operating Income - Operating income for the twenty-six week period ended December 24, 2025, was $286.3 million, compared to $212.4 million for the same period in 2024, representing a 34.7% increase[21]. - Chili's operating income for Q2 26 was $200.0 million, up from $175.1 million in Q2 25, representing an increase of 14%[34]. - Maggiano's operating income for Q2 26 was $15.0 million, compared to $28.2 million in Q2 25, reflecting a decrease of 46%[34]. Guidance and Projections - Full year FY2026 revenue guidance has been raised to $5.76 billion - $5.83 billion, up from the previous guidance of $5.60 billion - $5.70 billion[7]. - Net income per diluted share guidance, excluding special items, has been increased to $10.45 - $10.85 from $9.90 - $10.50[7]. - The company plans to open 32-38 new franchise restaurants in the fiscal year, with 24-28 of those being Chili's international locations[29]. Expenses and Liabilities - Interest expenses decreased to $10.7 million in Q2 26 from $14.7 million in Q2 25, a reduction of 27%[38]. - Depreciation and amortization increased to $54.6 million in Q2 26 from $47.7 million in Q2 25, a rise of 14%[38]. - The company reported total current liabilities of $669.7 million as of December 24, 2025, a slight decrease from $675.6 million in the previous period[23]. Cash Flow and Assets - Cash flows from operating activities for the twenty-six week period ended December 24, 2025, were $339.7 million, compared to $281.0 million for the same period in 2024, indicating a 20.8% increase[26]. - Total assets as of December 24, 2025, were $2,749.2 million, up from $2,678.6 million as of June 25, 2025, reflecting a growth of 2.6%[23]. Tax and External Factors - The effective income tax rate for Q2 FY2026 was 18.7%, lower than the statutory rate of 21.0% due to the leverage of the FICA tip credit[11]. - The company anticipates a negative impact of approximately $20 million in revenues and a decrease of $0.15 in net income per diluted share due to Winter Storm Fern[6]. Restaurant Operations - The total number of company-owned restaurants as of December 24, 2025, was 1,160, a decrease from 1,164 in the previous year, with projected openings of 6 for the full fiscal year[29]. - The non-GAAP restaurant operating margin for Chili's was 19.1% in Q2 26, an increase from 18.7% in Q2 25[34]. - Adjusted EBITDA for Q2 26 was $223.5 million, compared to $215.8 million in Q2 25, showing a growth of 4%[38]. - The company emphasizes that restaurant operating margin is a useful metric for evaluating restaurant-level operating efficiency, despite being a non-GAAP measure[35].

Core Insights - Brinker International, Inc. reported strong financial results for the second quarter of fiscal 2026, with Chili's achieving industry-leading growth of +9% and a two-year comparable sales growth of +43% [2][3] - The company experienced a 7.5% increase in comparable restaurant sales, with Chili's specifically seeing an 8.6% increase, while Maggiano's faced a decline of 2.4% [4][7] - The company has raised its full-year fiscal 2026 guidance, reflecting a stronger sales and profit outlook despite the negative impact from Winter Storm Fern, which resulted in approximately $20 million in reduced revenues [5][6] Financial Performance - Company sales for Q2 fiscal 2026 reached $1,438.8 million, up from $1,346.1 million in Q2 fiscal 2025, marking a variance of $92.7 million [3][21] - Total revenues increased to $1,452.2 million from $1,358.2 million, with an operating income of $168.4 million compared to $156.0 million in the previous year [3][21] - Net income rose to $128.5 million, or $2.86 per diluted share, compared to $118.5 million, or $2.61 per diluted share, in Q2 fiscal 2025 [3][21] Segment Performance - Chili's company sales increased to $1,304.1 million from $1,196.9 million, while Maggiano's sales decreased to $149.2 million from $134.7 million [7][21] - Chili's operating income was $200.0 million, with an operating margin of 15.2%, while Maggiano's operating income was $15.0 million, with an operating margin of 11.1% [7][32] - Franchise revenues for Chili's reached approximately $271.9 million, up from $232.3 million in the same quarter last year [10] Guidance and Future Outlook - The updated fiscal 2026 guidance includes total revenues projected between $5.76 billion and $5.83 billion, and net income per diluted share expected to be between $10.45 and $10.85 [6] - Capital expenditures are now expected to be between $250 million and $260 million, down from the previous estimate of $270 million to $290 million [6] - The company anticipates a total of 32 to 38 new restaurant openings for the fiscal year, with a focus on both company-owned and franchise locations [25]

Key Takeaways EAT reports Q2 FY26 results on Jan. 28, with revenues expected to rise year over year on Chili's strength.Brinker International expects Chili's comps to be up 2.9% and revenues rising 3.9% to $1.26 billion.EAT's margins may be pressured by Maggiano's decline, commodity inflation, wage growth and higher costs.Brinker International, Inc. (EAT) is scheduled to report second-quarter fiscal 2026 results on Jan. 28, before the opening bell.In the last reported quarter, adjusted earnings and revenues ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about Brinker International (EAT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Brinker International currently has an average brok ...

Core Viewpoint - Morgan Stanley upgraded Brinker International's stock rating to "Overweight" from "Underweight," indicating a more favorable outlook on the company's future performance [1][6]. Group 1: Stock Performance - At the time of the upgrade, EAT's stock price was $157.68, reflecting a decrease of 5.42% or $9.03 [2]. - EAT's stock has shown significant fluctuations, with a daily range between $157.34 and $167, and over the past year, it reached a high of $192.22 and a low of $100.30 [4]. - The trading volume for EAT is 1,374,875 shares on the NYSE, indicating active investor interest [5]. Group 2: Market Position and Ratings - Brinker International is recognized as a significant player in the casual dining industry, with a market capitalization of approximately $7 billion [4][6]. - Zacks Investment Research highlights Brinker as a top-ranked value stock, suggesting it could be a promising addition to investment portfolios [3]. - The recent upgrade by Morgan Stanley and recognition by Zacks may bolster investor confidence in Brinker's future prospects [5][6].

Upgrades Summary - Melius Research upgraded Wingstop (WING) to Buy from Hold with a price target of $350, increased from $275, citing an attractive entry point after recent stock weakness [2] - Seaport Research upgraded Intel (INTC) to Buy from Neutral with a price target of $65, indicating that new Panther Lakes products are expected to drive near-term improvements and market share recovery in enterprise and consumer products [2] - HSBC also upgraded Intel to Hold from Reduce with a price target of $50, up from $26 [2] - Wolfe Research upgraded Allegiant Travel (ALGT) to Outperform from Peer Perform with a price target of $108, following its acquisition of Sun Country Airlines (SNCY), described as "transformational" [2] - Wells Fargo upgraded Doximity (DOCS) to Overweight from Equal Weight with a price target of $55, down from $65, suggesting that investor concerns are overblown based on survey results indicating sufficient differentiation [2] - Morgan Stanley upgraded Brinker (EAT) to Overweight from Equal Weight with a price target of $200, increased from $160, highlighting attractive long-term growth in fast casual and beverage sectors [2] - Morgan Stanley also upgraded Shake Shack (SHAK) to Overweight from Equal Weight with a price target of $125, up from $115 [2]

Group 1 - Top Wall Street analysts have revised their outlook on several prominent companies, indicating a shift in market sentiment [1] - The article suggests that investors should consider the stock of Intel Corporation (INTC), highlighting the importance of analyst opinions in investment decisions [1]