Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, but identifying stocks that can fulfill their potential remains challenging [1] Group 1: Company Overview - Brinker International (EAT) is currently recommended as a growth stock due to its favorable Growth Score and top Zacks Rank [2][11] Group 2: Earnings Growth - The historical EPS growth rate for Brinker International is 25.6%, with projected EPS growth of 98.8% this year, significantly surpassing the industry average of 12.5% [5] Group 3: Asset Utilization - Brinker International has an asset utilization ratio (sales-to-total-assets ratio) of 1.9, indicating that the company generates $1.9 in sales for every dollar in assets, compared to the industry average of 0.98 [7] Group 4: Sales Growth - The company's sales are expected to grow by 17.2% this year, which is substantially higher than the industry average of 4.5% [8] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Brinker International have increased by 39.2% over the past month, indicating a positive trend in earnings estimate revisions [9]

Core Insights - Brinker International has appointed Timothy (TJ) Johnson to its Board of Directors, enhancing its leadership team [1][3] Company Overview - Brinker International, Inc. is a leading casual dining restaurant company, operating over 1,600 restaurants across the United States and 27 other countries, including brands like Chili's® Grill & Bar and Maggiano's Little Italy® [3] Leadership Experience - Timothy (TJ) Johnson brings over 30 years of experience in consumer-facing global retail brands and has served as Chief Financial Officer for Victoria's Secret & Co since 2021, with a planned retirement in June 2025 [2] - Johnson has held significant roles in financial and operational leadership, including positions at Big Lots and Coopers & Lybrand, and has experience on the board of The Aaron's Company [2] Strategic Impact - The addition of Johnson is expected to enhance Brinker's strategic and financial expertise, contributing to improved guest experiences and long-term shareholder value [3]

"As the margarita experts, National Margarita Day is the most important holiday of the year at Chili's, but we were all surprised that no feel-good stories have been made around this incredible holiday," said George Felix, Chili's Chief Marketing Officer. "Lifetime is known for its beloved, iconic holiday programs, so there is no better partner to finally give National Margarita Day the attention it deserves. What better way to celebrate than with the holiday's biggest television event and Chili's signature ...

Who knew the powerhouse earnings story so far this reporting period would be from a family eatery? Shares of Brinker International (NYSE: EAT ) are already a popular menu item for momentum investors given the now $8.4 billion market cap company'sFreelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is ...

Shares of Brinker International (EAT -3.09%) rose by a mouthwatering 37.6% in January, according to data from S&P Global Market Intelligence. The company behind the popular restaurant chains Chili's and Maggiano's Little Italy delivered an earnings report strong enough to boost other restaurant stocks that day.Breaking down Brinker's spectacular quarterBrinker reported second-quarter results on Jan. 29, and it was a blowout performance.Earnings more than doubled year over year, landing at $2.80 per share. R ...

Steven Cress is VP of Quantitative Strategy and Market Data at Seeking Alpha. Steve is also the creator of the platform’s quantitative stock rating system and many of the analytical tools on Seeking Alpha. His contributions form the cornerstone of the Seeking Alpha Quant Rating system, designed to interpret data for investors and offer insights on investment directions, thereby saving valuable time for users. He is also the Founder and Co-Manager of Alpha Picks, a systematic stock recommendation tool design ...

Brinker International (EAT) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.The rising trend in estimate revisions, which is a result of growing analyst optimism on the earnings prospects of this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy, should get reflected in its stock price. Afte ...

Core Insights - Brinker International's stock has increased over 300% in the past year, reaching new 52-week highs of $184 per share after strong fiscal Q2 earnings [1][3]. Financial Performance - Brinker reported Q2 sales of $1.35 billion, a 26% increase from $1.07 billion in the same quarter last year, surpassing sales estimates of $1.24 billion [3]. - Same-restaurant sales at Chili's rose by 31% year-over-year, significantly outperforming the industry [4]. - The company's Q2 earnings per share (EPS) reached $2.80, up from $0.99 in the prior year, exceeding expectations of $1.80 by 55% [4][5]. Future Guidance - Following the positive Q2 results, Brinker expects fiscal 2025 earnings to be between $7.50 and $8.00 per share, which is 52% higher than the current Zacks Consensus estimate of $6.23 [6]. - The company anticipates a further 14% growth in its bottom line for the next year [6]. Earnings Estimate Revisions - There has been a compelling trend of positive earnings estimate revisions for Brinker, with a 58% increase in FY25 EPS projections since January of the previous year [7]. Investment Outlook - Following the strong Q2 report, Brinker International holds a Zacks Rank 1 (Strong Buy), indicating potential for further upside as earnings estimates continue to rise [8].

Restaurant Operations - As of December 25, 2024, the company owned, operated, or franchised a total of 1,624 restaurants, including 1,164 company-owned and 460 franchised locations[68]. - The company opened 21 new franchise restaurants during the twenty-six week period ended December 25, 2024, with plans for further international expansion[75]. Financial Performance - Total revenues for the thirteen-week period ended December 25, 2024, were $1,358.2 million, an increase from $1,074.1 million for the same period in 2023, representing a growth of approximately 26.5%[78]. - Chili's total revenues increased by 30.4% to $1,208.8 million for the thirteen-week period ended December 25, 2024, compared to $927.2 million for the same period in 2023[94]. - Chili's total revenues increased by 22.0% to $2,239.2 million for the twenty-six week period ended December 25, 2024, compared to $1,835.3 million for the same period in 2023[99]. - Maggiano's total revenues increased by 2.7% to $258.0 million for the twenty-six week period ended December 25, 2024, compared to $251.3 million for the same period in 2023[106]. Comparable Sales - Comparable restaurant sales for company-owned locations increased by 27.4% in the thirteen-week period ended December 25, 2024, driven by a 16.5% increase in traffic[80]. - The company reported a 20.4% increase in comparable restaurant sales for the twenty-six week period ended December 25, 2024, compared to the same period in 2023[80]. - Comparable restaurant sales for Chili's were driven by higher traffic, favorable menu item mix, and menu pricing, contributing to a significant increase in overall sales[94]. Cost Management - Food and beverage costs as a percentage of company sales decreased from 26.1% to 25.9%, with a favorable variance of 0.2% attributed to menu pricing[95]. - Restaurant labor costs improved by 2.5%, decreasing from 34.1% to 31.6% of company sales, due to sales leverage and lower other labor expenses[95]. - Chili's food and beverage costs were favorable by 0.3%, primarily due to 1.5% from menu pricing, partially offset by 0.7% of unfavorable commodity costs[101]. - Chili's restaurant labor costs were favorable by 1.9%, attributed to 4.2% of sales leverage and lower other labor expenses, despite higher hourly labor costs[101]. - Maggiano's food and beverage costs were favorable by 0.8%, driven by 1.4% from menu pricing, partially offset by unfavorable commodity costs[108]. - Maggiano's restaurant labor costs were favorable by 1.6%, due to lower hourly labor and sales leverage, despite higher manager salaries[108]. Expenses - General and administrative expenses rose by $19.3 million to $104.9 million, primarily due to performance-based and stock-based compensation increases[90]. - Chili's general and administrative expenses increased by $3.8 million to $24.0 million for the twenty-six week period ended December 25, 2024, compared to $20.2 million for the same period in 2023[102]. - Depreciation and amortization expenses increased by $10.8 million to $94.0 million, driven by additions for new and existing restaurant assets[88]. - Chili's depreciation and amortization increased by $10.6 million to $82.3 million for the twenty-six week period ended December 25, 2024, compared to $71.7 million for the same period in 2023[101]. Cash Flow and Financing - Net cash provided by operating activities increased to $281.0 million for the twenty-six week period ended December 25, 2024, compared to $150.3 million for the same period in 2023[109]. - Net cash used in investing activities increased to $(105.8) million for the twenty-six week period ended December 25, 2024, compared to $(86.8) million in the prior year, reflecting a variance of $(19.0) million[110]. - Net cash used in financing activities rose to $(225.0) million, an increase of $(169.1) million primarily due to higher net repayments of long-term debt and share repurchase activity[111]. - The company refinanced $350.0 million of 5.000% notes through its revolving credit facility, with net borrowings of $215.0 million drawn during the twenty-six week period ended December 25, 2024[112]. - As of December 25, 2024, the company had $685.0 million available under its revolving credit facility, which matures on August 18, 2026[113]. - The company repurchased 1.2 million shares for $85.2 million during the twenty-six week period ended December 25, 2024, with approximately $107.0 million remaining under the current share repurchase authorization[117]. - The company expects its current cash and cash equivalents, along with cash generated from operations and availability under the revolving credit facility, to meet capital expenditure and working capital needs for at least the next twelve months[118]. Risks and Challenges - 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 $2.2 million of annual interest expense[121]. - The company is exposed to commodity price risk, which could negatively affect short-term financial results if there are delays in passing on increased costs to customers[122]. Technology and Marketing - The company has invested in technology to enhance the dining experience, including mobile app ordering and tabletop payment devices[72]. - The company has simplified its menu to focus on core items, which has contributed to improved sales consistency and guest satisfaction[71]. - The company plans to continue highlighting value offerings in marketing efforts to drive guest traffic amid inflationary challenges[71].

Core Insights - Brinker International, Inc. (EAT) reported strong second-quarter fiscal 2025 results, with earnings and revenues exceeding expectations, showing growth from the previous year [1][4] - The company raised its fiscal 2025 guidance following positive quarterly performance, reflecting strong fundamentals and increased guest traffic at Chili's [3][13] Financial Performance - Adjusted earnings per share (EPS) for the quarter were $2.80, surpassing the Zacks Consensus Estimate of $1.80, and up from $0.99 in the prior-year quarter [4] - Total revenues reached $1.36 billion, exceeding the consensus mark of $1.24 billion, and increased by 26.5% year-over-year [4] - Adjusted EBITDA for the quarter was $215.8 million, up from $107 million reported in the prior-year quarter [11] Segment Performance - Chili's segment revenues rose 30.4% year-over-year to $1.21 billion, driven by favorable comparable restaurant sales, menu pricing, and increased traffic [5] - Comparable restaurant sales at Chili's increased by 31.4% year-over-year, with domestic comps gaining 30.8% compared to a 5.1% rise in the prior-year period [7] - Maggiano's sales increased by 1.7% year-over-year to $149.4 million, although traffic fell by 4.9% [8] Cost and Margin Analysis - Chili's restaurant expenses as a percentage of company sales decreased to 81.3% from 88.4% in the prior-year quarter, aided by sales leverage despite rising labor and commodity costs [6] - Adjusted restaurant operating margin improved to 19.1%, up from 13.1% in the prior-year quarter [11] Balance Sheet and Guidance - As of December 25, 2024, cash and cash equivalents were $14.8 million, down from $22.7 million a year earlier, while long-term debt decreased to $625 million from $786.3 million [12] - For fiscal 2025, management anticipates total revenues between $5.15 billion and $5.25 billion, up from previous expectations of $4.70 billion to $4.75 billion, and EPS in the range of $7.5 to $8 [13]