Core Insights - Brinker International's shares reached an all-time high after exceeding profit and sales estimates, driven by strong performance at Chili's locations [1][5] - The company reported second-quarter fiscal 2025 adjusted EPS of $2.80 and revenue of $1.35 billion, significantly surpassing analyst expectations of $1.78 EPS and $1.24 billion in revenue [1][5] Financial Performance - Comparable restaurant sales increased by 27% overall, with Chili's experiencing a 31% rise, attributed to a 20% increase in traffic due to effective advertising and operational improvements [2][5] - Maggiano's Little Italy saw a modest increase in comparable restaurant sales of 1.8% [2] Future Outlook - The company raised its full-year adjusted EPS guidance to between $7.50 and $8.00, and revenue expectations to $5.15 billion to $5.25 billion, up from previous estimates of $5.20 to $5.50 EPS and $4.70 billion to $4.75 billion in revenue [3]

Group 1 - Brinker International, Inc. (EAT) has a Zacks Rank 1 with a 13.4% increase in the current year earnings estimate over the last 60 days [1] - Brinker International's shares increased by 48.3% in the last three months, outperforming the S&P 500's 4.2% gain [1] - LifeStance Health Group, Inc. (LFST) also holds a Zacks Rank 1, with an 18.2% rise in the current year earnings estimate over the last 60 days [2] - LifeStance Health Group's shares rose by 19.9% in the last three months, again surpassing the S&P 500's 4.2% increase [2] - Moelis & Company (MC) has a Zacks Rank 1, with an 8.3% increase in the current year earnings estimate over the last 60 days [3] - Moelis & Company's shares gained 17.3% over the last three months, compared to the S&P 500's 4.2% advance [3] - All three companies possess a Momentum Score of A, indicating strong momentum characteristics [1][2][3]

Financial Performance - For the quarter ended December 2024, Brinker International reported revenue of $1.36 billion, reflecting a year-over-year increase of 26.5% [1] - Earnings per share (EPS) for the quarter was $2.80, significantly up from $0.99 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.24 billion by 9.32%, while the EPS surpassed the consensus estimate of $1.80 by 55.56% [1] Key Metrics - Comparable store sales for Chili's increased by 31.4%, outperforming the nine-analyst average estimate of 19.1% [4] - Total company-owned restaurants stood at 1,164, slightly below the eight-analyst average estimate of 1,170 [4] - Franchise restaurants totaled 460, in line with the average estimate of 457 [4] Revenue Breakdown - Total revenue from company restaurant sales was $1.35 billion, exceeding the nine-analyst average estimate of $1.23 billion, marking a year-over-year change of 26.6% [4] - Revenue from Chili's company sales reached $1.20 billion, surpassing the four-analyst average estimate of $1.06 billion, with a year-over-year increase of 30.5% [4] - Revenue from Maggiano's company sales was $149.20 million, slightly below the estimated $150.41 million, but still reflecting a 1.6% year-over-year increase [4] Franchise Revenue - Franchise revenues for Chili's amounted to $11.90 million, exceeding the average estimate of $11.47 million, representing a year-over-year change of 15.5% [4] - Total revenue for Chili's was reported at $1.21 billion, compared to the average estimate of $1.05 billion, indicating a year-over-year increase of 30.4% [4] - Franchise revenues for Maggiano's reached $0.20 million, surpassing the average estimate of $0.15 million, showing a remarkable year-over-year change of 100% [4] Stock Performance - Shares of Brinker International have returned 16.9% over the past month, significantly outperforming the Zacks S&P 500 composite's 1.7% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3]

Core Viewpoint - Brinker International reported strong quarterly earnings, significantly exceeding expectations, indicating robust performance in the restaurant sector [1][2][3]. Financial Performance - The company achieved earnings of $2.80 per share, surpassing the Zacks Consensus Estimate of $1.80 per share, and showing a substantial increase from $0.99 per share a year ago [1]. - Revenues for the quarter reached $1.36 billion, exceeding the Zacks Consensus Estimate by 9.32%, and up from $1.07 billion in the same quarter last year [3]. - The earnings surprise for the quarter was 55.56%, and the company has outperformed consensus EPS estimates three out of the last four quarters [2]. Stock Performance - Brinker International shares have increased approximately 16.9% since the beginning of the year, compared to a 3.2% gain in the S&P 500 [4]. - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for continued outperformance in the near future [7]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.71, with projected revenues of $1.24 billion, and for the current fiscal year, the EPS estimate is $6.23 on revenues of $4.87 billion [8]. - The industry outlook is favorable, with the Retail - Restaurants sector ranking in the top 20% of over 250 Zacks industries, suggesting potential for strong performance [9].

Financial Performance - Company sales for Q2 fiscal 2025 reached $1,346.1 million, a 26.5% increase from $1,063.7 million in Q2 fiscal 2024[3] - Operating income for Q2 fiscal 2025 was $156.0 million, representing an increase of 150.8% from $62.4 million in Q2 fiscal 2024[3] - Net income for Q2 fiscal 2025 was $118.5 million, compared to $42.1 million in Q2 fiscal 2024, marking a 181.5% increase[3] - Adjusted EBITDA for Q2 fiscal 2025 was $215.8 million, up 101.7% from $107.0 million in Q2 fiscal 2024[3] - Total revenues for the thirteen weeks ended December 25, 2024, increased to $1,358.2 million, up from $1,074.1 million for the same period in 2023, representing a growth of 26.5%[19] - Net income for the twenty-six weeks ended December 25, 2024, was $157.0 million, compared to $49.3 million for the same period in 2023, reflecting a significant increase of 218.5%[19] - Basic net income per share for the thirteen weeks ended December 25, 2024, was $2.67, compared to $0.95 for the same period in 2023, marking an increase of 180%[19] - Adjusted EBITDA for Q2 25 was $215.8 million, compared to $107.0 million in Q2 24, reflecting a 101% year-over-year increase[37] - Net income for Q2 25 was $118.5 million, a substantial rise from $42.1 million in Q2 24, marking a 181% increase[37] Sales and Revenue Growth - Comparable restaurant sales increased by 27.4%, with Chili's up 31.4% and Maggiano's up 1.8%[4] - Comparable restaurant sales for company-owned restaurants increased by 27.4% for Q2 2025 compared to Q2 2024, driven by a price impact of 5.0% and a traffic increase of 16.5%[29] - Chili's franchisees generated sales of approximately $232.3 million in Q2 fiscal 2025, compared to $216.9 million in Q2 fiscal 2024[13] - Franchise revenues for Q2 25 were $11.9 million, slightly up from $10.3 million in Q2 24, showing growth in franchise operations[34] Future Projections - The company expects total revenues for fiscal 2025 to be in the range of $5.15 billion to $5.25 billion[8] - Net income per diluted share, excluding special items, is projected to be between $7.50 and $8.00 for fiscal 2025[8] - The company plans to open 31 to 37 new restaurants in fiscal year 2025, with 22 openings projected for the second quarter[28] Operating Costs and Expenses - Total operating costs and expenses for the twenty-six weeks ended December 25, 2024, were $2,284.8 million, up from $2,000.0 million in the same period in 2023, an increase of 14.2%[19] - Interest expenses decreased to $29.0 million for the twenty-six weeks ended December 25, 2024, from $33.7 million in the same period in 2023, a reduction of 13.9%[19] - Interest expenses decreased to $14.7 million in Q2 25 from $16.7 million in Q2 24, reflecting improved financial management[37] Capital Expenditures and Cash Flow - Capital expenditures for fiscal 2025 are expected to be in the range of $240.0 million to $260.0 million[8] - Cash flows from operating activities for the twenty-six weeks ended December 25, 2024, were $281.0 million, compared to $150.3 million for the same period in 2023, indicating a growth of 87.2%[25] Operational Efficiency - Q2 25 GAAP operating income for Chili's was $175.1 million, up from $70.1 million in Q2 24, representing a 150% increase[34] - Restaurant operating margin for Chili's in Q2 25 was 18.7%, compared to 11.6% in Q2 24, indicating a significant improvement in operational efficiency[34] - The company plans to continue focusing on restaurant-level operational efficiency to enhance profitability in future quarters[35] Asset Management - The total assets of the company as of December 25, 2024, were $2,560.3 million, slightly down from $2,593.1 million as of June 26, 2024[22] - Depreciation and amortization expenses for Q2 25 were $47.7 million, compared to $41.3 million in Q2 24, indicating increased investment in assets[37]

Core Insights - Brinker International reported strong financial results for the second quarter of fiscal 2025, with company sales reaching $1,346.1 million, a 26.5% increase from $1,063.7 million in the same quarter of fiscal 2024 [2][3] - Comparable restaurant sales increased by 27.4%, with Chili's showing a significant growth of 31.4%, driven by increased traffic and operational improvements [2][4] - The company’s operating income margin improved to 11.5%, up from 5.8% in the previous year, indicating enhanced operational efficiency [3][8] Financial Performance - Total revenues for the second quarter were $1,358.2 million, compared to $1,074.1 million in the prior year, marking a variance of $284.1 million [3] - Net income for the quarter was $118.5 million, a substantial increase from $42.1 million in the same quarter last year, resulting in a net income per diluted share of $2.61 [3][29] - Adjusted EBITDA for the quarter was $215.8 million, up from $107.0 million in the previous year, reflecting strong operational performance [3][35] Segment Performance - Chili's company sales increased to $1,196.9 million from $916.9 million, while Maggiano's sales rose slightly to $149.2 million from $146.8 million [8] - Chili's operating income was $175.1 million, with an operating income margin of 14.5%, compared to 7.6% in the prior year [8][32] - Maggiano's operating income remained stable at $28.2 million, with a slight decrease in operating income margin to 18.9% [8][32] Guidance and Outlook - The company updated its full-year fiscal 2025 guidance, projecting total revenues between $5.15 billion and $5.25 billion, with net income per diluted share expected to be in the range of $7.50 to $8.00 [5][6] - Capital expenditures are anticipated to be between $240 million and $260 million for the fiscal year [6] Comparable Restaurant Sales - Comparable restaurant sales for Brinker increased by 27.4%, with Chili's at 31.4% and Maggiano's at 1.8% [4][25] - The increase in comparable sales was attributed to higher traffic, favorable menu item mix, and menu pricing strategies [13][25] Operational Efficiency - The company reported a decrease in restaurant expenses as a percentage of company sales, indicating improved cost management [13][32] - General and administrative expenses increased due to higher incentive compensation and technology initiatives [2][3]

Core Viewpoint - Brinker International, Inc. is expected to report strong fiscal second-quarter results, driven by effective marketing strategies, menu innovations, and operational improvements, despite facing inflationary pressures and rising input costs [20][21]. Financial Performance - In the first quarter of fiscal 2025, Brinker reported earnings per share (EPS) of $1.37, exceeding the Zacks Consensus Estimate by 37.7%, with revenues surpassing estimates by 4.1% [2]. - The Zacks Consensus Estimate for the fiscal second quarter EPS is $1.69, reflecting a 70.7% increase from the previous year, with revenues expected to reach approximately $1.24 billion, a 15.1% year-over-year increase [5]. Earnings Surprise History - Brinker has a strong track record of exceeding earnings expectations, surpassing the consensus in three of the last four quarters, with an average surprise of 12.1% [3]. Factors Influencing Q2 Performance - The anticipated revenue growth is attributed to effective marketing strategies, improved menu pricing, and a favorable mix of menu items, particularly at Chili's and Maggiano's [8][10]. - Digitalization initiatives and social media campaigns targeting younger demographics are expected to enhance customer experience and drive sales growth [9]. Operational Enhancements - The company is focusing on operational efficiency, menu innovation, and strategic pricing initiatives to improve margins and adapt to changing consumer preferences [11][18]. - The introduction of popular menu items like the Triple Dipper has significantly boosted sales, particularly among younger customers [17]. Stock Performance and Valuation - Brinker shares have increased by 56.5% over the past three months, outperforming the Zacks Retail – Restaurants industry, which saw a decline of 1.9% [13][14]. - The company is currently trading at a forward price-to-earnings ratio of 23X, below the industry average of 25.59X, indicating a potential investment opportunity [16]. Long-term Strategy - Brinker's long-term strategy emphasizes operational efficiency, guest engagement, and innovation, positioning the company for sustained growth in the competitive restaurant industry [19].

Brinker International, Inc. (EAT) is scheduled to report second-quarter fiscal 2025 results on Jan. 29, 2025, before the opening bell.In the last reported quarter, adjusted earnings and revenues topped the Zacks Consensus Estimate by 37.7% and 4.1%, respectively. On a year-over-year basis, both metrics increased 239.3% and 12.5%, respectively.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarter ...

Brinker International (EAT) closed at $154.52 in the latest trading session, marking a +1.25% move from the prior day. This move outpaced the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 0.22%.Heading into today, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 11.24% over the past month, outpacing the Retail-Wholesale sector's gain of 2.71% and the S&P 500's gain of 2.69% in that time.Market p ...

Shares of Brinker International, Inc. (EAT) have skyrocketed 289.7% in the past year, outperforming the broader market and industry peers. In the trailing 12 months, the Zacks Retail - Restaurants industry has gained 4.3%, while the Zacks Retail-Wholesale sector and the S&P 500 have returned 32.6% and 25.3%, respectively.The company's focus on strategic menu innovation, customer-centric promotions and operational efficiency improvements has been instrumental in driving this momentum. Additionally, favorable ...