Core Insights - Brinker International reported a revenue of $1.45 billion for the quarter ended December 2025, reflecting a year-over-year increase of 6.9% and surpassing the Zacks Consensus Estimate by 3.44% [1] - The company's EPS for the quarter was $2.87, which is an increase from $2.80 in the same quarter last year, and it exceeded the consensus EPS estimate by 13.39% [1] Financial Performance Metrics - Comparable Restaurant Sales for Chili's increased by 8.6%, outperforming the average estimate of 5.2% [4] - Total restaurants operated by Brinker International stood at 1,627, slightly below the average estimate of 1,633 [4] - Company-owned restaurants totaled 1,160, which is lower than the average estimate of 1,240 [4] - Comparable Restaurant Sales for Maggiano's decreased by 2.4%, better than the average estimate of -5.5% [4] - Company sales revenue was reported at $1.44 billion, exceeding the average estimate of $1.39 billion, marking a 6.9% increase year-over-year [4] - Franchise and other revenues reached $13.4 million, surpassing the average estimate of $13.25 million, with a year-over-year increase of 10.7% [4] - Revenue from Chili's was $1.32 billion, exceeding the average estimate of $1.26 billion, representing a 9% year-over-year increase [4] - Revenue from Maggiano's was reported at $134.9 million, below the average estimate of $137.94 million, indicating a year-over-year decline of 9.7% [4] Stock Performance - Shares of Brinker International have returned +10.2% over the past month, significantly outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

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]

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 two-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 average check at Chili's is still more than $3 less than direct 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][10] - A reimage program for Chili's has started, with plans to complete 60-80 reimages in fiscal 2027 [24][90] - The company aims to maintain a disciplined capital allocation strategy while investing in restaurants and returning excess cash to shareholders [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving solid mid-single-digit comps for the back half of the year, despite potential pressure from the storm and holiday shifts [39][40] - The company anticipates wage inflation in the low single digits and a tax rate of approximately 19% [26] - Management remains focused on delivering sustainable long-term growth and believes the current strategy is effective [27] 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 [27] Q&A Session Summary Question: What contributed to the strong traffic and sales growth in the quarter? - Management noted stable pricing and positive performance from the Margarita of the Month and other menu items, with no significant changes in guest frequency [30][34] Question: What are the expectations for top-line performance in the back half of the year? - Management expects solid mid-single-digit comps, with potential traffic pressure due to the storm and holiday shifts [39][40] Question: Can you elaborate on the comp cadence for the back half of the year? - Management indicated that January will be impacted by the storm and holiday flip, but expects steady mid-single-digit performance thereafter [44] Question: How does the company plan to manage pricing power with the $10.99 anchor? - Management emphasized the importance of a barbell strategy to offer a range of price points and maintain a balanced sales mix [46][47] Question: What are the learnings from the reimaging program? - Management highlighted that guests and team members love the reimage units, and initial results are promising, with a focus on cost-effective improvements [53][56] Question: What is the outlook for new unit growth? - Management confirmed plans for 60-80 remodels in 2027 and anticipates significant new unit growth in 2028 [90][92]

Financial Data and Key Metrics Changes - For Q2 FY 2026, Brinker reported total revenues of $1.45 billion, an increase of 7% over the prior year, with consolidated comp sales of +7.5% [18] - Adjusted diluted EPS for the quarter was $2.87, up from $2.80 last year [18] - Restaurant operating margin was 18.8%, compared to 19.1% in the prior year, a decrease of 30 basis points year over year [19] - Adjusted EBITDA was approximately $223.5 million, a 3.6% increase from the prior year [21] 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% [4] - Maggiano's reported comp sales for the quarter of -2.4%, but there were signs of sequential improvement [19][13] - 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% [18] Market Data and Key Metrics Changes - Chili's was the number one traffic brand in casual dining for the entire 2025 year [12] - The company captured value leadership in casual dining and the broader restaurant industry over the past three years [11] Company Strategy and Development Direction - The company plans to continue focusing on improving food, service, and atmosphere, with a strong emphasis on marketing and brand building [5] - A reimage program for Chili's has started, with plans to complete 60-80 reimages in fiscal 2027 and fully roll out the program in fiscal 2028 [22][88] - The company aims to maintain a disciplined capital allocation strategy, allowing for investments in restaurants and returning excess cash to shareholders [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving their fifth consecutive year of same-store sales growth and second consecutive year of traffic gains [17] - The company anticipates mid-single-digit comps for the back half of the year, despite potential pressure from recent weather events [36] - Management noted that the macroeconomic environment remains mixed, but they are focused on controllable factors like food service and atmosphere to drive guest traffic [66] Other Important Information - The company repurchased an additional $100 million of common stock under its share repurchase program [23] - Capital expenditures for the quarter were approximately $63.7 million, driven by capital maintenance spend [21] - The company expects to face commodity inflation in the low single digits for the fiscal year, with some pressures anticipated in the back half [26] Q&A Session Summary Question: What contributed to the strong traffic and sales growth in the quarter? - Management highlighted stable pricing and positive performance from the Margarita of the Month and other menu items, with no significant changes in guest frequency [30][32] Question: What are the expectations for the back half of the year regarding top-line performance? - Management expects solid mid-single-digit comps for the back half, with potential traffic pressure due to recent weather events [36][42] Question: Can you elaborate on the remodels and their expected impact? - Management confirmed plans for 60-80 remodels in 2027, with a focus on operational learning and cost-effective improvements [88][92] Question: How does the company plan to manage pricing power with the $10.99 price point? - Management emphasized the importance of a barbell strategy to maintain a diverse menu and prevent over-reliance on lower price points [44][46] Question: What is the outlook for commodity costs and their impact on margins? - Management reiterated that while tariffs have provided some favorability, mid-single-digit inflation is expected in the back half of the year [99]

Core Viewpoint - Brinker International, Inc. (EAT) is showing potential for bullish movement due to a recent "golden cross" in its moving averages, indicating a possible breakout [1] Technical Analysis - EAT's 50-day simple moving average has crossed above its 200-day simple moving average, forming a "golden cross," which is a bullish signal [1] - A golden cross typically follows a downtrend, where the shorter moving average crosses above the longer one, leading to a trend reversal and subsequent price increases [2] Performance Metrics - Over the past four weeks, EAT has experienced a price increase of 10.2% [3] - The stock is currently rated 2 (Buy) on the Zacks Rank, suggesting it may be positioned for further gains [3] Earnings Outlook - There have been no cuts to earnings estimates for the current quarter, with four revisions upward in the past 60 days, indicating a positive earnings outlook [3] - The Zacks Consensus Estimate for EAT has also increased, reinforcing the bullish sentiment [3][5]

Q2 F26 January 28, 2026 SAME STORE SALES – F25, F26 | | Brinker | Chili's | Maggiano's | Domestic Franchise | International Franchise | | --- | --- | --- | --- | --- | --- | | Q1 F25 | 13.0% | 14.1% | 4.2% | 12.3% | 3.7% | | Q2 F25 | 27.4% | 31.4% | 1.8% | 21.1% | (1.0%) | | Q3 F25 | 28.2% | 31.6% | 0.4% | 24.1% | 5.8% | | Q4 F25 | 21.3% | 23.7% | (0.4%) | 15.5% | 9.0% | | FY F25 | 22.7% | 25.3% | 1.5% | 19.9% | 6.8% | | | Brinker | Chili's | Maggiano's | Domestic Franchise | International Franchise | | Q1 ...

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. Brinker International announced its financial results for the second quarter ended Dec. 24, including an 8.6% increase in same-store sales for its flagship Chili’s brand.  The growth was primarily driven by higher traffic yet again, as well as menu enhancements, competitive pricing, ongoing advertising initiatives, and improved operations. Chili’s leveraged its higher sales to improve margins, while also repurchasin ...

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

Core Insights - Brinker International reported quarterly earnings of $2.87 per share, exceeding the Zacks Consensus Estimate of $2.53 per share, and showing a slight decrease from $2.8 per share a year ago [1] - The earnings surprise was +13.39%, and the company has consistently surpassed consensus EPS estimates over the last four quarters [2] Financial Performance - The company posted revenues of $1.45 billion for the quarter, surpassing the Zacks Consensus Estimate by 3.44%, compared to $1.36 billion in the same quarter last year [3] - Brinker International has also exceeded consensus revenue estimates in each of the last four quarters [3] Stock Performance - Since the beginning of the year, Brinker International shares have increased by approximately 9.6%, outperforming the S&P 500's gain of 1.9% [4] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for it to outperform the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.89, with expected revenues of $1.47 billion, and for the current fiscal year, the estimates are $10.38 EPS on $5.73 billion in revenues [8] - The outlook for the industry, particularly the Retail - Restaurants sector, is currently in the bottom 19% of Zacks industries, which may impact stock performance [9]

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].