Brinker International (EAT) ended the recent trading session at $173.42, demonstrating a -5.12% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.79%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 0.92%. Prior to today's trading, shares of the operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy had gained 6.48% outpaced the Retail-Wholesale sector's gain of 2.47% a ...

Core Insights - Brinker International, Inc. (EAT) is adopting a volume-driven growth model, focusing on traffic rather than pricing to drive sales growth [1][4] - In Q3 fiscal 2025, Chili's experienced a 20.9% increase in traffic, leading to a 31.6% rise in same-restaurant sales without significant price increases [1][9] - The company is enhancing guest experience through improved service and kitchen execution, resulting in a restaurant-level operating margin of 18.9%, a 470 basis-point increase year-over-year [2] Company Strategy - Brinker is implementing initiatives such as menu simplification, upgraded cooking systems, and enhanced training to improve throughput and consistency [2] - The company is investing in its workforce, particularly in high-turnover roles, to support increased volume [2] - Management is closely monitoring macroeconomic pressures, including potential tariffs on imported goods, while over 80% of its supply chain is domestically sourced [3] Pricing and Growth Outlook - Pricing is expected to moderate to 2-3% in Q4 fiscal 2025, with long-term increases likely to remain within a 3-5% range [4] - By prioritizing value and experience over price, the company aims to grow its market share in a cautious consumer environment [4] - The volume-first approach positions Brinker well for long-term growth without overreliance on pricing strategies [4] Competitor Landscape - Chipotle Mexican Grill, Inc. (CMG) is executing a multi-layered marketing strategy focused on menu innovation and digital targeting, despite facing near-term macro headwinds [5] - BJ's Restaurants, Inc. (BJRI) is leveraging social media trends to enhance brand relevance and guest frequency, with successful product launches like the Pizookie Platter [6] Stock Performance and Valuation - Brinker shares have increased by 18.5% over the past three months, contrasting with a 0.7% decline in the industry [7] - EAT trades at a forward price-to-sales ratio of 1.53, significantly below the industry average of 4.15 [10] - The Zacks Consensus Estimate for EAT's fiscal 2025 and 2026 earnings indicates a year-over-year increase of 114.4% and 9.6%, respectively [11]

Back in March , I was quite bullish on Brinker International ( EAT ) given its remarkable fundamental improvement owing to strong execution and traction in its value-focused Chili’s brand. At that time, I also used Google Trends data to showcase howI am a value focused investor, conducting fundamental research on sectors like but not limited to chemicals, homebuilders, building materials, industrials and metals & mining. I prefer to invest in stocks which are cheaply available and have a catalyst in the nea ...

Brinker International (EAT) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Over the past month, shares of this operator of restaurant chains Chili's Grill & Bar and Maggiano's Little Italy have returned +25.3%, compared to the Zacks S&P 500 composite's +7.2% change. During this period, the Zacks Retail - Restaurants industry, which Brinker International falls in, has gained 2.7 ...

Brinker International (EAT) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors of ...

America has a new favorite grill and bar chain.For the first time, Chili's overtook Applebee's in terms of U.S. systemwide sales in 2024, according to Technomic.Data from the restaurant tracking firm shows that from 2021 to 2024, Chili's grew U.S. sales from about $3.6 billion to $4.6 billion, while Applebee's $4.1 billion U.S. sales were about flat over that same time period.In their most recently reported fiscal quarters, Chili's saw its same-store sales spike 31%, while Applebee's domestic same-store sal ...

Core Viewpoint - Brinker International's stock price fell nearly 17% over the past week due to a quarterly earnings report that did not meet investor expectations, compounded by several analyst price target cuts [1][6]. Financial Performance - For the fiscal third quarter of 2025, Brinker reported revenue of just under $1.43 billion, marking a 27% year-over-year increase and surpassing the average analyst estimate of $1.37 billion [2]. - The company's GAAP net income more than doubled to $119 million, while non-GAAP adjusted earnings per share rose to $2.66 from $1.24, exceeding the consensus projection of $2.49 [4]. Market Sentiment - Investors are concerned about the impact of the current trade war on the U.S. economy, particularly regarding nonessential spending like restaurant meals, which are often the first to be cut from household budgets during economic tightening [5]. - Analysts from Wells Fargo and Barclays have reduced their price targets for Brinker, with Wells Fargo lowering its target to $150 from $165 and Barclays to $155 from $165, while both maintained hold recommendations [6]. Growth Potential - Despite current market concerns, Brinker has demonstrated impressive growth in a challenging restaurant industry, suggesting that it has the potential to survive and thrive during economic downturns [7].

Financial Data and Key Metrics Changes - For Q3 2025, Brinker reported total revenues of $1.425 billion with consolidated comp sales growth of 28.2% [19] - Adjusted diluted EPS for the quarter was $2.66, up from $1.24 in the previous year [20] - Restaurant operating margins improved to 18.9%, a 470 basis points increase year over year [21] Business Line Data and Key Metrics Changes - Chili's reported same restaurant sales growth of 31.6%, driven by a 20.9% increase in traffic, a 6.3% positive mix, and a 4.4% price increase [20] - Maggiano's reported comp sales growth of 0.4%, driven by a 7.3% price increase and a 1.3% positive mix, but offset by an 8.2% decline in traffic [21] Market Data and Key Metrics Changes - Chili's sales performance significantly outpaced the industry despite no new food or value news, indicating strong operational performance [6] - The company noted that consumer sentiment remains cautious, impacting overall restaurant traffic across the industry [18] Company Strategy and Development Direction - The company is focused on improving the fundamentals of food, service, and atmosphere to sustain growth and market share [31] - Chili's is launching new menu items and marketing campaigns to enhance brand value and customer experience, including the Big QP burger [10][11] - Maggiano's is following a similar turnaround strategy as Chili's, focusing on menu simplification and eliminating unprofitable discounting [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining positive same-store sales growth despite upcoming tougher comparisons [30] - The company is optimistic about its ability to maintain or grow restaurant-level margins through strategic investments and improved productivity [48] Other Important Information - Capital expenditures for the quarter were approximately $80 million, driven by investments in kitchen equipment and maintenance [25] - The company repaid $125 million in funded debt, leaving a remaining balance of $90 million on its revolver [25] Q&A Session Summary Question: Concerns about sustainability of same-store sales growth - Management acknowledged the challenges of maintaining growth but emphasized their focus on improving fundamentals to drive continued success [31] Question: Notable contributors to recent momentum - Management noted that traffic remains strong year over year, with no significant slowdown observed [38] Question: Clarification on traffic trends - Management confirmed that traffic trends in April were similar to Q3, indicating sustained momentum [42] Question: Impact of tariffs on cost of sales - Management indicated that over 80% of their supply chain is sourced domestically, minimizing tariff impacts [56] Question: Future menu upgrades - Management highlighted upcoming upgrades to the rib platform and nachos, aiming to enhance customer experience and drive sales [62] Question: Capacity improvements and constraints - Management is learning from high-performing restaurants to improve capacity and traffic handling across the system [120]

Brinker International (EAT) Q3 2025 Earnings Call April 29, 2025 10:00 AM ET Company Participants Kim Sanders - Vice President of Investor & Government RelationsKevin Hochman - CEO & PresidentMika Ware - Executive VP & Chief Financial OfficerDavid Palmer - Senior Managing DirectorDennis Geiger - Executive Director - Equity ResearchChris O'cull - Managing DirectorJeff farmer - Managing DirectorChristine Cho - Vice PresidentJon Tower - Director & Equity Research - Consumer & RestaurantsBrian Vaccaro - Managin ...

DALLAS, April 16, 2025 /PRNewswire/ -- Brinker International, Inc. (NYSE: EAT) has scheduled its earnings conference call at 10 a.m. Eastern Time on Tuesday, April 29, 2025, to review third quarter fiscal 2025 earnings, which will be announced before the market opens on April 29, 2025. The company may also provide other business updates. The live audio webcast can be accessed through Brinker's investor relations website. A replay of the conference call will be available on the website for two weeks after th ...