A month has gone by since the last earnings report for Brinker International (EAT Quick QuoteEAT - Free Report) . Shares have added about 0.6% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Brinker International due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Brinker International, Inc. before we dive into how investors and analysts have reacted as of late.

Brinker Q4 Earnings & Revenues Surpass Estimates

Brinker reported fourth-quarter fiscal 2025 results, with both earnings and revenues surpassing the Zacks Consensus Estimate and also increasing on a year-over-year basis. Revenues beat the consensus estimate for the sixth consecutive quarter.

Chili's performance served as a catalyst for the company's quarterly results. In the quarter under review, Chili's same-store sales increased by 24%, outpacing a more robust casual dining sector by 1,890 basis points. The growth was driven by the strong marketing ideas, simpler menu items and increased traffic. Brinker has high hopes for the future with solid plans to continue the momentum in the upcoming year.

Meanwhile, Maggiano's is going through a leadership change. While progress is being made on simplifying the menu and enhancing recipes, there is still an opportunity to bring more of Chili’s successful turnaround strategies to Maggiano’s. A key factor in Chili’s revival was focusing on the core elements that originally made the brand great and finding ways to make those strengths relevant for today’s customers.

EAT’s Q4 Earnings & Revenue Discussion

In the quarter under review, Brinker reported adjusted earnings per share (EPS) of $2.49, surpassing the Zacks Consensus Estimate of $2.43. The company reported an adjusted EPS of $1.61 in the prior-year quarter.

In the fiscal fourth quarter, total revenues of $1,461.9 million beat the consensus mark of $1,411 million. The top line increased 21% on a year-over-year basis.

EAT’s Segmental Performance

Chili's

In the fiscal fourth quarter, revenues in the Chili’s segment rose 24% year over year to $1,339.6 million. The upside was driven by an uptick in foot traffic, boosted by new menu items and value-focused ads, while operational changes encouraged repeat visits. Our model predicted segmental revenues of $1,289.3 million.

Chili's restaurant expenses (as a percentage of company sales) in the fiscal fourth quarter were 81.8% compared with 84.9% in the prior-year quarter. The upside was backed by sales leverage. However, increased hourly labor, manager bonuses and salaries, advertising, an unfavorable menu item mix and other restaurant expenses somewhat offset this.

The segment’s company-owned comps rose 23.7% in the fiscal fourth quarter from the year-ago quarter’s levels. Chili's company-owned traffic gained 16.3% year over year in the quarter under discussion. The metric rose 5.9% in the prior-year quarter.

At Chili’s, domestic comps (including company-owned and franchised) increased 23.2% year over year compared to a gain of 14.5% reported in the prior-year period.

Maggiano’s

Maggiano’s revenues in the fiscal fourth quarter decreased 1.2% year over year to $122.3 million. Sales at Maggiano's fell mostly as a result of poor comparable restaurant sales brought on by fewer customers, which were somewhat offset by menu prices. Comps in the segment fell 0.4% year over year. Our model predicted segmental revenues at $126.1 million.

Traffic in the quarter under discussion fell 8.9% year over year, matching the decline in the prior-year quarter.

Maggiano's company restaurant expenses (as a percentage of company sales) in the fiscal fourth quarter were 86.7% compared with 84% a year ago. The downside was caused by an unfavorable menu item mix and workers' compensation, partially offset by increased favorable menu pricing.

Q4 Operating Results

In the quarter under review, EAT’s total operating costs and expenses came in at $1.32 billion compared with $1.14 billion reported in the year-ago quarter. Adjusted restaurant operating margin, as a percentage of company sales, was 17.8% compared with 15.2% reported in the prior-year quarter. Our projection was 9.9%.

Adjusted EBITDA in the fiscal fourth quarter came in at $212.4 million compared with $141.8 million reported in the prior-year quarter. Our projection was $194 million.

Balance Sheet

As of June 25, 2025, Brinker’s cash and cash equivalents amounted to $64.6 million compared with $15.1 million as of June 26, 2024. As of June 25, 2025, long-term debt was $426 million compared with $786.3 million as of June 26, 2024.

EAT’s FY26 Outlook

In fiscal 2026, management anticipates total revenues to be in the range of $5.60-$5.70 billion. Capital expenditures are expected in the $270-$290 million band. EAT projects fiscal 2026 adjusted diluted EPS in the range of $9.90-$10.50.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

The consensus estimate has shifted 10.83% due to these changes.

VGM Scores

Currently, Brinker International has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Brinker International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Brinker International is part of the Zacks Retail - Restaurants industry. Over the past month, Yum Brands (YUM Quick QuoteYUM - Free Report) , a stock from the same industry, has gained 1.6%. The company reported its results for the quarter ended June 2025 more than a month ago.

Yum reported revenues of $1.93 billion in the last reported quarter, representing a year-over-year change of +9.6%. EPS of $1.44 for the same period compares with $1.35 a year ago.

For the current quarter, Yum is expected to post earnings of $1.46 per share, indicating a change of +6.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Yum. Also, the stock has a VGM Score of D.