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Why Is Brinker International (EAT) Up 40.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Brinker International (EAT - Free Report) . Shares have added about 40.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, 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 Q1 Earnings & Revenues Surpass Estimates, Up Y/Y
Brinker reported first-quarter fiscal 2026 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 seventh consecutive quarter.
The quarter’s solid performance was driven by sustained momentum at Chili’s, supported by effective marketing initiatives, a streamlined menu, improving traffic trends and ongoing expansion efforts. Brinker remains optimistic about the year ahead, backed by well-defined plans to build on this momentum. However, Maggiano’s softness, which has persisted over recent quarters, continued this quarter as well. The company is actively implementing new initiatives to help strengthen Maggiano’s performance going forward.
EAT’s Q1 Earnings & Revenue Discussion
In the quarter under review, Brinker reported adjusted earnings per share (EPS) of $1.93, surpassing the Zacks Consensus Estimate of $1.76. The company reported an adjusted EPS of $0.95 in the prior-year quarter.
In the fiscal first quarter, total revenues of $1,349.2 million beat the consensus mark of $1,333 million. The top line increased 18.4% on a year-over-year basis.
EAT’s Segmental Performance
Chili's
In the fiscal first quarter, revenues in the Chili’s segment rose 21.4% year over year to $1,249.7 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
Chili's restaurant expenses (as a percentage of company sales) in the fiscal first quarter were 82.7% compared with 86.5% in the prior-year quarter. The upside was backed by sales leverage and lower repairs and maintenance. 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 21.4% in the fiscal first quarter from the year-ago quarter’s levels. Chili's company-owned traffic gained 13.1% year over year in the quarter under discussion. The metric rose 6.5% in the prior-year quarter.
At Chili’s, domestic comps (including company-owned and franchised) increased 21.6% year over year compared to a gain of 13.9% reported in the prior-year period.
Maggiano’s
Maggiano’s revenues in the fiscal first quarter decreased 8.4% year over year to $99.5 million. Sales at Maggiano's mainly fell as a result of poor comparable restaurant sales brought on by fewer customers, which were somewhat offset by menu prices. Comps in the segment declined 6.4% year over year.
Traffic in the quarter under discussion fell 12.8% year over year, compared to a decrease of 8.7% reported in the prior-year period.
Maggiano's company restaurant expenses (as a percentage of company sales) in the fiscal first quarter were 97.6% compared with 86.7% a year ago. The downside was caused by an unfavorable menu item mix, higher advertising, delivery fees, and other restaurant expenses.
Q1 Operating Results
In the quarter under review, EAT’s total operating costs and expenses came in at $1.23 billion compared with $1.08 billion reported in the year-ago quarter. Adjusted restaurant operating margin, as a percentage of company sales, was 16.2% compared with 13.5% reported in the prior-year quarter.
Adjusted EBITDA in the fiscal first quarter came in at $172.4 million compared with $111.6 million reported in the prior-year quarter.
Balance Sheet
As of Sept. 24, 2025, Brinker’s cash and cash equivalents amounted to $18.9 million compared with $64.6 million as of Sept. 25, 2024. As of Sept. 24, 2025, long-term debt was $525.8 million compared with $426.3 million as of June 25, 2025.
EAT’s FY26 Reiterated 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?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Brinker International has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.
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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Brinker International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Brinker International (EAT) Up 40.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Brinker International (EAT - Free Report) . Shares have added about 40.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, 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 Q1 Earnings & Revenues Surpass Estimates, Up Y/Y
Brinker reported first-quarter fiscal 2026 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 seventh consecutive quarter.
The quarter’s solid performance was driven by sustained momentum at Chili’s, supported by effective marketing initiatives, a streamlined menu, improving traffic trends and ongoing expansion efforts. Brinker remains optimistic about the year ahead, backed by well-defined plans to build on this momentum. However, Maggiano’s softness, which has persisted over recent quarters, continued this quarter as well. The company is actively implementing new initiatives to help strengthen Maggiano’s performance going forward.
EAT’s Q1 Earnings & Revenue Discussion
In the quarter under review, Brinker reported adjusted earnings per share (EPS) of $1.93, surpassing the Zacks Consensus Estimate of $1.76. The company reported an adjusted EPS of $0.95 in the prior-year quarter.
In the fiscal first quarter, total revenues of $1,349.2 million beat the consensus mark of $1,333 million. The top line increased 18.4% on a year-over-year basis.
EAT’s Segmental Performance
Chili's
In the fiscal first quarter, revenues in the Chili’s segment rose 21.4% year over year to $1,249.7 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
Chili's restaurant expenses (as a percentage of company sales) in the fiscal first quarter were 82.7% compared with 86.5% in the prior-year quarter. The upside was backed by sales leverage and lower repairs and maintenance. 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 21.4% in the fiscal first quarter from the year-ago quarter’s levels. Chili's company-owned traffic gained 13.1% year over year in the quarter under discussion. The metric rose 6.5% in the prior-year quarter.
At Chili’s, domestic comps (including company-owned and franchised) increased 21.6% year over year compared to a gain of 13.9% reported in the prior-year period.
Maggiano’s
Maggiano’s revenues in the fiscal first quarter decreased 8.4% year over year to $99.5 million. Sales at Maggiano's mainly fell as a result of poor comparable restaurant sales brought on by fewer customers, which were somewhat offset by menu prices. Comps in the segment declined 6.4% year over year.
Traffic in the quarter under discussion fell 12.8% year over year, compared to a decrease of 8.7% reported in the prior-year period.
Maggiano's company restaurant expenses (as a percentage of company sales) in the fiscal first quarter were 97.6% compared with 86.7% a year ago. The downside was caused by an unfavorable menu item mix, higher advertising, delivery fees, and other restaurant expenses.
Q1 Operating Results
In the quarter under review, EAT’s total operating costs and expenses came in at $1.23 billion compared with $1.08 billion reported in the year-ago quarter. Adjusted restaurant operating margin, as a percentage of company sales, was 16.2% compared with 13.5% reported in the prior-year quarter.
Adjusted EBITDA in the fiscal first quarter came in at $172.4 million compared with $111.6 million reported in the prior-year quarter.
Balance Sheet
As of Sept. 24, 2025, Brinker’s cash and cash equivalents amounted to $18.9 million compared with $64.6 million as of Sept. 25, 2024. As of Sept. 24, 2025, long-term debt was $525.8 million compared with $426.3 million as of June 25, 2025.
EAT’s FY26 Reiterated 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?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Brinker International has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.
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 broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Brinker International has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.