Brinker Q2 Earnings Beat Estimates On Strong Chili's Sales Growth And Increased Traffic

Brinker International, Inc. EAT shares are trading higher on Wednesday in the premarket session.

The company reported second-quarter adjusted earnings per share of $2.80 beating the street view of $1.79. Quarterly sales of $1.358 billion outpaced the analyst consensus estimate of $1.240 billion.

Comparable restaurant sales increased 27.4%, with an increase in comparable restaurant sales of 31.4% for Chili’s and 1.8% for Maggiano’s. Chili’s sales growth was driven by a 19.9% increase in traffic generated by investments in advertising behind the industry leading value that brought guests in and operational improvements that brought guests back.

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“Chili’s sales comps accelerated to +31%, driven both by new guests trying Chili’s and return guests coming more frequently despite a more competitive promotional environment,” said President and CEO Kevin Hochman.

Higher company sales resulted in operating income margin increasing to 11.5% and restaurant operating margin increasing to 19.1% in the second quarter. 

Outlook: Brinker International expects FY25 revenues to be between $5.15 billion and $5.25 billion, higher than the analyst consensus estimate of $4.90 billion (prior view: $4.70 billion-$4.75 billion).

The company also projects adjusted EPS of $7.50 to $8.00 versus the street view of $6.36, up from the prior forecast of $5.20 to $5.50.

The company exited the quarter with cash and equivalents worth $14.8 million.

Price Action: EAT shares are trading higher by 12.5% to $173.99 premarket at last check Wednesday.

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