Brinker Surges On Q1 Beat, Chili's Drives Big Gains

Brinker International, Inc (NYSE: EAT) stock traded higher after the company reported fiscal first-quarter 2025 results. Total revenue increased 12.5% year-on-year to $1.14 billion, beating the analyst consensus estimate of $1.10 billion.

Adjusted EPS of 95 cents beat the analyst consensus estimate of 69 cents.

Comparable restaurant sales rose 13.0% for Brinker, 14.1% for Chili’s, and 4.2% for Maggiano’s.

The comparable restaurant sales increase at Chili’s was primarily due to increased menu pricing and higher traffic. The launch of the “Big Smasher” burger and the strength of Chili’s advertising drove traffic during the quarter.

The restaurant’s adjusted operating margin expanded 310 basis points to 13.5%, and its adjusted operating income for the quarter rose 45.4% to $151.7 million, driven by higher sales. Adjusted EBITDA of $111.6 million grew 54.1% year over year.

As of Sept. 25, the company held $16.2 million in cash and equivalents. Net cash provided by operating activities for the quarter totaled $62.8 million.

“Great food, with great service at industry leading value is driving strong Chili’s sales and traffic,” said President and CEO, Kevin Hochman.

Outlook: Brinker expects fiscal 2025 adjusted EPS of $5.20-$5.50 (prior $4.35-$4.75) against the analyst estimate of $4.78.

Brinker expects fiscal 2025 revenue of $4.70 billion—$4.75 billion (prior $4.55 billion—$4.62 billion) against a consensus estimate of $4.53 billion.

Brinker International stock surged 131% year-to-date.

At least two Wall Street firms, including Argus Research and Raymond James, downgraded the stock rating in October.

Price Action: EAT stock is up 6.07% at $102.90 premarket at last check Wednesday.

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Image created using artificial intelligence via Midjourney.