Brinker leaps as fiscal Q2 results and full-year forecast surpass estimates

Investing.com -- Brinker International shares jumped more than 5% in premarket trading Wednesday after the restaurant operator posted stronger-than-expected quarterly earnings and issued full-year guidance that topped market forecasts.

The Chili’s owner reported second-quarter earnings per share (EPS) of $2.87, beating analyst expectations of $2.57. Revenue during the period rose to $1.45 billion from $1.36 billion a year earlier and came in above the $1.41 billion consensus estimate.

Comparable restaurant sales increased 7.5% in the quarter, driven by an 8.6% rise at Chili’s, while Maggiano’s posted a 2.4% decline.

"Chili’s delivered another strong quarter with industry-leading growth of +9%, rolling the industry-leading growth from last year for a 2-year comp sales growth of +43%," said Kevin Hochman, President and CEO of Brinker International.

"With 19 consecutive quarters of same-store sales growth, Chili’s turnaround, led by guest experience improvements, is sustaining over the long-term," he added.

Adjusted EBITDA in the quarter climbed to $223.5 million from $215.8 million in the prior-year period. Restaurant operating margin edged lower to 18.8% from 19.1% a year ago.

Looking ahead, Brinker forecasts fiscal 2026 EPS in the range of $10.45 to $10.85, above the consensus estimate of $10.44. The company also expects full-year revenue of $5.76 billion to $5.83 billion, also ahead of the $5.75 billion market forecast.

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