Brinker International, Inc. (NYSE:EAT) shares are trading higher in the premarket session on Wednesday.
Menu updates, competitive pricing and continued advertising helped bring in new customers, while better restaurant operations supported repeat visits in the company’s second quarter results.
Quarterly Sales
The company reported second-quarter adjusted earnings per share of $2.87, beating the analyst consensus estimate of $2.62. Quarterly sales of $1.452 billion outpaced the Street view of $1.411 billion.
Company comparable restaurant sales increased 7.5% in the second quarter of fiscal 2026, including 8.6% for Chili’s. Maggiano’s comparable sales fell 2.4%.
“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, 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.”
In the second quarter, operating income was $168.4 million, compared with $156 million a year ago. Operating margin expanded to 11.6% from 11.5% a year ago.
Adjusted restaurant operating margin contracted to 18.8% from 19.1% a year ago.
In the quarter under review, adjusted EBITDA was $223.5 million, higher than $215.8 million a year ago.
Brinker exited the quarter with $15 million in cash and equivalents.
Outlook
Brinker International Inc. raised its fiscal 2026 adjusted earnings forecast to a range of $10.45 to $10.85 per share, from its prior outlook of $9.90 to $10.50, compared with analysts’ average estimate of $10.46.
The company also lifted its fiscal 2026 revenue guidance to $5.76 billion to $5.83 billion, up from $5.60 billion to $5.70 billion, versus the Street estimate of $5.761 billion.
Brinker International said it expects fiscal 2026 results to be affected by Winter Storm Fern, including roughly $20 million in lower revenue and an estimated 15 cents per-share hit to non-GAAP earnings.
EAT Price Action: Brinker International shares are trading higher by 7.44% to $169 premarket at last check Wednesday.
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