Chili's parent offers fresh sign that consumers are still eating out. The stock surges.

Dow Jones
08/13

MW Chili's parent offers fresh sign that consumers are still eating out. The stock surges.

By James Rogers

Brinker International reports better-than-expected revenue and adjusted earnings, as well as giving robust outlook

Chili's owner Brinker International reported fourth-fiscal-quarter results early Wednesday, fueling a premarket share-price pickup.

Brinker International Inc. shares were surging early Wednesday after the operator of the Chili's restaurant chain said it is seeing robust customer traffic growth, which it expects to continue.

The company $(EAT)$ reported better-than-expected fourth-quarter revenue and adjusted earnings before the market open and gave a full-year outlook at the high end of Wall Street's expectations.

Lifted by the results, the stock was up more than 9% in premarket trading, putting it on pace for its biggest daily percentage gain since April 9, when it rose 10.1%, Dow Jones Market Data show.

Revenue jumped 21% from the prior year's comparable quarter to $1.46, topping the FactSet consensus estimate of $1.44 billion. This was driven by traffic growth at Chili's, which increased 16.3% from a year earlier, the company said. In the same period last year, Chili's traffic showed more modest growth of 5.9%.

Brinker Chief Executive Kevin Hochman said in a statement that the company, which also operates the Maggiano's Little Italy chain, is confident in its ability to grow sales and traffic throughout its current fiscal year.

Brinker's results come at a time when consumer spending is closely scrutinized amid unfolding impact from tariffs and concern over the broader macroeconomic environment.

Last month food and beverage giant PepsiCo Inc. $(PEP)$ said it is seeing growth in sales at local restaurants as customers consume its products "away from home." When it reported second-quarter results last week fast-food giant McDonald's Corp. $(MCD)$ said its customers are spending more per visit.

Total Brinker comparable-restaurant sales grew 21.3%. Analysts surveyed by FactSet were looking for a sales gain of 21.9%. Chili's comparable sales increased 23.7%, although comparable sales at the smaller Maggiano's unit declined 0.4% on a year-over-year basis.

For the current fiscal year Brinker expects revenue in the range of $5.6 billion to $5.7 billion and adjusted earnings per share of between $9.90 and $10.50. Analysts surveyed by FactSet are looking for full-year revenue of $5.64 billion and adjusted earnings of $9.91 a share.

Net income was $107 million, or $2.30 a share, up from $57.3 million, or $1.24 a share, in the same period last year.

On an adjusted basis, Brinker earned $2.49 a share, topping the FactSet consensus estimate of $2.47 a share.

Brinker shares are up 17.1% in 2025 through Tuesday, compared with the S&P 500 index's SPX gain of 9.6%.

-James Rogers

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(END) Dow Jones Newswires

August 13, 2025 09:11 ET (13:11 GMT)

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