By Nicholas G. Miller

Brinker posted higher second-quarter profit and revenue and raised its fiscal-year outlook as the perceived affordability of Chili's continues to draw repeat customers.

The company reported net income of $128.5 million, or $2.86 a share, up from $118.5 million, or $2.61 a share, the year prior.

Adjusted earnings were $2.87 a share. Analysts polled by FactSet expected $2.62 a share.

Revenue rose to $1.45 billion from $1.36 billion. Wall Street expected $1.41 billion. Comparable restaurant sales rose 7.5%, including 8.6% for Chili's.

The company raised its fiscal year revenue guidance to $5.76 billion to $5.83 billion, up from its previous forecast of $5.6 billion to $5.7 billion. It also boosted its adjusted earnings outlook to $10.45 to $10.85 a share, up from its prior guidance of $9.90 to $10.50 a share. Wall Street sees fiscal-year revenue of $5.75 billion and adjusted earnings of $10.43 a share.

Brinker's shares were up 5.2% in premarket trading on Wednesday to $165.74.

"Menu enhancements and competitive pricing, coupled with ongoing advertising initiatives, continued to strengthen the Company's value proposition and attract new guests, while improved restaurant operations remained a driver of repeat visits," the company said.

Restaurants have reported weaker earnings in recent months as higher prices have turned off consumers. But Chili's has been able to draw customers, who see the chain as having better value than other restaurants.

Write to Nicholas G. Miller at nicholas.miller@wsj.com.

(END) Dow Jones Newswires

January 28, 2026 07:06 ET (12:06 GMT)

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