DALLAS, August 12, 2026, 12:22 EDT
- Brinker stock climbed roughly 6% to $234.58 in late-morning trade.
- Comparable sales at Chili’s rose by 5.6%, marking the fifth consecutive year of growth.
- At the midpoint, fiscal 2027 guidance exceeded the previous analyst EPS estimate.
Shares of Brinker International, Inc. NYSE:EAT climbed roughly 6% to $234.58 on Wednesday as investors shifted attention from the two-cent adjusted earnings shortfall to a confident fiscal 2027 outlook.
Quarterly EPS was not the main focus. Chili’s reported a 5.6% rise in comparable sales despite facing a more challenging comparison. The leading chain has achieved same-store sales gains for five consecutive years.
Durability is significant. Brinker projected adjusted earnings between $12.60 and $13.40 per share for fiscal 2027. The midpoint of $13.00 is 3.4% higher than analysts’ previous estimate of $12.57.
Chief Executive Kevin Hochman said, “Our strong brand relevance, industry-leading value proposition, streamlined operations, and significant restaurant investments have created a competitive moat.” The Wall Street Journal
Fourth-quarter net income climbed 22.5%, outstripping revenue growth of roughly 5%. Adjusted EPS is reported as a non-GAAP metric.
| Fiscal Q4 metric | 2026 | 2025 | Change |
|---|---|---|---|
| Total revenue | $1.54 billion | $1.46 billion | Rises roughly 5% |
| Net income | $131.1 million | $107.0 million | Gains 22.5% |
| Diluted EPS | $2.99 | $2.30 | Up 30.0% |
| Adjusted EPS | $3.07 | $2.49 | Increases 23.3% |
| Adjusted EPS consensus | $3.09 | — | Short by $0.02 |
The Journal stated the company posted a quarterly net income of $131.1 million. According to Investor’s Business Daily, revenue reached $1.536 billion and adjusted earnings per share came in at $3.07.
Brand results were mixed. Chili’s drove the gains. Maggiano’s saw comparable sales drop 2.5%, while consolidated comparable sales increased 5%.
The smaller chain continues to lag behind. Its ongoing decline has further increased the disparity with Chili’s, leaving Brinker’s investment thesis largely reliant on a single brand.
| Operating or outlook measure | Result | Investor read-through |
|---|---|---|
| Brinker comparable sales | +5.0% | Growth trend maintained |
| Chili’s comparable sales | +5.6% | Five-year run continues |
| Maggiano’s comparable sales | -2.5% | Brand underperforms further |
| Fiscal 2027 revenue guide | $6.15 billion-$6.27 billion | $6.21 billion at midpoint |
| Prior revenue consensus | $6.15 billion | Midpoint is 1.0% above consensus |
| Fiscal 2027 adjusted EPS guide | $12.60-$13.40 | $13.00 at midpoint |
| Prior adjusted EPS consensus | $12.57 | Midpoint is 3.4% over consensus |
The guidance and consensus numbers cited by the Journal came from Brinker and FactSet. Comparisons using the midpoint are based on those numbers.
The share price movement also shifted valuation outlooks. Brinker closed at $234.58, marking a 16.1% premium over the $202 average analyst target, according to a compilation. UBS was the sole firm with a current target, at $260, significantly higher than the trading price.
| Analyst or consensus | Date | Rating | Price target |
|---|---|---|---|
| UBS | Aug. 10, 2026 | Buy | $260 |
| Wells Fargo | July 16, 2026 | Buy | $220 |
| KeyBanc | July 15, 2026 | Buy | $204 |
| Stephens | July 16, 2026 | Buy | $200 |
| Three-month summary | Current | 17 Buy, 4 Hold, 1 Sell | $202 average |
Investing.com’s latest summary provides the ratings and price targets listed. Most of these were published before the results and could be revised as analysts refresh their projections.
Brinker can continue to grow its earnings even without quickly adding new locations. Increased restaurant traffic allows fixed labor and occupancy expenses to be distributed over greater sales. This operating leverage resulted in net income rising at four times the pace of revenue in the latest quarter.
Risks: Restaurant visits are vulnerable to consumer spending power and reliance on discounts. Rising food and labor costs can squeeze profit margins. Ongoing underperformance at Maggiano’s could necessitate increased investment ahead of any sales improvement.
The following trigger is analyst estimate changes. Shares have risen past most existing price targets, meaning Chili’s needs to turn its five-year sales momentum into adjusted EPS of at least $13, which is close to the midpoint of its guidance.
