Brinker Stock Soars To All-Time High On Q4 Earnings Beat With Chili's Strong Comeback: Retail’s Elated

Shares of Brinker International Inc. ($EAT) soared more than 16% on Wednesday reaching an all-time high following the company’s better-than-expected second-quarter earnings and sales growth at Chili's, heating up retail sentiment.

Brinker International, which operates Chili's and Maggiano's Little Italy restaurant brands, reported $2.80 in earnings per share, beating Wall Street estimates of $1.86, according to Stocktwits data.

Comparable restaurant sales increased 27.4% overall, with an increase of 31.4% for Chili's and 1.8% for Maggiano's. 

Chili's sales growth was driven by a 19.9% increase in traffic generated by a combination of advertising spend and operational improvements, with operating income margin increasing to 11.5% and restaurant operating margin (non-GAAP) increasing to 19.1% for the second quarter, said the company.

"Improving fundamentals continues to drive a better guest experience and sustained business results," said Kevin Hochman, president and CEO of Brinker, said. "Chili's sales comps accelerated to over 31%, driven both by new guests trying Chili's and return guests coming more frequently despite a more competitive promotional environment. These results would indicate we are building a much stronger business for the long term."

Its overall revenue came in at $1.36 billion, more than 8% above the consensus estimate of $1.25 billion, according to Stocktwits data.

The company updated its full-year guidance, with revenues expected to be in the range of $5.15 billion and $5.25 billion; net income per diluted share is expected to be in the range of $7.50 and $8.00.

Sentiment on Stocktwits inched up in the ‘bullish’ category. While message volumes continued to be in the ‘extremely high’ zone.

Brinker International stock is up 36% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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