Brinker shares fall despite Chili’s parent topping expectations

Published 13/08/2025, 12:10

Investing.com -- Brinker International, Inc. reported better-than-expected fourth quarter fiscal 2025 results on Thursday, but shares fell 3.5% in premarket trading.

The restaurant operator posted adjusted earnings per share of $2.49, slightly above the analyst consensus of $2.47, while revenue reached $1.46 billion, edging past estimates of $1.44 billion. Revenue increased 21.1% compared to the same quarter last year, driven primarily by Chili’s strong performance.

Chili’s delivered impressive comparable restaurant sales growth of 23.7% YoY, with traffic up 16%. However, Maggiano’s saw a slight decline of 0.4% in comparable sales during the quarter.

"Chili’s delivered another strong quarter with sales +24% driven by traffic of +16%," said Kevin Hochman, President & CEO of Brinker International. "We now have delivered a Q4 2 year sales growth of +39% and 3-year of +45%. With that sustained momentum along with a strong pipeline of initiatives, we are confident in our ability to grow sales and traffic throughout Fiscal 2026."

For fiscal 2026, Brinker expects total revenues between $5.60 billion and $5.70 billion, with adjusted earnings per share projected to be in the range of $9.90 to $10.50. The company also announced its Board of Directors authorized an additional $400 million for its share repurchase program.

Restaurant operating margin improved to 17.8% from 15.2% in the year-ago quarter, reflecting the company’s ability to leverage higher sales despite increased labor costs and other restaurant expenses.

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