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FMP

Brinker International, Inc. (NYSE: EAT) Surpasses Earnings and Revenue Estimates

  • Brinker International, Inc. (NYSE:EAT) reported earnings per share (EPS) of $2.87, beating the estimated $2.53, and revenue of $1.45 billion, exceeding the $1.41 billion estimate.
  • The company's Chili's brand demonstrated a robust growth of 9% and a two-year comparable sales growth of 43%, contributing significantly to the stock's increase.
  • Despite challenges such as a high debt-to-equity ratio of approximately 5.29 and a current ratio of 0.35, Brinker's strong earnings yield of about 6.21% indicates a solid foundation for future growth.

Brinker International, Inc. (NYSE: EAT) is a prominent player in the restaurant industry, operating well-known chains like Chili's Grill and Bar and Maggiano's Little Italy. The company has consistently demonstrated strong financial performance, as evidenced by its recent earnings report. On January 28, 2026, Brinker reported earnings per share (EPS) of $2.87, surpassing the estimated $2.53, and achieved a revenue of approximately $1.45 billion, exceeding the estimated $1.41 billion.

The positive earnings report led to a significant increase in Brinker's stock, driven largely by the success of its Chili's brand. Chili's has shown remarkable resilience in a generally sluggish restaurant sector, with a robust growth of 9% and a two-year comparable sales growth of 43%, as highlighted by Kevin Hochman, President and CEO of Brinker International. This growth is attributed to improvements in guest experience, menu enhancements, competitive pricing, and ongoing advertising initiatives.

Brinker's consistent outperformance is evident in its earnings surprises over the past four quarters. The company reported a +13.39% earnings surprise for the current quarter and a +9.66% surprise in the previous quarter. This trend of exceeding expectations underscores Brinker's strong operational execution and strategic initiatives, which have bolstered its financial performance.

In addition to strong earnings, Brinker reported revenues of $1.45 billion for the quarter ending December 2025, exceeding the Zacks Consensus Estimate by 3.44%. This marks an increase from the $1.36 billion in revenue reported in the same period last year. The company's ability to consistently surpass consensus revenue estimates highlights its effective business strategies and expanding customer base.

Despite its impressive financial performance, Brinker faces some challenges. The company has a high debt-to-equity ratio of approximately 5.29, indicating a significant reliance on debt financing. Additionally, its current ratio of 0.35 suggests potential liquidity challenges in covering short-term liabilities. However, Brinker's strong earnings yield of about 6.21% and disciplined execution provide a solid foundation for continued growth and success.