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

synopsis

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.

EAT sentiment meter and message volumes on Jan 30 as of 4:40 am ET

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

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