Brinker International Stock Sinks as Higher Costs Eat Into Earnings
Brinker International stock is spiraling Wednesday after the restaurant operator reported weak earnings results and provided a soft outlook.


Brinker International (EAT) stock is down nearly 13% Wednesday afternoon. The selloff comes after the parent company of Chili's and Maggiano's Little Italy came up short of earnings expectations for its fiscal fourth quarter and issued a weak earnings outlook for its new fiscal year.
In the thirteen weeks ended June 26, Brinker's revenue increased 12.3% year-over-year to $1.2 billion, driven by same-restaurant sales rising 13.5%. Comparable sales at Chili's were up an impressive 14.8%. The company also said its earnings per share (EPS) rose 15.8% from the year-ago period to $1.61 and that operating expenses were up 11.7% to $1.14 billion.
"We achieved another quarter of solid progress against our strategy to deliver profitable, sustainable growth," said Brinker CEO Kevin Hochman in a statement. "We significantly outperformed the industry in both sales and traffic during the quarter, while maintaining record high guest metrics."

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $1.16 billion and earnings of $1.72 per share, according to Yahoo Finance.
Sentiment worsened toward Brinker after the company provided its outlook for fiscal 2025. Brinker anticipates EPS to arrive between $4.35 to $4.75. The midpoint of this range, $4.55, is well short of the consensus analyst estimate of $4.78.
On a positive note, Brinker anticipates revenue in the range of $4.55 billion to $4.62 billion in fiscal 2025, which is ahead of the $4.53 billion in revenue analysts are anticipating.
Is Brinker stock a buy, sell or hold?
Heading into today's trading, Brinker was up an impressive 63% for the year to date. Yet, Wall Street is on the sidelines when it comes to the consumer discretionary stock.
According to S&P Global Market Intelligence, the average analyst target price for EAT stock is $66.78, representing implied upside of more than 8% to current levels. Meanwhile, the consensus recommendation is Hold.
Related Content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
‘Are You Better Off Than You Were 71 Days Ago?’ Cory Booker Marathon Senate Speech Highlights Tax Debate
Tax Policy A speech protesting Trump’s policies, including tax plans, breaks U.S. Senate records.
By Kelley R. Taylor Published
-
Stock Market Today: Stocks Are Mixed Before Liberation Day
Markets are getting into the freewheeling rhythm of a second Trump administration.
By David Dittman Published
-
Stock Market Today: Stocks Are Mixed Before Liberation Day
Markets are getting into the freewheeling rhythm of a second Trump administration.
By David Dittman Published
-
How to Invest in Sports
If it's springtime, Forbes is out with its annual list of baseball franchise values. The billions involved might make you wonder how to invest in sports.
By David Dittman Published
-
Winning Strategies for Financial Advisers as Clients' Lives Evolve
How can the wealth management industry help make life transitions easier for the adviser and the client?
By David Conti, CPRC Published
-
How Advisers Can Establish Relationships With HNW Prospects
These strategies can help to build influence with high-net-worth individuals, who are often looking to an adviser for insight rather than solutions.
By Jeremy Green, CFP®, CTFA, CLU®, CEBS®, AEP®, EA, MSFS Published
-
When Your Car Is Fixed, But You've Still Got the Problem
This reader's experience with trying to get squealing brakes fixed under an extended warranty mirrors what others are experiencing these days.
By H. Dennis Beaver, Esq. Published
-
Stock Market Today: Dow Rises 854 Points From Its Intraday Low
If there's one thing markets hate, it's uncertainty. But uncertainty is all they're getting these days.
By David Dittman Published
-
Seven Questions to Ask When Evaluating Personal Loan Options
Taking out a personal loan too hastily could lock you into unfavorable terms with an untrustworthy lender. Ask these questions before signing anything.
By David Kimball Published
-
How Much Does Being Rich Matter in Retirement?
After a certain point, having more money in retirement won't make you any happier, new research shows. Instead, physical health, a sense of purpose, and a minimal amount of non-mortgage debt are more relevant.
By Christy Bieber Published