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."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
Dow Adds 238 Points as UnitedHealth, Caterpillar Pop: Stock Market TodayThe lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
Kiplinger Quiz of the Week: Test Yourself on the Week's StoriesQuiz The Nike stock price, Amazon's settlement and the shutdown were all covered by Kiplinger this week — but why? How much do you know about the week's financial news?
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market Today
The lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term PlanThe new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.
-
I'm an Insurance Expert: This Is Exactly Why Your Insurance Rates Are Soaring (and What You Can Do)A dramatic rise in the frequency and cost of severe weather and wildfires means you need to prepare, prepare, prepare — no matter where you live — for higher premiums.
-
Stocks at New Highs as Shutdown Drags On: Stock Market TodayThe Nasdaq Composite, S&P 500 and Dow Jones Industrial Average all notched new record closes Thursday as tech stocks gained.
-
Government Shutdown Puts IPO Resurgence at RiskThe IPO market has been sizzling in recent months, but the government shutdown threatens to put a short-term halt to public offerings. Here's why.
-
Q3 2025 Post-Mortem From an Investment Adviser: Markets Continue to Climb, Gold ShinesThe third quarter saw market gains driven by Fed rate cuts and strong earnings, despite high valuations and concerns about speculative trading and job growth. Gold and international stocks could be potential hedges.
-
Moving Abroad? You Might Need a Cross-Border Financial AdviserIf you want to live in another country long term, you could benefit from an expert's guidance. Here's how to find a good qualified adviser to help with residency requirements, documentation, financial laws and tax impacts.
-
S&P 500 Sees New Highs on Shutdown Day: Stock Market TodayMost of its components were in the red, but the S&P 500 Index still managed to hit a new intraday all-time high.
