Chilis owner Brinker posts higher Q1 revenue on menu price hike; raises guidance
Overview
U.S. casual dining operator's fiscal Q1 revenue and adjusted EPS beat analyst expectations
Company repurchased $125 mln of its common stock in the quarter
Brinker raised full-year revenue and adjusted EPS guidance for fiscal 2027
Outlook
Brinker raises fiscal 2027 total revenue guidance to $6.23-$6.33 bln from $6.15-$6.27 bln
Company lifts fiscal 2027 net income per diluted share guidance, excluding special items, to $13.30-$13.90
Brinker expects 53rd week in Q4 to add about 2% to revenue and $0.70 to EPS
Result Drivers
CHILIS TRAFFIC AND PRICING - Co said Chilis sales rose due to higher guest traffic and menu price increases
BRAND INITIATIVES - Co attributed results to ongoing brand initiatives aimed at improving guest experience and market share
MAGGIANOS TRAFFIC DECLINE - Co said Maggianos sales fell due to lower guest traffic, partially offset by menu pricing
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $1.48 bln | $1.46 bln (18 Analysts) |
Q1 Adjusted EPS | Beat | $2.77 | $2.45 (20 Analysts) |
Q1 EPS | $2.64 | ||
Q1 Like-For-Like Growth | 9.10% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for Brinker International Inc is $270.00, about 37.3% above its October 27 closing price of $196.72
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)