Brinker International (EAT) Is Up 19.2% After Chili’s Drives Surge in Sales and Guest Traffic

• Brinker International recently reported strong first quarter financial results, highlighting significant same-store sales gains and a notable influx of new and returning guests at its Chili’s brand.
• This momentum at Chili’s helped offset ongoing challenges at Maggiano’s and inspired a series of positive analyst ratings, underscoring renewed confidence in the company’s turnaround strategy.
• We’ll assess how Chili’s ability to attract new and returning diners could shift Brinker International’s investment narrative moving forward.

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Brinker International Investment Narrative Recap

To own Brinker International shares today, you need to believe in Chili’s momentum as the core growth engine, and that this renewed guest traffic can outpace challenges like rising labor costs and changing consumer habits. The recent stock surge highlights short-term optimism, but the biggest risk remains Brinker's heavy dependence on traditional dine-in experiences amid a sector-wide shift toward off-premise and convenience-focused dining; the news does not materially reduce this vulnerability, so how well Chili’s sustains in-restaurant strength stays the key catalyst and concern.

Among recent announcements, Brinker's first quarter results, with sales rising to US$1,335.4 million and net income jumping to US$99.5 million, stand out. This growth, driven by strong same-store sales and increased Chili’s guest visits, brings added urgency to the question: can this performance offset long-term threats to traffic from shifting consumer preferences?

Yet, despite the improved financials and rising guest counts at Chili’s, it’s worth noting for investors that if off-premise dining trends accelerate faster than Brinker adapts, …

Read the full narrative on Brinker International (it's free!)

Brinker International's outlook forecasts $6.2 billion in revenue and $562.8 million in earnings by 2028. This is based on a 4.7% annual revenue growth rate and a $179.7 million increase in earnings from the current $383.1 million.

Uncover how Brinker International's forecasts yield a $159.41 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members supplied a range of fair value estimates for Brinker International from US$159.41 to US$201.43, reflecting two different outlooks. While many anticipate growth from menu innovation and digital efforts, the company’s heavy focus on in-restaurant dining continues to raise questions about long-term adaptability, explore these differing perspectives to inform your own view.

Explore 2 other fair value estimates on Brinker International - why the stock might be worth as much as 49% more than the current price!

Build Your Own Brinker International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Brinker International research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Brinker International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Brinker International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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