What Happened?
Shares of casual restaurant chain Brinker International (NYSE: EAT)
jumped 12.3% in the afternoon session after the company reported mixed fiscal fourth-quarter results but issued a strong outlook for its upcoming 2027 financial year. While Brinker International's adjusted earnings of $3.07 per share narrowly missed Wall Street's estimates, revenue of $1.54 billion came in ahead of forecasts, supported by an increase in same-store sales.
The positive investor reaction was primarily fueled by the company's strong guidance. Management's forecast for its 2027 financial year projected both revenue and earnings per share above market expectations, with its full-year adjusted earnings per share guidance of $13.00 at the midpoint beating consensus estimates.
The shares closed the day at $245.71, up 11% from the previous close.
Is now the time to buy Brinker International? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Brinker International’s shares are very volatile and have had 21 moves greater than 5% over the last year. But moves this big are rare even for Brinker International and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock gained 16.1% on the news that it reported strong third-quarter fiscal 2026 results that beat earnings expectations and raised its full-year profit forecast. The company posted adjusted earnings of $2.90 per share, surpassing analysts' forecasts of $2.87, while revenue came in at $1.47 billion, matching expectations. A key driver was the performance of its Chili's brand, which recorded its 20th straight quarter of same-store sales growth, with an increase of 4.0%.
Overall, comparable restaurant sales for the company rose by 3.3%. Buoyed by the strong performance, Brinker raised its adjusted earnings guidance for fiscal 2026 to a range of $10.60 to $10.85 per share. The company also noted it used cash from operations to pay down debt and repurchase $108 million of its stock during the quarter.
Brinker International is up 58.8% since the beginning of the year, and at $240.58 per share, it has set a new 52-week high. Investors who bought $1,000 worth of Brinker International’s shares 5 years ago would now be looking at an investment worth $4,508.
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
