Brinker International’s fourth-quarter results were shaped by continued momentum at Chili’s, with management emphasizing the impact of menu renovations and disciplined operational execution. CEO Kevin Hochman highlighted the success of new offerings including upgraded queso, nachos, and bacon cheeseburgers, contributing to sustained traffic growth and improved guest experience. Management also credited its world-class marketing efforts and focus on food, service, and atmosphere for driving repeat visits and supporting same-store sales gains. While Maggiano’s continued to face challenges, incremental progress was noted as the team executed on value and portion enhancements. The quarter’s steady operating margins reflected the company’s approach to balancing investments in labor and food quality with top-line growth.
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Brinker International (EAT) Q4 CY2025 Highlights:
- Revenue: $1.45 billion vs analyst estimates of $1.41 billion (6.9% year-on-year growth, 2.9% beat)
- Adjusted EPS: $2.87 vs analyst estimates of $2.63 (9.2% beat)
- Adjusted EBITDA: $223.5 million vs analyst estimates of $212.6 million (15.4% margin, 5.1% beat)
- The company lifted its revenue guidance for the full year to $5.80 billion at the midpoint from $5.65 billion, a 2.6% increase
- Management raised its full-year Adjusted EPS guidance to $10.65 at the midpoint, a 4.4% increase
- Operating Margin: 11.6%, in line with the same quarter last year
- Locations: 1,627 at quarter end, up from 1,624 in the same quarter last year
- Same-Store Sales rose 7.5% year on year (24.2% in the same quarter last year)
- Market Capitalization: $7.12 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Brinker International’s Q4 Earnings Call
- Dennis Geiger (UBS) asked about drivers behind strong traffic and sales; CEO Kevin Hochman pointed to menu improvements and consistent marketing, noting, “It’s more of the same—streamlined menu, operational investments, and world-class marketing.”
- Chris O’Cull (Stifel) questioned whether reliance on value tiers could cap pricing power long term; Hochman explained the barbell strategy ensures diverse offerings and controls mix to protect margins, stating, “We keep $10.99 sales mix constant and innovate at higher tiers.”
- David Palmer (Evercore ISI) inquired about the early impact of Chili’s restaurant reimaging; Hochman said all prototypes were well-received and initial results are promising, but emphasized it’s too early to quantify sales lifts.
- John Tower (Citi) asked about marketing strategy changes for the chicken sandwich launch; Hochman emphasized continued focus on value messaging, given consumer sensitivity to restaurant prices.
- Sara Senatore (Bank of America) sought clarity on margin pressures from menu mix and CapEx adjustments; CFO Mika Ware cited ongoing food quality investments and a refined capital forecast due to fewer equipment rollouts.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be tracking (1) the national launch and guest adoption of Chili’s new chicken sandwich lineup, (2) progress and guest response to accelerated restaurant remodels, and (3) traffic trends in both Chili’s and Maggiano’s as menu updates continue. Execution on new unit development and margin management will also serve as key indicators of sustained operational momentum.
Brinker International currently trades at $160.87, up from $157.29 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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