Brinker International’s Stock Soars Over 300% as Earnings Exceed Expectations
Brinker International’s EAT stock continues to impress. The operator of Chili’s Bar & Grille and Maggiano’s has witnessed a staggering 300% increase in share price over the past year.
On Wednesday, the company reported strong earnings for its fiscal second quarter, pushing its stock to new heights of $184 per share.
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Brinker Achieves Impressive Q2 Results
Brinker is on a successful path driven by better guest experiences and effective menu pricing at Chili’s. For the second quarter, the company reported sales of $1.35 billion, a significant 26% increase from $1.07 billion during the same quarter last year, and surpassing sales expectations of $1.24 billion.
Chili’s notably outperformed the industry with a remarkable 31% increase in same-restaurant sales compared to the previous year. Earnings per share (EPS) skyrocketed to $2.80 from $0.99 in the same quarter last year, exceeding the expected $1.80 by a substantial 55%.
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Brinker Raises EPS Guidance
Following this strong EPS surprise, Brinker has raised its earnings guidance for fiscal 2025 to between $7.50 and $8.00 per share. This is significantly higher than the current Zacks Consensus of $6.23, indicating a potential growth of 52%. Zacks projections suggest that Brinker’s earnings could grow another 14% next year.
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Coinciding with Brinker’s impressive stock price rise is a notable increase in earnings estimates. Since January last year, EPS projections for FY25 have risen by 58%, reflecting strong investor confidence.
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Conclusion
Following its strong Q2 performance, Brinker International holds a Zacks Rank #1 (Strong Buy). With earnings guidance exceeding expectations and a trend of rising earnings estimates, EAT could see further growth ahead.
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Brinker International, Inc. (EAT): Free Stock Analysis Report
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