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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
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  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

The 5 Most Interesting Analyst Questions From Brinker International’s Q2 Earnings Call

EAT Cover Image

Brinker International delivered fiscal Q4 2025 results that surpassed Wall Street’s expectations, driven by strong same-store sales growth at Chili’s and considerable improvements in restaurant operating margins. Management credited these results to ongoing menu simplification, targeted operational investments, and upgraded kitchen equipment, all of which enhanced food quality and guest experience. CEO Kevin Hochman emphasized that “Chili’s has now beat the industry in the past 7 quarters on traffic,” attributing sustained performance to a disciplined focus on core menu items and improved labor deployment.

Is now the time to buy EAT? Find out in our full research report (it’s free).

Brinker International (EAT) Q2 CY2025 Highlights:

  • Revenue: $1.46 billion vs analyst estimates of $1.44 billion (21% year-on-year growth, 1.6% beat)
  • Adjusted EPS: $2.49 vs analyst estimates of $2.47 (0.8% beat)
  • Adjusted EBITDA: $212.4 million vs analyst estimates of $208.9 million (14.5% margin, 1.7% beat)
  • Adjusted EPS guidance for the upcoming financial year 2026 is $10.20 at the midpoint, beating analyst estimates by 2.9%
  • Operating Margin: 9.8%, up from 6.1% in the same quarter last year
  • Locations: 1,628 at quarter end, up from 1,614 in the same quarter last year
  • Same-Store Sales rose 19.8% year on year (11.9% in the same quarter last year)
  • Market Capitalization: $6.85 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 Q2 Earnings Call

  • David Palmer (Evercore ISI) asked about margin expansion drivers and Maggiano’s turnaround. CFO Mika Ware clarified margin expansion is guided at 30–40 basis points, with investments planned in food and labor, and CEO Kevin Hochman described the Maggiano’s strategy as applying Chili’s successful fundamentals.
  • Chris O'Cull (Stifel) inquired about updating long-term growth targets and marketing spend efficiency. Ware reiterated existing growth algorithms remain relevant for now, while Hochman said incremental marketing investment would focus on smaller, high-impact adjustments.
  • Jeff Farmer (Gordon Haskett) questioned traffic, pricing, and mix assumptions in guidance. Ware outlined a more modest pricing approach, with mix expected to be flat and positive traffic as a key focus, even as year-over-year comparisons become tougher.
  • Christine Cho (Goldman Sachs) asked for details on store remodel plans and anticipated returns. Ware explained four pilot remodels are underway, with broader rollout and investment levels to be determined after evaluating initial results.
  • Brian Harbour (Morgan Stanley) probed opportunities for new unit growth and market expansion. Ware noted the strongest historical performance in Texas, Florida, and California but highlighted opportunities in the Northeast and Pacific Northwest as part of the company’s expansion strategy.

Catalysts in Upcoming Quarters

In the coming quarters, our team will be watching (1) the initial impact and guest response to newly remodeled restaurants, (2) the effectiveness of product launches like upgraded ribs and chicken sandwiches in sustaining traffic growth, and (3) the execution of technology upgrades aimed at improving order accuracy and staff efficiency. The pace and success of new unit development will also be a critical signpost for longer-term growth.

Brinker International currently trades at $153.83, in line with $155.09 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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