Brinker International stock tumbles 13% on Q4 earnings miss

DALLAS - Brinker International (NYSE:EAT ) shares plunged 13.35% on Wednesday after the restaurant operator reported fourth quarter earnings that fell short of analyst expectations, despite beating on revenue.

The parent company of Chili's and Maggiano's Little Italy posted adjusted earnings per share of $1.61 for the quarter ended June 26, missing the consensus estimate of $1.66. However, revenue came in at $1.21 billion, surpassing analyst projections of $1.15 billion.

Comparable restaurant sales increased 13.5% YoY, with Chili's seeing a 14.8% rise and Maggiano's up 2.5%. The company said Chili's traffic increased 5.9%, boosted by the launch of the "Big Smasher" burger and value-focused advertising.

"We achieved another quarter of solid progress against our strategy to deliver profitable, sustainable growth. We significantly outperformed the industry in both sales and traffic during the quarter, while maintaining record high guest metrics," said Kevin Hochman, CEO of Brinker International.

For fiscal 2025, Brinker provided an upbeat outlook, forecasting EPS of $4.35-$4.75 versus the $4.22 consensus. The company expects revenue of $4.55-4.62 billion, above analyst estimates of $4.37 billion.

Brinker shares have gained about 15% year-to-date prior to today's decline.

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Source: Investing.com