Brinker International shares rise on upbeat quarterly outlook

Brinker International Inc. shares climbed on Thursday after the restaurant operator raised its full-year guidance, citing stronger-than-expected same-store sales growth in the latest quarter.

The Dallas-based company, which operates brands including Chili’s Grill & Bar, reported adjusted same-store sales growth of 5.5% in the quarter ended March 31, exceeding analyst estimates. Brinker attributed the outperformance to higher menu prices, improved operational efficiency and sustained customer traffic.

Management raised its fiscal 2025 adjusted earnings guidance to a range of $3.20 to $3.40 per share, up from the prior forecast of $3.00 to $3.20. The midpoint of the new range implies a 6.7% increase from the company’s adjusted earnings of $3.06 per share in fiscal 2024.

Analysts at Stifel maintained a hold rating on the stock but raised their price target to $62 from $58, citing the improved outlook. At least five other firms followed with similar adjustments.

Brinker’s shares were up 3.2% at $59.45 in midday trading, extending gains after the guidance update. The stock has gained roughly 12% over the past month, outperforming the broader restaurant sector, which is up about 6% over the same period.

The company’s improved performance contrasts with broader industry challenges, including labor cost pressures and uneven consumer spending patterns. Brinker’s focus on value-oriented offerings and operational execution appears to be resonating with customers, executives said during the earnings call.

Investors will continue to monitor same-store sales trends and margin performance as Brinker navigates a competitive dining landscape.