Brinker feels god in this Chili’s tonight; restaurant owner soars on huge sales growth

Shares of Brinker International are spiking after the owner of Chili’s and Maggiano’s Little Italy posted much larger profits than Wall Street expected and said that trend was poised to continue.

Earnings per share of $0.95 were about 40% above the consensus estimate for its fiscal Q1 2025, and management boosted their guidance for full-year sales and profits. The stock is up nearly 8% in the premarket.

While most of the industry — particularly the quick-service restaurant space — continues to be obsessed with providing value to price-conscious consumers, Brinker doesn’t seem to have the same problem at the chain that accounts for 90% of its revenues.

Management credited both higher traffic and higher prices for driving robust same-store sales growth of 14.1% year on year at company-owned Chili’s locations. 

“Great food with great service at industry-leading value is driving strong Chili’s sales and traffic,” President and CEO Kevin Hochman said.

This marks Brinker as a winner in a slowing market: after booming from 2021 through 2023, the annual growth in US spending at “food dining and drinking places” has decelerated to well below its prepandemic rate.