Chili’s Same-Store Sales Surge Amid Price Increases and Higher Traffic

  • Brinker International Inc.’s stock experiences significant decline after missing profit expectations and providing a downbeat full-year outlook
  • Chili’s same-store sales exceed estimates due to price increases and increased traffic
  • Net income for the quarter through June 26 increased to $57.3 million from $54.2 million in the previous year
  • Total revenue grew 12.3% to $1.21 billion, surpassing FactSet consensus of $1.16 billion
  • Comparable-restaurant sales increased by 13.5%, more than double the expected 6.1% rise
  • Maggiano’s sales up 2.5%, but missed analyst consensus expectation of 2.7% growth

Brinker International Inc., the parent company of Chili’s and Maggiano’s restaurant chains, experienced a significant decline in its stock after missing quarterly profit expectations and providing a pessimistic full-year outlook. The company’s stock fell by 15.3% in morning trading, marking its worst day since the height of the COVID-19 pandemic. Despite this, total revenue grew 12.3% to $1.21 billion and comparable-restaurant sales increased by 13.5%, surpassing FactSet consensus. Chili’s same-store sales rose more than expected due to price increases and higher traffic, while Maggiano’s sales increased but missed the analyst expectation. For fiscal 2025, adjusted EPS is projected between $4.35 and $4.75, compared to a current FactSet consensus of $4.78.

Factuality Level: 7
Factuality Justification: The article provides accurate and objective information about Brinker International Inc.’s financial performance, including revenue growth, earnings per share, and comparisons to analyst expectations. However, it contains some minor repetitive information and uses sensational language in the headline.
Noise Level: 3
Noise Justification: The article provides relevant information about Brinker International Inc.’s financial performance and includes specific numbers for comparison with expectations and previous years. However, it could benefit from more analysis or context on the broader implications of the company’s results and industry trends.
Public Companies: Brinker International Inc. (EAT), S&P 500 (SPX)
Private Companies: Chili’s,Maggiano’s
Key People:

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Financial Relevance: Yes
Financial Markets Impacted: Brinker International Inc.’s stock experienced a significant decline due to missing profit expectations and providing a downbeat full-year outlook, impacting the company’s stock price and financial markets. The S&P 500 index is also mentioned as a reference for the stock performance.
Financial Rating Justification: The article discusses the financial performance of Brinker International Inc., a restaurant chain company, and its impact on the company’s stock price and the broader market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.
Move Size: The market move size is a 15.3% decrease in Brinker International Inc.’s stock price in morning trading.
Sector: All
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

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