Key Highlights

  • Brinker International shares closed up 11.07% on August 12 at $245.89, near 52-week highs.
  • Chili's marked its fifth straight quarter of same-store sales growth, with Q4 comparable sales up 5.6%.
  • Fiscal 2027 guidance of $12.60 to $13.40 adjusted EPS came in well above the $12.61 consensus.
  • The rally was likely amplified by a short squeeze, with roughly 18% of the public float sold short heading into the print.

What Investors Should Know Today

Brinker International (NYSE:EAT) shares closed up 11.07% on August 12 at $245.89, near 52-week highs, after the Chili's parent posted fourth-quarter fiscal 2026 results and issued fiscal 2027 guidance well above Wall Street expectations. Total Revenue reached $1.536 billion, a beat of 0.20%, while adjusted diluted EPS of $3.07 matched estimates but marked a 23% increase year-over-year. Chili's marked its fifth straight quarter of same-store sales growth, with comparable sales up 5.6% driven by pricing and traffic gains from menu hits like the Big Crispy Chicken sandwich, while Maggiano's comps were negative 2.5%. Brinker International is a leading casual dining restaurant company headquartered in Dallas, Texas, that owns, operates, and franchises the Chili's Grill & Bar and Maggiano's Little Italy brands, along with the virtual concept It's Just Wings.

Strong Guidance and a Possible Short Squeeze

Fiscal 2027 guidance includes revenue of $6.15 billion to $6.27 billion, adjusted diluted EPS of $12.60 to $13.40, and restaurant Margin improvement of 20 to 40 basis points, up to 50 basis points including the 53rd week. The rally, which pushed shares near 52-week highs, was likely amplified by a short squeeze since roughly 18% of the public float was sold short heading into the print, while analysts including TD Cowen raised price targets to $270 following the report. The company also plans 60 to 80 Chili's restaurant re-images in fiscal 2027 and reflected a planned Acquisition of 12 Chili's Franchise restaurants in Alabama and Mississippi in its guidance.

Conclusion

Brinker International shares surged toward 52-week highs today as Chili's continued momentum and strong fiscal 2027 guidance overshadowed a softer performance at Maggiano's. With a large short position potentially amplifying the move, investors will be watching whether the underlying same-store sales strength at Chili's can sustain the stock's rally in the quarters ahead.