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Brinker Intl (EAT) is moving higher after delivering a strong Q2 (Dec) earnings report, highlighted by a sizable EPS beat and a meaningful upward revision to FY26 EPS and revenue guidance. Importantly, the magnitude of the guidance raise exceeded the Q2 upside, implying management is seeing continued momentum into Q3-Q4.

• EAT beat EPS expectations handily, while revenue came in modestly above estimates. FY26 EPS and revenue guidance were raised significantly, pointing to upside beyond Q2 performance.
• Same-restaurant sales increased +7.5% yr/yr, led by Chili's at +8.6%, while Maggiano's declined -2.4%. While comps decelerated from Q1 (+18.8%), results were achieved against very difficult year-ago comps of +27.4%. Chili's 2-year same-restaurant comp now stands at an impressive +43%, underscoring durability of the turnaround.
• Chili's comp growth was driven by menu pricing, higher traffic, and favorable sales mix.
• The reintroduction of Skillet Queso has been highly successful, with Chili's selling ~20% more queso versus prior queso lineups. Also, a revamped, larger nachos offering has also resonated with guests.
• Looking ahead, the Super Premium Chicken Sandwich lineup will launch nationwide in April, supported by a substantial advertising campaign. Early tests across ~200 restaurants showed strong merchandising results, with management expecting incremental traffic from both new and existing guests.
• Maggiano's remains under pressure but is focusing on revitalizing its Italian-American core, improving service, and increasing portion sizes to appeal to value-oriented consumers.

Briefing.com Analyst Insight:

EAT's latest quarter reinforces the view that the Chili's turnaround is real and increasingly self-sustaining. While same-restaurant sales growth slowed sequentially, the deceleration was entirely expected given the exceptionally difficult prior-year comparisons. More importantly, traffic growth, menu innovation, and marketing effectiveness suggest that Chili's is not simply benefiting from pricing or one-off promotions. The sizeable upward revision to FY26 guidance — larger than the Q2 beat itself — signals confidence in the pipeline, particularly around the upcoming chicken sandwich launch. That said, the sharp rally off the November lows means expectations are rising quickly. Execution at Chili's needs to remain crisp, and Maggiano's remains a swing factor. Still, among casual dining peers, EAT stands out as one of the few concepts showing clear brand momentum rather than stabilization alone.