Brinker Q2 Revenue +6.9% and Chili’s SSS +8.6%, Broad Bay Takes $25.1m Stake
Brinker International’s Q2 fiscal 2026 revenues rose 6.9% and earnings climbed 2.2% year-over-year, driven by an 8.6% same-store sales increase at Chili’s, prompting management to raise full-year guidance. Broad Bay Capital initiated a $25.1m position (2.63% of assets) as the stock trades at 13x forward earnings.
1. Strong Q2 Performance
For the second quarter of fiscal 2026, Brinker International reported a 6.9% year-over-year increase in revenue and a 2.2% rise in earnings, powered by favorable pricing, marketing strategies and higher traffic at Chili’s Grill & Bar.
2. Guidance Increase
Management raised full-year fiscal 2026 sales and profit outlook after Chili’s delivered an 8.6% same-store sales gain, outpacing the casual dining industry by 680 basis points and benefiting from menu innovation and remodel programs.
3. Broad Bay Capital Stake
Broad Bay Capital Management acquired 175,000 shares of Brinker International, investing $25.12 million (2.63% of its fund assets), reflecting confidence as shares have nearly quadrupled over three years on 22% year-over-year sales growth while trading at 13x forward earnings.