Brinker International (BKJ) AI Stock Analysis

Company Guidance

Brinker expects Q2 to deliver a mid-single-digit comp, with Q2 off to a strong start with high mid-single-digit same-store sales growth, and for the back half of the year, two, three and four, expects mid-single-digit same-store sales with positive traffic; fiscal '27 annual revenues are expected in the range of $6.23 billion to $6.33 billion, adjusted diluted EPS in the range of $13.30 to $13.90, weighted average shares in the range of $42 million to $43 million and capital expenditures in the range of $265 million to $285 million, including approximately 2% increase in total revenues and $0.70 in incremental earnings per share from the 53rd operating week; restaurant-level margin improvement is expected to be about 70 to 90 basis points improvement year-over-year, with Q2 roughly flattish year-over-year, quarter 3 at 20 to 40 basis points and more upside in quarter 4, G&A is expected to be in the 4% to 4.1% range for the full year, labor inflation is expected to be in that 3% to 5%, closer to 3% all year, and Chili's expects to complete a total of 60 to 80 reimages during fiscal 2027, with each remodel in the $500,000 to $600,000 range and sales lift of approximately 3% to 5%; by fiscal 2029, the company is targeting 2% to 3% annual unit growth, supported by AUV growth from $3 million to $5 million.