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Brinker International (EAT +14%) is eating up solid gains following its Q3 (Mar) earnings report, as investors look past moderating growth and focus on improving trends and raised guidance. EPS topped expectations, although the upside was smaller than in recent quarters. Revenue grew 3.2% yr/yr to $1.47 bln, roughly in-line and marking the slowest growth rate in the past 14 quarters.

• Same restaurant sales rose +3.3%, with Chili's comps up +4.0% and Maggiano's Little Italy comps down -4.6%.
• Results were pressured by difficult comparisons to last year's +28.2% comp growth, though the two-year stack remains strong.
• Chili's comps accelerated through the quarter, reaching +5.9% in both February and March with positive traffic after weather-impacted January results.
• The company raised the low end of FY26 EPS guidance to $10.60-10.85 from $10.45-10.85.
• Chili's is rolling out its new Chicken Sandwich platform in Q4 (Jun), emphasizing in-restaurant hand-breading as a key differentiator.

Briefing.com Analyst Insight:

Brinker's strong stock reaction reflects a market willing to look through near-term moderation in comps and revenue growth. The company faced particularly tough year-ago comparisons and weather-related disruptions early in the quarter, masking what appears to be solid underlying momentum—especially at Chili's, where trends improved meaningfully as the quarter progressed. Investors are also encouraged by the chicken sandwich launch, which could act as a traffic driver, and by early signs of stabilization at Maggiano's, even if that turnaround remains a longer-term story. With guidance nudged higher, April trends starting strong, and expectations reset after recent share price weakness, Brinker appears well positioned to navigate macro headwinds while continuing to gain share in the casual dining space.