Brinker International, Inc. EAT shares are trading higher on Wednesday in the premarket session.

The company reported second-quarter adjusted earnings per share of $2.80 beating the street view of $1.79. Quarterly sales of $1.358 billion outpaced the analyst consensus estimate of $1.240 billion.

Comparable restaurant sales increased 27.4%, with an increase in comparable restaurant sales of 31.4% for Chili’s and 1.8% for Maggiano’s. Chili’s sales growth was driven by a 19.9% increase in traffic generated by investments in advertising behind the industry leading value that brought guests in and operational improvements that brought guests back.

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“Chili’s sales comps accelerated to +31%, driven both by new guests trying Chili’s and return guests coming more frequently despite a more competitive promotional environment,” said President and CEO Kevin Hochman.

Higher company sales resulted in operating income margin increasing to 11.5% and restaurant operating margin increasing to 19.1% in the second quarter. 

Outlook: Brinker International expects FY25 revenues to be between $5.15 billion and $5.25 billion, higher than the analyst consensus estimate of $4.90 billion (prior view: $4.70 billion-$4.75 billion).

The company also projects adjusted EPS of $7.50 to $8.00 versus the street view of $6.36, up from the prior forecast of $5.20 to $5.50.

The company exited the quarter with cash and equivalents worth $14.8 million.

Price Action: EAT shares are trading higher by 12.5% to $173.99 premarket at last check Wednesday.

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