Brinker Earnings: Consumers' Hunger for Chili's Drives Outsize Traffic Growth; Shares Overvalued
Brinker posted 9.1% comparable sales growth in the first quarter, driven by 5.5% traffic and 3.6% price growth. Firmwide restaurant margins expanded 150 basis points to 17.7%, as operating leverage outpaced higher food and wage inflation. Shares rose about 12% during trading on Oct. 28.