Brinker Intl (EAT +16%) surged to a new all-time high following its Q2 earnings report, showcasing a massive 183% year-over-year increase in adjusted EPS to $2.80, surpassing analyst expectations. Revenue also exceeded forecasts, rising 26.5% year-over-year to $1.36 billion.

• Same restaurant comps were remarkable at +27.4%, with Chili's at +31.4% and Maggiano's at +1.8%. Chili's growth was fueled by new and returning guests, despite a competitive promotional environment, driven by a 19.9% increase in traffic from value-focused advertising investments.
• Chili's has successfully turned around, significantly outperforming the industry with its +31.4% comps. EAT attributes this success to effective marketing that emphasizes value, attracting both new and existing guests.
• Chili's has streamlined its menu, removing 13 items and improving food quality with upgrades like higher quality chicken breast and fresher guacamole. The installation of new kitchen display systems is complete, enhancing efficiency.
• Traffic and guest counts have increased, spurred by a successful TV campaign and social media buzz around the Triple Dipper. Exciting "big food innovation news" is anticipated in Q4, to be revealed in the upcoming MarQ call.

Brinker has defied the broader restaurant trend with significant earnings beats in Q1 and Q2, particularly through its Chili's brand. The stock has risen 135% since October, driven by menu simplification and a well-executed value offering with the 3-for-Me platform. Consumers' demand for value has been met effectively by Chili's, contributing to Brinker's turnaround.