By Dean Seal

Brinker International raised full-year guidance again as sales continued to surge at its Chili's Grill & Bar chain during the fiscal second quarter.

The restaurant operator, which also owns Maggiano's Little Italy, posted a profit of $118.5 million, or $2.61 a share, for the quarter ended Dec. 25. That's up from $42.1 million, or 94 cents a share, in the same period a year ago.

Stripping out one-time items, adjusted earnings were $2.80 a share. Analysts polled by FactSet had been expecting $1.86 a share.

Total revenue climbed 26% to $1.36 billion, topping analyst forecasts for $1.25 billion.

Comparable-restaurant sales were up 27%, with a massive 31% surge for Chili's and a 1.8% bump for the more upscale Maggiano's restaurants.

The Chili's gain was driven by a 20% rise in traffic, which it attributes to its advertising during the quarter and strong value proposition of its meals, including the $10.99 "3 for Me" deal it launched last year.

The higher sales boosted margins, even as the company paid its employees more and invested in technology initiatives.

The Dallas-based company is guiding for $5.15 billion to $5.25 billion in revenue and $7.50 to $8 a share in adjusted earnings for the full fiscal year. That's a lift from the $4.7 billion to $4.75 billion in revenue and $5.20 to $5.50 a share it predicted after the first fiscal quarter wrapped up last fall. It also marks the second time this fiscal year that the company has raised guidance.

Shares jumped 11% to $171.40 in premarket trading.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

January 29, 2025 07:19 ET (12:19 GMT)

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