The host of Mad Money, Jim Cramer, has placed his money behind Brinker International. During the September 11 broadcast, he noted that the casual-dining chain “never fails to wow me,” and he believes the company’s upcoming analyst presentation will continue that winning record.
Cramer’s Case for Brinker
Cramer praised the company’s performance and noted that Brinker appears regularly on the show. He said:
“Brinker… We have them all the time on the show. Brinker, you know, is Chili’s, and the company never fails to wow me. I think this meeting will be no exception.”
Strong Numbers From the Fourth Quarter
Brinker’s latest numbers back up Cramer’s confidence. In its fourth quarter of fiscal 2026, the company reported $1.54 billion in total revenue, bringing full-year revenues to $5.81 billion. Adjusted earnings per share for the quarter reached $3.07, up 23% from the prior year.
Chili’s, the company’s flagship brand, posted a 5.6% increase in comparable store sales. That marks its 21st consecutive quarter of positive same-store sales growth.
The Menu That Beat Expectations
The Big Crispy Chicken Sandwich helped drive traffic. According to CEO Kevin Hochman, the sandwich “overdelivered” on management’s estimates.
Chili’s also leaned on its $10.99 “3 for Me” everyday value platform. Together, those promotions kept customers coming through the doors.
Margins Under Pressure
The positive news arrives with a caution. Brinker still confronts lingering dangers from costs that refuse to fall and wider economic forces weighing down how much consumers spend.
The cost of running restaurants remains under pressure from two directions: wholesale prices for core items like beef and produce, and wages that keep climbing across regional markets.
Brinker’s traffic growth relies heavily on value-oriented promotional platforms, so a shift toward lower-margin items among diners could compress operating margins. Intense promotional rivalry within the casual dining and quick-service restaurant sectors also restricts long-term pricing flexibility for Brinker.
What Investors Are Doing
According to Insider Monkey’s records, a total of 48 hedge funds were invested in Brinker during the second quarter, which represents a slight decrease from the 49 funds that held positions in the previous quarter. The current short interest ratio stands at 13.55%, indicating that short-sellers are paying close attention to the stock.
Some investors are betting against the stock through the short position, while the hedge fund interest indicates Brinker continues to draw close attention from institutional investors.
The Bottom Line
Cramer’s enthusiasm is easy to follow, and the company’s recent results show real strength. But the pressure on margins from inflation and rival promotions gives the picture some weight.
Brinker has delivered quarter after quarter of positive same-store sales, and its CEO points to specific menu successes. The company’s ability to keep customers coming through the doors while managing rising costs will determine whether the analyst presentation lives up to Cramer’s high expectations.
Source material: “Jim Cramer Says Brinker (EAT) “Never Fails to Wow Me”,” Yahoo Finance.
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