Broad Bay Capital Opens $25 Million Position in Chili's Parent Company, Brinker International

What happened

According to a Feb. 17, 2026, SEC filing, Broad Bay Capital Management, LP established a new position in Brinker International(NYSE:EAT), acquiring 175,000 shares. The estimated transaction value was $25.12 million, based on the average closing price during the quarter. The stake’s quarter-end value was $25.12 million, reflecting the full value of the share purchase as of Dec. 31, 2025.

What else to know

This is a new position, accounting for approximately 2.63% of Broad Bay’s 13F reportable assets under management as of Dec. 31, 2025.

• Top five holdings after the filing:
  • Atlanta Braves Holdings: approximately $86.90 million (about 9.9% of AUM)
  • Rocket Companies: approximately $80.29 million (about 9.2% of AUM)
  • Applovin: approximately $67.50 million (about 7.7% of AUM)
  • Cavco Industries: approximately $66.93 million (about 7.6% of AUM)
  • AAR Corp: approximately $55.01 million (about 6.3% of AUM)

As of March 9, 2026, shares of Brinker International were trading at $137.57, down approximately 1.2% over the past year and underperforming the S&P 500 by 19 percentage points.

Company overview

Company snapshot

• Brinker International operates casual dining restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brands, generating revenue primarily from food and beverage sales.
• The company earns income through company-owned restaurant operations and franchising, leveraging a mix of owned and franchised locations to scale its business model.
• Brinker International serves customers in the United States and select international markets, focusing on casual, affordable dining experiences.

Brinker International is a leading operator and franchisor in the casual dining restaurant sector, with a significant presence through its Chili's and Maggiano's brands. The company combines operational scale with brand recognition to compete effectively in a highly competitive industry.

What this transaction means for investors

Broad Bay Capital’s purchase of Brinker International in the fourth quarter is interesting, as the latter’s stock has nearly quadrupled over the last three years. While we don’t know Broad Bay’s exact rationale for buying Brinker, they clearly expect this run to continue.

One reason this may be the case is Brinker’s growing recognition as a top value proposition for consumers looking to dine out. In the company’s last quarterly earnings call, management noted that its customers’ typical bill per person is $3 below that of its direct casual dining competitors and $4 below that of the broader dining category. This is a powerful driver of sales in a time when many consumers are facing sticky inflation and a K-shaped recovery, leading them to seek perceived value in discretionary spending.

This recent boom -- especially at Chili’s -- drove a 22% rise in sales over the last year and helped net income more than double. Despite Brinker’s soaring share price, it still only trades at 13 times forward earnings. So if you think the company’s steady sales growth is here to stay, it’s not an outrageous price to pay. Personally, I’m not really interested in Brinker, as sit-down dining tends to be too cyclical for my taste, and I’d be hesitant to buy with the shares up so much over the last few years. I’m not sure its incredible results can continue for a decade ahead. It’ll be interesting to see if Broad Bay adds to the stock again in Q1.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Atlanta Braves Holdings and Rocket Companies. The Motley Fool has a disclosure policy.