Key Highlights

● Brinker International soared on raised full-year guidance.

● Wingstop jumped despite missing on revenue.

● Sprouts Farmers Market plunged on a broad earnings miss.

● The divergence reflected how closely investors parse traffic and pricing.

Food stocks saw a sharp split, as Brinker International and Wingstop soared during the regular session after their reports, while Sprouts Farmers Market plunged in extended trading after missing estimates across the board. The divergent reactions showed how closely investors are parsing traffic, pricing and guidance as consumers grow more selective.

Brinker, which owns Chili's Grill & Bar and Maggiano's Little Italy, soared after its fiscal first-quarter report, with same-store sales beating forecasts and Chili's same-store sales growth especially strong, prompting the company to raise its full-year adjusted earnings guidance above consensus.

Wingstop Jumps Despite Mixed Numbers

Wingstop jumped by a similar margin, even though its results were mixed, with adjusted earnings beating estimates but revenue missing forecasts and domestic same-store sales declining. Investors appeared to focus on the earnings beat and look past the soft sales.

Chipotle Mexican Grill rose in extended trading after its comparable sales beat estimates and it kept its full-year outlook, even as earnings and margins fell.

Sprouts Sinks After the Bell

Sprouts Farmers Market, a grocery chain focused on natural and organic foods, tumbled after the closing bell, with earnings, revenue and same-store sales all missing estimates, and reports differed on the size of the after-hours decline, but all showed a steep drop.

The restaurant results arrived amid signs of pressure on consumers, with PROG Holdings cutting its outlook and citing a more cautious view of the consumer, and Wendy's soaring for a different reason, after a reported take-private proposal from Trian.