Brinker International(EAT) - 2025 Q2 - Quarterly Results

Financial Performance - Company sales for Q2 fiscal 2025 reached $1,346.1 million, a 26.5% increase from $1,063.7 million in Q2 fiscal 2024[3] - Operating income for Q2 fiscal 2025 was $156.0 million, representing an increase of 150.8% from $62.4 million in Q2 fiscal 2024[3] - Net income for Q2 fiscal 2025 was $118.5 million, compared to $42.1 million in Q2 fiscal 2024, marking a 181.5% increase[3] - Adjusted EBITDA for Q2 fiscal 2025 was $215.8 million, up 101.7% from $107.0 million in Q2 fiscal 2024[3] - Total revenues for the thirteen weeks ended December 25, 2024, increased to $1,358.2 million, up from $1,074.1 million for the same period in 2023, representing a growth of 26.5%[19] - Net income for the twenty-six weeks ended December 25, 2024, was $157.0 million, compared to $49.3 million for the same period in 2023, reflecting a significant increase of 218.5%[19] - Basic net income per share for the thirteen weeks ended December 25, 2024, was $2.67, compared to $0.95 for the same period in 2023, marking an increase of 180%[19] - Adjusted EBITDA for Q2 25 was $215.8 million, compared to $107.0 million in Q2 24, reflecting a 101% year-over-year increase[37] - Net income for Q2 25 was $118.5 million, a substantial rise from $42.1 million in Q2 24, marking a 181% increase[37] Sales and Revenue Growth - Comparable restaurant sales increased by 27.4%, with Chili's up 31.4% and Maggiano's up 1.8%[4] - Comparable restaurant sales for company-owned restaurants increased by 27.4% for Q2 2025 compared to Q2 2024, driven by a price impact of 5.0% and a traffic increase of 16.5%[29] - Chili's franchisees generated sales of approximately $232.3 million in Q2 fiscal 2025, compared to $216.9 million in Q2 fiscal 2024[13] - Franchise revenues for Q2 25 were $11.9 million, slightly up from $10.3 million in Q2 24, showing growth in franchise operations[34] Future Projections - The company expects total revenues for fiscal 2025 to be in the range of $5.15 billion to $5.25 billion[8] - Net income per diluted share, excluding special items, is projected to be between $7.50 and $8.00 for fiscal 2025[8] - The company plans to open 31 to 37 new restaurants in fiscal year 2025, with 22 openings projected for the second quarter[28] Operating Costs and Expenses - Total operating costs and expenses for the twenty-six weeks ended December 25, 2024, were $2,284.8 million, up from $2,000.0 million in the same period in 2023, an increase of 14.2%[19] - Interest expenses decreased to $29.0 million for the twenty-six weeks ended December 25, 2024, from $33.7 million in the same period in 2023, a reduction of 13.9%[19] - Interest expenses decreased to $14.7 million in Q2 25 from $16.7 million in Q2 24, reflecting improved financial management[37] Capital Expenditures and Cash Flow - Capital expenditures for fiscal 2025 are expected to be in the range of $240.0 million to $260.0 million[8] - Cash flows from operating activities for the twenty-six weeks ended December 25, 2024, were $281.0 million, compared to $150.3 million for the same period in 2023, indicating a growth of 87.2%[25] Operational Efficiency - Q2 25 GAAP operating income for Chili's was $175.1 million, up from $70.1 million in Q2 24, representing a 150% increase[34] - Restaurant operating margin for Chili's in Q2 25 was 18.7%, compared to 11.6% in Q2 24, indicating a significant improvement in operational efficiency[34] - The company plans to continue focusing on restaurant-level operational efficiency to enhance profitability in future quarters[35] Asset Management - The total assets of the company as of December 25, 2024, were $2,560.3 million, slightly down from $2,593.1 million as of June 26, 2024[22] - Depreciation and amortization expenses for Q2 25 were $47.7 million, compared to $41.3 million in Q2 24, indicating increased investment in assets[37]