Brinker International(EAT) - 2025 Q3 - Quarterly Results

Financial Performance - Company sales for Q3 fiscal 2025 were $1,413.0 million, a 27.4% increase from $1,108.9 million in Q3 fiscal 2024[2] - Operating income for Q3 fiscal 2025 was $156.9 million, compared to $69.9 million in Q3 fiscal 2024, representing a 125.1% increase[3] - Net income for Q3 fiscal 2025 was $119.1 million, up from $48.7 million in Q3 fiscal 2024, a 144.5% increase[3] - Adjusted EBITDA (non-GAAP) for Q3 fiscal 2025 was $220.6 million, compared to $122.4 million in Q3 fiscal 2024, an increase of 80.0%[3] - Total revenues reached $1,425.1 million for the thirteen weeks ended March 26, 2025, compared to $1,120.3 million in the prior year, reflecting a 27.1% increase[21] - Basic net income per share rose to $2.68 for the thirteen weeks ended March 26, 2025, compared to $1.10 for the same period in 2024, representing a 143.6% increase[21] - Year-to-date net income reached $276.1 million in Q3 25, compared to $98.0 million in Q3 24, representing a 182.7% increase[37] Restaurant Performance - Comparable restaurant sales increased by 28.2%, with Chili's up 31.6% and Maggiano's up 0.4%[4] - Comparable restaurant sales for company-owned restaurants increased by 28.2% for Q3 2025 compared to Q3 2024, driven by a 17.7% increase in traffic[29] - Q3 25 GAAP operating income for Chili's was $197.7 million, up from $97.2 million in Q3 24, representing a 103.1% increase[33] - Non-GAAP restaurant operating margin for Brinker was $266.8 million in Q3 25, compared to $157.1 million in Q3 24, reflecting a 69.8% increase[33] - Restaurant operating margin as a percentage of company sales for Q3 25 was 19.4%, up from 14.1% in Q3 24[33] Guidance and Projections - Full year fiscal 2025 revenue guidance is projected to be between $5.33 billion and $5.35 billion[9] - Net income per diluted share, excluding special items, is expected to be in the range of $8.50 to $8.75 for fiscal 2025[9] - Capital expenditures for fiscal 2025 are anticipated to be between $265.0 million and $275.0 million[9] - The company plans to open 35-38 new restaurants in fiscal year 2025, with 29 openings projected for the third quarter[28] Costs and Expenses - Total operating costs and expenses for the thirteen weeks ended March 26, 2025, were $1,268.2 million, up from $1,050.4 million in the prior year, marking a 20.8% increase[21] - Interest expenses decreased to $13.2 million in Q3 25 from $16.2 million in Q3 24, showing an 18.5% reduction[37] - Depreciation and amortization for Q3 25 was $54.7 million, up from $42.6 million in Q3 24, indicating a 28.5% increase[37] Cash Flow and Assets - Cash flows from operating activities for the thirty-nine weeks ended March 26, 2025, were $493.0 million, compared to $280.4 million for the same period in 2024, indicating a 75.8% increase[26] - The company reported total assets of $2,571.9 million as of March 26, 2025, slightly down from $2,593.1 million as of June 26, 2024[24] - Long-term debt and finance leases decreased to $518.3 million as of March 26, 2025, from $786.3 million as of June 26, 2024, reflecting a reduction of 34.1%[24] Operating Efficiency - The company emphasizes that restaurant operating margin is a useful metric for evaluating restaurant-level operating efficiency, despite being a non-GAAP measure[34]