Chili's Parent Brinker International's Stock Dips As Rising Costs Eat Into Earnings

Core Insights - Brinker International's shares declined after missing fourth-quarter earnings estimates and providing a lower-than-expected full-year guidance due to rising expenses [1][2] - The company reported a year-over-year increase in operating costs and expenses by 11.7% [1][3] Financial Performance - For fiscal 2024 fourth-quarter, Brinker posted adjusted earnings per share (EPS) of $1.61, which was $0.14 below analysts' expectations [2] - Revenue increased by 12.3% year-over-year to $1.21 billion, surpassing forecasts [2] Cost Analysis - Operating costs and expenses rose to $1.14 billion, reflecting an 11.7% increase [3] - Excluding depreciation and general expenses, restaurant expenses increased by 10.8% to $910.5 million [3] Sales Performance - Comparable sales for Chili's restaurants increased by 14.8%, contributing to a 13.5% overall increase for the company [4] - Maggiano's saw a 2.5% increase in comparable restaurant sales [4] Future Outlook - For fiscal 2025, the adjusted EPS outlook is projected between $4.35 and $4.75, falling short of the consensus estimate of $4.84 [5] - Revenue outlook for fiscal 2025 is estimated between $4.55 billion and $4.62 billion, exceeding forecasts [5] - As of 11 a.m. ET Wednesday, Brinker stock was down 11.3% at $62.45, although shares are up approximately 45% year-to-date [5]