Brinker International(US:EAT) Prnewswire·2024-10-30 10:15Core Insights - Brinker International, Inc. reported strong financial results for the first quarter of fiscal 2025, with total sales reaching $1,127.3 million, a 12.5% increase from $1,002.0 million in the same quarter of fiscal 2024 [2][3] - Comparable restaurant sales increased by 13.0%, driven by a 14.1% increase for Chili's and a 4.2% increase for Maggiano's, primarily due to menu pricing and higher traffic [2][4] - The company’s operating income margin improved to 5.0%, with restaurant operating margin (non-GAAP) increasing to 13.5% for the quarter [2][3] Financial Performance - Total revenues for Q1 fiscal 2025 were $1,139.0 million compared to $1,012.5 million in Q1 fiscal 2024, reflecting a variance of $126.5 million [3] - Operating income rose to $56.4 million from $24.2 million year-over-year, with net income increasing to $38.5 million from $7.2 million [3][20] - Adjusted EBITDA (non-GAAP) for the quarter was $111.6 million, up from $72.4 million in the prior year [3][34] Segment Performance - Chili's company sales increased to $1,018.9 million in Q1 fiscal 2025 from $897.8 million in Q1 fiscal 2024, while Maggiano's sales rose to $108.4 million from $104.2 million [9][11] - Franchise revenues for Chili's reached $225.7 million, up from $202.8 million in the previous year [11] - Company restaurant expenses as a percentage of sales decreased for both Chili's and Maggiano's, indicating improved operational efficiency [10][12] Guidance and Outlook - The company updated its full-year fiscal 2025 guidance, projecting total revenues between $4.70 billion and $4.75 billion, and net income per diluted share (excluding special items) in the range of $5.20 to $5.50 [6][7] - Capital expenditures are expected to be between $195 million and $215 million for the fiscal year [7] Comparable Restaurant Sales - Comparable restaurant sales for the company increased by 13.0%, with Chili's at 14.1% and Maggiano's at 4.2% [4][24] - The increase in comparable sales was attributed to menu pricing, higher traffic, and a favorable menu item mix [10][11] Restaurant Operations - The company continues to focus on enhancing guest experience through improved staffing and restaurant maintenance, which has led to increased labor and maintenance expenses [2][10] - The effective income tax rate for the first quarter was 9.0%, lower than the statutory rate due to the leverage of the FICA tip credit [13]