Brinker International(US:EAT) ZACKSยท2025-01-29 17:31Core Insights - Brinker International, Inc. (EAT) reported strong second-quarter fiscal 2025 results, with earnings and revenues exceeding expectations, showing growth from the previous year [1][4] - The company raised its fiscal 2025 guidance following positive quarterly performance, reflecting strong fundamentals and increased guest traffic at Chili's [3][13] Financial Performance - Adjusted earnings per share (EPS) for the quarter were $2.80, surpassing the Zacks Consensus Estimate of $1.80, and up from $0.99 in the prior-year quarter [4] - Total revenues reached $1.36 billion, exceeding the consensus mark of $1.24 billion, and increased by 26.5% year-over-year [4] - Adjusted EBITDA for the quarter was $215.8 million, up from $107 million reported in the prior-year quarter [11] Segment Performance - Chili's segment revenues rose 30.4% year-over-year to $1.21 billion, driven by favorable comparable restaurant sales, menu pricing, and increased traffic [5] - Comparable restaurant sales at Chili's increased by 31.4% year-over-year, with domestic comps gaining 30.8% compared to a 5.1% rise in the prior-year period [7] - Maggiano's sales increased by 1.7% year-over-year to $149.4 million, although traffic fell by 4.9% [8] Cost and Margin Analysis - Chili's restaurant expenses as a percentage of company sales decreased to 81.3% from 88.4% in the prior-year quarter, aided by sales leverage despite rising labor and commodity costs [6] - Adjusted restaurant operating margin improved to 19.1%, up from 13.1% in the prior-year quarter [11] Balance Sheet and Guidance - As of December 25, 2024, cash and cash equivalents were $14.8 million, down from $22.7 million a year earlier, while long-term debt decreased to $625 million from $786.3 million [12] - For fiscal 2025, management anticipates total revenues between $5.15 billion and $5.25 billion, up from previous expectations of $4.70 billion to $4.75 billion, and EPS in the range of $7.5 to $8 [13]