BRINKER INTERNATIONAL REPORTS THIRD QUARTER OF FISCAL 2025 RESULTS AND UPDATES FISCAL 2025 GUIDANCE

Core Insights - Brinker International reported strong financial results for the third quarter of fiscal 2025, with a significant increase in sales and operating income, indicating a successful turnaround strategy for its Chili's brand [2][3][10] Financial Performance - Company sales reached $1,413.0 million in Q3 2025, up from $1,108.9 million in Q3 2024, marking a $304.1 million increase [3][18] - Total revenues for the quarter were $1,425.1 million, compared to $1,120.3 million in the previous year, reflecting a $304.8 million increase [3][18] - Operating income rose to $156.9 million, up from $69.9 million, resulting in an operating income margin of 11.0%, compared to 6.2% in the prior year [3][18] - Net income for the quarter was $119.1 million, compared to $48.7 million in Q3 2024, with diluted net income per share increasing to $2.56 from $1.08 [3][18][28] Comparable Restaurant Sales - Comparable restaurant sales increased by 28.2% overall, with Chili's seeing a 31.6% increase and Maggiano's a modest 0.4% increase [4][24] - The growth in Chili's sales was primarily driven by a 21% increase in traffic and effective advertising strategies [2][4] Segment Performance - Chili's company sales were $1,292.2 million in Q3 2025, up from $988.4 million in Q3 2024, while Maggiano's sales were relatively stable at $120.8 million [8][10] - Chili's operating income margin improved to 15.2% from 9.7%, while Maggiano's decreased slightly to 8.8% from 10.2% [8][10] Guidance and Future Outlook - The company updated its full-year fiscal 2025 guidance, projecting total revenues between $5.33 billion and $5.35 billion, with net income per diluted share expected to be in the range of $8.50 to $8.75 [5][7] - Capital expenditures are anticipated to be between $265.0 million and $275.0 million for the fiscal year [7] Operational Improvements - The company has made operational improvements that contributed to higher sales and repeat visits, alongside a focus on great food and service [2][10] - General and administrative expenses increased due to higher incentive compensation and technology initiatives [2][3]