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Brinker Beats Q3 Earnings & Revenue Estimates, Ups FY25 Outlook
EATBrinker International(EAT) ZACKS·2025-04-30 13:50

Core Insights - Brinker International, Inc. (EAT) reported strong third-quarter fiscal 2025 results, with earnings and revenues exceeding expectations, driven by solid fundamentals and increased traffic [1][3][12] - Despite robust performance, the company's shares fell by 14.8% due to economic uncertainty and potential impacts from tariffs on imported goods [2] Financial Performance - Adjusted earnings per share (EPS) for the quarter were 2.66,surpassingtheZacksConsensusEstimateof2.66, surpassing the Zacks Consensus Estimate of 2.48, compared to 1.24intheprior−yearquarter[3]−Totalrevenuesreached1.24 in the prior-year quarter [3] - Total revenues reached 1,425.1 million, exceeding the consensus mark of 1,379million,markinga27.21,379 million, marking a 27.2% year-over-year increase [3] Segment Performance Chili's - Chili's segment revenues increased by 30.5% year over year to 1.30 billion, supported by favorable comparable restaurant sales and higher traffic [4] - Company-owned traffic for Chili's rose by 20.9% year over year, with comparable sales increasing by 31.6% [5][6] Maggiano's - Maggiano's sales grew by 0.2% year over year to 121million,drivenbyincreasedmenupricing,althoughtrafficfellby8.2121 million, driven by increased menu pricing, although traffic fell by 8.2% [7][8] - Comparable sales in Maggiano's rose by 0.4% year over year, below expectations [7] Operating Results - Total operating costs and expenses were 1.27 billion, up from 1.05billionintheprioryear,withanadjustedrestaurantoperatingmarginof18.91.05 billion in the prior year, with an adjusted restaurant operating margin of 18.9%, an increase from 14.2% [10] - Adjusted EBITDA for the quarter was 220.6 million, up from 122.4millionintheprior−yearquarter[10]BalanceSheet−AsofMarch26,2025,cashandcashequivalentswere122.4 million in the prior-year quarter [10] Balance Sheet - As of March 26, 2025, cash and cash equivalents were 17.5 million, up from 15.5millionayearearlier,whilelong−termdebtdecreasedto15.5 million a year earlier, while long-term debt decreased to 518.3 million from 786.3million[11]Guidance−Forfiscal2025,managementraisedrevenueexpectationsto786.3 million [11] Guidance - For fiscal 2025, management raised revenue expectations to 5.33-5.35billionfrom5.35 billion from 5.15-5.25billion,andEPSguidancewasincreasedto5.25 billion, and EPS guidance was increased to 8.5-8.75from8.75 from 7.5-$8 [12]