Brinker Q4 Earnings & Revenues Surpass Estimates, Stock Up

Core Insights - Brinker International, Inc. (EAT) reported strong fourth-quarter fiscal 2025 results, with earnings and revenues exceeding expectations and showing year-over-year growth [1][4][9] - The stock price increased by 1.6% following the earnings report [1] Financial Performance - Adjusted earnings per share (EPS) for Q4 were $2.49, surpassing the Zacks Consensus Estimate of $2.43, and up from $1.61 in the prior-year quarter [4][9] - Total revenues reached $1,461.9 million, exceeding the consensus estimate of $1,411 million, and reflecting a 21% increase year-over-year [4][11] Segment Performance - Chili's segment revenues rose 24% year-over-year to $1,339.6 million, driven by increased foot traffic and effective marketing strategies [5][9] - Maggiano's revenues decreased by 1.2% year-over-year to $122.3 million, primarily due to lower customer traffic, although menu price increases provided some offset [8][10] Operational Metrics - Chili's same-store sales increased by 24%, significantly outperforming the casual dining sector by 1,890 basis points [2] - Maggiano's comparable restaurant sales fell by 0.4% year-over-year, with traffic down 8.9% [8][10] Cost and Margin Analysis - Chili's restaurant expenses as a percentage of sales improved to 81.8% from 84.9% in the prior year, aided by sales leverage [6] - Adjusted restaurant operating margin for EAT was 17.8%, up from 15.2% in the prior-year quarter [11] Balance Sheet Highlights - As of June 25, 2025, cash and cash equivalents were $64.6 million, up from $15.1 million a year earlier, while long-term debt decreased to $426 million from $786.3 million [12] Future Outlook - For fiscal 2026, management anticipates total revenues between $5.60 billion and $5.70 billion, with adjusted diluted EPS projected in the range of $9.90 to $10.50 [13]