Financial Data and Key Metrics Changes - For Q3 2025, Brinker reported total revenues of $1.425 billion with consolidated comp sales growth of 28.2% [19] - Adjusted diluted EPS for the quarter was $2.66, up from $1.24 in the previous year [20] - Restaurant operating margins improved to 18.9%, a 470 basis points increase year over year [21] Business Line Data and Key Metrics Changes - Chili's reported same restaurant sales growth of 31.6%, driven by a 20.9% increase in traffic, a 6.3% positive mix, and a 4.4% price increase [20] - Maggiano's reported comp sales growth of 0.4%, driven by a 7.3% price increase and a 1.3% positive mix, but offset by an 8.2% decline in traffic [21] Market Data and Key Metrics Changes - Chili's sales performance significantly outpaced the industry despite no new food or value news, indicating strong operational performance [6] - The company noted that consumer sentiment remains cautious, impacting overall restaurant traffic across the industry [18] Company Strategy and Development Direction - The company is focused on improving the fundamentals of food, service, and atmosphere to sustain growth and market share [31] - Chili's is launching new menu items and marketing campaigns to enhance brand value and customer experience, including the Big QP burger [10][11] - Maggiano's is following a similar turnaround strategy as Chili's, focusing on menu simplification and eliminating unprofitable discounting [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining positive same-store sales growth despite upcoming tougher comparisons [30] - The company is optimistic about its ability to maintain or grow restaurant-level margins through strategic investments and improved productivity [48] Other Important Information - Capital expenditures for the quarter were approximately $80 million, driven by investments in kitchen equipment and maintenance [25] - The company repaid $125 million in funded debt, leaving a remaining balance of $90 million on its revolver [25] Q&A Session Summary Question: Concerns about sustainability of same-store sales growth - Management acknowledged the challenges of maintaining growth but emphasized their focus on improving fundamentals to drive continued success [31] Question: Notable contributors to recent momentum - Management noted that traffic remains strong year over year, with no significant slowdown observed [38] Question: Clarification on traffic trends - Management confirmed that traffic trends in April were similar to Q3, indicating sustained momentum [42] Question: Impact of tariffs on cost of sales - Management indicated that over 80% of their supply chain is sourced domestically, minimizing tariff impacts [56] Question: Future menu upgrades - Management highlighted upcoming upgrades to the rib platform and nachos, aiming to enhance customer experience and drive sales [62] Question: Capacity improvements and constraints - Management is learning from high-performing restaurants to improve capacity and traffic handling across the system [120]

Core Insights - Chili's has launched a promotional campaign called Fast Food Financing to address high fast food prices, offering gift cards to eligible guests who participate in a pop-up experience in New York City [1][4] - The new Big QP burger, part of the 3 For Me menu, is designed to provide better value than fast food options, featuring more beef and familiar flavors at a competitive price of $10.99 [2][3] Company Overview - Chili's is a leading brand in the casual dining industry, operated by Brinker International, Inc., known for its diverse menu including Big Mouth Burgers and Chicken Crispers, with nearly 1,600 locations across 29 countries [5] - The company emphasizes a celebratory dining experience and engages in community support initiatives, having raised over $110 million for St. Jude Children's Research Hospital [5] Product Offerings - The Big QP burger includes two slices of American cheese and 85% more beef than a Quarter Pounder, available as part of the 3 For Me menu which also includes bottomless chips and salsa, and an unlimited drink [2][6] - The Big QP joins the Big Smasher on the 3 For Me menu, which features twice the beef of a Big Mac, reinforcing Chili's commitment to providing value [3][7] Promotional Campaign - Fast Food Financing is a promotional initiative that does not involve actual loans or financial services, with gift cards available while supplies last for participants aged 18 and over [6] - The campaign aims to engage customers through social media giveaways and in-person experiences, enhancing brand visibility and customer interaction [4][6]