Brinker International (EAT) Q1 2025 earnings summary

Executive summary

• Q1 FY25 saw strong momentum, with total revenues rising to $1,139M–$1,208M, driven by Chili's comp sales up 14.1% and Maggiano's up 4.2%, and significant margin expansion across both brands.

• Net income increased to $38.5M from $7.2M, and operating income more than doubled, reflecting improved leverage and cost control.

• Strategic focus on menu simplification, value-driven offerings, and operational improvements is driving guest satisfaction and financial performance.

• 15 new restaurants opened, including 14 franchise locations, with continued investment in digital, value, and international growth.

• Share repurchases totaled $74.8M, with $117M remaining under authorization.

Financial highlights

• Q1 revenues reached $1,139M–$1,208M, with consolidated comp sales up 13% year-over-year.

• Adjusted diluted EPS was $0.95 (non-GAAP), up from $0.28, and GAAP EPS was $0.84, up from $0.16.

• Restaurant operating margin improved to 13.5%, up 310 bps year-over-year.

• Adjusted EBITDA rose to $111.6M, a 55% increase from prior year.

• Operating cash flow was $62.8M, up from $59.1M last year.

Outlook and guidance

• FY25 full-year guidance raised: revenues expected between $4.7–$4.75B and adjusted diluted EPS between $5.20–$5.50.

• Guidance assumes low single-digit commodity inflation, mid-single-digit wage inflation, and a mid-double-digit tax rate.

• Restaurant-level margins expected to be at least 100 bps favorable year-over-year.

• Management expects to maintain compliance with debt covenants and adequate liquidity for at least 12 months.

• Capital expenditures for FY25 anticipated between $195M and $215M.