Brinker International (EAT) Q2 2025 earnings summary

Executive summary

• Q2 FY25 saw record same-store sales growth, with Chili's comp sales up 31.4% and Maggiano's up 1.8%, driving total company sales to $1,358.2M, a 26.5% year-over-year increase.

• Net income rose to $118.5M from $42.1M, and operating income increased to $156.0M from $62.4M, reflecting improved leverage and cost management.

• Operational improvements, menu simplification, and marketing initiatives, including the TurboChef oven rollout and Triple Dipper campaign, enhanced guest experience and throughput.

• Maggiano's began a turnaround with leadership changes and menu upgrades, following Chili's playbook.

• The company opened 7 new company-owned and 21 new franchise restaurants in the first half of FY25, with a focus on international expansion.

Financial highlights

• Total Q2 revenues reached $1,358.2M, with consolidated comp sales up 27.4% year-over-year.

• Adjusted diluted EPS was $2.80, up from $0.99, and GAAP EPS was $2.61, up from $0.94.

• Restaurant operating margin improved to 19.1%, a 600 basis point increase year-over-year.

• Adjusted EBITDA more than doubled to $215.8M from $107.0M.

• Net cash provided by operating activities for the first half was $281.0M, up from $150.3M.

Outlook and guidance

• FY25 guidance raised: annual revenues of $5.15–$5.25B, adjusted diluted EPS of $7.50–$8.00, and capital expenditures of $240–$260M.

• Assumptions include low single-digit food commodity inflation, mid-single-digit wage inflation, and a mid-double-digit tax rate.

• Management expects to remain in compliance with debt covenants and maintain sufficient liquidity.

• Plans for 31–37 new restaurant openings in FY25, with strategic international franchise expansion.

• Continued focus on menu simplification, digital investments, and value offerings to drive guest traffic and sales.