Brinker International (EAT) Q3 2025 earnings summary

Executive summary

• Q3 F25 delivered strong sales growth, with Chili's comp sales up 31.6% and traffic up 20.9%, outpacing the industry.

• Total revenues for Q3 F25 reached $1,425.1 million, up 27.3% year-over-year, driven by Chili's and modest gains at Maggiano's.

• Operational improvements, menu simplification, and marketing initiatives drove performance and guest return rates.

• Net income for the quarter was $119.1 million, up from $48.7 million prior year, reflecting improved leverage and higher sales.

• The company operated or franchised 1,626 restaurants as of March 26, 2025, with 27 new franchise openings and two new development agreements in the nine-month period.

Financial highlights

• Q3 F25 total revenues were $1,425 million, up from $1,197 million in Q3 F24.

• Adjusted diluted EPS for Q3 F25 was $2.78, up from $1.24 year-over-year.

• Restaurant operating margin improved to 18.9%, a 470 basis point increase year-over-year.

• Adjusted EBITDA was approximately $221 million, an 80% increase from prior year.

• Net cash provided by operating activities was $493.0 million for the nine months, up from $280.4 million prior year.

Outlook and guidance

• Fiscal 2025 full-year guidance raised: revenues of $5.33–$5.35 billion, adjusted diluted EPS of $8.50–$8.75, and capital expenditures of $265–$275 million.

• Guidance assumes low single-digit commodity inflation, mid-single-digit wage inflation, and a tax rate in the high teens.

• Management expects to remain in compliance with debt covenants and believes current liquidity, cash flow, and credit availability are sufficient for at least the next twelve months.

• The company plans continued investment in technology, menu innovation, and international franchise expansion.