Brinker International (EAT) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 marked the second year of a turnaround, with strong growth, operational improvements, and a focus on sustainable long-term performance.

• Q4 FY24 company sales rose to $1,196.5M from $1,064.8M year-over-year, with comparable restaurant sales up 13.5%, led by Chili's at 14.8% and Maggiano's at 2.5%.

• Investments in labor, facilities, and technology led to record guest satisfaction and improved operational metrics.

• Menu price/mix improvements and marketing, including a return to TV and digital, increased brand relevance and drove significant traffic growth.

• Ended FY24 with no outstanding borrowings on a $900M credit facility and $64.6M cash on hand.

Financial highlights

• Fiscal 2024 annual revenue grew 6.8% to $4,371.1M, with restaurant operating margin up to 13.3% and adjusted EPS up ~45%.

• Q4 revenues reached $1,208M, with consolidated comp sales up 13.5% and adjusted diluted EPS at $1.61, up from $1.39 year-over-year.

• Q4 Adjusted EBITDA was $142M (+24% YoY); full-year Adjusted EBITDA was $444M (+28% YoY).

• Chili's Q4 company sales grew to $1,073M, and Maggiano's to $147M.

• Q4 restaurant operating margin was 15.2%, up 180 basis points, with favorable food, beverage, and labor costs.

Outlook and guidance

• FY25 revenue guidance: $4.55B–$4.62B; adjusted diluted EPS: $4.35–$4.75; capex: $195M–$215M.

• Assumes low single-digit commodity inflation, mid-single-digit wage inflation, and low double-digit tax rate.

• Same-store sales expected in mid-single digits, with pricing in the 4–5% range and traffic flat to slightly positive.

• Restaurant operating margin expected to improve 30–50 basis points in FY25.