Brinker International (EAT) Q4 2025 earnings summary

Executive summary

• Achieved fifth consecutive quarter of double-digit same-store sales growth at Chili's, with Q4 comps up 23.7% and traffic up 16.3% year-over-year, significantly outperforming the casual dining industry.

• Fiscal 2025 revenue grew 21.9% to over $5 billion, with adjusted EPS up 117.1% and restaurant operating margin improving by 420 basis points.

• Operating income margin improved to 9.8% from 6.1% year-over-year, driven by higher sales and operational improvements.

• Maggiano's comps were slightly negative at -0.4%, with a renewed focus on core menu, value, and operational improvements to drive future growth.

• Board authorized an additional $400M for share repurchases, bringing total available to $507M.

Financial highlights

• Q4 total revenues: $1,462M; consolidated comp sales: +21.3%.

• Adjusted diluted EPS for Q4: $2.49, up from $1.61 last year.

• Restaurant operating margin for Q4: 17.8%, up 260 basis points year-over-year.

• Adjusted EBITDA for Q4: ~$212M, a 50% increase year-over-year.

• Capital expenditures for Q4: ~$80M, focused on kitchen equipment and maintenance.

Outlook and guidance

• Fiscal 2026 revenue guidance: $5.6B–$5.7B; adjusted diluted EPS: $9.90–$10.50; capex: $270M–$290M.

• Expecting strongest same-store sales growth at Chili's in Q1, with positive comps each quarter despite tougher comparisons.

• Pricing strategy to remain in the 3%–5% range, with flexibility to adjust for inflation.

• Focus on ramping up reimage programs and new unit growth, aiming for positive net unit growth in fiscal 2027.