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Brinker Q2 Earnings & Revenues Beat Estimates, Increase Y/Y
EATBrinker International(EAT) ZACKS·2025-01-29 17:31

Core Insights - Brinker International, Inc. (EAT) reported strong second-quarter fiscal 2025 results, with earnings and revenues exceeding expectations, showing growth from the previous year [1][4] - The company raised its fiscal 2025 guidance following positive quarterly performance, reflecting strong fundamentals and increased guest traffic at Chili's [3][13] Financial Performance - Adjusted earnings per share (EPS) for the quarter were 2.80,surpassingtheZacksConsensusEstimateof2.80, surpassing the Zacks Consensus Estimate of 1.80, and up from 0.99intheprior−yearquarter[4]−Totalrevenuesreached0.99 in the prior-year quarter [4] - Total revenues reached 1.36 billion, exceeding the consensus mark of 1.24billion,andincreasedby26.51.24 billion, and increased by 26.5% year-over-year [4] - Adjusted EBITDA for the quarter was 215.8 million, up from 107millionreportedintheprior−yearquarter[11]SegmentPerformance−Chili′ssegmentrevenuesrose30.4107 million reported in the prior-year quarter [11] Segment Performance - Chili's segment revenues rose 30.4% year-over-year to 1.21 billion, driven by favorable comparable restaurant sales, menu pricing, and increased traffic [5] - Comparable restaurant sales at Chili's increased by 31.4% year-over-year, with domestic comps gaining 30.8% compared to a 5.1% rise in the prior-year period [7] - Maggiano's sales increased by 1.7% year-over-year to 149.4million,althoughtrafficfellby4.9149.4 million, although traffic fell by 4.9% [8] Cost and Margin Analysis - Chili's restaurant expenses as a percentage of company sales decreased to 81.3% from 88.4% in the prior-year quarter, aided by sales leverage despite rising labor and commodity costs [6] - Adjusted restaurant operating margin improved to 19.1%, up from 13.1% in the prior-year quarter [11] Balance Sheet and Guidance - As of December 25, 2024, cash and cash equivalents were 14.8 million, down from 22.7millionayearearlier,whilelong−termdebtdecreasedto22.7 million a year earlier, while long-term debt decreased to 625 million from 786.3million[12]−Forfiscal2025,managementanticipatestotalrevenuesbetween786.3 million [12] - For fiscal 2025, management anticipates total revenues between 5.15 billion and 5.25billion,upfrompreviousexpectationsof5.25 billion, up from previous expectations of 4.70 billion to 4.75billion,andEPSintherangeof4.75 billion, and EPS in the range of 7.5 to $8 [13]