#United States #Dallas #Fiscal 2025 #Brinker International #Chili's

Brinker International Reports Strong Third Quarter Results for Fiscal 2025

Brinker International, a leader in the casual dining sector with brands like Chili's and Maggiano's, has announced remarkable financial results for the third quarter of fiscal 2025. For the period ending March 26, 2025, the company reported substantial growth, which CEO Kevin Hochman attributed to persistent improvements in service and food quality, alongside a welcoming dining atmosphere.

Q3 2025 Financial Highlights

Brinker's total sales for the third quarter reached $1.413 billion, a significant increase from $1.109 billion during the same period last year. Similar to the overall company growth, Chili's saw a stunning 31.6% increase in comparable restaurant sales, while Maggiano's had a modest growth of 0.4%. This surge was propelled by a substantial rise in guest traffic, supported by effective advertising strategies emphasizing value. Furthermore, the operational enhancements introduced have succeeded in boosting repeat visits from customers.

The figures reflect an enhanced operating income margin, rising to 11% from 6.2% the previous year, and an impressive restaurant operating margin of 18.9%, notably higher than 14.2% in Q3 2024. With the revenue influx, Brinker was able to accelerate investments into its business while reducing its debt by an additional $125 million.

Revenue Breakdown

Brinker's Q3 report revealed robust performance across different segments:

• - Chili's: Annual sales uplift driven by increased traffic and a strategic menu refresh.
• - Maggiano's: Although facing challenges with traffic, menu price adjustments contributed to overall sales growth.

These advancements reflect the company's success in navigating a highly competitive market, ensuring that both customer satisfaction and profitability remain at the forefront of its priorities.

Updated Fiscal Guidance

As for overall expectations for fiscal 2025, Brinker has set ambitious revenues between $5.33 billion and $5.35 billion. The net income per diluted share, excluding any special items, is projected to fall between $8.50 and $8.75. Further establishing confidence in its financial strategies, Brinker's capital expenditures are anticipated to range from $265 million to $275 million, with projections for shares hovering around 46 million to 46.5 million.

Management remains cautious, acknowledging that any shift in enhanced sales trends could significantly alter these projections. Nevertheless, the company's current momentum indicates a very positive outlook moving forward.

Segment Analysis

Analyzing their segment performance, Chili's significantly contributed to the majority of the sales explosion, reaching $1.292 billion compared to $988.4 million in Q3 2024. This led to an increased operating margin of 15.2%. On the other hand, Maggiano's lagged slightly behind, though metrics like menu pricing helped stabilize their financial standing despite lower customer turnout.

Maggiano's Highlights:

• - Operating income at $10.7 million, versus $12.3 million the previous fiscal year.
• - Compounded pressures from rising costs in advertising and repair maintenance have impacted overall efficiency.

This thorough analysis showcases Brinker’s targeted approaches in addressing consumer preferences while maintaining steady financial health.

Corporate Developments

Further emphasizing Brinker's continuous growth, a webcast for all investors and stakeholders took place on April 29, 2025. The session provided further insights into the performance of the last quarter while detailing the strategies employed to sustain this growth trajectory throughout the year.

Brinker International remains committed to not only augmenting its market presence but ensuring that diners have memorable experiences each time they engage with either of its celebrated brands. Continuing to uphold its stature as one of the leading players in the casual dining industry, Brinker is setting itself up for long-term success through meticulous planning and dynamic execution.

For more information and financial disclosures, interested parties can visit Brinker's investor relations page for additional resources, including detailed reports and upcoming events.