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Mar 26, 2025
Brinker Intl. Q3 2025 Earnings Report
Reported strong third quarter fiscal year 2025 results with significant increases in sales, net income, and operating income, driven by comparable restaurant sales growth at Chili's and improved margins.
Key Takeaways
Brinker International delivered a strong third quarter of fiscal 2025, with total revenues increasing significantly due to robust comparable restaurant sales, particularly at Chili's. The company achieved substantial improvements in operating income and net income, reflecting sales leverage and enhanced restaurant operating margins. This performance allowed for accelerated investments and debt repayment.
Total revenues increased to $1,425.1 million in Q3 2025, up from $1,120.3 million in the prior year.
Comparable restaurant sales grew by 28.2%, with Chili's seeing a 31.6% increase and Maggiano's a 0.4% increase.
Operating income rose to $156.9 million, resulting in an operating income margin of 11.0%.
Net income reached $119.1 million, with diluted EPS of $2.56.
Revenue by Segment
Forward Guidance
Brinker is providing updated guidance for fiscal 2025, expecting total revenues in the range of $5.33 billion to $5.35 billion and non-GAAP diluted EPS between $8.50 and $8.75. Capital expenditures are projected to be between $265.0 million and $275.0 million.
Positive Outlook
- Total revenues expected to be in the range of $5.33 billion - $5.35 billion.
- Net income per diluted share, excluding special items, non-GAAP, is expected to be in the range of $8.50 - $8.75.
- Revenue guidance based on sustained elevated sales levels.
- Continued progress on fundamentals expected to drive guest satisfaction.
- Balance sheet strengthening through debt repayment.
Challenges Ahead
- A moderation in sales could cause actual results to differ from forecasts.
- Risks outlined in the Forward-Looking Statements paragraph could impact results.
- Unable to reliably forecast special items without unreasonable effort.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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