Brinker International (EAT) Q2 2025 earnings summary

Executive summary

• Q2 FY25 delivered record same-store sales growth, with Chili's comps up 31.4% and Maggiano's up 1.8%, driving total revenues to $1,358.2M and net income to $118.5M.

• Operational improvements, menu simplification, and marketing initiatives, including social media campaigns, boosted guest traffic and frequency, especially among younger demographics.

• TurboChef oven rollout and kitchen process changes enhanced throughput and guest experience.

• The company opened 7 new company-owned and 21 new franchise restaurants in the first half of FY25, with a focus on international expansion.

Financial highlights

• Total Q2 revenues reached $1,358.2M, up from $1,074.1M year-over-year; Chili's company sales were $1,196.9M and Maggiano's $149.2M.

• Adjusted diluted EPS was $2.80, up from $0.99 last year; net income per diluted share was $2.61.

• Restaurant operating margin expanded by 600 bps to 19.1%; operating income margin improved to 11.5%.

• Adjusted EBITDA more than doubled to $215.8M from $107.0M year-over-year.

• Capital expenditures for the quarter were $49M; first half totaled $105.8M.

Outlook and guidance

• FY25 guidance raised: annual revenues of $5.15–$5.25B, adjusted diluted EPS of $7.50–$8.00, and capital expenditures of $240–$260M.

• Management expects to remain in compliance with debt covenants and maintain sufficient liquidity.

• Assumptions include low single-digit food commodity inflation, mid-single-digit wage inflation, and a mid-double-digit tax rate.

• Plans for 31–37 new restaurant openings in FY25, with strategic international franchise expansion.

• Continued focus on operational fundamentals, menu simplification, digital investments, and value offerings.