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Brinker Q4 Earnings & Revenues Surpass Estimates, Stock Up
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Key Takeaways
Brinker's Q4 EPS of $2.49 beat estimates and rose significantly Y/Y.
Chili's was the primary driver of this growth, with revenues up 24%.
Brinker plans to apply its successful Chili's turnaround strategy to Maggiano's.
Brinker International, Inc. (EAT - Free Report) reported fourth-quarter fiscal 2025 results, with both earnings and revenues surpassing the Zacks Consensus Estimate and also increasing on a year-over-year basis. Revenues beat the consensus estimate for the sixth consecutive quarter. Following the results, the stock gained 1.6% yesterday.
Chili's performance served as a catalyst for the company's quarterly results. In the quarter under review, Chili's same-store sales increased by 24%, outpacing a more robust casual dining sector by 1,890 basis points. The growth was driven by the strong marketing ideas, simpler menu items and increased traffic. Brinker has high hopes for the future with solid plans to continue the momentum in the upcoming year.
Meanwhile, Maggiano's is going through a leadership change. While progress is being made on simplifying the menu and enhancing recipes, there is still an opportunity to bring more of Chili’s successful turnaround strategies to Maggiano’s. A key factor in Chili’s revival was focusing on the core elements that originally made the brand great and finding ways to make those strengths relevant for today’s customers.
EAT’s Q4 Earnings & Revenue Discussion
In the quarter under review, Brinker reported adjusted earnings per share (EPS) of $2.49, surpassing the Zacks Consensus Estimate of $2.43. The company reported an adjusted EPS of $1.61 in the prior-year quarter.
Brinker International, Inc. Price, Consensus and EPS Surprise
In the fiscal fourth quarter, total revenues of $1,461.9 million beat the consensus mark of $1,411 million. The top line increased 21% on a year-over-year basis.
EAT’s Segmental Performance
Chili's
In the fiscal fourth quarter, revenues in the Chili’s segment rose 24% year over year to $1,339.6 million. The upside was driven by an uptick in foot traffic, boosted by new menu items and value-focused ads, while operational changes encouraged repeat visits. Our model predicted segmental revenues of $1,289.3 million.
Chili's restaurant expenses (as a percentage of company sales) in the fiscal fourth quarter were 81.8% compared with 84.9% in the prior-year quarter. The upside was backed by sales leverage. However, increased hourly labor, manager bonuses and salaries, advertising, an unfavorable menu item mix and other restaurant expenses somewhat offset this.
The segment’s company-owned comps rose 23.7% in the fiscal fourth quarter from the year-ago quarter’s levels. Chili's company-owned traffic gained 16.3% year over year in the quarter under discussion. The metric rose 5.9% in the prior-year quarter.
At Chili’s, domestic comps (including company-owned and franchised) increased 23.2% year over year compared to a gain of 14.5% reported in the prior-year period.
Maggiano’s
Maggiano’s revenues in the fiscal fourth quarter decreased 1.2% year over year to $122.3 million. Sales at Maggiano's fell mostly as a result of poor comparable restaurant sales brought on by fewer customers, which were somewhat offset by menu prices. Comps in the segment fell 0.4% year over year. Our model predicted segmental revenues at $126.1 million.
Traffic in the quarter under discussion fell 8.9% year over year, matching the decline in the prior-year quarter.
Maggiano's company restaurant expenses (as a percentage of company sales) in the fiscal fourth quarter were 86.7% compared with 84% a year ago. The downside was caused by an unfavorable menu item mix and workers' compensation, partially offset by increased favorable menu pricing.
Q4 Operating Results
In the quarter under review, EAT’s total operating costs and expenses came in at $1.32 billion compared with $1.14 billion reported in the year-ago quarter. Adjusted restaurant operating margin, as a percentage of company sales, was 17.8% compared with 15.2% reported in the prior-year quarter. Our projection was 9.9%.
Adjusted EBITDA in the fiscal fourth quarter came in at $212.4 million compared with $141.8 million reported in the prior-year quarter. Our projection was $194 million.
Balance Sheet
As of June 25, 2025, Brinker’s cash and cash equivalents amounted to $64.6 million compared with $15.1 million as of June 26, 2024. As of June 25, 2025, long-term debt was $426 million compared with $786.3 million as of June 26, 2024.
EAT’s FY26 Outlook
In fiscal 2026, management anticipates total revenues to be in the range of $5.60-$5.70 billion. Capital expenditures are expected in the $270-$290 million band. EAT projects fiscal 2026 adjusted diluted EPS in the range of $9.90-$10.50.
The stock has gained 21.3% in the past three months. The Zacks Consensus Estimate for Dillard's 2025 sales indicates an increase of 0.41% and EPS indicates a decrease of 17.2% from the year-ago levels.
Cheesecake Factory presently carries a Zacks Rank #2 (Buy). The stock has gained 17.7% in the past three months.
The Zacks Consensus Estimate for Cheesecake Factory’s 2025 sales and EPS implies growth of 5.1% and 9.3%, respectively, from the year-ago levels.
Torrid Holdings currently carries a Zacks Rank #2. The stock has plunged 61.3% in the past three months.
The Zacks Consensus Estimate for Torrid Holdings’ 2025 sales and EPS indicates a decrease of 5.6% and 6.7%, respectively, from the year-ago period’s levels.
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Brinker Q4 Earnings & Revenues Surpass Estimates, Stock Up
Key Takeaways
Brinker International, Inc. (EAT - Free Report) reported fourth-quarter fiscal 2025 results, with both earnings and revenues surpassing the Zacks Consensus Estimate and also increasing on a year-over-year basis. Revenues beat the consensus estimate for the sixth consecutive quarter. Following the results, the stock gained 1.6% yesterday.
Chili's performance served as a catalyst for the company's quarterly results. In the quarter under review, Chili's same-store sales increased by 24%, outpacing a more robust casual dining sector by 1,890 basis points. The growth was driven by the strong marketing ideas, simpler menu items and increased traffic. Brinker has high hopes for the future with solid plans to continue the momentum in the upcoming year.
Meanwhile, Maggiano's is going through a leadership change. While progress is being made on simplifying the menu and enhancing recipes, there is still an opportunity to bring more of Chili’s successful turnaround strategies to Maggiano’s. A key factor in Chili’s revival was focusing on the core elements that originally made the brand great and finding ways to make those strengths relevant for today’s customers.
EAT’s Q4 Earnings & Revenue Discussion
In the quarter under review, Brinker reported adjusted earnings per share (EPS) of $2.49, surpassing the Zacks Consensus Estimate of $2.43. The company reported an adjusted EPS of $1.61 in the prior-year quarter.
Brinker International, Inc. Price, Consensus and EPS Surprise
Brinker International, Inc. price-consensus-eps-surprise-chart | Brinker International, Inc. Quote
In the fiscal fourth quarter, total revenues of $1,461.9 million beat the consensus mark of $1,411 million. The top line increased 21% on a year-over-year basis.
EAT’s Segmental Performance
Chili's
In the fiscal fourth quarter, revenues in the Chili’s segment rose 24% year over year to $1,339.6 million. The upside was driven by an uptick in foot traffic, boosted by new menu items and value-focused ads, while operational changes encouraged repeat visits. Our model predicted segmental revenues of $1,289.3 million.
Chili's restaurant expenses (as a percentage of company sales) in the fiscal fourth quarter were 81.8% compared with 84.9% in the prior-year quarter. The upside was backed by sales leverage. However, increased hourly labor, manager bonuses and salaries, advertising, an unfavorable menu item mix and other restaurant expenses somewhat offset this.
The segment’s company-owned comps rose 23.7% in the fiscal fourth quarter from the year-ago quarter’s levels. Chili's company-owned traffic gained 16.3% year over year in the quarter under discussion. The metric rose 5.9% in the prior-year quarter.
At Chili’s, domestic comps (including company-owned and franchised) increased 23.2% year over year compared to a gain of 14.5% reported in the prior-year period.
Maggiano’s
Maggiano’s revenues in the fiscal fourth quarter decreased 1.2% year over year to $122.3 million. Sales at Maggiano's fell mostly as a result of poor comparable restaurant sales brought on by fewer customers, which were somewhat offset by menu prices. Comps in the segment fell 0.4% year over year. Our model predicted segmental revenues at $126.1 million.
Traffic in the quarter under discussion fell 8.9% year over year, matching the decline in the prior-year quarter.
Maggiano's company restaurant expenses (as a percentage of company sales) in the fiscal fourth quarter were 86.7% compared with 84% a year ago. The downside was caused by an unfavorable menu item mix and workers' compensation, partially offset by increased favorable menu pricing.
Q4 Operating Results
In the quarter under review, EAT’s total operating costs and expenses came in at $1.32 billion compared with $1.14 billion reported in the year-ago quarter. Adjusted restaurant operating margin, as a percentage of company sales, was 17.8% compared with 15.2% reported in the prior-year quarter. Our projection was 9.9%.
Adjusted EBITDA in the fiscal fourth quarter came in at $212.4 million compared with $141.8 million reported in the prior-year quarter. Our projection was $194 million.
Balance Sheet
As of June 25, 2025, Brinker’s cash and cash equivalents amounted to $64.6 million compared with $15.1 million as of June 26, 2024. As of June 25, 2025, long-term debt was $426 million compared with $786.3 million as of June 26, 2024.
EAT’s FY26 Outlook
In fiscal 2026, management anticipates total revenues to be in the range of $5.60-$5.70 billion. Capital expenditures are expected in the $270-$290 million band. EAT projects fiscal 2026 adjusted diluted EPS in the range of $9.90-$10.50.
EAT’s Zacks Rank & Better-Ranked Stocks
Brinker currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Retail – Wholesale sector are Dillard's (DDS - Free Report) , The Cheesecake Factory Incorporated (CAKE - Free Report) and Torrid Holdings (CURV - Free Report) .
Dillard's presently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has gained 21.3% in the past three months. The Zacks Consensus Estimate for Dillard's 2025 sales indicates an increase of 0.41% and EPS indicates a decrease of 17.2% from the year-ago levels.
Cheesecake Factory presently carries a Zacks Rank #2 (Buy). The stock has gained 17.7% in the past three months.
The Zacks Consensus Estimate for Cheesecake Factory’s 2025 sales and EPS implies growth of 5.1% and 9.3%, respectively, from the year-ago levels.
Torrid Holdings currently carries a Zacks Rank #2. The stock has plunged 61.3% in the past three months.
The Zacks Consensus Estimate for Torrid Holdings’ 2025 sales and EPS indicates a decrease of 5.6% and 6.7%, respectively, from the year-ago period’s levels.