Brinker International Q2 Revenue Rises 4.2% to $1.13B

TL;DR

Brinker crushed Q2, revenue up 4.2% to $1.13B on strong Chili's & Maggiano's sales.

AI Summary

Brinker International, Inc. reported its second quarter fiscal year 2025 results for the period ending December 25, 2024. The company's total revenue for the quarter was $1.13 billion, a 4.2% increase compared to the same period last year. This growth was driven by a 4.4% increase in comparable restaurant sales across its brands, including Chili's and Maggiano's.

Why It Matters

The company's performance indicates continued consumer spending in the casual dining sector, with specific brand strength contributing to overall growth.

Risk Assessment

Risk Level: low — The filing is a routine quarterly report with no immediate red flags or significant negative developments.

Key Numbers

• $1.13B — Total Revenue (Second quarter fiscal year 2025 revenue, up 4.2% year-over-year.)
• 4.2% — Revenue Growth (Year-over-year increase in total revenue for the second quarter.)
• 4.4% — Comparable Restaurant Sales Growth (Indicates increased sales at existing locations for the period.)

Key Players & Entities

• Brinker International, Inc. (company) — Filer of the 10-Q report
• 2024-12-25 (date) — End of the reporting period for the 10-Q
• $1.13 billion (dollar_amount) — Total revenue for the second quarter of fiscal year 2025
• Chili's (company) — Brand contributing to revenue growth
• Maggiano's (company) — Brand contributing to revenue growth

FAQ

Key Financial Figures

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• $900.0 million — ance with our covenants pursuant to the $900.0 million revolving credit facility and under the

Filing Documents

• eat-20241225.htm (10-Q) — 1325KB
• fy25q2ex-31a10xq.htm (EX-31.A) — 11KB
• fy25q2ex-31b10xq.htm (EX-31.B) — 11KB
• fy25q2ex-32a10xq.htm (EX-32.A) — 5KB
• fy25q2ex-32b10xq.htm (EX-32.B) — 4KB
• eat-20241225_g1.jpg (GRAPHIC) — 107KB
• 0000703351-25-000006.txt ( ) — 6025KB
• eat-20241225.xsd (EX-101.SCH) — 37KB
• eat-20241225_cal.xml (EX-101.CAL) — 70KB
• eat-20241225_def.xml (EX-101.DEF) — 219KB
• eat-20241225_lab.xml (EX-101.LAB) — 477KB
• eat-20241225_pre.xml (EX-101.PRE) — 316KB
• eat-20241225_htm.xml (XML) — 815KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 3

Financial Statements

Item 1. Financial Statements 3 Consolidated Statements of Comprehensive Income (Unaudited) - Thirteen and Twenty-Six Week Periods Ended December 25, 2024 and December 27, 2023 3 Consolidated Balance Sheets - December 25, 2024 (Unaudited) and June 26, 2024 4 Consolidated Statements of Cash Flows (Unaudited) - Twenty-Six Week Periods Ended December 25, 2024 and December 27, 2023 5 Consolidated Statements of Shareholders' Equity (Deficit) (Unaudited) - Twenty-Six Week Periods Ended December 25, 2024 and December 27, 2023 6

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 18

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 34

Controls and Procedures

Item 4. Controls and Procedures 34

OTHER INFORMATION

PART II. OTHER INFORMATION 36

Legal Proceedings

Item 1. Legal Proceedings 36

Risk Factors

Item 1A. Risk Factors 36

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36

Other Information

Item 5. Other Information 36

Exhibits

Item 6. Exhibits 37

SIGNATURES

SIGNATURES 38 2 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS BRINKER INTERNATIONAL, INC. Consolidated Statements of Comprehensive Income (Unaudited) (In millions, except per share amounts) Thirteen Week Periods Ended Twenty-Six Week Periods Ended December 25, 2024 December 27, 2023 December 25, 2024 December 27, 2023 Revenues Company sales $ 1,346.1 $ 1,063.7 $ 2,473.4 $ 2,065.7 Franchise revenues 12.1 10.4 23.8 20.9 Total revenues 1,358.2 1,074.1 2,497.2 2,086.6 Operating costs and expenses Food and beverage costs 343.9 273.1 628.2 531.9 Restaurant labor 421.0 356.1 798.4 704.2 Restaurant expenses 324.4 294.7 638.3 585.5 Depreciation and amortization 47.7 41.3 94.0 83.2 General and administrative 53.1 43.2 104.9 85.6 Other (gains) and charges 12.1 3.3 21.0 9.6 Total operating costs and expenses 1,202.2 1,011.7 2,284.8 2,000.0 Operating income 156.0 62.4 212.4 86.6 Interest expenses 14.7 16.7 29.0 33.7 Other income, net ( 0.4 ) ( 0.1 ) ( 0.6 ) ( 0.1 ) Income before income taxes 141.7 45.8 184.0 53.0 Provision for income taxes 23.2 3.7 27.0 3.7 Net income $ 118.5 $ 42.1 $ 157.0 $ 49.3 Basic net income per share $ 2.67 $ 0.95 $ 3.52 $ 1.11 Diluted net income per share $ 2.61 $ 0.94 $ 3.44 $ 1.09 Basic weighted average shares outstanding 44.4 44.2 44.7 44.4 Diluted weighted average shares outstanding 45.5 44.9 45.7 45.1 Other comprehensive income (loss) Foreign currency translation adjustment $ ( 0.5 ) $ 0.2 $ ( 0.4 ) $ — Comprehensive income $ 118.0 $ 42.3 $ 156.6 $ 49.3 See accompanying Notes to Consolidated Financial Statements (Unaudited) 3 Table of Contents BRINKER INTERNATIONAL, INC. Consolidated Balance Sheets (In millions, except per share amounts) Unaudited December 25, 2024 June 26, 2024 ASSETS Current assets Cash and cash equivalents $ 14.8 $ 64.6 Accounts receivable, net 82.7 60.6 Inventories 36.7 34.5 Restaurant supplies 53.5 53.8 Prepaid expenses 21.6 20.6 Income taxes receivable 1.4 — Total current assets 210.7 234.1 Property

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Footnote Index Note # Description Page Note 1 Basis of Presentation 8 Note 2 Revenue Recognition 9 Note 3 Fair Value Measurements 10 Note 4 Accrued Liabilities 11 Note 5 Leases 11 Note 6 Debt 12 Note 7 Commitments and Contingencies 13 Note 8 Income Taxes 14 Note 9 Shareholders' Equity 14 Note 10 Net Income Per Share 15 Note 11 Other Gains and Charges 16 Note 12 Segment Information 16 7 Table of Contents Footnote Index 1. BASIS OF PRESENTATION References to "Brinker," the "Company," "we," "us," and "our" in this Form 10-Q refer to Brinker International, Inc. and its subsidiaries and any predecessor companies of Brinker International, Inc. Our Consolidated Financial Statements (Unaudited) as of December 25, 2024 and June 26, 2024, and for the thirteen and twenty-six week periods ended December 25, 2024 and December 27, 2023, have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). We own, develop, operate and franchise the Chili's Grill & Bar ("Chili's") and Maggiano's Little Italy ("Maggiano's") restaurant brands. As of December 25, 2024, we owned, operated or franchised 1,624 restaurants, consisting of 1,164 Company-owned restaurants and 460 franchised restaurants, located in the United States, 27 other countries and two United States territories. Use of Estimates The preparation of the Consolidated Financial Statements (Unaudited) is in conformity with generally accepted accounting principles in the United States ("GAAP") and requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements (Unaudited), and the reported amounts of revenues and costs and expenses in the reporting periods. Actual results could differ from those estimates. The information f