Brinker International Exceeds FQ1 Forecasts

NEW YORK - Brinker International (NYSE:EAT), the parent company of Chili's and Maggiano's restaurant chains, reported that the strong sales growth at Chili's resulted in first-quarter fiscal 2025 results that exceeded analysts' expectations. The company announced an adjusted earnings per share of $0.95, surpassing the analyst estimate of $0.69 by $0.26. Revenue for the quarter was $1.13 billion, exceeding the consensus estimate of $1.1 billion and representing a 12.5% increase compared to $1.002 billion in the same period last year.

Comparable restaurant sales overall increased by 13.0%; Chili's saw a 14.1% growth, while Maggiano's recorded a 4.2% rise. The company attributed Chili's strong performance to menu pricing, increased customer traffic, and successful advertising campaigns.

President and CEO Kevin Hochman stated, "Great food and great service at a leading value in the industry drive Chili's strong sales and traffic. Our ongoing success underscores the importance of listening to our customers and team members and presenting critical issues that matter to them."

Brinker International provided earnings guidance of $5.20 to $5.50 per share for fiscal 2025, compared to the analyst consensus of $5.35. However, the company's revenue forecast of $4.7 billion to $4.75 billion fell short of the consensus estimate of $4.77 billion.

The company's operating income margin increased to 5.0%, while the restaurant operating margin (non-GAAP) rose to 13.5% for the quarter. Brinker noted that it continues to prioritize customer experience through improved restaurant staffing and maintenance, which has led to higher labor and repair costs.