DALLAS, Jan. 29,
2025 /PRNewswire/ -- Brinker International, Inc.
(NYSE: EAT) today announced its financial results for the second
quarter ended December 25, 2024.
Second Quarter Fiscal 2025 Financial Highlights
"Improving fundamentals continues to drive a better guest
experience and sustained business results," said President and CEO
Kevin Hochman. "Chili's sales comps
accelerated to +31%, driven both by new guests trying Chili's and
return guests coming more frequently despite a more competitive
promotional environment. These results would indicate we are
building a much stronger business for the long term."
Company sales were $1,346.1
million in the second quarter of fiscal 2025 compared to
$1,063.7 million in the second
quarter of fiscal 2024. Comparable restaurant sales increased
27.4%, with an increase in comparable restaurant sales of 31.4% for
Chili's and 1.8% for Maggiano's. Chili's sales growth was driven by
a 19.9% increase in traffic generated by investments in advertising
behind industry leading value that brought guests in and
operational improvements that brought guests back. Higher Company
sales resulted in operating income margin increasing to 11.5% and
restaurant operating margin (non-GAAP) increasing to 19.1% for the
second quarter. Additionally, General and administrative expenses
during the second quarter of fiscal 2025 increased primarily due to
higher incentive compensation and recent technology
initiatives.
Financial results for the second quarter of fiscal 2025
and fiscal 2024 were as follows:
|
Second
Quarter
|
|
2025
|
|
2024
|
|
Variance
|
|
Company
sales
|
$ 1,346.1
|
|
$ 1,063.7
|
|
$
282.4
|
|
Total
revenues
|
$ 1,358.2
|
|
$ 1,074.1
|
|
$
284.1
|
|
|
|
|
|
|
|
Operating
income
|
$
156.0
|
|
$ 62.4
|
|
$ 93.6
|
|
Operating income as a %
of Total revenues
|
11.5 %
|
|
5.8 %
|
|
5.7 %
|
|
Restaurant operating
margin, non-GAAP(1)
|
$
256.8
|
|
$
139.8
|
|
$
117.0
|
|
Restaurant operating
margin as a % of Company sales, non-GAAP(1)
|
19.1 %
|
|
13.1 %
|
|
6.0 %
|
|
Net income
|
$
118.5
|
|
$ 42.1
|
|
$ 76.4
|
|
Adjusted EBITDA,
non-GAAP(1)
|
$
215.8
|
|
$
107.0
|
|
$
108.8
|
|
|
|
|
|
|
|
Net income per diluted
share
|
$ 2.61
|
|
$ 0.94
|
|
$ 1.67
|
|
Net income per diluted
share, excluding special items, non-GAAP(1)
|
$ 2.80
|
|
$ 0.99
|
|
$ 1.81
|
Comparable Restaurant Sales(2)
|
Q2:25 vs
24
|
|
Brinker
|
27.4 %
|
|
Chili's
|
31.4 %
|
|
Maggiano's
|
1.8 %
|
|
|
|
(1)
|
See Non-GAAP
Information and Reconciliations section below for more
details.
|
|
|
|
(2)
|
Comparable Restaurant
Sales include restaurants that have been in operation for more than
18 full months. Restaurants temporarily closed for 14 days or more
are excluded from comparable restaurant sales. Percentage amounts
are calculated based on the comparable periods
year-over-year.
|
Updates to Full Year Fiscal 2025 Guidance
We are providing the following updated guidance for fiscal 2025.
Our revenue guidance is based on sustained elevated sales levels
consistent with the Company's recent trends. A moderation in sales
or the risks outlined in the Forward-Looking Statements paragraph
of this press release, among other risks, could cause actual
results to differ materially from forecasted results.
- Total revenues are expected to be in the range of $5.15 billion - $5.25
billion;
- Net income per diluted share, excluding special items,
non-GAAP, is expected to be in the range of $7.50 - $8.00;
and
- Capital expenditures are expected to be in the range of
$240.0 million - $260.0 million.
We are reiterating the following full year fiscal 2025
guidance:
- Weighted average shares are expected to be in the range of 45
million - 47 million.
We are unable to reliably forecast special items without
unreasonable effort. As such, we do not present a reconciliation of
forecasted non-GAAP measures to the corresponding GAAP
measures.
Second Quarter of Fiscal 2025 Operating Performance
Segment Performance
The table below presents selected financial information (in
millions, except as noted) related to our segments' operational
performance for the thirteen week periods ended December 25, 2024 and December 27, 2023:
|
Chili's
|
|
Maggiano's
|
|
Second
Quarter
|
|
Variance
|
|
Second
Quarter
|
|
Variance
|
|
2025
|
|
2024
|
|
|
2025
|
|
2024
|
|
|
Company
sales
|
$
1,196.9
|
|
$ 916.9
|
|
$ 280.0
|
|
$ 149.2
|
|
$ 146.8
|
|
$
2.4
|
|
Franchise
revenues
|
11.9
|
|
10.3
|
|
1.6
|
|
0.2
|
|
0.1
|
|
0.1
|
|
Total
revenues
|
$
1,208.8
|
|
$ 927.2
|
|
$ 281.6
|
|
$ 149.4
|
|
$ 146.9
|
|
$
2.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company restaurant
expenses(1)
|
$ 973.5
|
|
$ 810.5
|
|
$ 163.0
|
|
$ 115.4
|
|
$ 113.2
|
|
$
2.2
|
|
Company restaurant
expenses as a % of
Company sales
|
81.3 %
|
|
88.4 %
|
|
(7.1) %
|
|
77.3 %
|
|
77.1 %
|
|
0.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$ 175.1
|
|
$ 70.1
|
|
$ 105.0
|
|
$ 28.2
|
|
$ 28.2
|
|
$
—
|
|
Operating income as a %
of Total
revenues
|
14.5 %
|
|
7.6 %
|
|
6.9 %
|
|
18.9 %
|
|
19.2 %
|
|
(0.3) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restaurant operating
margin, non-
GAAP(2)
|
$ 223.4
|
|
$ 106.4
|
|
$ 117.0
|
|
$ 33.8
|
|
$ 33.6
|
|
$
0.2
|
|
Restaurant operating
margin as a % of
Company sales, non-GAAP(2)
|
18.7 %
|
|
11.6 %
|
|
7.1 %
|
|
22.7 %
|
|
22.9 %
|
|
(0.2) %
|
|
|
|
(1)
|
Company restaurant
expenses includes Food and beverage costs, Restaurant labor and
Restaurant expenses, and excludes Depreciation and amortization,
General and administrative and Other (gains) and
charges.
|
|
|
|
(2)
|
See Non-GAAP
Information and Reconciliations section below for more
details.
|
Chili's
- Chili's Company sales increased primarily due to favorable
comparable restaurant sales driven by higher traffic, favorable
menu item mix and menu pricing.
- Chili's Company restaurant expenses, as a percentage of Company
sales, decreased primarily due to sales leverage, partially offset
by higher hourly labor, repairs and maintenance, higher manager
salaries and bonus, and unfavorable commodity costs.
- Chili's franchisees generated sales of approximately
$232.3 million for the second quarter
of fiscal 2025 compared to $216.9
million for the second quarter of fiscal 2024.
Maggiano's
- Maggiano's Company sales increased primarily due to favorable
comparable restaurant sales driven by menu pricing, partially
offset by lower traffic.
- Maggiano's Company restaurant expenses, as a percentage of
Company sales, increased slightly primarily due to higher
advertising, management salary, repairs and maintenance, and
unfavorable commodity costs, offset by sales leverage and lower
hourly labor.
Corporate
- On a GAAP basis, the effective income tax rate was 16.4% in the
second quarter of fiscal 2025. The effective income tax rate is
lower than the statutory rate of 21.0% due primarily to leverage of
the FICA tip credit. Excluding the impact of special items, the
effective income tax rate was an expense of 17.3% in the second
quarter of fiscal 2025.
Webcast Information
Investors and interested parties are invited to listen to
today's conference call, as management will provide further details
of the quarter and business updates. The call will be broadcast
live on Brinker's website today, January 29, 2025 at
9 a.m. CT:
https://investors.brinker.com/events/event-details/q2-2025-brinker-international-earnings-conference-call
For those who are unable to listen to the live broadcast, a
replay of the call will be available shortly thereafter and will
remain on Brinker's website until at least the end of the day
January 29, 2026.
Additional financial information, including statements of income
which detail operations excluding special items, and comparable
restaurant sales trends by brand, is also available on Brinker's
website under the Financial Information section of the Investor
tab.
Forward Calendar
- SEC Form 10-Q for the second quarter of fiscal 2025 filing on
or before February 3, 2025.
- Earnings release call for the third quarter of fiscal 2025 on
April 29, 2025
Non-GAAP Measures
Brinker management uses certain non-GAAP measures in analyzing
operating performance and believes that the presentation of these
measures in this release provides investors with information that
is beneficial to gaining an understanding of the Company's
financial results. Non-GAAP disclosures should not be viewed as a
substitute for financial results determined in accordance with
GAAP, nor are they necessarily comparable to non-GAAP performance
measures that may be presented by other companies. Reconciliations
of these non-GAAP measures are included in the tables below.
About Brinker
Brinker International, Inc. is one of the world's leading
casual dining restaurant companies and home of Chili's®
Grill & Bar, and Maggiano's Little Italy.® Founded
in 1975 in Dallas, Texas, we've
ventured far from home, but stayed true to our roots. Brinker owns,
operates or franchises more than 1,600 restaurants in the United States, 27 other countries and two
U.S. territories. Our passion is making everyone feel special, and
we hope you feel that passion each time you visit one of our
restaurants or invite us into your home through takeout or
delivery. Learn more about Brinker and its brands at
brinker.com.
Forward-Looking Statements
The statements and tables contained in this release that are not
historical facts are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. We intend all forward-looking
statements to be covered by the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. All
forward-looking statements are made only based on our current plans
and expectations as of the date such statements are made, and we
undertake no obligation to update forward-looking statements to
reflect events or circumstances arising after the date such
statements are made. Forward-looking statements are neither
predictions nor guarantees of future events or performance and are
subject to risks and uncertainties which could cause actual results
to differ materially from our historical results or from those
projected in forward-looking statements. Such risks and
uncertainties include, among other things, the impact of general
economic conditions, including inflation, on economic activity and
on our operations; disruptions on our business including consumer
demand, costs, product mix, our strategic initiatives, operations,
technology and assets, and our financial performance; the impact of
competition, including competitors employing our same strategies or
discounting their offerings; changes in consumer preferences,
including shifts in their brand preferences; consumer perception of
food safety; reduced consumer discretionary spending; governmental
regulations; the effectiveness of the Company's business strategy
plan; loss of key management personnel; failure to hire and retain
high-quality restaurant management and team members; increasing
regulation surrounding wage inflation and competitive labor
markets; the impact of social media, including the potential
governmental ban of platforms used by the Company in its marketing
initiatives; reputational damage or unfavorable publicity for our
brands, which may result from actions of franchisees not within our
control; reliance on technology and third party delivery providers;
failure to protect the security of data of our guests and team
members; product availability and supply chain disruptions;
regional business and economic conditions; volatility in consumer,
commodity, transportation, labor, currency and capital markets;
litigation; franchisee success; technology failures; failure to
protect our intellectual property; outsourcing; impairment of
goodwill or assets; failure to maintain effective internal control
over financial reporting; downgrades in credit ratings; changes in
estimates regarding our assets; actions of activist shareholders;
failure to comply with new environmental, social and governance
("ESG") requirements; failure to achieve any goals, targets or
objectives with respect to ESG matters; adverse weather conditions;
terrorist acts; cybersecurity, artificial intelligence and phishing
threats; health epidemics or pandemics; tax reform; inadequate
insurance coverage; and limitations imposed by our credit
agreements as well as the risks and uncertainties described in
"Risk Factors" in our Annual Report on Form 10-K and future filings
with the Securities and Exchange Commission.
|
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(1)
|
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
|
|
|
|
(1)
|
Other (gains) and
charges included in the Consolidated Statements of Comprehensive
Income (Unaudited) included (in millions):
|
|
|
|
Thirteen Week
Periods Ended
|
|
Twenty-Six Week
Periods Ended
|
|
December 25,
2024
|
|
December 27,
2023
|
|
December 25,
2024
|
|
December 27,
2023
|
|
Litigation &
claims, net
|
$
6.1
|
|
$
1.0
|
|
$
8.6
|
|
$
3.2
|
|
Enterprise system
implementation costs
|
5.2
|
|
2.1
|
|
9.6
|
|
4.1
|
|
Restaurant closure
asset write-offs and charges
|
0.8
|
|
0.2
|
|
1.5
|
|
0.8
|
|
Loss from natural
disasters, net (of insurance
recoveries)
|
0.7
|
|
(0.6)
|
|
0.7
|
|
(0.4)
|
|
Lease modification
gain, net
|
(0.7)
|
|
—
|
|
(1.0)
|
|
(0.1)
|
|
Other
|
—
|
|
0.6
|
|
1.6
|
|
2.0
|
|
Total other (gains) and
charges
|
$
12.1
|
|
$
3.3
|
|
$
21.0
|
|
$
9.6
|
|
BRINKER
INTERNATIONAL, INC.
|
|
Condensed
Consolidated Balance Sheets (Unaudited)
|
|
(In
millions)
|
|
|
December 25,
2024
|
|
June 26,
2024
|
|
ASSETS
|
|
|
|
|
Total current
assets
|
$
210.7
|
|
$
234.1
|
|
Net property and
equipment
|
893.3
|
|
879.7
|
|
Operating lease
assets
|
1,082.3
|
|
1,095.2
|
|
Deferred income taxes,
net
|
105.6
|
|
113.9
|
|
Other
assets
|
268.4
|
|
270.2
|
|
Total
assets
|
$
2,560.3
|
|
$
2,593.1
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Total current
liabilities
|
$
644.3
|
|
$
622.3
|
|
Long-term debt and
finance leases, less current installments
|
652.0
|
|
786.3
|
|
Long-term operating
lease liabilities, less current portion
|
1,068.0
|
|
1,084.5
|
|
Other
liabilities
|
64.5
|
|
60.6
|
|
Total shareholders'
equity
|
131.5
|
|
39.4
|
|
Total liabilities and
shareholders' equity
|
$
2,560.3
|
|
$
2,593.1
|
|
BRINKER
INTERNATIONAL, INC.
|
|
Condensed
Consolidated Statements of Cash Flows (Unaudited)
|
|
(In
millions)
|
|
|
Twenty-Six Week
Periods Ended
|
|
December 25,
2024
|
|
December 27,
2023
|
|
Cash flows from
operating activities
|
|
|
|
|
Net income
|
$
157.0
|
|
$
49.3
|
|
Adjustments to
reconcile Net income to Net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
94.0
|
|
83.2
|
|
Deferred income taxes,
net
|
8.3
|
|
(8.4)
|
|
Stock-based
compensation
|
14.3
|
|
10.1
|
|
Non-cash other (gains)
and charges
|
7.9
|
|
4.3
|
|
Net loss on disposal
of assets
|
6.1
|
|
1.5
|
|
Other
|
1.3
|
|
1.3
|
|
Changes in assets and
liabilities
|
(7.9)
|
|
9.0
|
|
Net cash
provided by operating activities
|
281.0
|
|
150.3
|
|
Cash flows from
investing activities
|
|
|
|
|
Payments for property
and equipment
|
(105.8)
|
|
(89.5)
|
|
Proceeds from note
receivable
|
—
|
|
1.3
|
|
Proceeds from sale of
assets
|
—
|
|
0.7
|
|
Insurance
recoveries
|
—
|
|
0.7
|
|
Net cash used in
investing activities
|
(105.8)
|
|
(86.8)
|
|
Cash flows from
financing activities
|
|
|
|
|
Borrowings on
revolving credit facility
|
515.0
|
|
199.0
|
|
Payments on revolving
credit facility
|
(300.0)
|
|
(224.0)
|
|
Payments on long-term
debt
|
(362.1)
|
|
(5.6)
|
|
Purchases of treasury
stock
|
(85.2)
|
|
(25.1)
|
|
Proceeds from issuance
of treasury stock
|
7.4
|
|
0.5
|
|
Payments for debt
issuance costs
|
(0.1)
|
|
(0.7)
|
|
Net cash used in
financing activities
|
(225.0)
|
|
(55.9)
|
|
Net change in cash and
cash equivalents
|
(49.8)
|
|
7.6
|
|
Cash and cash
equivalents at beginning of period
|
64.6
|
|
15.1
|
|
Cash and cash
equivalents at end of period
|
$
14.8
|
|
$
22.7
|
|
BRINKER
INTERNATIONAL, INC.
|
|
Restaurant
Summary
|
|
|
|
|
|
|
Fiscal 2025 New
Openings
|
|
Total
Restaurants
Open at
December 25, 2024
|
|
Total
Restaurants
Open at
December 27, 2023
|
|
Second Quarter
Openings
|
|
Fiscal Year
Openings
|
|
Full Year
Projected
Openings
|
|
Company-owned
restaurants
|
|
|
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,110
|
|
1,130
|
|
—
|
|
1
|
|
7
|
|
Chili's
international
|
4
|
|
4
|
|
—
|
|
—
|
|
—
|
|
Maggiano's
domestic
|
50
|
|
50
|
|
—
|
|
—
|
|
—
|
|
Total
Company-owned
|
1,164
|
|
1,184
|
|
—
|
|
1
|
|
7
|
|
Franchise
restaurants
|
|
|
|
|
|
|
|
|
|
|
Chili's
domestic
|
99
|
|
100
|
|
—
|
|
2
|
|
2-4
|
|
Chili's
international
|
358
|
|
372
|
|
6
|
|
18
|
|
21-25
|
|
Maggiano's
domestic
|
3
|
|
2
|
|
1
|
|
1
|
|
1
|
|
Total
franchise
|
460
|
|
474
|
|
7
|
|
21
|
|
24-30
|
|
Total Company-owned and
franchise
|
|
|
|
|
|
|
|
|
|
|
Chili's
domestic
|
1,209
|
|
1,230
|
|
—
|
|
3
|
|
9-11
|
|
Chili's
international
|
362
|
|
376
|
|
6
|
|
18
|
|
21-25
|
|
Maggiano's
domestic
|
53
|
|
52
|
|
1
|
|
1
|
|
1
|
|
Total
|
1,624
|
|
1,658
|
|
7
|
|
22
|
|
31-37
|
|
NON-GAAP INFORMATION
AND RECONCILIATIONS
|
|
|
Comparable
Restaurant Sales
|
|
|
Comparable
Restaurant
Sales(1)
|
|
Price
Impact
|
|
Mix-Shift(2)
|
|
Traffic
|
|
Q2:25 vs
24
|
|
Q2:24 vs
23
|
|
Q2:25 vs
24
|
|
Q2:24 vs
23
|
|
Q2:25 vs
24
|
|
Q2:24 vs
23
|
|
Q2:25 vs
24
|
|
Q2:24 vs
23
|
|
Company-owned
|
27.4 %
|
|
5.2 %
|
|
5.0 %
|
|
7.1 %
|
|
5.9 %
|
|
(0.8) %
|
|
16.5 %
|
|
(1.1) %
|
|
Chili's
|
31.4 %
|
|
5.0 %
|
|
4.9 %
|
|
6.6 %
|
|
6.6 %
|
|
(1.0) %
|
|
19.9 %
|
|
(0.6) %
|
|
Maggiano's
|
1.8 %
|
|
6.7 %
|
|
6.4 %
|
|
10.5 %
|
|
0.3 %
|
|
0.4 %
|
|
(4.9) %
|
|
(4.2) %
|
|
Franchise(3)
|
6.8 %
|
|
0.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
21.1 %
|
|
6.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
|
(1.0) %
|
|
(2.7) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chili's
domestic(4)
|
30.8 %
|
|
5.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
System-wide(5)
|
24.2 %
|
|
4.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Comparable Restaurant
Sales include all restaurants that have been in operation for more
than 18 full months. Restaurants temporarily closed 14 days or more
are excluded from Comparable Restaurant Sales. Percentage amounts
are calculated based on the comparable periods
year-over-year.
|
|
|
|
(2)
|
Mix-Shift is calculated
as the year-over-year percentage change in Company sales resulting
from the change in menu items ordered by guests.
|
|
|
|
(3)
|
Franchise sales
generated by franchisees are not included in Total revenues in the
Consolidated Statements of Comprehensive Income (Unaudited);
however, we generate royalty revenues and advertising fees based on
franchisee revenues, where applicable. We believe presenting
Franchise Comparable Restaurant Sales provides investors relevant
information regarding total brand performance.
|
|
|
|
(4)
|
Chili's domestic
Comparable Restaurant Sales percentages are derived from sales
generated by Company-owned and franchise-operated Chili's
restaurants in the United States.
|
|
|
|
(5)
|
System-wide Comparable
Restaurant Sales are derived from sales generated by Chili's and
Maggiano's Company-owned and franchise-operated
restaurants.
|
Reconciliation of Net Income Excluding Special Items (in
millions, except per share amounts)
Brinker believes excluding special items from its financial
results provides investors with a clearer perspective of the
Company's ongoing operating performance and a more relevant
comparison to prior period results.
|
Q2 25
|
|
EPS Q2
25
|
|
Q2 24
|
|
EPS Q2
24
|
|
Net income,
GAAP
|
$
118.5
|
|
$
2.61
|
|
$
42.1
|
|
$
0.94
|
|
Special items - Other
(gains) and charges(1)
|
12.1
|
|
0.27
|
|
3.3
|
|
0.07
|
|
Income tax effect
related to special items(2)
|
(3.0)
|
|
(0.07)
|
|
(0.8)
|
|
(0.02)
|
|
Special items, net of
taxes
|
9.1
|
|
0.20
|
|
2.5
|
|
0.05
|
|
Adjustment for special
tax items(3)
|
(0.3)
|
|
(0.01)
|
|
0.1
|
|
—
|
|
Net income, excluding
special items, non-GAAP
|
$
127.3
|
|
$
2.80
|
|
$
44.7
|
|
$
0.99
|
|
|
|
(1)
|
See footnote (1) to the
Consolidated Statements of Comprehensive Income (Unaudited) for
additional details on the composition of Other (gains) and
charges.
|
|
|
|
(2)
|
Income tax effect
related to special items is based on the statutory tax rate in
effect at the end of each period.
|
|
|
|
(3)
|
Adjustment for special
tax items primarily represents excess tax benefits associated with
stock-based compensation.
|
Reconciliation of Restaurant Operating Margin (in millions,
except percentages)
|
Chili's
|
|
Maggiano's
|
|
Brinker
|
|
Q2 25
|
|
Q2 24
|
|
Q2 25
|
|
Q2 24
|
|
Q2 25
|
|
Q2 24
|
|
Operating income,
GAAP
|
$ 175.1
|
|
$
70.1
|
|
$
28.2
|
|
$
28.2
|
|
$ 156.0
|
|
$
62.4
|
|
Operating income as a %
of Total revenues
|
14.5 %
|
|
7.6 %
|
|
18.9 %
|
|
19.2 %
|
|
11.5 %
|
|
5.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income,
GAAP
|
$ 175.1
|
|
$
70.1
|
|
$
28.2
|
|
$
28.2
|
|
$ 156.0
|
|
$
62.4
|
|
Less: Franchise
revenues
|
(11.9)
|
|
(10.3)
|
|
(0.2)
|
|
(0.1)
|
|
(12.1)
|
|
(10.4)
|
|
Plus:
Depreciation and amortization
|
41.8
|
|
35.5
|
|
3.4
|
|
3.2
|
|
47.7
|
|
41.3
|
|
General and administrative
|
12.2
|
|
10.2
|
|
2.4
|
|
2.1
|
|
53.1
|
|
43.2
|
|
Other (gains) and charges
|
6.2
|
|
0.9
|
|
0.0
|
|
0.2
|
|
12.1
|
|
3.3
|
|
Restaurant operating
margin, non-GAAP
|
$ 223.4
|
|
$ 106.4
|
|
$
33.8
|
|
$
33.6
|
|
$ 256.8
|
|
$ 139.8
|
|
Restaurant operating
margin as a % of Company sales,
non-GAAP
|
18.7 %
|
|
11.6 %
|
|
22.7 %
|
|
22.9 %
|
|
19.1 %
|
|
13.1 %
|
Restaurant operating margin is not a measurement determined in
accordance with GAAP and should not be considered in isolation, or
as an alternative to operating income as an indicator of financial
performance. Restaurant operating margin is widely regarded in the
restaurant industry as a useful metric by which to evaluate
restaurant-level operating efficiency and performance of ongoing
restaurant-level operations. This non-GAAP measure is not
indicative of overall Company performance and profitability because
this measure does not directly accrue benefit to the shareholders
due to the nature of costs excluded.
We define Restaurant operating margin as Company sales less Food
and beverage costs, Restaurant labor and Restaurant expenses. We
believe this metric provides a more useful comparison between
periods and enables investors to focus on the performance of
restaurant-level operations by excluding revenues not related to
food and beverage sales at Company-owned restaurants, corporate
General and administrative expenses, Depreciation and amortization,
and Other (gains) and charges. Restaurant operating margin as
presented may not be comparable to other similarly titled measures
of other companies in our industry.
Reconciliation of Adjusted EBITDA (in millions)
Adjusted EBITDA is not a measurement determined in accordance
with GAAP and should not be considered in isolation, or as an
alternative to net income as an indicator of financial performance.
Brinker believes presenting Adjusted EBITDA provides a useful
measure of our operating performance, excluding the impacts of
financing costs, capital expenditures and special items. We define
Adjusted EBITDA as Net income before Provision for income taxes,
Other income, net, Interest expenses, Depreciation and amortization
and Other (gains) and charges.
|
Quarter
|
|
Year-to-Date
|
|
Q2 25
|
|
Q2 24
|
|
Q2 25
|
|
Q2 24
|
|
Net income -
GAAP
|
$
118.5
|
|
$
42.1
|
|
$
157.0
|
|
$
49.3
|
|
Provision for income
taxes
|
23.2
|
|
3.7
|
|
27.0
|
|
3.7
|
|
Other income,
net
|
(0.4)
|
|
(0.1)
|
|
(0.6)
|
|
(0.1)
|
|
Interest
expenses
|
14.7
|
|
16.7
|
|
29.0
|
|
33.7
|
|
Depreciation and
amortization
|
47.7
|
|
41.3
|
|
94.0
|
|
83.2
|
|
Other (gains) and
charges
|
12.1
|
|
3.3
|
|
21.0
|
|
9.6
|
|
Adjusted EBITDA,
non-GAAP
|
$
215.8
|
|
$
107.0
|
|
$
327.4
|
|
$
179.4
|
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SOURCE Brinker International Payroll Company, L.P.
