In This Article:
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Total Revenue: $1.358 billion for the second quarter.
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Same-Store Sales: Up 27.4% consolidated; Chili's up 31.4%, Maggiano's up 1.8%.
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Adjusted Diluted EPS: $2.80, up from $0.99 last year.
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Restaurant Operating Margin: 19.1%, a 600 basis point improvement year-over-year.
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Chili's Traffic: Positive 19.9%.
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Chili's Price Increase: 4.9%.
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Maggiano's Traffic: Negative 4.9%.
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Adjusted EBITDA: Approximately $216 million, a 102% increase from prior year.
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Capital Expenditures: Approximately $49 million for the quarter.
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Debt Repayment: Approximately $164 million repaid during the quarter.
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Lease Adjusted Leverage Ratio: 2.3 times.
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Fiscal 2025 Revenue Guidance: $5.15 billion to $5.25 billion.
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Fiscal 2025 Adjusted Diluted EPS Guidance: $7.50 to $8.
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Fiscal 2025 Capital Expenditures Guidance: $240 million to $260 million.
Release Date: January 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Brinker International Inc (NYSE:EAT) reported a significant increase in same-restaurant sales, with Chili's achieving a 31% rise compared to the previous year.
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The company has successfully implemented operational improvements, including menu simplification and ingredient upgrades, leading to enhanced guest satisfaction scores.
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Brinker International Inc (NYSE:EAT) has seen a positive impact from its marketing strategies, particularly through social media campaigns like the Triple Dipper, which have driven increased traffic and engagement.
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The company reported a substantial improvement in restaurant operating margin, achieving a 600 basis point increase year-over-year.
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Brinker International Inc (NYSE:EAT) has made strategic investments in technology, such as the installation of new kitchen display systems and TurboChef ovens, to improve operational efficiency and food quality.
Negative Points
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Despite the positive sales growth, Maggiano's reported a decline in traffic by 4.9%, indicating challenges in driving customer visits.
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The company faces ongoing competitive pressure, with rivals attempting to undercut its value propositions, which could impact future sales momentum.
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Brinker International Inc (NYSE:EAT) has experienced challenges in maintaining labor levels to match the increased sales volume, which initially affected guest experience scores.
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The company is still in the early stages of its turnaround strategy for Maggiano's, which may take several quarters to show significant traffic improvements.
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There is uncertainty regarding the sustainability of the current sales momentum, particularly the impact of social media-driven traffic, which may be difficult to replicate consistently.