Brinker International Reports 26.5% Revenue Growth to $1.36 Billion

Brinker International, Inc. reported significant financial growth in its latest quarterly filing, with total revenues reaching $1.36 billion for the thirteen-week period ending December 25, 2024, a 26.5% increase from $1.07 billion in the same period last year. For the twenty-six weeks ending December 25, 2024, revenues totaled $2.50 billion, up 19.7% from $2.09 billion in the prior year. The company’s net income also saw a substantial rise, reporting $118.5 million for the latest quarter compared to $42.1 million a year earlier, resulting in a basic net income per share of $2.67, up from $0.95.

The financial performance reflects a notable recovery and growth trajectory, driven by a 27.4% increase in comparable restaurant sales for company-owned locations. This growth was attributed to higher guest traffic and effective menu pricing strategies. The company also reported an increase in franchise revenues, which rose to $12.1 million for the quarter, compared to $10.4 million in the previous year, indicating a positive trend in franchise operations.

Operationally, Brinker International has expanded its restaurant footprint, operating a total of 1,624 restaurants as of December 25, 2024, which includes 1,164 company-owned and 460 franchised locations. The company opened 21 new franchise restaurants during the reporting period and plans to continue its international expansion through development agreements. The company’s strategic focus on enhancing customer experience through digital innovations and streamlined operations has contributed to improved engagement metrics, including increased usage of its My Chili’s Rewards loyalty program.

In terms of costs, Brinker reported an increase in operating expenses, with total operating costs rising to $1.20 billion for the latest quarter, up from $1.01 billion a year prior. The increase in food and beverage costs, labor, and general administrative expenses were noted, but the company managed to maintain a favorable cost structure relative to sales. The effective income tax rate for the latest quarter was reported at 16.4%, up from 8.1% in the previous year, reflecting the increased income before taxes.

Looking ahead, Brinker International remains optimistic about its growth prospects, supported by its ongoing investments in technology and operational efficiencies. The company anticipates that its current cash position, along with cash generated from operations and available credit, will be sufficient to meet its capital expenditure and working capital needs for the next twelve months. The management's strategic initiatives are expected to continue driving sales and profitability, positioning the company favorably in the competitive casual dining market.