NEW YORK - Brinker International (NYSE:EAT), the parent company of Chili's and Maggiano's restaurant chains, reported first quarter fiscal 2025 results that surpassed analyst expectations, driven by strong sales growth at Chili's.
The company posted adjusted earnings per share of $0.95, beating the analyst estimate of $0.69 by $0.26. Revenue for the quarter came in at $1.13 billion, topping the consensus estimate of $1.1 billion and marking a 12.5% increase YoY from $1.002 billion.
Shares rose 6.2% in pre-market Wednesday trade.
Comparable restaurant sales increased 13.0% overall, with Chili's seeing a 14.1% rise and Maggiano's up 4.2%. The company attributed Chili's strong performance to menu pricing, higher traffic, and successful advertising campaigns.
"Great food, with great service at industry leading value is driving strong Chili's sales and traffic," said President and CEO Kevin Hochman. "Our continued success proves the importance of listening to our guests & team members and delivering on the critical things important to them."
For fiscal year 2025, Brinker International provided guidance for earnings per share of $5.20 to $5.50, 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 $4.77 billion consensus estimate.
The company's operating income margin increased to 5.0%, while restaurant operating margin (non-GAAP) rose to 13.5% for the quarter. Brinker noted that it continues to prioritize guest experience through enhanced restaurant staffing and maintenance, which resulted in higher labor and repair expenses.
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