Brinker International, Inc. reported significant financial improvements for the thirteen-week period ending September 25, 2024, compared to the same period in the previous fiscal year. Total revenues reached $1,139.0 million, a 12.5% increase from $1,012.5 million in the prior year. This growth was primarily driven by strong sales in the Chili's segment, which generated $1,030.4 million, up from $908.1 million, reflecting a 13.5% increase. The Maggiano's segment also contributed positively, with revenues rising to $108.6 million from $104.4 million.
Operating income surged to $56.4 million, compared to $24.2 million in the previous year, while net income rose to $38.5 million from $7.2 million. This resulted in a basic net income per share of $0.86, significantly higher than $0.16 in the prior year. The increase in profitability was attributed to improved sales performance, effective cost management, and strategic pricing adjustments in response to inflationary pressures.
Total operating costs and expenses increased to $1,082.6 million from $988.3 million, reflecting higher costs associated with food, labor, and restaurant operations. However, the company managed to maintain favorable cost ratios, with food and beverage costs improving by 0.6% and labor costs favorable by 1.3% due to sales leverage.
Brinker International's cash and cash equivalents decreased to $16.2 million from $64.6 million at the end of the previous quarter, while total current assets also declined. The company reported total liabilities of $1,384.4 million, with long-term debt increasing to $806.9 million from $786.3 million. The company remains compliant with its financial covenants and has $875.0 million available under its revolving credit facility.
Strategically, Brinker has focused on enhancing its operational efficiency by simplifying its menu and investing in technology to improve the customer experience. The introduction of value offerings, such as the “3 for Me” deal, aims to attract customers amid economic challenges. The company opened 15 new restaurants during the quarter, compared to just three in the same period last year, bringing the total to 1,625 locations.
Brinker also continued its share repurchase program, buying back 1.1 million shares for $74.8 million, with approximately $117.0 million remaining under the current authorization. The company is actively managing its cash flow and financial position in light of ongoing macroeconomic uncertainties, including inflation and supply chain challenges.
About BRINKER INTERNATIONAL, INC
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.