Q3 2025 Brinker International Inc Earnings Call Transcript
Key Points
- Chili's delivered a strong quarter with same restaurant sales up 31.6% and traffic up 21%, significantly outpacing the industry.
- Restaurant operating margin improved to 18.9%, driven by sales leverage and operational simplification.
- The Big QP launch was successful, generating more media impressions than previous campaigns and boosting sales.
- Operational improvements, such as menu simplification and enhanced kitchen systems, have streamlined operations and improved efficiency.
- Brinker International Inc (EAT) reported total revenues of $1,425 million with consolidated comp sales of positive 28.2%.
- Maggiano's reported only a 0.4% increase in comp sales, with traffic down 8.2%, indicating challenges in its turnaround strategy.
- The company faces macroeconomic headwinds, including consumer economic uncertainty and competitive promotional offers.
- There is concern about sustaining same-store sales growth as comparisons become tougher in upcoming quarters.
- Increased advertising spend and capital expenditures could pressure margins if not managed effectively.
- The company is still in the early stages of its turnaround strategy for Maggiano's, which may lead to traffic choppiness in the near term.
Good day and welcome to the Brinker International's Q3 F 25 earnings call. (Operator Instructions)
It is now my pleasure to turn the floor over to your host, Kim Sanders, Vice President of Investor Relations. Ma'am, the floor is yours.
Thank you, Holly, and good morning everyone and thank you for joining us on today's call. Here with me today are Kevin Hochman, President and Chief Executive Officer and President of Chili's; and Michael Ware, Chief Financial Officer.
Results for our third quarter were released earlier this morning and are available on our website at brinker.com. As usual, Kevin and Mika will first make prepared comments related to our strategic initiatives and operating performance. Then we will open the call for your questions.
Before beginning our comments, I would like to remind everyone of our safe harbor regarding forward-looking statements. During our call, management may discuss certain items which are not based entirely on
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