Brinker International (EAT, Financials) shares surged 13.7% to $175.84 as of 12:50 p.m. GMT-5 on Wednesday following the company's second-quarter fiscal 2025 earnings report.
Strong sales at Chili's, reported by Brinker International, are mostly responsible for better financial performance. Comparable restaurant sales climbed by 27.4%, mostly at Chili's with a 31.4% jump and Maggiano's with a 1.8% rise.
Key financials show corporate revenues jumping from $1.06 billion in the previous year to $1.35 billion. From $62.4 million, operational income jumped to $156 million, with an 11.5% operating income marginup from 5.8%. From 13.1%, the non-GAAP indicator of operating margin for restaurants climbed to 19.1%. Net income more than quadrupled to $118.5 million, and diluted earnings per share climbed from $0.94 to $2.61. Rising from $107 million, adjusted EBITDA, a non-GAAP metric, came to $215.8 million.
Supported by better operations and more promotion, Brinker linked Chili's revenue boost to a 19.9% increase in visitors. Increased incentive pay and technology projects drove general and administrative spending up.
Revised fiscal 2025 projections are for overall income between $5.15 billion and $5.25 billion. The range of projected adjusted net income per diluted share is $7.50 to $8.00. Anticipated to be between $240 million and $260 million are capital expenditures The business maintained its weighted average shares estimate of 45 million to 47 million.
Increased visitation and pricing helped Chili's corporate revenues climb to $1.2 billion. From $216.9 million, franchise sales climbed to $232.3 million. From $70.1 million, operating income jumped to $175.1 million. Maggiano's firm sales came at $149.2 million, with mostly price changes driving income increase. Operating income stayed level at $28.2 million.
According to Brinker, the second-quarter numbers of the firm show consistent progress; investments in operational efficiency and brand positioning promote long-term expansion.
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