Brinker International, Inc. has recently released its 10-K report, detailing its operations and financial performance. The company is primarily engaged in owning, operating, developing, and franchising casual dining restaurants in the United States and internationally. Its main brands include Chili's Grill & Bar, Maggiano's Little Italy, and virtual brand, It's Just Wings. The company's 10-K report provides a comprehensive overview of its financial condition and results of operations, including an analysis of the Consolidated Statements of Comprehensive Income and a discussion of the significant factors that influenced its performance.
In the fiscal year ended June 25, 2025, Brinker International reported total revenues of $5,384.2 million, representing a 21.9% increase from the previous fiscal year. The company's operating income also saw a significant rise, reaching $512.0 million, up from $229.6 million in the prior year. The increase in revenues was primarily driven by higher comparable restaurant sales, which grew by 22.7% for company-owned restaurants. The growth was attributed to higher traffic, favorable menu item mix, and menu price increases.
The company's operating costs and expenses also saw notable changes. Food and beverage costs remained flat, while restaurant labor costs were favorable due to sales leverage and lower other labor expenses. Additionally, restaurant expenses were favorable, primarily due to sales leverage. However, depreciation and amortization, general and administrative expenses, and other gains and charges all saw increases compared to the previous fiscal year.
The effective income tax rate for Brinker International increased to 16.7% in fiscal 2025, up from 5.8% in the prior year. The change was primarily due to higher income before income taxes and the resulting deleverage of the FICA tip tax credit. The company also highlighted the impact of the One Big Beautiful Bill Act (“OBBBA”), which includes provisions that may impact the timing and magnitude of certain tax deductions.
The report also provides a detailed breakdown of the performance of the company's segments. For instance, Chili's segment saw a 24.6% increase in total revenues, driven by favorable comparable restaurant sales. Meanwhile, Maggiano's segment reported a 1.1% increase in total revenues, primarily due to favorable comparable restaurant sales driven by increased menu pricing and favor.
Following these announcements, the company's shares moved 0.05%, and are now trading at a price of $158.16. If you want to know more, read the company's complete 10-K report here.
