Brinker International, Inc. has recently released its 10-K report, detailing its operations and financial performance. The company owns, develops, operates, and franchises casual dining restaurants, including Chili's Grill & Bar and Maggiano's Little Italy restaurant brands. In fiscal year 2025, the company generated $5.3 billion in company sales and $48.9 million in franchise revenues, totaling $5.4 billion in revenues. The operating costs and expenses amounted to $4.9 billion, resulting in an operating income of $512 million, a significant increase from the previous year's $229.6 million.
The report discusses the operating environment, highlighting the impact of geopolitical and macroeconomic events on higher inflation in wages and food and beverage costs. The company's results of operations show a favorable trend, with a 24.6% increase in total revenues compared to the previous year. The company achieved this growth through higher traffic, favorable menu item mix, and menu price increases.
The segment results reveal that Chili's segment experienced a 24.7% increase in company sales, reaching $4.8 billion, and a 11.1% increase in franchise revenues, totaling $48.1 million. The operating costs and expenses for the Chili's segment were favorable, with food and beverage costs remaining flat and restaurant labor and expenses showing favorable percentages. Meanwhile, the Maggiano's segment saw a 1.1% increase in company sales, reaching $500.5 million, and a 14.3% increase in franchise revenues, totaling $0.8 million.
The effective income tax rate for fiscal year 2025 was 16.7%, a significant increase from the previous year's 5.8%, primarily due to higher income before income taxes and the resulting deleverage of the FICA tip tax credit. The report also highlights the impact of the One Big Beautiful Bill Act on the company's tax deductions and states that the company is evaluating the potential impact of the legislation on its financial position, results of operations, and cash flows.
The market has reacted to these announcements by moving the company's shares 0.05% to a price of $158.16. For more information, read the company's full 10-K submission here.
