BRINKER INTERNATIONAL REPORTS FIRST QUARTER OF FISCAL 2025 RESULTS AND UPDATES FISCAL 2025 GUIDANCE
Brinker International (NYSE: EAT) reported strong first quarter fiscal 2025 results, with company sales reaching $1,127.3 million, up from $1,002.0 million in Q1 2024. Comparable restaurant sales increased 13.0%, with Chili's up 14.1% and Maggiano's up 4.2%. Operating income margin improved to 5.0%, while restaurant operating margin increased to 13.5%. Net income per diluted share was $0.84. The company updated its fiscal 2025 guidance, projecting total revenues between $4.70-$4.75 billion and adjusted earnings per share of $5.20-$5.50.
Brinker International (NYSE: EAT) ha riportato risultati solidi per il primo trimestre dell'anno fiscale 2025, con vendite aziendali che hanno raggiunto 1.127,3 milioni di dollari, rispetto a 1.002,0 milioni di dollari nel Q1 2024. Le vendite dei ristoranti comparabili sono aumentate del 13,0%, con Chili's in crescita del 14,1% e Maggiano's in aumento del 4,2%. Il margine di reddito operativo è migliorato al 5,0%, mentre il margine operativo dei ristoranti è aumentato al 13,5%. L'utile netto per azione diluita è stato di 0,84 dollari. L'azienda ha aggiornato le sue previsioni per l'anno fiscale 2025, prevedendo un fatturato totale tra 4,70-4,75 miliardi di dollari e utili per azione rettificati di 5,20-5,50 dollari.
Brinker International (NYSE: EAT) reportó resultados sólidos para el primer trimestre del año fiscal 2025, con ventas de la empresa alcanzando 1,127.3 millones de dólares, en comparación con 1,002.0 millones de dólares en el Q1 2024. Las ventas en restaurantes comparables aumentaron un 13.0%, con Chili's subiendo un 14.1% y Maggiano's subiendo un 4.2%. El margen de ingresos operativos mejoró al 5.0%, mientras que el margen operativo de los restaurantes aumentó al 13.5%. El ingreso neto por acción diluida fue de 0.84 dólares. La compañía actualizó sus proyecciones para el año fiscal 2025, proyectando ingresos totales entre 4.70-4.75 mil millones de dólares y ganancias por acción ajustadas de 5.20-5.50 dólares.
브링커 인터내셔널 (NYSE: EAT)는 2025 회계년도 1분기 강력한 실적을 발표했으며, 회사 매출은 11억 2,730만 달러에 달했으며, 이는 2024년 1분기 10억 20만 달러에서 증가한 수치입니다. 비교 가능한 레스토랑 매출은 13.0% 증가했으며, Chili's는 14.1% 증가하고 Maggiano's는 4.2% 증가했습니다. 운영 소득 마진은 5.0%로 개선되었고, 레스토랑 운영 마진은 13.5%로 증가했습니다. 희석주당 순이익은 0.84달러였습니다. 회사는 2025 회계년도 가이던스를 업데이트하고, 총 수익을 47억 0천만-47억 5천만 달러로 예상하며, 조정된 주당 순이익을 5.20-5.50달러로 예상했습니다.
Brinker International (NYSE: EAT) a annoncé des résultats solides pour le premier trimestre de l'exercice fiscal 2025, avec des ventes d'entreprise atteignant 1,127.3 millions de dollars, en hausse par rapport à 1,002.0 millions de dollars au T1 2024. Les ventes des restaurants comparables ont augmenté de 13,0 %, avec Chili's en hausse de 14,1 % et Maggiano's en augmentation de 4,2 %. La marge de résultat opérationnel a progressé à 5,0 %, tandis que la marge opérationnelle des restaurants a augmenté à 13,5 %. Le résultat net par action diluée était de 0,84 dollar. L'entreprise a mis à jour ses prévisions pour l'exercice 2025, s'attendant à des revenus totaux entre 4,70-4,75 milliards de dollars et un bénéfice par action ajusté de 5,20-5,50 dollars.
Brinker International (NYSE: EAT) hat starke Ergebnisse für das erste Quartal des Geschäftsjahres 2025 gemeldet, mit einem Unternehmensumsatz von 1.127,3 Millionen Dollar, ein Anstieg von 1.002,0 Millionen Dollar im Q1 2024. Die vergleichbaren Restaurantverkäufe stiegen um 13,0%, wobei Chili's um 14,1% und Maggiano's um 4,2% zunahmen. Die operative Einkommensmarge verbesserte sich auf 5,0%, während die operative Marge der Restaurants auf 13,5% anstieg. Der Nettogewinn pro verwässerter Aktie betrug 0,84 Dollar. Das Unternehmen hat seine Prognose für das Geschäftsjahr 2025 aktualisiert und erwartet Gesamtumsätze zwischen 4,70-4,75 Milliarden Dollar sowie bereinigte Ergebnisse pro Aktie von 5,20-5,50 Dollar.
- Company sales increased 12.5% year-over-year to $1,127.3 million
- Comparable restaurant sales grew 13.0%, with Chili's up 14.1%
- Operating income margin improved to 5.0% from 2.4%
- Net income increased to $38.5 million from $7.2 million
- Restaurant operating margin improved to 13.5% from 10.4%
- Maggiano's showed slower growth with only 4.2% comparable sales increase
- Higher labor and maintenance expenses impacted margins
- Increased general and administrative expenses due to higher incentive compensation
Insights
Strong earnings report with impressive growth metrics.
Operating margins expanded significantly, with restaurant operating margin improving to
The low effective tax rate of
Brinker's success demonstrates effective positioning in the current consumer environment. The "3 for Me" value proposition and strategic menu items like the "Big Smasher" burger are driving traffic growth against industry trends. Marketing effectiveness is particularly notable at Chili's, where social media campaigns are successfully attracting new customers and increasing visit frequency.
Investment in staffing and maintenance, while increasing costs, shows strategic focus on guest experience - critical for sustaining momentum. Maggiano's slower growth at
First Quarter Fiscal 2025 Financial Highlights
"Great food, with great service at industry leading value is driving strong Chili's sales and traffic," said President and CEO, Kevin Hochman, "Our continued success proves the importance of listening to our guests & team members and delivering on the critical things important to them."
Company sales were
Financial results for the first quarter of fiscal 2025 and fiscal 2024 were as follows:
First Quarter | |||||
2025 | 2024 | Variance | |||
Company sales | $ 125.3 | ||||
Total revenues | $ 126.5 | ||||
Operating income | $ 56.4 | $ 24.2 | $ 32.2 | ||
Operating income as a % of Total revenues | 5.0 % | 2.4 % | 2.6 % | ||
Restaurant operating margin, non-GAAP(1) | $ 151.7 | $ 104.3 | $ 47.4 | ||
Restaurant operating margin as a % of Company sales, non-GAAP(1) | 13.5 % | 10.4 % | 3.1 % | ||
Net income | $ 38.5 | $ 7.2 | $ 31.3 | ||
Adjusted EBITDA, non-GAAP(1) | $ 111.6 | $ 72.4 | $ 39.2 | ||
Net income per diluted share | $ 0.84 | $ 0.16 | $ 0.68 | ||
Net income per diluted share, excluding special items, non-GAAP(1) | $ 0.95 | $ 0.28 | $ 0.67 | ||
Comparable Restaurant Sales(2)
Q1:25 vs 24 | |
Brinker | 13.0 % |
Chili's | 14.1 % |
Maggiano's | 4.2 % |
(1) | See Non-GAAP Information and Reconciliations section below for more details. |
(2) | Comparable Restaurant Sales include restaurants that have been in operation for more than 18 full months. Restaurants temporarily closed for 14 days or more are excluded from comparable restaurant sales. Percentage amounts are calculated based on the comparable periods year-over-year. |
Updates to Full Year Fiscal 2025 Guidance
We are providing the following updated guidance for fiscal 2025 based on our current outlook:
- Total revenues are expected to be in the range of
$4.70 billion $4.75 billion - Net income per diluted share, excluding special items, non-GAAP, is expected to be in the range of
$5.20 $5.50
We are reiterating the following full year fiscal 2025 guidance:
- Weighted average shares are expected to be in the range of 45 million - 47 million; and
- Capital expenditures are expected to be in the range of
$195 million $215 million
The potential for changes in macroeconomic conditions, among other risks, could cause actual results to differ materially from those projected. We are unable to reliably forecast special items without unreasonable effort. As such, we do not present a reconciliation of forecasted non-GAAP measures to the corresponding GAAP measures.
First Quarter of Fiscal 2025 Operating Performance
Segment Performance
The table below presents selected financial information (in millions, except as noted) related to our segments' operational performance for the thirteen week periods ended September 25, 2024 and September 27, 2023:
Chili's | Maggiano's | ||||||||||
First Quarter | Variance | First Quarter | Variance | ||||||||
2025 | 2024 | 2025 | 2024 | ||||||||
Company sales | $ 1,018.9 | $ 897.8 | $ 121.1 | $ 108.4 | $ 104.2 | $ 4.2 | |||||
Franchise revenues | 11.5 | 10.3 | 1.2 | 0.2 | 0.2 | — | |||||
Total revenues | $ 1,030.4 | $ 908.1 | $ 122.3 | $ 108.6 | $ 104.4 | $ 4.2 | |||||
Company restaurant expenses(1) | $ 881.3 | $ 802.6 | $ 78.7 | $ 94.0 | $ 95.0 | $ (1.0) | |||||
Company restaurant expenses as a % of Company sales | 86.5 % | 89.4 % | (2.9) % | 86.7 % | 91.2 % | (4.5) % | |||||
Operating income | $ 93.9 | $ 55.6 | $ 38.3 | $ 7.8 | $ 3.6 | $ 4.2 | |||||
Operating income as a % of Total revenues | 9.1 % | 6.1 % | 3.0 % | 7.2 % | 3.4 % | 3.8 % | |||||
Restaurant operating margin, non-GAAP(2) | $ 137.6 | $ 95.2 | $ 42.4 | $ 14.4 | $ 9.2 | $ 5.2 | |||||
Restaurant operating margin as a % of Company sales, non-GAAP(2) | 13.5 % | 10.6 % | 2.9 % | 13.3 % | 8.8 % | 4.5 % | |||||
(1) | Company restaurant expenses includes Food and beverage costs, Restaurant labor and Restaurant expenses, and excludes Depreciation and amortization, General and administrative and Other (gains) and charges. |
(2) | See Non-GAAP Information and Reconciliations section below for more details. |
Chili's
- Chili's Company sales increased primarily due to favorable comparable restaurant sales driven by menu pricing, higher traffic, and favorable menu item mix.
- Chili's Company restaurant expenses, as a percentage of Company sales, decreased primarily due to sales leverage, partially offset by higher repairs and maintenance and hourly labor.
- Chili's franchisees generated sales of
$225.7 million $202.8 million
Maggiano's
- Maggiano's Company sales increased primarily due to favorable comparable restaurant sales driven by menu pricing and favorable menu item mix, partially offset by lower traffic.
- Maggiano's Company restaurant expenses, as a percentage of Company sales, decreased, primarily due to sales leverage and lower hourly labor, partially offset by unfavorable commodity costs and other restaurant expenses.
Corporate
- On a GAAP basis, the effective income tax rate was
9.0% in the first quarter of fiscal 2025. The effective income tax rate is lower than the statutory rate of21.0% due primarily to leverage of the FICA tip credit. Excluding the impact of special items, the effective income tax rate was15.0% in the first quarter of fiscal 2025.
Webcast Information
Investors and interested parties are invited to listen to today's conference call, as management will provide further details of the quarter and business updates. The call will be broadcast live on Brinker's website today, October 30, 2024 at 8 a.m. CDT:
For those who are unable to listen to the live broadcast, a replay of the call will be available shortly thereafter and will remain on Brinker's website until at least the end of the day October 30, 2025.
Additional financial information, including statements of income which detail operations excluding special items, and comparable restaurant sales trends by brand, is also available on Brinker's website under the Financial Information and Events & Presentations sections of the Investor tab.
Forward Calendar
- SEC Form 10-Q for the first quarter of fiscal 2025 filing on or before November 4, 2024
- Earnings release call for the second quarter of fiscal 2025 on January 29, 2025
Non-GAAP Measures
Brinker management uses certain non-GAAP measures in analyzing operating performance and believes that the presentation of these measures in this release provides investors with information that is beneficial to gaining an understanding of the Company's financial results. Non-GAAP disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Reconciliations of these non-GAAP measures are included in the tables below.
About Brinker
Brinker International, Inc. is one of the world's leading casual dining restaurant companies and home of Chili's® Grill & Bar and Maggiano's Little Italy.® Founded in 1975 in
Forward-Looking Statements
The statements and tables contained in this release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements are made only based on our current plans and expectations as of the date such statements are made, and we undertake no obligation to update forward-looking statements to reflect events or circumstances arising after the date such statements are made. Forward-looking statements are neither predictions nor guarantees of future events or performance and are subject to risks and uncertainties which could cause actual results to differ materially from our historical results or from those projected in forward-looking statements. Such risks and uncertainties include, among other things, the impact of general economic conditions, including inflation, on economic activity and on our operations; disruptions on our business including consumer demand, costs, product mix, our strategic initiatives, our partners' supply chains, operations, technology and assets, and our financial performance; the impact of competition; changes in consumer preferences; consumer perception of food safety; reduced consumer discretionary spending; unfavorable publicity; governmental regulations; the Company's ability to meet its business strategy plan; loss of key management personnel; failure to hire and retain high-quality restaurant management and team members; increasing regulation surrounding wage inflation and competitive labor markets; the impact of social media or other unfavorable publicity; reliance on technology and third party delivery providers; failure to protect the security of data of our guests and team members; product availability and supply chain disruptions; regional business and economic conditions; volatility in consumer, commodity, transportation, labor, currency and capital markets; litigation; franchisee success; technology failures; failure to protect our intellectual property; outsourcing; impairment of goodwill or assets; failure to maintain effective internal control over financial reporting; downgrades in credit ratings; changes in estimates regarding our assets; actions of activist shareholders; failure to comply with new environmental, social and governance ("ESG") requirements; failure to achieve any goals, targets or objectives with respect to ESG matters; adverse weather conditions; terrorist acts; health epidemics or pandemics; tax reform; inadequate insurance coverage and limitations imposed by our credit agreements as well as the risks and uncertainties described in "Risk Factors" in our Annual Report on Form 10-K and future filings with the Securities and Exchange Commission.
BRINKER INTERNATIONAL, INC. | |||
Consolidated Statements of Comprehensive Income (Unaudited) | |||
(In millions, except per share amounts) | |||
Thirteen Week Periods Ended | |||
September 25, | September 27, | ||
Revenues | |||
Company sales | $ 1,127.3 | $ 1,002.0 | |
Franchise revenues | 11.7 | 10.5 | |
Total revenues | 1,139.0 | 1,012.5 | |
Operating costs and expenses | |||
Food and beverage costs | 284.3 | 258.8 | |
Restaurant labor | 377.4 | 348.1 | |
Restaurant expenses | 313.9 | 290.8 | |
Depreciation and amortization | 46.3 | 41.9 | |
General and administrative | 51.8 | 42.4 | |
Other (gains) and charges(1) | 8.9 | 6.3 | |
Total operating costs and expenses | 1,082.6 | 988.3 | |
Operating income | 56.4 | 24.2 | |
Interest expenses | 14.3 | 17.0 | |
Other income, net | (0.2) | — | |
Income before income taxes | 42.3 | 7.2 | |
Provision for income taxes | 3.8 | — | |
Net income | $ 38.5 | $ 7.2 | |
Basic net income per share | $ 0.86 | $ 0.16 | |
Diluted net income per share | $ 0.84 | $ 0.16 | |
Basic weighted average shares outstanding | 44.9 | 44.6 | |
Diluted weighted average shares outstanding | 45.9 | 45.4 | |
Other comprehensive income (loss) | |||
Foreign currency translation adjustment | $ 0.1 | $ (0.2) | |
Comprehensive income | $ 38.6 | $ 7.0 | |
(1) | Other (gains) and charges included in the Consolidated Statements of Comprehensive Income (Unaudited) included (in millions): |
Thirteen Week Periods Ended | |||
September 25, | September 27, | ||
Enterprise system implementation costs | $ 4.4 | $ 2.0 | |
Litigation & claims, net | 2.5 | 2.2 | |
Restaurant closure asset write-offs and charges | 0.7 | 0.6 | |
Lease contingencies | — | 0.5 | |
Other | 1.3 | 1.0 | |
Total other (gains) and charges | $ 8.9 | $ 6.3 | |
BRINKER INTERNATIONAL, INC. | |||
Condensed Consolidated Balance Sheets (Unaudited) | |||
(In millions) | |||
September 25, | June 26, 2024 | ||
ASSETS | |||
Total current assets | $ 183.6 | $ 234.1 | |
Net property and equipment | 882.1 | 879.7 | |
Operating lease assets | 1,084.8 | 1,095.2 | |
Deferred income taxes, net | 112.1 | 113.9 | |
Other assets | 270.5 | 270.2 | |
Total assets | $ 2,533.1 | $ 2,593.1 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Total current liabilities | $ 577.5 | $ 622.3 | |
Long-term debt and finance leases, less current installments | 806.9 | 786.3 | |
Long-term operating lease liabilities, less current portion | 1,073.0 | 1,084.5 | |
Other liabilities | 63.0 | 60.6 | |
Total shareholders' equity | 12.7 | 39.4 | |
Total liabilities and shareholders' equity | $ 2,533.1 | $ 2,593.1 | |
BRINKER INTERNATIONAL, INC. | |||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
(In millions) | |||
Thirteen Week Periods Ended | |||
September 25, | September 27, | ||
Cash flows from operating activities | |||
Net income | $ 38.5 | $ 7.2 | |
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||
Depreciation and amortization | 46.3 | 41.9 | |
Stock-based compensation | 7.1 | 5.7 | |
Deferred income taxes, net | 1.8 | (2.0) | |
Non-cash other (gains) and charges | 4.0 | 4.3 | |
Net loss on disposal of assets | 2.9 | 1.7 | |
Other | 0.7 | 0.6 | |
Changes in assets and liabilities | (38.5) | (0.3) | |
Net cash provided by operating activities | 62.8 | 59.1 | |
Cash flows from investing activities | |||
Payments for property and equipment | (56.5) | (46.9) | |
Proceeds from note receivable | — | 1.3 | |
Net cash used in investing activities | (56.5) | (45.6) | |
Cash flows from financing activities | |||
Borrowings on revolving credit facility | 90.0 | 129.0 | |
Payments on revolving credit facility | (65.0) | (115.0) | |
Purchases of treasury stock | (74.8) | (24.7) | |
Payments on long-term debt | (8.2) | (2.8) | |
Payments for debt issuance costs | (0.1) | (0.7) | |
Proceeds from issuance of treasury stock | 3.4 | — | |
Net cash used in financing activities | (54.7) | (14.2) | |
Net change in cash and cash equivalents | (48.4) | (0.7) | |
Cash and cash equivalents at beginning of period | 64.6 | 15.1 | |
Cash and cash equivalents at end of period | $ 16.2 | $ 14.4 | |
BRINKER INTERNATIONAL, INC. | |||||||
Restaurant Summary | |||||||
Fiscal 2025 New Openings | |||||||
Restaurants | Restaurants | First Quarter | Full Year | ||||
Company-owned restaurants | |||||||
Chili's domestic | 1,116 | 1,126 | 1 | 7 | |||
Chili's international | 4 | 5 | — | — | |||
Maggiano's domestic | 50 | 50 | — | — | |||
Total Company-owned | 1,170 | 1,181 | 1 | 7 | |||
Franchise restaurants | |||||||
Chili's domestic | 99 | 100 | 2 | 2-4 | |||
Chili's international | 354 | 368 | 12 | 19-24 | |||
Maggiano's domestic | 2 | 2 | — | 1 | |||
Total franchise | 455 | 470 | 14 | 22-29 | |||
Total Company-owned and franchise | |||||||
Chili's domestic | 1,215 | 1,226 | 3 | 9-11 | |||
Chili's international | 358 | 373 | 12 | 19-24 | |||
Maggiano's domestic | 52 | 52 | — | 1 | |||
Total | 1,625 | 1,651 | 15 | 29-36 | |||
NON-GAAP INFORMATION AND RECONCILIATIONS | |||||||||||||||
Comparable Restaurant Sales | |||||||||||||||
Comparable Restaurant | Price Impact | Mix-Shift(2) | Traffic | ||||||||||||
Q1:25 vs 24 | Q1:24 vs 23 | Q1:25 vs 24 | Q1:24 vs 23 | Q1:25 vs 24 | Q1:24 vs 23 | Q1:25 vs 24 | Q1:24 vs 23 | ||||||||
Company-owned | 13.0 % | 5.8 % | 7.2 % | 8.9 % | 0.9 % | 2.7 % | 4.9 % | (5.8) % | |||||||
Chili's | 14.1 % | 6.1 % | 6.8 % | 8.8 % | 0.8 % | 3.1 % | 6.5 % | (5.8) % | |||||||
Maggiano's | 4.2 % | 2.6 % | 10.8 % | 9.5 % | 2.1 % | (1.2) % | (8.7) % | (5.7) % | |||||||
Franchise(3) | 6.8 % | 4.0 % | |||||||||||||
12.3 % | 5.0 % | ||||||||||||||
International | 3.7 % | 3.4 % | |||||||||||||
Chili's domestic(4) | 13.9 % | 6.0 % | |||||||||||||
System-wide(5) | 12.0 % | 5.5 % | |||||||||||||
(1) | Comparable Restaurant Sales include all restaurants that have been in operation for more than 18 full months. Restaurants temporarily closed 14 days or more are excluded from Comparable Restaurant Sales. Percentage amounts are calculated based on the comparable periods year-over-year. |
(2) | Mix-Shift is calculated as the year-over-year percentage change in Company sales resulting from the change in menu items ordered by guests. |
(3) | Franchise sales generated by franchisees are not included in Total revenues in the Consolidated Statements of Comprehensive Income (Unaudited); however, we generate royalty revenues and advertising fees based on franchisee revenues, where applicable. We believe presenting Franchise Comparable Restaurant Sales provides investors relevant information regarding total brand performance. |
(4) | Chili's domestic Comparable Restaurant Sales percentages are derived from sales generated by Company-owned and franchise-operated Chili's restaurants in |
(5) | System-wide Comparable Restaurant Sales are derived from sales generated by Chili's and Maggiano's Company-owned and franchise-operated restaurants. |
Reconciliation of Net Income Excluding Special Items (in millions, except per share amounts)
Brinker believes excluding special items from its financial results provides investors with a clearer perspective of the Company's ongoing operating performance and a more relevant comparison to prior period results.
Q1 25 | EPS Q1 25 | Q1 24 | EPS Q1 24 | ||||
Net income, GAAP | $ 38.5 | $ 0.84 | $ 7.2 | $ 0.16 | |||
Special items - Other (gains) and charges(1) | 8.9 | 0.19 | 6.3 | 0.14 | |||
Income tax effect related to special items(2) | (2.2) | (0.04) | (1.6) | (0.04) | |||
Special items, net of taxes | 6.7 | 0.15 | 4.7 | 0.10 | |||
Adjustment for special tax items(3) | (1.7) | (0.04) | 0.7 | 0.02 | |||
Net income, excluding special items, non-GAAP | $ 43.5 | $ 0.95 | $ 12.6 | $ 0.28 |
(1) | See footnote (1) to the Consolidated Statements of Comprehensive Income (Unaudited) for additional details on the composition of Other (gains) and charges. |
(2) | Income tax effect related to special items is based on the statutory tax rate in effect at the end of each period. |
(3) | Adjustment for special tax items primarily represents excess tax benefits associated with stock-based compensation. |
Reconciliation of Restaurant Operating Margin (in millions, except percentages)
Chili's | Maggiano's | Brinker | |||||||||
Q1 25 | Q1 24 | Q1 25 | Q1 24 | Q1 25 | Q1 24 | ||||||
Operating income, GAAP | $ 93.9 | $ 55.6 | $ 7.8 | $ 3.6 | $ 56.4 | $ 24.2 | |||||
Operating income as a % of Total revenues | 9.1 % | 6.1 % | 7.2 % | 3.4 % | 5.0 % | 2.4 % | |||||
Operating income, GAAP | $ 93.9 | $ 55.6 | $ 7.8 | $ 3.6 | $ 56.4 | $ 24.2 | |||||
Less: Franchise revenues | (11.5) | (10.3) | (0.2) | (0.2) | (11.7) | (10.5) | |||||
Plus: Depreciation and amortization | 40.5 | 36.2 | 3.4 | 3.2 | 46.3 | 41.9 | |||||
General and administrative | 11.8 | 10.0 | 3.0 | 2.4 | 51.8 | 42.4 | |||||
Other (gains) and charges | 2.9 | 3.7 | 0.4 | 0.2 | 8.9 | 6.3 | |||||
Restaurant operating margin, non-GAAP | $ 95.2 | $ 14.4 | $ 9.2 | ||||||||
Restaurant operating margin as a % of Company sales, non-GAAP | 13.5 % | 10.6 % | 13.3 % | 8.8 % | 13.5 % | 10.4 % | |||||
Restaurant operating margin is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative to operating income as an indicator of financial performance. Restaurant operating margin is widely regarded in the restaurant industry as a useful metric by which to evaluate restaurant-level operating efficiency and performance of ongoing restaurant-level operations. This non-GAAP measure is not indicative of overall Company performance and profitability because this measure does not directly accrue benefit to the shareholders due to the nature of costs excluded.
We define Restaurant operating margin as Company sales less Food and beverage costs, Restaurant labor and Restaurant expenses. We believe this metric provides a more useful comparison between periods and enables investors to focus on the performance of restaurant-level operations by excluding revenues not related to food and beverage sales at Company-owned restaurants, corporate General and administrative expenses, Depreciation and amortization, and Other (gains) and charges. Restaurant operating margin as presented may not be comparable to other similarly titled measures of other companies in our industry.
Reconciliation of Adjusted EBITDA (in millions)
Adjusted EBITDA is not a measurement determined in accordance with GAAP and should not be considered in isolation, or as an alternative to net income as an indicator of financial performance. Brinker believes presenting Adjusted EBITDA provides a useful measure of our operating performance, excluding the impacts of financing costs, capital expenditures and special items. We define Adjusted EBITDA as Net income before Provision for income taxes, Other income, net, Interest expenses, Depreciation and amortization and Other (gains) and charges.
Q1 25 | Q1 24 | ||
Net income, GAAP | $ 38.5 | $ 7.2 | |
Provision (benefit) for income taxes | 3.8 | — | |
Other income, net | (0.2) | — | |
Interest expenses | 14.3 | 17.0 | |
Depreciation and amortization | 46.3 | 41.9 | |
Other (gains) and charges | 8.9 | 6.3 | |
Adjusted EBITDA, non-GAAP | $ 111.6 | $ 72.4 |
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SOURCE Brinker International Payroll Company, L.P.
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