Brinker International (EAT 3.99%) reported its Q4 FY2025 earnings on August 13, 2025, achieving Chili's same-store sales (SSS) growth of 24% year-over-year and consolidated same-store sales (SSS) growth of 21.3% year-over-year, with annual revenues (GAAP) exceeding $5 billion for the first time in FY2025 and adjusted EPS up 117.1% year-over-year. Management highlighted expanded operating margins at Chili's, rising from 11.9% in FY2022 to 17.6% in FY2025, major product initiatives, substantial investments in technology and facilities, a strengthened balance sheet, and an early-stage Maggiano's turnaround leveraging Chili's best practices.
Chili's SSS growth sustains Brinker’s margin expansion
Brinker’s three-year comp sales growth for Chili's totals 40%, driving AUVs (average unit volumes) to $4.5 million and restaurant operating margins from 11.9% in FY2022 to 17.6% in FY2025. These results are underpinned by a streamlined menu, increased labor investment, and infrastructure improvements across all restaurants.
"Our three-year fiscal 2025 comp sales growth number is 40%, and that growth has lifted AUVs to $4.5 million. Through simplification and growth, we've also been able to expand Chili's restaurant operating margins significantly, from 11.9% in fiscal 2022 to 17.6% in fiscal 2025. With $4.5 million AUVs, everything generally gets easier for the restaurants. Labor budgets, repairs and maintenance, staffing, cleaning, and keeping food coming out hot and delicious. When you have these fundamentals in place, and labor and facilities are properly funded, it's a lot easier to continue improving the guest and team member experience over the next three years."
-- Kevin Hochman, President and Chief Executive Officer and President of Chili's
Sustained above-industry same-store sales and margin gains demonstrate management’s successful execution of its turnaround plan.
Balance sheet strength creates strategic flexibility for EAT
Brinker paid down over $350 million in debt and extended its revolver to $1 billion through May 2030, with lease-adjusted leverage at 1.7x, while authorizing an additional $400 million in share repurchases under the current program. Increased free cash flow is enabling both investment in the business and shareholder return, after three years of focusing on repairs, maintenance, and core restaurant revitalization.
"Due to our ability to generate significant free cash flow, in addition to investing back in our restaurants, we repaid the remaining amounts outstanding on our revolver of approximately $90 million, totaling over $350 million in debt repaid year to date. This further improved our balance sheet and reduced our lease-adjusted leverage to 1.7 times. In addition, during the quarter, we extended and increased our $900 million revolver that was set to expire in August 2026. Our new $1 billion revolver expires in May 2030 and locks in ample liquidity to continue to support our disciplined capital allocation strategy, which is to invest in the business, pay down debt, and return excess cash to shareholders."
-- Mika Ware, Chief Financial Officer
This financial flexibility de-risks future capital allocation, enables a strategic shift toward unit growth, and provides resilience against macroeconomic or industry shocks that could impair less well-capitalized competitors.
Maggiano’s turnaround leverages Chili’s proven playbook
Maggiano's same-store sales declined 0.4% year-over-year, prompting direct oversight by the CEO and promotion of a Chili’s regional leader to COO of Maggiano’s, with plans to apply Chili’s successful focus on menu and service simplification. The leadership transition reflects a deliberate move to import the operational rigor and best practices that drove Chili’s multi-year resurgence.
"So, if we get true about the experience that the Maggiano's guest wants, and then actually sit down with the Maggiano's leaders in the restaurant to understand how we can better serve them, I'm very confident we can get this thing back on track. So I don't think it's gonna be that different than Maggiano's, and I couldn't be more excited than of the COO that is coming over from Chili's. Who literally helped lead the three-year turnaround at Chili's. And knows exactly what success looks like. So very confident we're gonna get that thing back on track."
-- Kevin Hochman, President and Chief Executive Officer
This underscores management’s commitment to operational discipline across both brands.
Looking Ahead
Management guided for revenues of $5.6 billion to $5.7 billion in FY2026, adjusted EPS of $9.90 to $10.50 in FY2026, and capex of $270 million to $290 million in FY2026, with expectations of continued same-store sales gains each quarter at Chili’s despite tough comparisons. Capital will prioritize new build development, progressive restaurant reimaging, aiming to reach a 10% annual remodel cadence by the beginning of calendar 2027, and ongoing investments in food quality, labor, and technology upgrades. Company reiterated low-single-digit inflation estimates and noted no material impact to overall profitability from one to four net company-owned closures.
