Brinker International, Inc. (EAT) Bundle
A Brief History of Brinker International, Inc.
Brinker International, Inc. operates and franchises the popular restaurant brands Chili’s Grill & Bar and Maggiano’s Little Italy. As of September 25, 2024, the company owned, operated, or franchised a total of 1,625 restaurants, which includes 1,170 company-owned locations and 455 franchised restaurants across the United States and 28 other countries.
Financial Performance Overview
For the thirteen-week period ending September 25, 2024, Brinker reported total revenues of $1,139.0 million, an increase from $1,012.5 million in the same period of the previous year, reflecting a growth of 12.5%. The breakdown of revenues is as follows:
| Revenue Source | Q1 2024 (in millions) | Q1 2023 (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Company Sales | $1,127.3 | $1,002.0 | $125.3 | 12.5% |
| Franchise Revenues | $11.7 | $10.5 | $1.2 | 11.4% |
| Total Revenues | $1,139.0 | $1,012.5 | $126.5 | 12.5% |
Operating Costs and Expenses
The total operating costs and expenses for the same period amounted to $1,082.6 million, up from $988.3 million in the prior year. The significant components of these costs included:
| Expense Type | Q1 2024 (in millions) | Q1 2023 (in millions) | Change (in millions) | Percentage Change |
|---|---|---|---|---|
| Food and Beverage Costs | $284.3 | $258.8 | $25.5 | 9.9% |
| Restaurant Labor | $377.4 | $348.1 | $29.3 | 8.4% |
| Restaurant Expenses | $313.9 | $290.8 | $23.1 | 7.9% |
| General and Administrative | $51.8 | $42.4 | $9.4 | 22.2% |
Net Income and Earnings Per Share
Brinker International achieved a net income of $38.5 million for the period, compared to $7.2 million for the same period last year. This resulted in a basic net income per share of $0.86, up from $0.16.
Debt and Financial Obligations
As of September 25, 2024, Brinker had net borrowings of $25.0 million on its revolving credit facility, which has a total capacity of $900.0 million and matures on August 18, 2026. The current effective interest rate on this facility was 6.46%.
Share Repurchase Program
In the first quarter of fiscal 2025, Brinker repurchased approximately 1.1 million shares for $74.8 million, leaving approximately $117.0 million remaining under its $300.0 million share repurchase authorization.
A Who Owns Brinker International, Inc. (EAT)
Shareholder Composition
As of September 25, 2024, Brinker International, Inc. has a diverse shareholder base comprising institutional investors, mutual funds, and individual shareholders. The company has approximately 44.4 million shares outstanding.
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 85.5% | 37.9 million |
| Mutual Funds | 10.5% | 4.7 million |
| Individual Shareholders | 4.0% | 1.8 million |
Major Institutional Shareholders
The following table lists the top institutional shareholders of Brinker International, Inc. as of the latest reporting period:
| Institution | Percentage Ownership | Number of Shares |
|---|---|---|
| The Vanguard Group | 15.8% | 7.0 million |
| BlackRock, Inc. | 14.5% | 6.4 million |
| State Street Corporation | 9.3% | 4.1 million |
| Wellington Management Group | 7.2% | 3.2 million |
| Invesco Ltd. | 5.9% | 2.6 million |
Recent Share Repurchase Activity
Brinker International has been active in repurchasing its shares as part of its capital return strategy. During the thirteen weeks ended September 25, 2024, the company repurchased:
- 1.1 million shares for a total of $74.8 million.
- The average price paid per share was approximately $70.67.
- Approximately $117 million of share repurchase authorization remains available under the current program.
Recent Financial Performance
For the thirteen weeks ended September 25, 2024, Brinker International reported the following financials:
| Financial Metric | Amount |
|---|---|
| Total Revenues | $1,139.0 million |
| Net Income | $38.5 million |
| Basic Net Income per Share | $0.86 |
| Diluted Net Income per Share | $0.84 |
Debt and Financial Obligations
Brinker International's total long-term debt as of September 25, 2024, is reported as follows:
| Debt Type | Amount |
|---|---|
| Revolving Credit Facility | $25.0 million |
| 5.000% Notes | $350.0 million |
| 8.250% Notes | $350.0 million |
| Finance Lease Obligations | $101.1 million |
| Total Long-Term Debt | $826.1 million |
Conclusion on Ownership Structure
The ownership structure of Brinker International, Inc. reflects a strong presence of institutional investors, which typically indicates confidence in the company's management and strategic direction. Continued share repurchase activity suggests a commitment to returning value to shareholders.
Brinker International, Inc. (EAT) Mission Statement
Overview of Mission Statement
Brinker International, Inc. aims to "deliver a great dining experience" through its restaurant brands, primarily Chili's and Maggiano's. The company focuses on providing quality food, exceptional service, and a welcoming atmosphere.
Core Values
- Guest-Centric Approach: Prioritizing customer satisfaction and engagement.
- Teamwork: Fostering a collaborative environment among staff.
- Integrity: Maintaining ethical standards in all operations.
- Innovation: Continuously improving menu offerings and service methods.
Financial Performance and Statistics
As of September 25, 2024, Brinker International reported significant financial metrics that reflect its operational success:
| Metric | Value (Q1 2025) |
|---|---|
| Total Revenues | $1,139.0 million |
| Net Income | $38.5 million |
| Basic Net Income per Share | $0.86 |
| Operating Income | $56.4 million |
| Cash and Cash Equivalents | $16.2 million |
| Total Assets | $2,533.1 million |
| Total Liabilities | $2,520.4 million |
| Total Shareholders' Equity | $12.7 million |
Growth and Development Strategy
Brinker International continues to expand its restaurant footprint. The company plans to open new locations while enhancing existing ones to improve customer experiences.
Recent Initiatives
- Franchise Expansion: 14 new franchise restaurants opened during the thirteen-week period ended September 25, 2024.
- Digital Transformation: Implementation of technology to enhance customer engagement and streamline operations.
- Sustainability Efforts: Initiatives aimed at reducing waste and promoting environmentally friendly practices.
Market Position and Competitiveness
Brinker International holds a strong market position within the casual dining sector, competing effectively against other brands through its unique offerings and customer service focus.
Conclusion on Operational Focus
The mission statement of Brinker International underscores its commitment to quality and customer satisfaction, which is reflected in its financial performance and strategic initiatives as of 2024.
How Brinker International, Inc. (EAT) Works
Company Overview
Brinker International, Inc. operates restaurant brands, primarily Chili’s Grill & Bar and Maggiano’s Little Italy. As of September 25, 2024, the company had a total of 1,170 Company-owned restaurants and several franchise locations.
Financial Performance
For the thirteen-week period ending September 25, 2024, Brinker reported:
| Financial Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Total Revenues | $1,139.0 million | $1,012.5 million |
| Net Income | $38.5 million | $7.2 million |
| Basic Net Income per Share | $0.86 | $0.16 |
| Diluted Net Income per Share | $0.84 | $0.16 |
| Operating Income | $56.4 million | $24.2 million |
| Operating Costs and Expenses | $1,082.6 million | $988.3 million |
Segment Performance
The company’s revenue is primarily derived from two segments: Chili’s and Maggiano’s. For the thirteen-week period ended September 25, 2024:
-
Chili’s Segment:
- Company Sales: $1,018.9 million
- Franchise Revenues: $11.5 million
- Total Revenues: $1,030.4 million
-
Maggiano’s Segment:
- Company Sales: $108.4 million
- Franchise Revenues: $0.2 million
- Total Revenues: $108.6 million
Cost Structure
Brinker International's operating costs for Q1 2025 included:
| Cost Type | Amount in Millions | Percentage of Company Sales |
|---|---|---|
| Food and Beverage Costs | $284.3 | 25.4% |
| Restaurant Labor | $377.4 | 33.5% |
| Restaurant Expenses | $313.9 | 27.8% |
| Depreciation and Amortization | $46.3 | 4.1% |
| General and Administrative | $51.8 | 4.6% |
| Other (Gains) and Charges | $8.9 | 0.8% |
Cash Flow Analysis
For the thirteen weeks ended September 25, 2024, Brinker reported:
| Cash Flow Category | Amount in Millions |
|---|---|
| Net Cash Provided by Operating Activities | $62.8 |
| Net Cash Used in Investing Activities | ($56.5) |
| Net Cash Used in Financing Activities | ($54.7) |
| Cash and Cash Equivalents at End of Period | $16.2 |
Debt and Liquidity
Brinker International’s debt structure as of September 25, 2024:
| Debt Category | Amount in Millions |
|---|---|
| Revolving Credit Facility | $25.0 |
| 5.000% Notes | $350.0 |
| 8.250% Notes | $350.0 |
| Finance Lease Obligations | $101.1 |
| Total Long-term Debt | $826.1 |
Shareholder Equity
As of September 25, 2024, Brinker International’s shareholders' equity was reported as:
| Equity Component | Amount in Millions |
|---|---|
| Common Stock | $6.0 |
| Additional Paid-In Capital | $697.9 |
| Accumulated Deficit | ($158.1) |
| Treasury Stock | ($526.9) |
| Accumulated Other Comprehensive Loss | ($6.2) |
| Total Shareholders’ Equity | $12.7 |
Market Position
Brinker International focuses on expanding its footprint through restaurant openings and enhancing customer experience through menu innovation and service improvements.
How Brinker International, Inc. (EAT) Makes Money
Overview of Revenue Sources
Brinker International, Inc. generates revenue primarily through two segments: Company-owned restaurants and franchise operations. The main brands under Brinker include Chili’s Grill & Bar and Maggiano’s Little Italy.
Company-Owned Restaurant Revenues
For the thirteen-week period ended September 25, 2024, the total Company sales were $1,127.3 million, compared to $1,002.0 million for the same period in 2023. This represents an increase of approximately 12.5% year-over-year.
The breakdown of Company sales includes:
- Chili's: $1,018.9 million
- Maggiano’s: $108.4 million
Franchise Revenues
Franchise revenues for the same period amounted to $11.7 million, slightly up from $10.5 million in the previous year, marking an increase of 11.4%. The increase was primarily driven by higher royalties and franchise advertising revenues.
Revenue Composition
The revenues can be categorized as follows:
| Revenue Source | Amount (in millions) |
|---|---|
| Company Sales | $1,127.3 |
| Franchise Revenues | $11.7 |
| Total Revenues | $1,139.0 |
Comparable Restaurant Sales Growth
Comparable restaurant sales saw a significant increase across both segments:
- Chili's: 14.1% increase
- Maggiano's: 4.2% increase
Cost Structure
In the same quarter, operating costs and expenses totaled $1,082.6 million, up from $988.3 million in the previous year. Key components of these costs included:
| Cost Type | Amount (in millions) |
|---|---|
| Food and Beverage Costs | $284.3 |
| Restaurant Labor | $377.4 |
| Restaurant Expenses | $313.9 |
| Depreciation and Amortization | $46.3 |
| General and Administrative | $51.8 |
| Other (Gains) and Charges | $8.9 |
Operating Income
Brinker International reported an operating income of $56.4 million for the thirteen-week period, compared to $24.2 million in the previous year, demonstrating an increase in profitability.
Net Income and Earnings Per Share
The net income for the period was $38.5 million, with basic and diluted earnings per share of $0.86 and $0.84, respectively. This is a significant increase from the $7.2 million net income reported in the same period of the previous year.
Cash Flow and Liquidity
Net cash provided by operating activities was $62.8 million, up from $59.1 million in the prior year. The increase is attributed to higher operating income.
Future Outlook and Strategic Initiatives
Brinker International plans to continue expanding its franchise operations, with 14 new franchise restaurant openings during the thirteen-week period ended September 25, 2024. The company aims to strategically pursue international expansion through development agreements with existing franchise partners.
Conclusion
Brinker International, through its robust revenue generation from both Company-owned and franchise operations, alongside effective cost management, positions itself for continued growth and profitability in the competitive casual dining market.
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Article updated on 8 Nov 2024
Resources:
- Brinker International, Inc. (EAT) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Brinker International, Inc. (EAT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Brinker International, Inc. (EAT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.