Isaiah Austin's questions to Brinker International Inc (EAT) leadership • Q3 2025
Question
Speaking for Sara Senatore, Isaiah Austin asked about trends in the value and promotional environment and the reason for slightly lower operating leverage in Q3 versus Q2 despite similar sales growth.
Answer
CEO Kevin Hochman noted that while the promotional environment is intensifying, it is not impacting their business due to their strong value equation of price plus experience. CFO Mika Ware explained the lower leverage was due to labor costs normalizing in Q3; the company had 'over-earned' on labor in Q2 when it was understaffed before ramping up hiring.