The spike in **Cash and Cash Equivalents** for Q4 2024 was primarily driven by a strong increase in **Net Cash Provided by Operating Activities**—rising from **$256.3 million** in fiscal 2023 to **$421.9 million** in fiscal 2024—combined with modest changes in investing and financing activities that together resulted in a **net increase of $49.5 million** in the cash balance. This improvement was achieved despite higher outflows in both investing (notably in property and equipment) and financing activities (mainly from debt repayments) because the robust operating cash flows more than offset these uses of cash.  **[0000703351-24-000030_eat-20240626.htm:57]** **[0000703351-24-000027_fy24q4ex991-earningsrelease.htm:5]** 

Why did Cash and Cash Equivalents spike in Q4 2024?

The increase in Total Assets for Q4 2024 was primarily driven by a **significant rise in cash and cash equivalents** (an increase of **$49.5 million**), **growth in net property and equipment** (up by **$71.4 million** due to investments in restaurant development and upgrades), and **an increase in deferred income taxes** (an additional **$20.5 million**). These gains, however, were partially offset by a **decline in operating lease assets** (a decrease of **$39.7 million**).  **[0000703351-24-000030_eat-20240626.htm:56]** **[0000703351-24-000027_fy24q4ex991-earningsrelease.htm:4]** 

What drove the increase in Total Assets in Q4 2024?

The significant drop in **Long-term Debt and Finance Leases, Less Current Installments** in Q2 2025 was primarily due to the company's strategic debt management actions. They repaid their **$350.0 million 5.000% notes** that matured on **October 1, 2024**, which directly reduced the debt level. This repayment was partially offset by **$215.0 million drawn** on their revolving credit facility, but the net effect was still a large reduction. Additionally, there was a slight change in finance lease obligations that further contributed to the decline.  **[0000703351-25-000006_eat-20241225.htm:9]** **[0000703351-24-000040_eat-20240925.htm:8]** **[0000703351-25-000006_eat-20241225.htm:29]** 

Why did Long-term Debt drop significantly in Q2 2025?

58dacd451bb7c297f0ad7435a07a115ede2e891b734c8131aa7f39cd4dfaef2b

The surge in operating cash flow in FY 2024 was primarily driven by **higher operating income** and the **beneficial timing of operational receipts and payments**, which substantially boosted the cash flows from operations. These positive effects were partially offset by **higher income tax payments** during the period.  **[0000703351-24-000030_eat-20240626.htm:47]** **[0000703351-24-000030_eat-20240626.htm:57]** 

What drove the surge in operating cash flow in FY 2024?

In Q1 2025, operating cash flow did not drop significantly; it actually increased from **$59.1 million** in Q1 2024 to **$62.8 million** in Q1 2025. The change was primarily due to higher operating income, although this was partially offset by increased payments for performance-based compensation, higher interest payments on the 8.250% notes, and timing differences in other operational receipts and payments.  **[0000703351-24-000040_eat-20240925.htm:22]** **[0000703351-24-000040_eat-20240925.htm:3]** 

Why did operating cash flow drop significantly in Q1 2025?

The increased stock-based compensation in FY 2024 was driven by several factors. **First**, the company achieved **higher business performance**, significantly exceeding planned targets for its annual and long-term performance-based compensation plans, which resulted in a **$13.2 million increase in general and administrative expenses during the fourth quarter of FY 2024**.  **[20240814DA83686:0]**  **Second**, the company granted new performance shares under its stock-based compensation plans that are contingent on meeting performance goals such as earnings and relative Total Shareholder Return (TSR), thereby contributing to the higher expense.  **[0000703351-24-000030_eat-20240626.htm:80]**  **Third**, there was an increase in restricted share awards, with outstanding awards rising from **1.5 million shares in FY 2023** to **1.6 million shares in FY 2024**, with each award having a weighted average grant date fair value of **$35.12**.  **[0000703351-24-000030_eat-20240626.htm:80]** 

What contributed to the increased stock-based compensation in FY 2024?

The spike in **long-term debt payments** in Q2 2025 was primarily caused by the refinancing of Brinker International's **$350.0 million 5.000% notes**, which matured in October 2024. The company refinanced these notes through its existing revolving credit facility.  **[0000703351-25-000004_fy25q2ex991-earningsrelease.htm:5]** **[0000703351-25-000006_eat-20241225.htm:29]** 

What caused the spike in long-term debt payments in Q2 2025?

The surge in revolving credit facility borrowings in **Q2 2025** was primarily driven by the company's use of the facility to repay **$350.0 million** of 5.000% senior notes that matured on **October 1, 2024**, in addition to its continued use for general corporate purposes in the period.  **[0000703351-25-000006_eat-20241225.htm:9]** **[0000703351-25-000004_fy25q2ex991-earningsrelease.htm:5]** 

Why did revolving credit facility borrowings surge in Q2 2025?

e6c85ea3643b133d3a95c57b63b53378ed8a08c60dfbe4f267ab78720fdc8f52

The sharp increase in Company Sales in Q2 2025 was primarily driven by Chili's outstanding performance. **Chili's comparable restaurant sales increased by 31.4%**, fueled by a **19.9% boost in traffic** resulting from targeted advertising investments and operational improvements.  **[20250129DA06745:0]** **[0000703351-25-000004_fy25q2ex991-earningsrelease.htm:0]**  Additionally, Chili's Company Sales surged by **USD 280.0 million year-over-year**, significantly contributing to the overall sales growth.  **[0000703351-25-000004_fy25q2ex991-earningsrelease.htm:1]** **[20250129DA06745:1]**  **Maggiano's** also played a role, though more modestly, with a slight increase in sales due to menu pricing adjustments. Furthermore, improvements in sales leverage and the introduction of new menu items, along with enhanced marketing efforts that revitalized brand relevance, collectively supported the impressive growth in Q2 2025.  **[EAT_3413536_14]** **[EAT_3413536_5]** 

What drove the sharp increase in Company Sales in Q2 2025?

The operating income surge in FY 2024 was driven by **multiple factors**. **Higher revenues** played a key role, as the company experienced increased comparable restaurant sales driven by **menu price increases** and an improved **menu item mix**, along with contributions from **new restaurant openings** and **higher franchise revenues**.  **[20240814DA83686:0]** **[0000703351-24-000030_eat-20240626.htm:42]**  The company also benefited from **improved cost efficiencies**. Specifically, **food and beverage costs as a percentage of sales improved by 2.7%** due to lower commodity costs and a favorable menu mix, and **restaurant labor costs improved by 0.4%**, thanks to sales leverage and lower other labor costs.  **[0000703351-24-000030_eat-20240626.htm:43]**  Additionally, the **restaurant operating margin (non-GAAP) increased from 11.2% to 13.3%**, reflecting better overall operational efficiency, despite a modest rise in advertising and repairs costs and increased general and administrative expenses.  **[20240814DA83686:0]** **[0000703351-24-000027_fy24q4ex991-earningsrelease.htm:7]** **[0000703351-24-000030_eat-20240626.htm:43]** 

What factors contributed to the Operating Income surge in FY 2024?

The **Net Income** jump in **Q1 2025** was driven primarily by a **significant increase in company sales** and **improved operating income**. Company sales rose to **$1,127.3 million** compared to **$1,002.0 million** in the previous year, bolstered by a **13.0% increase in comparable restaurant sales** due to better menu pricing and increased guest traffic. Additionally, the operating income improved substantially, supported by enhanced **restaurant operating margin expansion** (from **10.4%** to **13.5%**) and lower interest expenses, while tax benefits also played a role in boosting the bottom line.  **[0000703351-24-000035_fy25q1ex991-earningsrelease.htm:0]** **[20241030DA43838:0]** **[0000703351-24-000040_eat-20240925.htm:1]** **[20241030DA43838:6]** **[20241030DA43838:1]** 

Why did Net Income jump in Q1 2025?

The significant increase in Basic EPS in Q2 2025 was driven by a combination of factors, including **robust revenue growth** (with sales rising by **$282.4 million** to **$1,346.1 million**, aided by a **27.4% increase in comparable restaurant sales** and improved traffic, especially for Chili's), **improved operating margins** (with operating income margins increasing from **5.8%** to **11.5%** and better restaurant margins), enhanced **cost efficiencies** (including favorable labor cost improvements and tighter cost management), deliberate **marketing and operational investments** (such as menu simplification, recipe upgrades, and kitchen technology enhancements boosting guest satisfaction), and **lower interest expenses** (decreasing from **$16.7 million** to **$14.7 million**).  **[20250129DA06745:0]** **[0000703351-25-000004_fy25q2ex991-earningsrelease.htm:0]** **[0000703351-25-000006_eat-20241225.htm:1]** **[EAT_3413536_5]** **[EAT_3413536_1]** **[EAT_3413536_2]** 

What led to the significant rise in Basic EPS in Q2 2025?

In **Q2 2025**, Food and Beverage Costs were substantially higher—rising by **$70.8 million** from **$273.1 million** to **$343.9 million**—primarily due to **higher commodity costs** from produce and poultry and a **0.5% unfavorable menu item mix**, though these impacts were partially offset by **1.2% favorable menu pricing**.  **[0000703351-25-000004_fy25q2ex991-earningsrelease.htm:4]** **[0000703351-25-000006_eat-20241225.htm:1]** **[0000703351-25-000006_eat-20241225.htm:23]** **[0000703351-25-000006_eat-20241225.htm:26]** **[0000703351-25-000006_eat-20241225.htm:24]** 

Why were Food and Beverage Costs substantially higher in Q2 2025?

cb77a80fd1fce238b9f06948e4f803eeee589d63857f35143003d27eba42d67e

59c4eb3f8f0926f59ada7db398d5dd0f2e47bdf08348f1932c0589af72c84c78

Income Taxes Payable, Net (USD, millions)

Total Current Liabilities (USD, millions)

Long-term Debt and Finance Leases, Less Current Installments (USD, millions)

Long-term Operating Lease Liabilities, Less Current Portion (USD, millions)

Other Liabilities (USD, millions)

Common Stock (USD, millions)

Additional Paid-in Capital (USD, millions)

Accumulated Other Comprehensive Loss (USD, millions)

Accumulated Deficit (USD, millions)

Treasury Stock, at Cost (USD, millions)

Total Shareholders’ Equity (USD, millions)

Total Liabilities and Shareholders’ Equity (USD, millions)

44247a337b9c29ad06fc231b3cc0f66b5746cb8b345914151bc8c2a0b4859668

Company Sales (USD, millions)

Franchise Revenues (USD, millions)

Total Revenues (USD, millions)

Food and Beverage Costs (USD, millions)

Restaurant Labor (USD, millions)

Restaurant Expenses (USD, millions)

Depreciation and Amortization (USD, millions)

General and Administrative Expenses (USD, millions)

Other (Gains) and Charges (USD, millions)

Total Operating Costs and Expenses (USD, millions)

Operating Income (USD, millions)

Interest Expenses (USD, millions)

Other Income, Net (USD, millions)

Income Before Income Taxes (USD, millions)

Provision for Income Taxes (USD, millions)

Net Income (USD, millions)

Basic Net Income per Share (USD)

Diluted Net Income per Share (USD)

Basic Weighted Average Shares Outstanding (Millions)

Diluted Weighted Average Shares Outstanding (Millions)

Comprehensive Income (USD, millions)

8d02d6e29a61c2236a8fe46d1c82bcd0268547834a038c75de3b13a8c479ad28

Chili's

- Franchise

Maggiano's

Corporate

Total Revenue

2a630e591fae1fec402fa48802140fe277c6ab43c1b0f34d18e670ce9c1befc3

Current Assets (USD, millions)

Cash and Cash Equivalents (USD, millions)

Accounts Receivable (USD, millions)

Inventory (USD, millions)

Non-Current Assets (USD, millions)

Property, Plant, and Equipment (USD, millions)

Goodwill (USD, millions)

Intangible Assets (USD, millions)

Current Liabilities (USD, millions)

Accounts Payable (USD, millions)

Short-term Debt (USD, millions)

Accrued Expenses (USD, millions)

Non-Current Liabilities (USD, millions)

Long-term Debt (USD, millions)

Lease Liabilities (USD, millions)

Deferred Tax Liabilities (USD, millions)

Shareholders' Equity (USD, millions)

Retained Earnings (USD, millions)

27983526732b455497f9286b6d0da3d941bf3e6f4423a32066fd6c17a2e78af2

Total Revenue (USD, millions)

Cost of Goods Sold (COGS) (USD, millions)

Selling, General, and Administrative Expenses (SG&A) (USD, millions)

Research and Development (R&D) (USD, millions)

Depreciation and Amortization (D&A) (USD, millions)

Interest Expense (USD, millions)

Operating Income (EBIT) (USD, millions)

Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

906e8cbe9c77c213f23f37c7e531eb7f3693c3b33e90291b230ef733d1bcbdb8

Adjustments for Non-Cash Items (USD, M)

Stock-Based Compensation (USD, M)

Changes in Working Capital (USD, M)

Capital Expenditures (CapEx) (USD, M)

Proceeds from Debt (USD, M)

Repayments of Debt (USD, M)

Share Repurchases (USD, M)

Dividend Payments (USD, M)

Net Change in Cash (USD, M)

9081b1cfa0617382b6aa62bb8d45ee31528f2115fd8625922df4bac16bc27b2b

BRINKER INTERNATIONAL (EAT)

Financials