Q4 2024 Brinker International Inc Earnings Call Transcript
Key Points
- Brinker International Inc (EAT) reported strong year-over-year top-line growth with consolidated comp sales of positive 13.5%.
- Chili's comps came in at positive 14.8%, driven by price of 8.1%, positive mix of 0.8%, and positive traffic of 5.9%.
- The company experienced a significant improvement in restaurant operating margin, with a 210 basis point increase year-over-year.
- Brinker International Inc (EAT) has successfully implemented operational simplifications, reducing the Chili's menu by 22% and improving technology reliability.
- The company has made substantial investments in labor and facilities, leading to record food grade scores and improved guest experiences.
- Maggiano's reported a negative 8.9% traffic growth, despite positive comp sales driven by price and mix.
- The company anticipates wage rate inflation and commodity inflation, which could impact margins.
- Incremental planned investments in labor ($15 million to $20 million) and media ($15 million to $18 million) may pressure margins.
- Restaurant repairs and maintenance expenses were significantly higher, up $16 million year-over-year in the fourth quarter.
- The company is mindful of potential macroeconomic softness, which could impact traffic and sales trends.
Good day and welcome to the Brinker International's Q4 F'24 Earnings Call. (Operator Instructions) At this time, all participants have been placed on a listen-only mode. The floor will be open for questions and comments following the presentation.
It is now my pleasure to turn the floor over to your host, Kim Sanders, Vice President of Investor Relations. Ma'am, the floor is yours
Thank you, Holly, and good morning, everyone, and thank you for joining us on today's call. Here with me today are Kevin Hochman, President and Chief Executive Officer; and Mika Ware, our new Chief Financial Officer. Results for our fourth quarter were released earlier this morning and are available on our website at Brinker.com. As usual, Kevin and Mika will first make prepared comments related to our strategic initiatives and operating performance. Then we will open the call for your questions.
Before beginning our comments, I would like to remind every one of our safe harbor regarding
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